does Wal-Mart practice much geographic market segmentation at its stores?
in other words, does Wal-Mart tailor its products to specific geographic markets and regions, or do they just sell the same stuff all across the country?
They tailor their products to who the consumer is in the region. I’ve heard that Wal-Marts in Colorado stock a lot more organic items than they do in say, in South Carolina. Since there are so many stores all across the country, it is necessary to do that in order to gain the most profit. You wouldn’t want to stock 20 snowblowers in Arizona!! But if you did that in Michigan, it would seem more appropriate.
Sometimes the products (that are the same) at different Wal-Mart stores within the same region have different prices. Where I am from, there are two Wal-Marts in the same county, yet one has generally cheaper prices than the other because of the different neighborhoods that are located around them. This is simply another way to target the general demographic in the area the store is located.
Also, on a side note, Wal-mart also has stores where it "experiments" to see if certain products, visual displays, or policies draw customers in. If the "experiment" is successful, they will expand it to other stores, then eventually nationwide. An example of this is the new $4 generic prescription drug plan. You can learn about this plan on their website. But basically, it began in larger cities in Florida, then spread to the whole state, and now it has spread to other select states.
They tailor their products to who the consumer is in the region. I’ve heard that Wal-Marts in Colorado stock a lot more organic items than they do in say, in South Carolina. Since there are so many stores all across the country, it is necessary to do that in order to gain the most profit. You wouldn’t want to stock 20 snowblowers in Arizona!! But if you did that in Michigan, it would seem more appropriate.
Sometimes the products (that are the same) at different Wal-Mart stores within the same region have different prices. Where I am from, there are two Wal-Marts in the same county, yet one has generally cheaper prices than the other because of the different neighborhoods that are located around them. This is simply another way to target the general demographic in the area the store is located.
Also, on a side note, Wal-mart also has stores where it "experiments" to see if certain products, visual displays, or policies draw customers in. If the "experiment" is successful, they will expand it to other stores, then eventually nationwide. An example of this is the new $4 generic prescription drug plan. You can learn about this plan on their website. But basically, it began in larger cities in Florida, then spread to the whole state, and now it has spread to other select states.
References :
walmart blows
References :
Wal-Mart maintains a massive database of all products sold. When you shop at Wal-Mart, every purchase you made is tracked. They can tell if you bought ice cream, did you also buy cake. When you bought BBQ sauce, they keep track if you buy one or two bottles at a time. If you pay by cash, it is not recorded in the same way as if you use a check, debit, or credit card.
They will try new products in a limited market and only increase the territory if the products sells. Otherwise they will discontinue it.
Suppliers are allowed into the database to analyze the sales of their own product. The coding system will tell you which distribution center the product is shipped from, and which stores receive the product from a particular distribution center.
References :
Past business experience.