Question

Describe what you think is an appropriate combination of retail pricing, store location, retail communication, and merchandise assortment for the market-leading company in any industry of your choice across all 50 states in the U.S.A.

Answer 1

Company Name: Walmart

Walmart is a leading company of U.S.A. having retail stores at every states. They are having large outlets facilities consisting departmental store, supermarkets, and specialty stores. The appropriate combination of retail pricing, store location, retail communication, and merchandise assortment of Walmart explained in below points,

· Combination with Strategy plans: Walmart is offering price based on the location of the distributers and location of retail stores.

o They are operating through both decentralized and centralized distribution and the decision depends on transportation cost. The transportation cost is having impact on retail pricing.

o They are formulizing the best average of marketing, finance and operational cost.

o The special location is also one of the factor. If the area is having uncertain climate issues, the operating cost will be high and it will impact on pricing.

o Walmart is surveying on market demand of the state/city an fluctuating the price with Walmart discount on MRP (Maximum Retail Price).

· B2B Business: Walmart’s one of the best approach to wholesale Market is Business to Business (B2B) offers to large scale wholesalers. They are offering their buying price to supplier for bulk inventory. This is impacting price of retail market.

· Retail communication: Walmart is communication to the costumer with news advertisements and road hoardings. They are mainly displaying the discounted price for regular products. This is generally happening in festival seasons. The advertisement cost is having share in price of the product and Walmart is managing it targeting the huge sale in discounted period.

· Competitiveness: If more retailers are there in market, Walmart’s best pricing will vary.

· Getting better all the Time: Walmart is working for variation in stock with minimum change in price. For this, they are developed the matrix of sold stock vs sold period. The study enabling Walmart to set the Merchandise based on periodical and seasonal demands. Likewise it having pricing impact on products.

· Saving in operational cost: Event for furthest location and even for the variation in supply chain, Walmart has developed the systems (internal and external) for repetitive operations which is benefiting them with cut in operation cost. They are able to offer discount to being ahead in completions.

· Infrastructure cost: If capital investment is low, Walmart is offering heavy discount on products at the initial start of the store.

· Development of own products: For furthest location, Walmart is preferring to chain their own product (by the developed vendors) to cut the manufacturing cost impact from other suppliers.

· Using Double pricing method: They are always enhancing merging by implementing this method for all vendors and locations.