Marketing plan for Wal-Mart China -Five Year (2012 to 2016) Plan

This Assignment Is Published With Permission From The Author For Online Review Only
All Rights Reserved @ ChinaAbout.Net

 

Executive summary

 

This marketing plan aims at providing a comprehensive marketing plan to guide and provide theoretical support to the expansion of Wal-Mart China in the next five years. This study begin with a careful situational analysis of the market, macro environment, industrial environments and internal analysis of Wal-Mart China and it is followed by setting objectives of the company in term of the market share and financial objectives based on the company’s core value, culture and mission, and the major part of the study is the marketing strategies which include the selection of generic strategies and the marketing mix strategies. And the study in the end also provides budgeting, implementation and control systems to show how the marketing plan will be carried out and evaluated.

List of figures

Figure 1 China’s claimed territorial waters and disputed islands…………………….. 6

Figure 2 Score of China in Hofstede’s Five Cultural Dimensions……………………. 8

Figure 3 The World Average Levels in Hofstede’s Five Cultural Dimensions……. 8

Figure 4 Porter’s Five Forces model………………………………………………………….. 10

Figure 5 Product life cycle model……………………………………………………………… 12

Figure 6 The generic strategies………………………………………………………………….. 17

 

List of tables

Table 1 Marketing budget and implementation in 2012……………………………….. 22

Table 2 Marketing budget and implementation in 2013……………………………….. 23

Table 3 Marketing budget and implementation in 2014……………………………….. 24

Table 4 Marketing budget and implementation in 2015……………………………….. 25

Table 5 Marketing budget and implementation in 2016……………………………….. 26

Table 6 Control and review of the major targets and effectiveness of marketing activities     27

 

List of charts

Chart 1 Economy growth rate from 1990 to present in China…………………………. 7

Chart 2 Configuration of the four trillion yuan stimulus package……………………. 9

 

Content page

Executive summary………………………………………………………………………………………….. 1

List of figures………………………………………………………………………………………………….. 2

List of tables…………………………………………………………………………………………………… 2

List of charts…………………………………………………………………………………………………… 2

1.     Introduction of Wal-Mart China………………………………………………………………….. 5

2.     Situational analysis…………………………………………………………………………………….. 5

2.1           Market analysis…………………………………………………………………………….. 5

2.2           Scanning macro-environmt using PEST analysis……………………………….. 6

2.2.1     Political environment………………………………………………………………. 6

2.2.2     Economic environment……………………………………………………………. 7

2.2.3     Social and cultural environment………………………………………………… 8

2.2.4     Technological environment………………………………………………………. 9

2.3           Scanning competitive level using Five Forces Analysis…………………….. 10

2.3.1     The threat of entry (Middle)…………………………………………………… 11

2.3.2     The power of suppliers (Low)…………………………………………………. 11

2.3.3     The threat of substitutes (Middle)……………………………………………. 11

2.3.4     Competitive rivalry (Medium)………………………………………………… 12

2.3.5     The bargaining power of the buyers (Low)……………………………….. 13

2.4           Customers analysis………………………………………………………………………. 13

2.5           SWOT analysis……………………………………………………………………………. 14

2.5.1     Strength……………………………………………………………………………….. 14

2.5.2     Weakness……………………………………………………………………………… 14

2.5.3     Opportunity………………………………………………………………………….. 14

2.5.4     Threat………………………………………………………………………………….. 14

3.     Objectives………………………………………………………………………………………………. 15

3.1           Corporate mission and core values…………………………………………………. 15

3.2           Product objectives……………………………………………………………………….. 15

3.3           Marketing share objectives……………………………………………………………. 15

3.4           Financial objectives……………………………………………………………………… 16

4.     Target market………………………………………………………………………………………….. 16

4.1           Segmentation……………………………………………………………………………… 16

4.2           Positioning…………………………………………………………………………………. 16

5.     Marketing strategies…………………………………………………………………………………. 17

5.1           The generic strategies…………………………………………………………………… 17

5.2           Marketing mix 4P’s……………………………………………………………………… 18

5.2.1     Product………………………………………………………………………………… 18

5.2.2     Price……………………………………………………………………………………. 18

5.2.3     Promotion…………………………………………………………………………….. 19

5.2.4     Place……………………………………………………………………………………. 21

6.     Budget and implementation………………………………………………………………………. 22

7.     Control…………………………………………………………………………………………………… 27

8.     Conclusion……………………………………………………………………………………………… 27

Reference……………………………………………………………………………………………………… 29

 

Marketing plan for Wal-Mart China

-Five Year (2012 to 2016) Plan

1.        Introduction of Wal-Mart China

 

Walmart Stores, Inc. was founded by American retail legend Mr. Sam Walton in Arkansas of the United States in 1962. By creating a Wal-Mart business model which is featured by global sourcing, cost leadership and advanced inventory control and high CSR (Corporate Social Responsibility) commitment (Wong & Rae 2011, p.144), Wal-Mart soon developed itself as one of the largest business in the world. Wal-Mart entered China in August 1996. It now has 333 stores in the Chinese market, including 104 stores operated by Trust-Mart. Though Wal-Mart has long established itself as a global leader in the retail industry, its operation in the Chinese market has not been easy recently. Statistics from the consulting firm Monitor Group show that by sales, Wal-Mart’s megastores gained only 5% market share in 2010. The retailer’s operating revenue in China was US Dollar 7.5 billion during the year 2010, accounting for merely 2% of its worldwide revenue which totaled USD420 billion (Monitor.com 2011). On march, Roland Lawrence, Wal-Mart’s chief financial officer in China, and Rob Cissell, its China chief operating officer have both resigned (Reuters.com 2011), the changes in the top management has shown the company’s effort to stabilize the declining trend of the market share and seek to make a turnaround in the fast growing Chinese consumer market, this marketing plan tries to provide a comprehensive marketing plan to guide and provide theoretical support to the expansion of Wal-Mart China in the next five years.

 

2.        Situational analysis

 

2.1    Market analysis

 

According to the analysis of Credit Suisse First Boston, the consumer market is growing at a speed of 18% which is higher than the GDP growth rate, and within the next decade, the contribution of domestic consumption to GDP will increase from 44 percent to more than 50 percent (Avery, Zhu & Cai 2009, p.224). The fast growth of the consumer market will definitely provide a bigger market size to the retailers of any size.

 

2.2    Scanning macro-environmt using PEST analysis

 

2.2.1            Political environment

 

Figure 1 China’s claimed territorial waters and disputed islands

 

In the international arena, recently China has been involved in the South China Sea dispute in which a number of neighboring countries had also claimed territory and sovereignty over ocean areas and the Paracels and the Spratlys. According to US EIA (Energy Information Administration), the disputed area holds about 900 trillion cubic ft (25 trillion cubic m) – the same as the proven reserves of Qatar (Bbc.co.uk 2011). Though the frictions between China and the involved other countries have increased and intensified and this is regarding the country’s sovereignty issues in which the attitude Chinese government has always been very firmed and has enough of military power to claim the rights as it does for two thousand years, soon after some demonstrations happened in Indonesia, the Chinese government and the ASEAN nations reached a series of important consensuses on Wednesday on implementing the 2002 Declaration of the Conduct in the South China Sea (DOC) to make cooperation the theme in the South China Sea (Chinadaily.com.cn 2011). From the handling of the South China Sea dispute, the neighboring countries again testified that China is still focusing on the fast economy development that it is enjoying since 1980s, and stability is the above all priority for which it would rather give up some economy interests that other countries are eyeing for. Similar stability principle could also be found within the country in term of social and political life and such stability is also expected to continue in the foreseeable future.

 

2.2.2            Economic environment

 

Chart 1 Economy growth rate from 1990 to present in China

Source: Tradingeconomics.com 2011

 

Remarkable changes have happened to the Chinese economy with the institutional reforms that began in 1978, and since 1980s the China has been the world’s fastest-growing economy (Gwartney, Stroup, Sobel & MacPherson 2009, p.356). As the economy of China stepped into the 1990s steady double digit GDP growth has been sustained as the chart above indicates. In 2010, China eventually surpassed japan to become the world’s second largest economy after the United States only (Wang 2010, p.103). And the fast and continual economy growth has provided very good opportunities for international business especially the Multinational Enterprises (MNEs).

 

2.2.3            Social and cultural environment

 

Figure 2 Score of China in Hofstede’s Five Cultural Dimensions

Source: Adapted from Hofstede 2004

 

Figure 3 The World Average Levels in Hofstede’s Five Cultural Dimensions

Source: Adapted from Hofstede 2004

 

To analyze the Chinese culture and social convention, we use Hofstede’s Five Cultural Dimensions which through examining the five dimensions (Power Distance, Uncertainty Avoidance, Individualism, Masculinity and Long Term Orientation) to explain the culture diversity of the countries (Lane 2006, p.33). By comparing the world’s average level in the five cultural dimensions, we can find out some general images of the culture in China: firstly, in the dimension of Individualism (IDV) China has a much lower score than world average and it is also lower than any other Asian country (Auflage 2006, p.6). This exhibits that fact that the Chinese society promotes strong relationships where everyone takes responsibility for the members of their respective group; secondly, in the dimension of Long-Term Orientation (LTO) like many other countries such as Japan and South Korea, people in China with high level of the “Confucian Dynamism”[1] are more willing to save money for the future and promote the values of persistence, thrift and sense of shame. These culture factors have influential impacts on the consumer behaviors.

 

2.2.4            Technological environment

 

Chart 2 Configuration of the four trillion yuan stimulus package

Source: Jeffries 2011

 

China is now enjoying its demographic dividend[2] currently which will continue in the coming decade, but the Chinese government has never been content to be the world’s factory, even during the current economy crisis the government still vigorously promoted innovation and increased support for work in science and technology (Report on the Work of the Government 2011). As the chart above shows within the four trillion yuan stimulus package which was issued by the Chinese government to increase the domestic demand during the economy crisis, investment in fundamental transportation construction (45%) and technological innovation (9%) could both help the largest developing country to catch up with the developed countries though right now technology development level is still far away from the world’s leading level.

 

2.3    Scanning competitive level using Five Forces Analysis

 

Figure 4 Porter’s Five Forces model

Source: Adapted from (Porter 1980)

 

With the help of the famous Porter’s Five Forces model, we will look at five key factors that affect the competitive environment within the retailing industry: The threat of entry, The power of suppliers, The threat of substitutes, Competitive rivalry and The bargaining power of the buyers.

 

2.3.1            The threat of entry (Middle)

 

It is true that the number of retailers is large and any investors with enough of fund could start up a retail business, but with the exit of the current retailers and entry of the new players it seem that it is normal to expect the entry of new competitors. And also because of the large numbers of the retailers in the industry, and most of them are small in scale, it should be safe to conclude that the threat of entry in the Chinese market is medium, at least it is true for large supermarkets like Wal-Mart.

 

2.3.2            The power of suppliers (Low)

 

Like what it does in the United States market, Wal-Mart has itself become a brand that is more powerful than the brands of manufacturers (Hill & Jones 2010, p.52) and because of the careful check of the quality of the goods that are sold by Wal-Mart, people go to Wal-Mart stores to purchase goods would not need to think about too much which brand to choose but price is the more important factors. And from the suppliers’ perspective, the large market share that Wal-Mart has equals to great business opportunity to any manufactures to sell its products national wide using Wal-Mart’s well-constructed sale network.

 

2.3.3            The threat of substitutes (Middle)

 

The threat of the substitutes for the supermarket in a long time has been considered to be in a low level, but with the raising of the online shopping in China such threat of being substituted becomes more evident than ever. According to an industry report, E-commerce turnover in China jumped 22 percent in 2010 from a year earlier to 4.5 trillion Yuan (681.82 billion U.S. dollars). And the report also estimated that the online retail sale would maintains the current fast growth trend and reach 1 trillion Yuan in the next two years’ time accounting for more than five percent of the country’s total retail sales (News.xinhuanet.com 2011). The growth and increasing popularity of using online shopping such as Taobao.com, has brought substantial threat to the physical retail stores especially when some traditional defects of online shopping have been greatly improved such as the time lag of purchase, product quality concern and online transaction safety issue by the well-built express delivery system, retailer ranking system developed by Taobao.com and the maturity of online banking system.

 

2.3.4            Competitive rivalry (Medium)

 

Figure 5 Product life cycle model

Source: Reid & Bojanic 2009

 

The competitive rivalry of the retail industry in China is medium. It is generally believed that in many countries retail industry has stepped into the maturity stage marked by limited demand, slow growth rate and price competition, but the situation in China is a little bit different. With the fast growth of the economy, the demand for consumer goods are growing in a fast speed, so far the competitors could all gain the sale growth with the growth the total without fight hard to get the market share from the competitors. And also the problem of traffic jam and high fuel price in the major cities of China has reduced the direct competition between different supermarkets because many people tend to go to the near supermarket without considering whether it is Wal-Mart or Carrefour.

 

2.3.5            The bargaining power of the buyers (Low)

 

The bargaining power of the buyers is low because the most buyers are individual consumers, and they can not bargain the price with retailers. And what’s more if the customers decide to shift to a different supermarket then it could become more inconvenient for them to walk or travel to another more distant store.

 

2.4    Customers analysis

 

There are two major consumer trends in the emerging consumer market of China, the raise of middle-class shoppers and the demand for better product quality and safety. Based on the finding of a social research, the middle-class household account for 7.4 percent of the total household number in 2005 with the annual household income between US $5,000 to US $15,000 and this percentage has increased to around 11.3 in 2010. What is more important than the numbers is the purchasing power of the middle class, based a study, the middle to upper income classes in China is expected to represent about 44 percent of the consumer spending by 2015 (French & Crabbe 2010, p.19). The raise of the middle class consumers could also be found in the smaller cities rather than the big major cities only. The second major trend in the consumer market of China regarding the customer’s behaviors is the increasing demand for better product quality and safety. In the wake of the series of the product safety incidents especially the food product safety incidents such as the 2008 Chinese milk scandal in which an estimated 300,000 victims are reported (Tania 2008). And after that, consumers are now more and more willing to pay more for better quality and safer products particularly in some product categories such as food and dairy product which are essential to people’s life.

 

2.5    SWOT analysis

 

2.5.1            Strength

 

l  Localized labor force[3]

l  Leading logistic management

l  Successful global business management experience in retail industry

l  Healthy financial performance

 

2.5.2            Weakness

 

l  Small market share in China (only about 5% currently)

l  Relatively high operation cost

l  Inflexible compared to the small and medium retailers

l  Small number of stores

 

2.5.3            Opportunity

 

l  The consumer market is growing at a fast speed

l  The middle class in China is raising

l  Consumer habits are changing and more likely to welcome the supermarket

 

2.5.4            Threat

 

l  The raise of online shopping

l  Heavy traffic jam

l  Hyper competition

3.        Objectives

 

3.1    Corporate mission and core values

 

“Saving people money so that they can live better” has long been the mission of Wal-Mart Stores since its foundation in the early 1960s. The three basic principles or beliefs which are the base of the company’s culture include: Respect for the individual, Service to the customer and strive for excellence (Fisher & Vallaster 2008, p.264). The mission and core values of the company request the company to adopt a overall cost leadership strategy and people (customers and employees) oriented strategy.

 

3.2    Product objectives

 

Product objective is to provide with the target customers low price but relatively high quality product and convenient shopping experience.

 

3.3    Marketing share objectives

 

In term of the marketing share objective, the company in future financial years will be targeting at increasing Wal-Mart China’s market share in the Chinese retail market from the current 5% to 10%. And as mentioned above based on the analysis of Credit Suisse First Boston, the consumer market is growing at a speed of 18% (Avery, Zhu & Cai 2009, p.224), suppose the market growth rate will remain the same in the coming five years then in 2016 the market volume will reach US dollar 290.8 billion. In order to achieve the market share growth of 10% at the end of the five year plan, in 2016 the sale volume of Wal-Mart China (including stores operated by Trust-Mart) need to reach USD 29.08 billion which would requires its business to growth by an average annual growth rate of 40.32%. And this marketing share objective will definitely come with an ambitious marketing strategy.

3.4    Financial objectives

 

l  With the ambitious expansion strategy, the financial objectives would be as following:

 

l  Increase the revenue at an average annual growth rate of 40.32% within the next five years

 

l  Reach USD 29.08 billion in total revenue in the end of 2016

 

l  Increase the profit ratio by 5% every financial year by controlling costs (such as operation costs)

 

4.        Target market

 

4.1    Segmentation

 

By household income level, customers could be segmented into three major categories: lower income households (annual household income between less than US $5,000), middle class households (annual household income between US $5,000 to US $15,000) and higher class households (annual household income above US $15,000).

 

4.2    Positioning

 

Lower income households (annual household income between less than US $5,000), middle class households (annual household income between US $5,000 to US $15,000) will be the market segments and these two categories will cover most customers in China.

 

5.        Marketing strategies

 

5.1    The generic strategies

 

Figure 6 The generic strategies

Source: Wickramasinghe & Lubitz 2006, p.167

 

Porter (1980)’s framework of generic strategies has been extensively used in studying the strategies of companies in both domestic and international operations. And in this model, Porter identified three generic strategies which are cost leadership, differentiation and focus and also he claimed that firms should choose a generic strategy and competitive advantages would be lost if a company’s strategy would be between the three generic strategies. As for Wal-Mart China, like most super markets, it is using the strategic approach of overall cost leadership. And to support the cost leadership, the marketing needs to focus on simple product attributes and how these product attributes meet customer needs in a low cost and effective manner (Griffin 2008, p.212).

 

 

 

5.2    Marketing mix 4P’s

 

5.2.1            Product

 

Firstly, as mentioned above, by adopting the overall cost leadership generic strategy Wal-Mart China should focus on satisfying the customers’ needs with quality and low cost products rather than diversified products. By using the low cost strategy, Wal-Mart China would have to give up satisfying customers’ need of uniqueness of special products. In another word, the product lining should be limited to the extent that it could meet the needs of the majority of the customers rather than all the customers. Secondly, while providing limited products within a product line Wal-Mart China should make sure that the wide of product mix which are the number of different product lines sold by the Wal-Mart stores should be comprehensive enough to cover the product lines in the particular industry. Thirdly, in term of the branding selection of the product, on one hand Wal-Mart should continue to develop the products under the “Wal-Mart” brand that fit the expectation of the Chinese customers and would contribute to a higher profit ratio because it reduces the trading costs and on the other hand long term relationship between Wal-Mart and the major local and international brands should be built up and Wal-Mart should use its distribution network advantage and large sale volume to bargain down the purchasing price. Fourthly, while keeping focusing on selecting low cost products the product safety and quality should not be given in. In arouse of the food safety crisis in China, Wal-Mart should perform regular check on the safety of the food product, infant relative products that could become very sensitive cases if there is any major faulty.

 

5.2.2            Price

 

There are several pricing strategies that could be used at the appropriate situations to increase the sale digits and fit the customers’ physiological special activities and needs. The first pricing strategy is the      Product Bundle Pricing which sets a price for several products that are combined in a package. By bundling two or more products together with a competitive price two major targets could be achieved: on one hand, by offering a competitive price than normal products, Wal-Mart China would be able to increase the sale of the products and stimulate the customers’ desire for purchasing the products and on the other hand because the bundling is normally between a popular product and a new product that has less likely been tried by the customers if is for sale in a standalone manner, the product bundle pricing will encourage the first try of the new products by many customers who are in need of the popular product and do not mind to have a try the new brand of another bundled product that is new to them. The second pricing strategy that could be very useful to Wal-Mart China especially during the promotional period is the promotional pricing. The promotional pricing strategy could be used in a regular basis except only during the promotional period. The regular use of promotional pricing should not cover all the product lines; it should be used to stimulate the purchasing of some products according to the analysis of the sale data. The principle of the use of the promotional pricing strategy is to remind the customers that there is always something cheaper than elsewhere that may be needed by them. Another pricing technique that could be used by Wal-Mart China is the psychological pricing which prices the products so that it is more psychologically acceptable to the customers. In the traditional Chinese culture numbers are all attached with special meanings, for example number 8 represents prosperity so that 188.88 is an attractable price to the Chinese consumers than customers from other ethnic groups.

 

5.2.3            Promotion

 

The promotion activities are of great and even strategic importance for any company that use an overall cost leadership generic strategy like Wal-Mart China because promotion by offering extra benefits to customers will be very effective to the targeted customers in the selected market segments who are sensitive to the changes of the prices and also sensitive to the total value of the offers given. The timing of the holding of the promotion activities is also very important. Regular promotion could be held in weekends when families could have times to go the shopping center for shopping, and major hot sale and large promotion activities should be help in the major festivals such as spring festival, labor day, national holiday, mid-autumn day and so on, and promotion activities should have a particular theme, for example during the spring festival promotion could be offered on the traditional Chinese food and some special festival goods. And in term of the content the promotion mix, it could include: direct mailing, sale promotion, personal selling, advertising, telephone sale. The direct mailing could be used by the company to issue some coupon to the members to invite them to join the most recent promotion, the direct mailing could be very useful and coupon could be issued differently to different members to remind them the goods that that are interested and the purpose of direct mailing is to act as a kind of reminder and information communicator. Personal selling is a promotion way that incurs high cost but Wal-Mart China could let product manufacturers to share the cost as Wal-Mart provides one of the best platforms for demonstration of the products so that many manufacturers will compete for the chance to use such platforms. Advertisements is the probably the most important element in the promotion mix. With an ambitious marketing plan, Wal-Mart China not only should continue to reinforce the advertising effort in the traditional media such as the newspaper, magazines, television and radio, but it also needs to invest largest on the new media such as the internet and mobile phone games. Telephone sale could be used to encourage repeating purchasing behaviors but the management and motivation of the telephone sale people also request for investments and will increase the operation costs.

 

 

 

5.2.4            Place

 

The placing strategy has been generally understood as the management of the process in which goods are delivered from providers to the hand of the customers. Here in the case of Wal-Mart China, this traditional meaning of placing strategy also has implications for the company. It requests the company to design the supermarket in such a way that customers will easily get access to the popular goods in the right place and right timing. But besides the traditional implications, due to the actual situation of the China especially the now common traffic jam that is everywhere, we have to extend the content and coverage of the placing strategy from regarding the process in which goods are delivered from providers to the hand of the customers to considering the how fast and safe the goods are delivered from the shelves to customers’ home. Here a mixture of promotion and placing strategy could be used, for example, daily promotion could be offered during the non-busy hours to encourage the customers to purchase goods in a time with less traffic jam trouble.

 

 

 

6.        Budget and implementation

 

Actions123456789101112Budge
Marketing research××××        50
Advertisement××××××××××××300
Promotion××  ×    ×  200
Employee stimulation  ××      ××40
Sale staff training   ×××      50
Channel maintenance××        ××30
Telephone sale ×× ××      30
Customer survey   ××    ×××30
Total            760

In million (CNY)

Table 1 Marketing budget and implementation in 2012

 

 

 

Actions123456789101112Budge
Marketing research××××        50
Advertisement××××××××××××350
Promotion××  ×    ×  250
Employee stimulation  ××      ××50
Sale staff training   ×××      60
Channel maintenance××        ××40
Telephone sale ×× ××      40
Customer survey   ××    ×××40
Total            910

In million (CNY)

Table 2 Marketing budget and implementation in 2013

 

 

 

Actions123456789101112Budge
Marketing research××××        60
Advertisement××××××××××××400
Promotion××  ×    ×  300
Employee stimulation  ××      ××60
Sale staff training   ×××      70
Channel maintenance××        ××50
Telephone sale ×× ××      80
Customer survey   ××    ×××40
Total            1060

In million (CNY)

 

Table 3 Marketing budget and implementation in 2014

 

 

 

Actions123456789101112Budge
Marketing research××××        60
Advertisement××××××××××××450
Promotion××  ×    ×  350
Employee stimulation  ××      ××80
Sale staff training   ×××      90
Channel maintenance××        ××60
Telephone sale ×× ××      80
Customer survey   ××    ×××40
Total            1210

In million (CNY)

Table 4 Marketing budget and implementation in 2015

 

 

 

Actions123456789101112Budge
Marketing research××××        60
Advertisement××××××××××××500
Promotion××  ×    ×  400
Employee stimulation  ××      ××90
Sale staff training   ×××      90
Channel maintenance××        ××80
Telephone sale ×× ××      90
Customer survey   ××    ×××50
Total            1360

In million (CNY)

Table 5 Marketing budget and implementation in 2016

 

 

7.        Control

 

TacticResponsibilityReview date
Marketing researchMarketing Manager31 Aug Every Year
AdvertisementMarketing Manager1 Jan Every Year
Sale staff trainingHR Manger30 Sep Every Year
Telephone saleSale Manager31 Oct Every Year
Customer satisfaction surveyMarketing Manager1 Feb and 1 Aug Every Year
Distribution channel effectivenessMarketing Manager1 Apr Every Year
Market shareFinance Manger20 Feb Every Year
Number of storesFinance Manger20 Feb Every Year

Table 6 Control and review of the major targets and effectiveness of marketing activities

 

8.        Conclusion

 

This report set out a very ambitious five years marketing plan for Wal-Mart China based on the prediction that the consumer market will maintain a very high growth speed in the next decade together with the fast economy growth. There are some uncertainties that have not been considered well. First of all, there is chance that the macro economy conditions could change greatly, and then this ambitious marketing plan should not be carried out accordingly before adaptions have been made. What’s more the marketing plan provides a marketing mix strategy to Wal-Mart China but without too much consideration of the competitors. The most importantly, this marketing plan is based on the company’s long time positioning of “overall cost leadership” that has been used since the establishment of the Wal-Mart Store in the US, but as mentioned above the marketing share of Wal-Mart in the Chinese market has been dropping due to the lack of price leadership in the retail market with the raise of the E-commerce which provides much cheaper deals. Also the traffic jam issue may actually prevents a lot of people from getting interested in going to the shopping mall, so that the examination of the current strategic positioning based on most recent marketing researches might be needed.

Reference

 

Auflage, S. 2006, International Marketing: Hotel Industry in China, Nordestedt Germany: GRIN Verlag, p.6

 

Avery, M., Zhu, M. & Cai, J. 2009, China’s emerging financial markets: challenges and global impact. Singapore: John Wiley & Sons (Asia) Pte, Ltd. p.224

 

Bbc.co.uk 2011, Q&A: South China Sea dispute, last updated on 19 July 2011, view on 26 July 2011 [online] available: http://www.bbc.co.uk/news/world-asia-pacific-13748349

 

Chinadaily.com.cn 2011, China, ASEAN reach consensus on South Sea view on 26 July 2011 [online] available: http://www.chinadaily.com.cn/china/governmentandpolicy_4.html

 

French, P. & Crabbe, M. 2010, Fat China: How Expanding Waistlines are Changing a Nation. London: Anthem Press. p.19

 

Fisher, C & Vallaster, C. 2008, Connective Branding: Building Brand Equity in a Demanding World. West Sussex: John Wiley & Sons Ltd. p.264

 

Griffin, R. W. 2008, Management. 9th edition, Boston, MA: Houghton Mifflin Company. p.212

 

Gwartney, J. D., Stroup, R. L., Sobel, R. S. & MacPherson, D. 2009, Economics: Private and Public Choice. Mason, OH: South-Western Cengage Learning. p.356

 

Hill, C. & Jones, G. 2010, Strategic Management Theory: An Integrated Approach. Mason, OH: South-Western Cengage Learning. p.52

 

Hofstede, G. 2004, Geert Hofstede Cultural Dimensions. Accessed on 26th July 2011 [online] available: http://www.geert-hofstede.com/hofstede_china.shtml

 

Jeffries, I. 2011. Economic Developments in Contemporary China: A Guide. New York: Routledge.

 

Lane, H. W. 2006, International Management Behavior, Fifth Edition, Malden, MA: Blackwell Publishing, p.33

 

Monitor.com 2011, C-Suite Turnover for Wal-Mart China. accessed on 28 July 2011 [online] available: http://www.monitor.com/tabid/56/ctl/NewsDetail/mid/653/CID/20110906071822572/CTID/2/L/en-US/Default.aspx

 

News.xinhuanet.com 2011, China’s e-commerce turnover up 22% in 2010. Accessed on 26th July 2011 [online] available: http://news.xinhuanet.com/english2010/china/2011-01/18/c_13696656.htm

 

Porter, M. E. 1980, Competitive Strategy, New York: The Free Press.

 

Reid, R. D. & Bojanic, D. C. 2009, Hospitality Marketing Management. 5th edition, San Francisco: John Wiley & Sons.

 

Report on the Work of the Government 2011, Accessed on 26th July 2011 [online] available: http://www.gov.cn/english/official/2011-03/15/content_1825268_2.htm

 

Reuters.com 2011, REFILE-Two top officers leave Wal-Mart’s China unit – FT, accessed on 28 July 2011 [online] available: http://www.reuters.com/article/2011/05/23/walmart-china-idUSN2319585320110523

 

Tania, B. 2008, Chinese figures show fivefold rise in babies sick from contaminated milk, London: The Guardian

 

Tradingeconomics.com 2011. China GDP Growth Rate. Accessed on 26th July 2011 [online] http://www.tradingeconomics.com/china/gdp-growth

 

Wang, H. 2010, The Chinese Dream: The Rise of the World’s Largest Middle Class and What It Means to You. New York: Bestseller Press, p.103

 

Wickramasinghe, N. & Lubitz, D. K. J. E. V. 2006, Knowledge-based enterprise: theories and fundamentals. London: Idea Group Publishing. p.167

 

Wong, K. L. & Rae, S. B. 2011, Business for the Common Good: A Christian Vision for the Marketplace. Downers Grove, IL: Inter Vasity Press p.144


[1] Confucian Dynamism is named in a study on Chinese students in 1987 by Hofstede and Bond, and it is later renamed as Long-Term Orientation (LTO).

[2] The demographic dividend is a rise in the rate of economic growth due to a rising share of working age people in a population.

[3] More than 99.9% employees are Chinese, and 100% of the supermarket managers are also local talents.

Leave a Reply

Your email address will not be published.