The 4P strategies of Wal-Mart and Carrefour free essay sample

On July 2, 1962, the first Wal-Mart store was opened by Sam Walton in Rogers, Ark. After 28 year’s development, Wal-Mart became the nations number-one retailer by 1990. Wal-Mart’s 10,900 stores under 69 banners in 27 countries and e-commerce websites in 10 countries are visited by more than 245 million customers and members each week. Wal-Mart International is currently the fastest growing part of its business and it leverages its global resources to meet local needs. With fiscal year 2013 sales of approximately $466 billion, Wal-Mart employs 2. 2 million associates worldwide(Wal-Mart,2013). 1. 1. 2The development and history of Carrefour The Carrefour supermarket company was set up by the Fournier, Badin and Defforey families who run a discount supermarket in Annecy in 1959. More than 9900 company-owned and franchise stores are run by Carrefour Group currently, and now the Group operates on three major markets: Europe, Latin America and Asia. Because its stores spread in more than 30 countries, Carrefour generates more than 55% of its sales outside France. We will write a custom essay sample on The 4P strategies of Wal-Mart and Carrefour or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page At the same time, the Group gives priority to local supply chains, So 75% of all its food products are from local suppliers in the countries(Carrefour,2013). 1. 2 Definition The competitiveness of enterprises is a competitive ability that an enterprise can be more efficient than other firms in providing products and services, and obtain profit and its development (Man, T. W. , Lau, T. , Chan, K. F. ,2002). The marketing mix of 4P strategy plays a very important role in the competitiveness of enterprises. 4P strategy has four elements. The first element is price that can be defined as the monetary amount a buyer pays for a good or service and the revenue expectation from a sale(Anderson, C. H. , Vincze, J. W. ,2004). The second element is place, which is concerned with setting an efficient way of storage and handling finished products and of making them to the target market effectively(Businessdictionaries,2013). Product , the third element,means that the anything that can be offered to a market that might satisfy the need (Kotler, P. ,Brown, L. , Adam, S. , Burton, S. , Armstrong, G. ,2007). The fourth element is promotion, which is used to describe all marketing communications activities, including personal selling, sales promotion,direct marketing, trade exhibition, public relations, advertising and sponsorship(Marketingteacher,2007). 1. 3 objectives Through the analysis and comparison of Wal-Mart and Carrefour in 4P strategy, this project can obtain the strengths and weakness of competitiveness about those two retailers. 2. 4Ps of Wal-Mart and Carrefour 2. 1 The similarities and differences about price strategy 2. 1. 1 Wal-Mart’s price strategy The major price strategy of Wal-Mart is â€Å"Everyday low prices† practice that can offer low price products to customers. In order to ensure the customers get the lowest price products, Wal-Mart improve the efficiency of logistics system and control the transportation, storage and costs strictly, so that it can get cheap goods from all over the world every day. And Wal-Mart has been insisted â€Å"Everyday low prices† for a long time, which makes customers prefer to buy things here(Mujtaba, B. G. , Maxwell, S. 2011). Further, its high quality and low price products have made itself get high reputation of its company and the loyalty of customers. Because of it, Wal-Mart could cut down the cost on advertisements and promotions and also increase turnovers of products. At the same time, in order to maintain the promise of â€Å"Everyday low prices† to customers, most of its competitors’ profits has been injured by Wal-Mart’s low price strategy(Gereffi, G. , Christian, M. ,2009). 2. 1. 2 Carrefour’s price strategy Compared with the traditional retail stores, Carrefour has a lower price, average about 5 to 10 percentage points. High quality and inexpensive price in Carrefours business strategy remains unchanged all the time. In order to reduce the cost and inventory, Carrefour constantly improves the efficiency of logistics system and try their best to decrease the price, so that it can offer low price goods for consumers(Baek, J. ,2005). What’s more, Carrefour’s everyday low prices, in fact, is the integration strategy that combines low price goods and high price goods. As for the good that customer often buy, Carrefour often provide comparatively lower price than its competitors, but other goods may be higher than its competitors(Dupuis, M. , Chul Choi, S. , Larke, R. ,2006). 2. 1. 3 The similarities and differences Similarities: Wal-Mart and Carrefour are committed to provide consumers with low price goods by improving the efficiency of logistics system. Price is the most sensitive factor for consumer’s shopping choice. Low price product is more attractive for consumers than high price product. In order to improve the sales and get more marketing share, Wal-Mal and Carrefour cut down the price as much as possible. Therefore, the price competition has become the focus of retail competition. Differences: Wal-Mart, the founder of â€Å"everyday low prices†, has insisted that all the goods remain stable of low prices for a long period of time, which can reduce the volatility of consumption demand, the cost of organizing goods, and help to realize the scale of procurement. However, Carrefour’s price strategy is that not all of the goods are low price, just for some hot-sale products but other goods’ price may be higher than other retailers. Thereby, Carrefour’s price strategy has more flexibility and adaptability than Wal-Mart. 2. 2. The similarities and differences about place strategy 2. 2. 1 Wal-Mart’s place strategy 10,900 stores under 69 banners are run by Wal-Mart in 27 countries (Wal-Mart,2013). In addition to Wal-Mart stores, community stores, discount stores and other business model, Wal-Mart has shopping plaza and Sams club stores. Sams club store is a warehouse club store, whose operating characteristic is low price. Its service objects are groups, families, small shops (Graff, T. O. 1998). While Wal-Marts online retail stores began to run in February 1996 , a limited number of goods sold online. Early 2000, the online store of Wal-Mart was revised , which had 24 categories of online goods, including clothes, appliances, toys,etc. Then Wal-Mart took all possible measures to expand its network sales market. In 2008, Wal-Mart launched the e-commerce business in the highest broadband penetration countries, Latin America and Brazil. Next, Wal-Mart launched e-commerce business in China and Japan in 2010. The constant expansion of the online business to new worldwide markets made Wal-Mart gradually improve its overall sales and marketing share(Gereffi, G. , Christian, M. 2009). 2. 2. 2 Carrefour’s place strategy Carrefour has more than 9900 stores in the world now, while it still has more than 4000 chain stores in France. With a presence in more than 30 countries, it generates more than 55% of its sales outside France. Its sales accounted for about 30% of French retail enterprise(Carrefour,2013). Several business models are established by Carrefour. In addition to Carrefours stores(Carrefour),champion supermarket (Champion),there are convenience store, warehouse style shopping mall, and so on. The operation of discount store and membership rule make Carrefour retail business into intensive development(Durand, C. , Wrigley, N. ,2009). With the rapid development of information technology in 2000, Carrefour worked with Sears and Oracle company, creating an electronic market, the worlds first retail† GlobalNetXchange. Later, Carrefour launched an online supermarket, called Ooshop(Carrefour,2013). 2. 2. 3The similarities and differences Similarities Carrefour and Wal-Mart both are in the chain business mode, and they have some same business models, such as, warehouse stores and discount stores. Those different business models can meet the demands of different customers. Meanwhile, Wal-Mart and Carrefour all developed the online grocery that can supply customers with various goods the same with real stores. So, they combine retail and e-commerce business to meet the consumers’ demands. Differences Wal-Mart and Carrefour’s business models have its own characteristics. For example, Wal-Mart has shopping plaza and Sams club stores, but Carrefour has Carrefour stores (Carrefour), champion supermarket (Champion). Their business model can reflect their own culture and history. Like â€Å"Sam’s club stores†,Sam is the name of Wal-Mart’s founderSam Walton,which allows Wal-Mart’s customers and employees to remember the great leader and it also belongs to a part of enterprise culture. 2. 3 The similarities and differences about product strategy 2. 3. 1 Wal-Mart’s product strategy The product of Wal-Mart has almost 20000 species, including food, clothing, cosmetics, appliances, toys, auto parts, and so on. It has its own brand product, which account for about 10%(Wal-Mart,2013). But not any products are allowed to be sold in Wal-Mart,because Wal-Mart will select some products that have good quality for their customers. Meanwhile, Wal-Mart lay emphasis on the quality of product. Total Quality Management is used by Wal-Mart to ensure the quality, which focuses on improving the quality of an organization’s products and services. Wal-Mart is constantly seeking the best products and the lowest price supplier from domestic and international. markets through Total Quality Management (Mujtaba, B. G. , Maxwell, S. ,2011). Therefore, Wal-Mart can provide consumers with various and high-quality products. 2. 3. 2 Carrefour’s product strategy The stores of Carrefour can satisfy all the customers’ shopping needs, such as clothing, sports equipment, auto parts, and so on. In 1976, Carrefour introduced manufacturing free concept, selling high quality and inexpensive but no brand goods, but this is a subtle challenge for people’s shopping habits. More than 75% of all Carrefour grocery products are offered by local suppliers, so Carrefour can provide its customers with local products which are from producers located close to stores. For example, 100% of all food products come from national suppliers in Turkey and Argentina’s Carrefour stores now(Carrefour,2013). What’s more, Carrefours sales have its unique side, for instance, the company launched the sale of gasoline at a low price in the parking lot (Lindgreen, A. , Palmer, R. , Vanhamme, J. ,2004). This is a kind of innovation, and it also an effective means to attract customers. It is more convenient for consumers, because consumers do not need to go to the gas station deliberately. 2. 3. 3The similarities and differences Similarities: Carrefour and Wal-Mart both can provide a variety of products that have low prices but high quality for the consumer to choose. In addition, all of them pay much attention to the development and sales of their own brand products. According to the difference of people living habits in different regions, Carrefour and Wal-Mart can provide products that can meet local consumer habits. Differences: In order to offer high quality products to customers, Wal-Mart will select the goods that have good quality before the sales. So those bad quality products cannot be sold in Wal-Mart. The selection of products can guarantee that customers get high quality products anytime in Wal-Mart. Nevertheless,various goods that have high quality or low quality can be found in Carrefour. 2. 4 The similarities and differences about promotion strategy 2. 4. 1 Wal-Mart’s promotion strategy Due to the strictly control of marketing costs, Wal-Mart also tend to be very careful in reckoning, even in some new stores opening ceremony. Therefore, the goods promotion strategy of Wal-Mart is relatively conservative. Although Wal-Mart reduces the cost and expenditure on advertising, it never be stingy on public welfare donations. A large number of long-term investment in public welfare activities greatly enhance its brand awareness and successfully created excellent brand image in consumers minds, which will eventually become the earnings and profit figures(Baek, J. ,2005).. At the same time, Wal-Mart has effectively made use of the strategy of market segmentation by partnering with National Gay and Lesbian Chamber of Commerce to cater to that group of customers, as well as employees. What it did is to correct the customers’ previous error information and position of Wal-Mart and establish a good corporate image. (Mujtaba, B. G. , Maxwell, S. ,2011). Besides,Wal-Mart attracts customers go shopping in its stores by low price but high quality products and it has also developed various ways to keep customers in their stores as long as possible, which include: exclusive concerts by various bands on Wal-Mart TV, plus in store radio and special broadcasts. The reason why Wal-Mart does this is that it believes the more time spent in its stores, the more money customers will spend (Mujtaba, B. G. , Maxwell, S. ,2011). 2. 4. 2 Carrefour’s promotion strategy Carrefour uses its best selling products for its promotion, Which not only can attract customers but also can build good image(Sunanto, S. , Tuninga, R. , Kaynak, E. , Harcar, T. , ASSOCIATION-IMDA, I. ,2009). Further, in addition to hold large-scale promotional activities at the opening ceremony and celebration occasions, Carrefour also focus on a variety of promotional methods , such as TV ads, newspaper ads and posters. Besides, Carrefour also issued a lot of direct mail advertising and promotional advertising, sending to the residents, in order to let residents know the latest promotion information and attract customers to shopping(Colla, E. , Dupuis, M. ,2000). 2. 4. 3The similarities and differences Similarities Wal-Mart and Carrefour both use their own goods for promotion. As retailer, the main purpose of customer come here is buying products. Price and quality are the main factors for the customers to buy the product. If company can make the customer know that this product in its store always have high quality and low price, customer will come to its shop automatically to buy this kind of goods, when he needs. Differences Wal-Mart is very careful in reckoning and strictly controlling the cost in its promotion. But Wal-Mart set up a responsible corporations image, through joining the community and social welfare undertakings. However, Carrefour adopts various means of publicity, such as TV ads, newspaper ads, and posters, which is a good publicity for the product and the enterprise image. 3. Conclusion

Adverbs and Hyphens

Adverbs and Hyphens Adverbs and Hyphens Adverbs and Hyphens By Maeve Maddox A reader pleads, Please, please, please discuss the use of hyphenation (and lack thereof) of adverbs with adjectives. I keep seeing the likes of â€Å"newly-minted doctor† or â€Å"visually-impaired cat† regularly these days and it makes me crazy! Is it something thats becoming more acceptable? Or is it the general lack of editors and grammatical knowledge? Punctuation rules are hard to grasp. However, the rule about hyphens and -ly adverbs is easy enough to master: When a compound modifier–two or more words that express a single concept–precedes a noun, use hyphens to link all the words in the compound except the adverb very and all adverbs that end in -ly. AP Stylebook, 2013 edition. Boldface added. And, Compounds formed by an adverb ending in ly plus an adjective or participle (such as largely irrelevant or smartly dressed) are not hyphenated either before or after a noun, since ambiguity is virtually impossible. (The ly ending with adverbs signals to the reader that the next word will be another modifier, not a noun.) Chicago Manual of Style, 7.82. Not all adverbs end in -ly. The adverb very has already received special mention in the rule from the AP Stylebook: Very is never followed by a hyphen. But what about the adverb well? According to AP, we must hyphenate well when it is part of a compound modifier: well-dressed, well-informed, well-known. AP also advises that a compound that’s hyphenated before a noun is also hyphenated following a form of the verb to be: The man is well-known. The woman is quick-witted. The children are soft-spoken. The play is second-rate. The University of Iowa writing site concurs: Compound adjectives beginning with â€Å"well† are hyphenated no matter where they are in the sentence. When a modifier that would be hyphenated before a noun comes after a form of the verb to be, you usually keep the hyphen to avoid confusion. The editors of the Chicago Manual of Style seem to disagree: When such compounds follow the noun they modify, hyphenation is usually unnecessary, even for adjectival compounds that are hyphenated in Webster’s (such as well-read or ill-humored). For good measure, I looked in at the American section of OxfordDictionaries.com where I found this directive: With compound adjectives formed from the adverb well and a participle (e.g., well-known), or from a phrase (e.g., up-to-date), you should use a hyphen (or hyphens) when the compound comes before the noun: well-known brands of coffee; an up-to-date account, but not when the compound comes after the noun:    His music was also well known in England. Their figures are up to date. Straightforward instructions, these, but when I looked up â€Å"well known† in the U.S. part of OxfordDictionaries, I found this among the examples of usage: The result is well-known, and we need only linger to consider the crucial lesson from this. When the experts contradict themselves and each other, what’s an ordinary mortal to do? Hyphenation is not an exact science. The one rule you can memorize with confidence is that a hyphen is not needed when an -ly adverb begins a phrasal modifier*. For everything else, choose a style guide or dictionary to follow. *Warning: Not every word that ends in -ly is an adverb. Watch out for nouns like family and supply, and adjectives like only. For example, â€Å"family-oriented websites†; supply-side economics†; â€Å"only-begotten son.† Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Spelling category, check our popular posts, or choose a related post below:12 Signs and Symbols You Should KnowSelect vs. Selected45 Idioms About the Number One

Brazilian Drought and Coffee Harvest Essay Example | Topics and Well Written Essays - 2250 words

Brazilian Drought and Coffee Harvest - Essay Example This occurrence immediately became major news to the market economy and the consumers, because of the change that would occur in the marketing system. What actually occurred during this circumstance was a surge of heavy rains which lashed Brazil for several days, causing a major drought, and isolating hundreds of people and destroying crops. "Farmers reported that 40 percent of their tobacco, bean and corn crops had been destroyed by the floodwaters that inundated fields in the western half of the state." (Associated Press, 2000). The October 2000 drought was an incredibly serious and devastating event in many different ways for Brazil. In order to understand these reasons and to come to a clearer and more knowledgeable viewpoint on the subject matter, certain matters in regards to the drought itself, how it affected Brazil, and what plans are for the future must all be thoroughly discussed. The aim of this paper is to focus on all of these elements, while answering questions such as why, how, when, and will come in the future due to this situation. This is what will be dissertated in the following. Coffee is the second most commonly traded commodity in the world, trailing second only to petroleum. The first coffee plantation in the world was in fact established in Brazil in 1727, and Brazil cultivates coffee as a commercial commodity. They relied heavily on slave labor from Africa for its viability until abolition in 1888. For many decades in the 19th and 20th centuries, Brazil was the biggest producer and virtual monopolist in the coffee trade, and remained that way, until a policy of maintaining high prices soon opened opportunities to other growers, like Colombia, Guatemala and Indonesia. Brazil is located in East Central North America and occupies approximately 50% of the South American continent. Brazil is bound by Venezuela, Guyana, Suriname and French Guiana to the north, Colombia to the northwest, Peru, Bolivia, and Paraguay to the west, Argentina to the southwest, Uruguay to the south and the Atlantic Ocean to the east. Brazil has a tropical and subtropical climate characterized by high temperatures and anywhere from moderate to heavy rainfall. Rainfall is usually evenly distributed throughout the year, and the nationwide average annual precipitation varies between 1,010 mm (40 inches) and 2,030 mm (80 inches). There is an interior of Brazil's northeastern region which is known as the 'Drought Polygon'. It is "an irregular shaped region where people live under recurring threat of severe drought." ("Brazil", n.d.). This drought polygon is the driest part of the country, and it encompasses roughly 10 percent of the entire country's territory. "In this region, rainfall is undependable and the evaporation rate is very high, making it difficult to raise crops." ("Land", n.d.). Brazil is the world's biggest producer of green coffee beans with an approximate market share of 30 percent. Depending highly on weather conditions, Brazil produces and exports about 30 million bags of coffee beans annually. Approximately 85% of Brazilian coffee exports are Arabica coffee, which is also considered to be one of the highest quality; even more so than Robusta coffee - which demands higher prices. Brazilian coffee is characterized by the diversity in tastes depending upon geographic regions of the coffee's origin. The United States and Germany are the world's largest