Wal-Mart Consumer - Research Paper Example

? Wal-Mart Consumer Analysis The Wal-Mart giant retail stores are an economic force and a cultural phenomenon to reckon, with the title of the world’s largest retailer. The retail giant started with a simple and humble philosophy of offering customers the lowest prices from its founder Sam Walton. This has been the foundation of the retail company and the growth propeller. Wal-Mart stores are the dominant retail stores in the United Sates, with an estimated 84% of shoppers visiting the stores in the past year (Lecavalier). Currently, the company is growing further to Europe through the acquisition of Asda Stores. The history of Wal-Mart began a little after 1972 as a rural shopping store chain in Oklahoma, Arkansas, and Missouri (Lecavalier). The Wal-Mart company has four major divisions at the retail level: Wal-Mart Discount stores, Wal-Mart Super Centers, Sam’s Club Warehouses, and Neighborhood Market stores. The company‘s size can be emphasized by the fact that it employees more than 2 million people, reports a profit of close to 100 billion dollars, and has more than 7,000 outlets and counting. The success of the company lies in their customer strategy (Lecavalier). Being the world’s largest retail stores has been part of the growth challenge and customer care improvement. The rapid growth of the company led to new research strategies on the ways of improving its services to its customer base. The major focus was ways of improving customer care services and customer experiences while shopping at the stores. There are several sources of customer information at the disposal of the giant retailer, with some of these not used appropriately. The best and reliable sources of customer information are the touch-points of interaction between the company and the firm. There are majorly two touch-points in the Wal-Mart scenario: the pre-consumption stage and the consumption stage. In the pre-consumption stage, Wal-Mart acknowledges that the consumers interact and share a certain amount of with the customer service or the salespeople. This is an important step for Wal-Mart, and the next decision is that of determining what information to capture, and the manner in which the collected data will assist in making decisions on improving customer care procedures. The frontline operation personnel of Wal-Mart are well positioned to gather customer information, and the firm uses them to obtain the information it requires. The frontline personnel receives training on the what, when, and how of eliciting or observing customers and obtaining information (Feller, Shunk, and Callarman, 2006). The other means of obtaining these consumer data is using intermediaries and resellers of the retailers’ products, mainly through promotion, distribution, customer service, or delivery. Wal-Mart uses the gathered information for negotiating with the leading packaged goods manufacturers like Proctor and Gamble for customized products. In the consumption phase, the firm collects consumer data on the enquiries made by consumers on the directions of use. This data provides the company with a wealth of information, especially in the areas of recovery situations and service failure, and assist in product improvement and development efforts. The consumer data collection processes applied by Wal-Mart are systematically maintained and recorded. Nonetheless, there may be other data requirements not available in the above collection methods. The company collects that information through other forms of data collection techniques, mainly research. However, the company first determines the most appropriate and effective information that will assist in understanding consumer preferences and needs (Lisanti). The company then decides on the appropriate decision and choice regarding the suitable consumer research method (Feller, Shunk and Callarman, 2006). For instance, there are several formal and informal measures in the determination of the changes required to improve consumer satisfaction. These methods may be qualitative or quantitative in nature. Among the quantitative methods is the pencil and paper survey over the telephone or mail. Qualitative methods take the form of unstructured and structured observation methods, interviews, or focus groups. Another method of data collection used by Wal-Mart is consumer case research. This method conducts chronological study of real purchases to understand the purchase drivers through capturing all decisions leading to purchase. The secret behind Wal-Mart’s success and growth is customer analysis and strategies. The company traditionally collects routine customer data from their customer sales records, which include records of customers returning products for refund or when invoking guarantee rights. The company also uses customer feedback mechanisms, including customer surveys and feedback forms, but this data collection method proves unworthy due to the flaws and faults in design and collection. The collection of customer information through their real sales and complain records reflects the actual areas of customer care service that requires attention. The analysis of the data enables the company to think practically like the customer. It also enables the retail giant to offer the best market prices for the fast-moving items, as well as sell to the customers exactly what they want to purchase. In addition, it helps in the process of making the shopping experience more pleasant (Thomson, 2009). Another important Wal-Mart customer strategy is having the all the aspects of the business centering on the customer. The design of the stores, the lighting inside the stores, the bar codes, the greeters at the doors, every tiny and complex detail of the stores reflect the customers’ interests. Their methodology of handling customers’ complaints is friendly and fast. Their replacement of defect products takes little time, and with a friendly assistance. After identifying the suitable method of data collection, decisions are made on the appropriate consumer information required and from what point. This includes designing the suitable questions that will solicit information, sample of the subject, a plan analysis, and methods of administering the questions. The firm at times uses sampling techniques when carrying out a research on a large number of customers (Thomson, 2009). Wal-Mart then constructs a format for the responses and questions, and proceeds to pre-test the research results on a small subset before giving the results validity. The final findings of the research, including those of the pre-test, are presented to the decision making body (Lisanti). The format with which the obtained research data is normally predetermined in the analysis plan, thus the information presented to the decision maker is suitable. The other consumer strategies of Wal-Mart are the facilitating services. These include the features and activities of Wal-Mart that facilitates the consumption of the fast-moving products. Such services include free installation and assembly services. To stay ahead of the competition, Wal-Mart maintains an intimate and passionate understanding of the consumer value-chain consumption (Feller, Shunk and Callarman, 2006). The firm utilizes the knowledge and information it has on the consumer to design their advertising slogans and products, as well as promoting new customer services. The company believes that each customer is valuable, and this is valuable to the firm in determining the right customer. References Feller, A, Shunk, D, and Callarman, T. (2006). Value Chains Versus Supply Chains. Retrieved on January 2, 2012, from http://www.ceibs.edu/knowledge/papers/images/20060317/2847.pdf Lecavalier, J. All Those Numbers: Logistics, Territory, and Wal-Mart. Retrieved on January 2, 2012, from http://places.designobserver.com/feature/walmart-logistics/13598/ Lisanti, T. The Little Things Add Up To – Customer Relations – Wal-Mart: Retailer of the Decade: An American Love Affair – Company Profile. Retrieved on January 2, 2012, from http://findarticles.com/p/articles/mi_m3092/is_n23_v28/ai_8283613/ Thomson, G. (2009). High-Performance Organizations (HPOs): The Wal-Mart Stores Case Study. 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