Marketing Case
In examining the elements of the marketing mix, I found that they aligned with the four strategy categories by emphasizing Wal-Marts marketing strategy with a lower cost generic product. Using the Cost Leadership Strategy, Wal-Mart developed a bottled water product competitive with leading brands including, Dasani and Smart Water. What drives me to buy this product is the product differentiation. Wal-Mart has an advantage in the size of their product; you get more for less. Sams Club Purified Bottled Water sells in a 20 ounce bottled versus the 16 ounce bottled Dasani and Smart Water. In addition, not only are you getting more, but also, there is at least a savings of fifty cents for a case of Sams Club Purified Bottled Water compared to the cost of leading brand names. Wal-Mart strategically places it product next to the leading brands giving their target market, frugal shoppers, an opportunity to buy for less.
Every one of the 4 Ps contributes to each of the strategic objectives established in the left-hand column by focusing on Wal-Marts target market (Finch, 2012). Wal-Mart tactics have successfully convinced its target market that they are receiving more value for their money. They have taken a lesser quality product, produced it at lower cost, strategically placed it next to leading store brands, and obviously spent less than the other brands on its generic label to compete in the bottled water market.
Do I see room for improvement? No, I think their marketing techniques for this product have served its purpose. The main objective of marketing this product is to appeal and satisfy its target customer needs. By keeping its prices low and providing alternatives to more expensive product brands Wal-Mart is building a loyal customer base in the frugal buyer.
This assessment would be different for other types of customers who value quality over price. Some consumers prefer quality to cost and this assessment would