Started with Integrated Marketing

Integrated Marketing is an approach to marketing communications that synthesizes different methods together to present a consistent message. By leveraging an integrated marketing approach, a marketer can reach more prospects by enabling their brand to resonate on multiple different channels.

There are some key areas to focus on:

1. Collect customer data to gauge what content or messaging speaks to them and what channel is most effective. Initiate conversations directly with customers, coordinate with your internal teams, and test different combinations of content and channels to determine what works are the best.

2. Break down barriers between organizational groups to discover more about what really resonates with your customers. Schedule a brainstorming session with your team to identify key touch points and the right message.

3. Invest in integrated toolsets with cross channel campaign management. Make sure you have a solid presence across your top channels (social media, email and mobile). And remember, all of these channels should be highly coordinated with unified messaging.

4. Create cohesive messaging and promote the right content at the right time. Understand where your buyers are in the process and make sure you are delivering content that speaks to their points.

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How to started with integrated marketing:

1. Create a road map for cross-channel relevance by identifying the right message and method for each stage in the buying process.

2. Remember to tell the story with your content. Buyers will respond to the emotional connections and personalization that good content can create.

3. Always coordinate with internal teams to have a holistic view of what will resonate with the customer.

Reference

Luxton, S, Reid, M, & Mavondo, F 2015, ‘Integrated Marketing Communication Capability and Brand Performance’, Journal Of Advertising, 44, 1, pp. 37-46, Business Source Complete, viewed 28 May 2015, EBSCOhost

Melovic, B, Mitrovic, S, Djokaj, A, Nesic, A, & Lekovic, M 2014, ‘Integrated marketing communications as a function of brand development’, Construction of Unique Buildings & Structures, vol. 27, no. 12, pp. 24-31.

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Retargeting campaign and attracting new consumers

Retarget

A retargeting campaign is the best solution for adding new customers. Retargeting is a sort of automatic guestbook for your website. When a new visitor shows up, a tiny pixel loads on their browser, and later it helps by giving you an idea of what they’ve been up to while on your site.

Firstly, you’ll be able to find out pretty quickly which parts of your site are dead ends for visitors. Correcting those areas will create a smoother experience, resulting in guest that stay on your site longer.

Secondly, you’ll have an opportunity to advertise your brand to guests even after they’ve left your site. The obvious benefits of this include increased brand awareness and recognition, both of which are tremendously important to the success of a fledgling business.

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Segment your visitors

While a single segment is great, just imagine the results of separating your visitors into smaller, more specific groups with similar advertising needs. For example, users who have already visited your site and signed up for your service don’t want to be asked to sign up again. This will make your company seem pushy and less caring, both of which are bad for business.

Creating a separate pixel for your signup confirmation page can help you avoid that mistake and will keep your converted customers happy with your company.

Using calls to action

For your advertisements, calls to action are instructions for potential leads to follow in order to get them to your site, and they will provoke a more timely response. They are most effective when combined with landing pages that give your guests more information on the topic they just clicked. By using landing pages, visitors avoid long, difficult to comprehend, pages, instead they see a compact explanation of your product or offer. That’s not the only benefit of landing pages; they also provide an easy way to segment visitors who arrive by advertisement, which allows you to identify the effectiveness of your advertising.

CocaCola-Landing-Page-Color

References

Corrigan, H, Craciun, G, & Powell, A 2014, ‘How Does Target Know So Much About Its Customers? Utilizing Customer Analytics to Make Marketing Decisions’, Marketing Education Review, 24, 2, pp. 159-166, Business Source Complete, viewed 27 May 2015, EBSCOhost

Ma, J, Yang, Y, Li, F, & Xie, J 2013, ‘An Approach to Determine Importance Degree of Targets in Customer Collaborative Products Innovation’, China Mechanical Engineering, 24, 16, pp. 2223-2230, Inspec, viewed 27 May 2015, EBSCOhost

Measuring consumer behavior and brand

Brands are failing their potential by measuring marketing, sales, reputation, customer experience and support, as thinking defined by these terms drives a wedge between consumers and brands. Once upon a time that may have been acceptable, when brands could force themselves on customers.

Today it’s the consumer who is forcing. And wedges force customers elsewhere. Marketing treats the consumer in every possible way to create an intention to buy. The objective is to pass the prospect into the sales funnel as quickly as possible.

Sales will work the consumer over in every way to convert a transaction. The focus is to process the prospect fast, to reduce the lead time and lock down the sale. Reputation looks at protecting how the brand is perceived by the masses. It doesn’t care if people want to buy, or have bought – as long as, in general, the public relates well to the brand, and the brand to the public. Customer experience will work with customers to prevent them from becoming disgruntled. It’s usually all about eliminating pain points and resetting expectations.

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Service focuses on rectifying issues where the customer is hurting, before customers share their pain with others. And it will try and deliver on what was promised in the first place, where possible. The harsh reality from all this rather expensive effort is that brands, in general, suffer unacceptable customer churn.

Plenty of dashboards, charts and numbers quantify the handling of the consumer. It is good, because “If you can’t measure it, you can’t manage it,” Peter Drucker is one of the modern era’s great thinkers on management.

The only thing that matters to the consumer is his or her relationship with the brand. There’s no measuring of the emotion and depth that exists between consumer and brand, or the lack thereof.

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References 

Voorveld, H, Bronner, F, Neijens, P, & Smit, E 2013, ‘Developing an Instrument to Measure Consumers’ Multimedia Usage in the Purchase Process’, JMM: The International Journal On Media Management, 15, 1, pp. 43-65, Communication & Mass Media Complete, viewed 27 May 2015, EBSCOhost

Friese, M, Hofmann, W, & Wänke, M 2009, ‘The impulsive consumer: Predicting consumer behavior with implicit reaction time measures’, Social psychology of consumer behavior pp. 335-364 New York, NY, US: Psychology Press PsycINFO

DHL….Moving the Global Markets forward…

DHL...moving th global market forward

Distribution channels are a set of intermediaries which are a part of manufacturing a product and making it available in the market for the use. These distribution channels are more efficient in manufacturing the products and making them available in the market. The intermediaries which nothing but the interdependent organizations helps in improving the contacts, specialization, experience and scale of operation. Coming to the point of Logistics, it involves the entire supply chain. Now-a-days, the importance of logistics is increasing which is the important aspect in winning the customers and keeping them. It ensures the availability of goods or services with respect to their place which are in good condition and making them available at economical price. Logistics concept is used even before Christ and by many Greek invaders like Alexander the Great and Leon Wise which helped them in describing the methods for finding food, clothing and ammunition. Logistics used to play an important role in the wars by many kingdoms and their generals and they won who practiced the logistics concept. Even in World War II, due to the perfect practice of logistics, it was recognized as the important factor for winning the war.

In the year 1994, according to the survey conducted by Boeing Company, the international express industry occupied a total share of 5% in international air cargo market. This share of the air cargo market gradually continued to increase to 31% by the year 2014 and this largest share belongs to no.1 international express carrier DHL. The foundation stone is laid in the year 1969 by Adrian Dalsey, Larry Hillblom and Robert Lynn (founders initials termed as company name) which later remained as undoubtedly world leader in the industry of air express distribution. The main success secret of DHL is understanding the need of the customers, both international and local and this made the company to launch in 223 countries. By the end of the year 1960, the companies mainly relied on three sources of transportation for transporting the documents and parcels. They used the Post office or equivalent service which mainly targeted the private users, they relied on on-board couriers but are subjected to weight limit and they also used the standard air freight which mainly used to have the delay at the customs department.

These three alternatives formed a big gap in the market for fast, cheap and reliable distribution of goods and services and this led to the foundation of the company. In the initial days, DHL concentrated on emergency document delivery. Later on, after a tight stand in the industry, they started to distribute all the consignments which consisted of all sizes. In the year 1970, most of the banking organizations and many financial institutions started to use the service to reach their targets. This later on spread to other sectors like manufacturing and service, world trading and many other multinational companies. In the beginning of 1982, the use of air express industry was half a billion dollars and which later reached to $4.5 billion by the end of the decade. Due to the increase in the demand, air express companies started to supplement their own fleet of aircraft and their own deports for sorting which helped them in gaining the faith of the customers. In the year 1980, DHL international Ltd., created a hub in Heathrow Airport and it is followed by East Midlands Airport and now this is the third largest air cargo airport. In the year 1981, DHL completely computerized with the significant investment which in return foreshadowed the beginning of total logistic services.

There are many factors that influenced the air express industry and they are

  1. Due to the change in the manufacturing process and trade globalization, it shortened the customer expectations. Especially in Europe, due to the beginning of developing markets and trade conditions relaxations increased the standard of services reliability.
  1. To sustain the competition and to withstand in the market, efficiency in distribution is regarded as the important factor. Besides the express delivery service, DHL played an important role in fulfilling the needs of the customer through inventory management, mailroom management services and direct distribution services.
  1. Technology played an important role in improving the reliability of the company which made a large scale investment on the air express industry. Due to the advancement in the technology, it allowed many multinational companies to depend on a single company who can fulfill their needs. Due to the improvement in technology, it became easier to administrate, reduce the errors and cut down the related costs.
  1. Due to the change in shipping trends, it lead to increase in the usage of heavier parcel weights in the air express industry.

Brussels super hub is regarded as the DHL’s gateway to Europe and is biggest advanced in Europe. Its size got doubled in the year 1993 after acquiring the Federal Express sorting center. The super hub capacity at present is 80,000 packages per hour with 100,000 employees working round the clock handling over 400 tons.

DHL expanded the company in West Europe as well, in Dublin, Copenhagen and in joining hands with Lufthansa DHL shifted to new cargo center built in Frankfurt. The urgent parcels collected at 4.45 am, arrives in Frankfurt and delivered by the same business day. DHL is the first company to acquire the East European market. In the year 1995, an international express hub is established at John F Kennedy airport to transfer the shipments between North America, Europe, Africa and Middle East.

The important core products in DHL international express industry are DOX Worldwide Document Express, WPX Worldwide parcel express, EUX European Union Express, World Mail and Import Express. Besides these core products there are some other complimentary services like customer automation, insurance services, help desks, weekend collection and deliveries. To improve the quality of service, DHL invested heavily in Information Technology. For example, to track a deliver the customer needs to provide his 10 digit tracking number and country of origin which in return gives the details of date and time of the delivery also with the name of the recipient.

References:

http://www.adam-europe.eu/prj/7095/prj/CourieL_WP2_Chapter2_final.pdf

http://businesscasestudies.co.uk/dhl/the-number-1-express-carrier/just-in-time.html#axzz3auTd6tUW

http://www.dhl.com.au/en/about_us/dhl_in_australia.html

http://www.google.com.au/imgres?imgurl=https://www.edb.gov.sg/content/dam/edb/en/case%252520studies/DHL/DHL_722x340.jpg&imgrefurl=https://www.edb.gov.sg/content/edb/en/case-studies/dhl.html&h=340&w=722&tbnid=9-YxYs_j5rTu0M:&zoom=1&docid=BUJr82yx9q_1rM&ei=L9RfVe7DOMLUmgWUtYH4BA&tbm=isch&ved=0CDkQMygIMAg

By

Arun Teja Mattaparti (213347061)

Subramanyam Raju Gangaraju (213340871)

Electricity: Who’s benefited – “Distributors”? “Providers”? Retailers”? “Consumers”?

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          Electricity plays one of the major role in everyone’s life. Imagine a life without electricity every day, from the time we wake up and till we sleep. Can we run our day without power supply? Just think what if our mobile runs out of battery and have no power to charge it, what if all the electronic devices (Examples: Television, home appliances, washing machines, etc)  stop working due to lack of electricity? Can you imagine the consequences for these? To be frank, it would be a mechanical life without electricity, by using motors for each and everything we do in our daily life. I think ‘Imagining a life without electricity is something like human being without eyes’.

          The production of electricity has been increasing every year and every one are making use of it 24 hrs a day. But at what cost. Are consumers benefited with the electricity prices they get?

Australia is the world’s biggest exporter of coal and natural gas. The real asset for generation of power is coal. Coal is plentifully accessible all through Australia. For power era, black coal is majorly utilized as a part of New South Wales, Queensland and Western Australia. Though in Victoria, brown coal is the prevalent source. In the year 2013, “247 billion kilowatt hours (TWh)” of power is created by the “Australia’s energy stations”, which is very nearly 59% overabundance than the power delivered in the year 1990. Out of 247 billion kilowatt hours (TWh) of power, 15 TWh is utilized by the power stations and almost 12 TWh is lost amid transmission and the remaining is used by the buyers.

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National Energy Market (NEM) foundation incorporates both state and private assets and is administered by a blended sack of substances under the general course of the Australian Energy Market Operator (AEMO).The framework burden component was around 55% and the store edge around 28%. In the focused business sector the wholesale cost found the middle value of about $55/MWh. This included around 20% of last retail charges (51% being system, 20% being retail client administration and vitality effectiveness projects, and 9% being carbon cost). Not at all like some abroad power markets where the transmission framework administrators initiate dispatchable limit 45 minutes in front of saw need, in Australia the NEM has constant adjusting with the commitment on renewables up to five minutes prior to conveyance. Costs are subsequently topped all that much higher, at $13,500/MWh. This has given motivation to interest in new adjusting plant, with 4 GWe of adaptable limit being included late years. In 2013 spikes went to $7000/MWh, with a considerable measure above $1500/MWh. (In Germany the top is €3000/MWh and the most astounding spike in 2013 was about €130/MWh, offering ascent to little speculation.) In Australia a gas-terminated plant may keep running for 900 hours for each year (burden figure 10%), on 1050 events, with 400 of the starts being for five minutes just, however it can be economic.

Much power in Australia is presently exchanged so that dissemination organizations purchase at the best cost accessible from hour to hour from contending generators. The troubles coordinating supply with interest can be judged from the way that Victorian interest reaches from 3900 MWe to 10,000 MWe, and that in NSW from 5800 to 15,000 MWe.

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Australian power costs were practically the most reduced on the planet to around 2007, yet have risen altogether from that point forward, and worldwide examinations are exacerbated by the conversion standard. Henceforth 2011-12 normal Australian family costs are above Japan and EU normal and much higher than USA. By state, WA, Vic, NSW and SA, 2011 costs rank behind just Denmark and Germany.

The prior low costs made a noteworthy issue in pulling in interest in new producing plant to cater for resigning old plant and taking care of new demand – a 25% increment by 2020 was anticipated, and indeed a 40% ascent happened by 2011, with another 30% anticipated to 2013.

Eastern Australia’s National Power Market (NEM) works the world’s biggest interconnected force framework that keeps running for more than 5,000 kilometres from North Queensland to focal South Australia, and supplies some $10 billion power every year to take care of the demand of more than 10 million end clients. The NEM volume-weighted normal cost in 2008-09 ran from $36/MWh in Queensland to $49/MWh in Victoria and $69/MWh in SA. NEM base contains both state and exclusive resources, and is overseen under the general heading of the Australian Vitality Market Administrator (AEMO), which was built up by the state and central governments.

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The supply of power starts with generation of power in power station. The generating of power is done by utilizing numerous natural assets that are accessible, similar to coal (significant asset in Australia), renewable energy – sun based, wind, hydro, and a some fuels for low power generation. Generally these power stations are situated in the regional places where there is less population. In Australia, there are number of power stations in every state. “Loy Yang” is situated in Victoria and is the biggest power station in Australia.

The power produced in these power stations are transmitted to diverse districts with the assistance of transmission links. Every locale has its own particular wholesaler who purchases power from the power stations in mass at a low cost. These wholesalers supply energy to the suppliers independently in diverse areas at a value which would be gainful to the merchant. The no. of suppliers are not confined to one and only in a locale, there are atleast 2 to 3 suppliers for a district. (For example: AGL, Origin, Power direct, Jemena are the suppliers of power in Victoria. AGL and Origin are likewise retailers of the power market). These suppliers offer power to the retailers at higher cost than they get. The retailers then alter their very own cost and give it to the clients. This is a long channel of appropriation of power from the producers to the purchasers. Because of the move of power in this long channel, the costs are brought at every point up in the channel and when reaching the end (Consumers) the costs are increased than the manufacturing costs and it varies with different retailers.

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The retail organizations that are currently accessible in the business, purchase power effortlessly and make benefits by offering it to the clients at distinctive expense. This is making clients feel uneasy with the costs and making them to choose alternate options like solar energy (for example). At last, the retailers are benefited on the whole than the consumers. Many people switched to the solar energy in the resent years, which made the power prices high.

Honourable Prime Minister of Australia, Mr. Tony Abbot has told in an interview stating that “Australians will notice a difference on their next power bill and argues that the government has lowered the overall tax burden on people” (In a video interview with Sarah Ferguson (Reporter) on 17/07/2014 at Australian Broadcasting Corporation). He also says that the retail companies are advertising on the prices that are going to be reduced soon. Later on the prices of electricity reduced to some extent but not much low.

Resources:

  • World Nuclear Association – “Australia’s Electricity”, Appendix to Australia’s Uranium Paper, 2015.
  • CME report to Energy Users Association, Electricity prices in Australia: An International Comparison, March 2012.
  • “Data and Statistics – Energy in Australia”, ESAA: Policy and Research, esaa.com.au.
  • Brady, “A Dictionary on Electricity”, Prepared for Australian National Committee of CIGRE, 1996.
  • Warrick, “Living without Electricity”. Essay written for youth tour essay contest organised by White River Valley Electric Cooperative at Gainesville High School.

By

Subramanyam Raju Gangaraju (213340871)

Arun Mattaparti (213347061)

Coca Cola Life , A Healthy Addition ? – Place ( Distribution )

The Coca-Cola Company is the world’s biggest drink organization, invigorating buyers with more than 500 shimmering and still brands. Driven by Coca-cola, one of the world’s most profitable and conspicuous brands, our Company’s portfolio includes 20 billion-dollar brands including, Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitamin water, powerade , Minute Maid, Georgia and Dasani. Together with their packaging accomplices, they rank among the world’s main 10 private superintendents with more than 700,000 framework partners.

From a place and distribution point of view the coca cola company has targeted markets all around the world with particular advertisements based on the culture , language and standard of living of that particular region.

Also , commenting on the latest addition to the coca cola family , the new coca cola life has emerged with more then a few criticisms based on its marketing strategy that is to target a health conscious audience. In terms of distribution , i personally do not feel that this product can make a mark on the already existing range of products that coca cola has to offer , like the Diet coke and the zero sugar coke. With the introduction of this product , coca cola has tried to draw a line between its already existing original Coke beverage and the Coke with zero sugar.

First look - Coca Cola Life

First look – Coca Cola Life

Moreover ,

Well being specialists have blamed Coca Cola for ‘health washing’ purchasers with the dispatch of its new ‘lower-calorie’ soda as despite everything it contains everything of a grown-ups prescribed every day stipend of sugar.The soda pop Goliath’s most recent item, Coke Life, is part of the way produced using an actually sweet plant called Stevia, in an offer to target well being cognizant soda pop sweethearts.At the same time, a 330ml jar of Coca Cola Life still has 22g of sugar, likeness six teaspoons and 89 calories.At the point when contrasted with a 330ml jar of general Coca Cola which has 35g of sugar, likeness just about 10 teaspoons of sugar and 139 calories, that is 35 for every penny less sugar.On the other hand, the World Health Organization (WHO) prescribes that grown-ups of typical body mass list just eat 25g (six teaspoons) of sugar altogether every day.

My question being , if it is seriously sweet , with still a fair amount of sugar , and a reasonably large amount of calories for a small can , what makes it any different from other such offerings? Here is a picture i found where in the senior lecturer at the University of Sydney has made remark about the coca cola life being a healthy addition

“10 teaspoons of Sugar” – Beneficial or Harmful ?

In a general sense, this is around an organization propelling a sugary item to urge more individuals to expend a substance that adds to a scope of dietary and well being related issues, including diabetes. Coca-Cola gives off an impression of being utilizing the front of the administration’s disparaged obligation arrangement to search praise for drawing out an item that still contains more than 4 teaspoons of sugar for each 330ml can, which likens to one-quarter of a kid’s every day prescribed intake of sugar. As indicated by The Australian, Coke’s worldwide deals are under weight, and aggregate soda utilization in the US has declined more than 20 for every penny since 1998. In April, Coca-Cola Amatil cautioned financial specialists the organization’s assets were required to fall 15 percent for every penny in the six months to June 31.

HOW MUCH SUGAR IS IN YOUR DRINK? 
DRINK SERVING SIZE GRAMS OF SUGAR (PER SERVE) TEASPOONS OF SUGAR
Coca Cola Regular 375ml 40g 10
Coca Cola Life 375ml 27g 6
Diet Coke 375ml 0 0
Sprite 600ml 61g 15
Fanta 375ml 42g 11
Solo 600ml 72.6g 18
V Energy Drink 500ml 53g 13
Red Bull 250ml 27g 7
Gatorade 600ml 36g 9
Powerade 600ml 34g 8.5
Lipton Ice Tea: Peach Flavor 500ml 34g 8.5
Vitamin Water 500ml 27g 7

As indicated in the chart above ,in the metaphorical sense coca cola life is like the equator on earth , my point being it has more than half sugar as compared to Diet coke and just a bit more than half when compared to Regular Coke.While numerous are astonished by The Coca-Cola Company’s prerogative far from its famous red naming, there may be a much more unpretentious purpose behind it than the decency of green. The new item is said to contain impressively less sugar than regular Coke (in light of the fact that its sweetened with a plant concentrate), however doesn’t contrast positively and the two current items in the organization’s line-up. A container of Coca-Cola Life contains about 27 grams of sugar – contrasted with 40 grams in regular Coke and none in the two “eating regimen” offerings.Diet Coke and Coke Zero are sweetened with a mix of acesulfame potassium, a without calorie sweetener that is 200 times sweeter than sugar, and aspartame, additionally calorie free and 200 times sweeter than sugar.

The coca Cola life promotions based on place vary in different regions. For example here is an image clicked on southern cross station in Melbourne , Australia which advertises this new product.

“Let life Surprise you” – small yet catchy

Interestingly , from a distribution perspective Coca Cola Life has all the presence of a shopper’s choice, not an organization impulse. In reasonableness to Coca Cola, while Coke Life resembles a strategic reaction to the natural issue, it is discreetly revealing the Plant container in nine unique nations. So it is not a joke. Likewise Coca-Cola Life is bundled in the organization’s Plant Bottle, which is the first recyclable container produced using petroleum-based materials and up to 30% plant-based materials. The trust is to make a 100% plant-based container later on.

Coca cola products have been one of the top competitors in the beverage industry in the past decades but the question to be answered here is weather the introduction of coca cola life would provide a boost or is it going to fail the aspirations of the company. In terms of targeting the market , success based on distribution of the product would also contrast the pricing of the product when compared to the already existing products. The stand out factor is what will determine the success of the coca cola life , unlikely of what region the product is expected to hit. Only time will tell !

“As we tried to instill in each of our subjects over and over, WICKED is good.”The subjects being the audience or the target market and the product being Coca Cola Life along with ‘WICKED’ being the debate.

References

http://www.theguardian.com/business/2014/jun/11/coca-cola-fewer-calories-less-sugar

https://www.business.tas.gov.au/growing-and-improving-your-business/marketing-your-business/doing-a-swot-analysis/checklist-marketing,-promotion-and-distribution-channels

http://www.findingdulcinea.com/news/on-this-day/March-April-08/On-this-Day–Coca-Cola-Company-Releases–New-Coke-.html

http://radiopaedia.org/articles/coca-cola-bottle-sign

Place (Distribution) is at the Heart of Walmart’s Success

   Sagar

Walmart is unarguably the largest and leading retailer in the global retail industry with the net sales of $482.2 billion in the financial year ending 2015. The success of the company is based on various elements and strategies, and the effectiveness can simply be noted from the fact that it serves nearly 250 million customers every week, managing and operating over 1050 retail stores across the world in over 26 countries with more than 71 brand identities and corporate banners (Walmart, 2015).sagar2

However, the moist important yet interesting fact about the Walmart is defined as its supply chain and distribution strategy which is also considered as the industry benchmark. The main reason is the fact there is no other corporate player in the global marketplace owning the similar size of business portfolio and along with such diversified market existence. It is also revealed from the research studies that the place and distribution strategy that is designed and executed by Walmart is not only the key to its success, but also a source of its competitive advantage.

The company also claims that the primary reason behind its fast pace growth, continuous financial success and diversified product, market and customer portfolio is its distribution strategy which is further supported by the logistics and operations. The effectiveness of Walmart’s distribution strategy can also be noted from the fact that it claims to be seriving more than 250 million customers every week, which in practical context can only be possible, if the strategy is truly effective (Walmart, 2015).

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The company i.e. Walmart has established highly automated and centralized distribution units which operate round the clock and 365 days. In order to ensure that customers in each of its targeted regions are served and entertained effectively, the company has established multiple distribution centres in every regional zone. For instance, in the case of United States, over 45 distribution units are established which are dedicated to import goods from around the world and ensure each of the store within the US is managed with the demanded products. These 45 regional distribution units are further supported by over 150 distribution centres that are in direct contacts with retail units across the region. It is also important to understand each of the distribution centres caters the need of 75 to 100 retail stores (Walmart, 2015). This distribution strategy can further be defined as hierarchy which operates in most unique and systemized way to ensure the errorless flow of products from the suppliers to customers at their door step.

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Taking the global distribution context into consideration, it is observed that the company in total has established 158 distribution centres which are claimed to be the keys to organisational success. Unlike any other retailer in the world, the Walmart’s distribution network is also claimed to be the world’s largest and most effective within the retail industry. Its logistics activities are performed with the help of more than 6,450 tractors and over 54,000 trailers which are operated by more than 7,000 drivers (Walmart, 2015).

sagar5Furthermore, each of its distribution centres has high-tech and modernized systems to moves hundreds of thousands of cases each day. In addition, each distribution centre caters 90 to 100 stores on average that are strategically located with an aim to provide rapid responses to the connected retail stores.

A part from the activities and operations within the context of distribution and place strategy, the company is also found to believe that its workforce assists it to generate enough power to cater its stores as well as every customer at the same time. Walmart therefore puts extra focus on its recruitment, selection, training as well as development and considers it as a part of its distribution strategy. Since the distribution activities involve the logistics too, the company ensures that each of its drivers is not only qualified, but also experienced. The strict company’s policy can be noted from the fact that it only hires drivers those have driven minimum of 300,000 accidental free miles (Walmart, 2015).

sagar 6sagar7In addition, the company also accepts its corporate social responsibility and ensures that its distribution and logistics activities are environmental friendly (Walmart, 2015). For this, the Walmart does not only follow the self-designed and self implemented code of conduct, but also ensures that the global standards in relation to corporate social responsibility are met at all times (Walmart, 2015).

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References:

Walmart, 2015, Our Story, retrieved 20th May 2015, <http://corporate.walmart.com/our-story/>

Walmart, 2015, Walmart Logistics, retrieved 20th May 2015, <http://corporate.walmart.com/our-story/our-business/logistics>

Walmart, 2015, Truck Fleet, retrieved 20th May 2015, <http://corporate.walmart.com/global-responsibility/environment-sustainability/truck-fleet>

Walmart, 2015, Reducing Carbon Emission in Our Stores and Global Supply Chain, retrieved 20th May 2015, <http://corporate.walmart.com/global-responsibility/environment-sustainability/greenhouse-gas-emissions>

By- Sagar Lakhisarani and Siyu Yue