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Made by:
Zehreele boys of MBA
AIMS OF THIS PRESENTATION

1. What is Walmart and It’s marketing strategies?

2.Why Walmart came into India?
3.Key Challenges in India.
4.Competitors in India.
5. Negative effects of Walmart’s entry into India.
6. Positive effects of Walmart’s entry into India.
Wal-Mart
World’s biggest retailer.
Largest Public corporation by revenue.
First store opened at Arkansas in 1962 by Sam Walton.
One of the World’s largest Private Employer.
Wal-Mart has different types super stores, super
markets, and Wal-Mart discount stores.
Cont’d
Today, Wal-Mart operates more than 10,000 retail
units under 69 banners in 27 countries. It employs
2.2 million associates around the world — 1.4
million in the U.S. alone.
Wal-Mart offer a one-stop shopping experience for
electronics, apparel, toys and home furnishings with
the added convenience of a grocery store with fresh
produce, bakery, deli and meat and dairy products.
Wal-Mart
Wal-Mart
Mission To give ordinary people the chance to
buy the same thing as rich people.
Product strategy 1. Lowest prices across the product
lines
2. Product Core competency-
Low Prices, In-stock positions,
Customer service.
Service strategy 1. Respect for the individual.
2. High standards of service
3. Constant strive for excellence.
Segmentation Middle-class, Lower middle class

Positioning Consistent Positioning through

“always low prices”
Wal-Mart Expansion: Past Track Record
Country Mode Strategy Results
Canada Acquired a Weak •Operating in Very Successful
Player markets which
required min.
adaptation.
•High Brand
Recognition
Segment.
UK Acquired ASDA M & ASynergies Successful
Competition from
Tesco.
Germany Acquired a Big Leveraged Failed-cultural &
Player ‘Werkauf’ Acquired Network operational issues.
China Greenfield Sourced from Neutral Labour
Operations Chinese suppliers; Union and Law
focused on need Suit issues.
gaps.
What brings Wal-Mart to India?
Retailing in India is emerging as one of the largest
industries, with a total market size of $450 billion in 2012
and growing at a grwth rate of 5%.
A tremendous market Emergence of middle class.
Consumer spending growing rapidly - 60% of Indian
population is in age group of 20-30 & is more inclined
towards modern shopping.
With the opening up of Indian Retail sector for FDI up to
51% Findings in multi-brand retail, India is set to become
hub of Multinational Retailers from across the Globe.
Cont’d
India's position as the world's second-largest producer
of fruits and vegetables- so, refrigerated distribution of
fruits and vegetables can add value to customers by
means of low price and wide range of merchandise.
JVof Bharti-Walmart
On November 2006, Wal-Mart Stores Inc. and Bharti
Enterprises Ltd. signed a (MoU) to explore business
opportunities in the Indian retail industry.
Bharti's JV with Wal-Mart is for cash-and-carry stores
(wholesale) --- which sell products in bulk to other
retailers.
Bharti manages the front end, involving opening of
retail outlets, while Wal-Mart takes care of the back
end operations, such as cold chains and logistics.
Bharti-Walmart operates stored in India under the
brand name "Best Price Modern Wholesale".
90 per cent of sourcing would be from the local market
and going forward this joint venture would help in
in•creasing Wal-Mart’s global sourcing from India.
Products- are food, FMCG, vegetables, general
merchandise and electronics.
Members/cust.- are small kirana shop owners, hotels,
restaurants, schools, colleges, the police force and even
the Indian Army.
Cont’d
50:50 joint venture: In India, Wal-Mart has a 50:50
joint venture with Bharti Enterprises in the wholesale
cash-and-carry segment.
Direct Farm Program: Partnership with 110small and
marginal farmers encourages cultivation of safe, high-
quality, seasonal vegetables.
Training centers: Bharti-WalMart (Best Price Modern
Wholesale) intends to set up its own training centers
to train less-privileged youth to work in retail stores.
WALMART-FLIPKART DEAL

The $16 billion Walmart-Flipkart deal marks a

milestone in the world's largest e-commerce deal
ever. The Bentonville, Arkansas-based global retail
behemoth on Wednesday signed a definitive
agreement to become the largest shareholder
in Flipkart Group. The latest deal puts Walmart
directly on the map of India's growing e-commerce
market - estimated to be around over $200 billion
by 2026 - against the likes of the US e-Com player
Amazon.
Walmart will pay $16 billion for an initial stake of 77 per cent in Flipkart,
valuing the e-tailer close to $20 billion. The remainder of the business will be
held by some of Flipkart's existing shareholders, including Flipkart co-
founder Binny Bansal, Tencent Holdings Limited, Tiger Global Management
LLC and Microsoft Corp.
Key Challenges in India
FDI Restrictions –
FDI Restrictions of 51% on Multi-brand Retail.
Social & Political Resistance –
A strong opposition from certain political parties is
certainly expected in some parts of society – local
retailers, dealers would protest.
Countering deep penetration of ‘Mom & Pop’ Stores -
Especially in Tier-II & III cities, the network of ‘Kirana
Stores’ is extensive. Also sales on credit facility is
available which Wal-Mart cannot do.
Cont’d
Poor Infrastructure will cause friction –
Indian standards of roads, ports & freight facilities are
way below global benchmark. It will lead to
inefficiency in the value chain.
Regional Diversity amd heterogenity–
Challenge to have tactics according to regional/
ethical requirements.
Competitors of Wal-Mart inIndia
NAMES CATEGORY TARGET SEGMENT
Big Bazaar (Future Diversified Merchandise Middle Class
Group)
Pantaloons (Future Apparels, Accessories Upper MiddleClass +
Group) Lower Middle Class

Shopper’s Stop Apparels, Accessories Mostly Upper Class

Lifestyle

Star Bazaar(Tata Group) Diversified Merchandise Upper MiddleClass +

Lower Middle Class

Spencer’s Merchandise Middle Class +Upper

More Middle Class
D mart
Strategic Gaps of Wal-Mart.
Wal-Mart is limited mainly to Metros, Tier-I cities.
Huge potential lies in sub-urban, rural markets, Tier-II
&Tier-III cities.
Geographical Gaps – Markets like North East of India
are yet to be explored.
Truly Global Shopping Experience missing in Indian
Retail Stores.
( Wal-Mart has to incorporate Indian Values &
preferences while designing the business model. Focus
on strategic gaps critical for its eventual success.)
Negative effects due to Wal-Mart’s
entry in the Indian retailindustry
Loss of Business
Many of the small scale department stores in India are the
major contributors to the Indian economy, the entry of
Wall- Mart into Indian market may lead to loose the
business to many of the middle and small scale people.
Low price products
Wall- Mart in order to capture the Indian market is trying
to introduce low price strategy on their products which in
turn affect the other local businesses. Local traders later
also should implement this pricing strategy which may
affect their profit margin.
Cont’d
Creates excess competition
Due to the entry of Wall –Mart into the Indian market
the competition may increase between local retailing
businesses like Pantaloon, Reliance etc. we can see a
tough competition between these business units in
future .
Local traders
Local traders from the major of the cities were
opposed the entry of retail giant Wal-Mart especially
in Delhi because it will affect the local traders or
business man and also for small retail shops.
Positive effects due to Wal-Mart’s
entry in theIndian retail industry
Win-Win situation for farmers-
The profit realization for farmers selling
directly to the organized retailers is expected
to be much higher than that received from
selling in the mandis.

 Improvement in supply
chain/infrastructure-
Incr. in invst. in both forward and backward
infrastructure such as cold chain and storage
infrastructure, warehousing and distri.n
channels thereby leading to improvement in
the supply chain infrastructure in the long
run.
Cont’d
Inflow of massive capital
Wal-Mart would bring in needed invst that
would spur the further grwth of retail sector.
High invst would be important for the
sustenance during economic slump, otherwise
co. would be out of market. Such as the case with
Vishal, Subhiksha and Koutons, which couldn't
arrange for funds.
More jobs across the supply chain.
It would lead to the creation of millions of jobs
as massive infrastructure capabilities would be
needed to cater to the changing lifestyle needs of
the urban India who is keen on allocating the
disposable income.
Cont’d
Wal-Mart's entry in India would bring with itself the
technical know-how, global best practices, quality
standards and cost competitiveness
Reduction in losses of agriculture produce.
Removal of unnecessary intermediaries in retail value
chain.
World class stores with good customer service
Everyday Low Prices
Quality assortment of merchandise
Increased govt. revenue.