Don'T No

Time Line

We believe that Wal-Mart will be successful with this strategy over a two-year period. Wal-Mart's current market positions in each of their territories should be increased to the highest level after the market penetration strategy has been applied for the two-year period.At that point in time, Wal-Mart will begin experiencing diminishing returns for every adverting dollar spent on the market penetration strategy in their targeted areas. Following the use of this strategy Wal-Mart will be able to reduce their advertising budget in these areas to a market share maintaining level.

Evaluation

In order to determine if the market penetration strategy is indeed adding to the success of the company, Wal-Mart will need to take periodic readings from sales figures, department heads, inventory turnover, and customer surveys. This strategy will be fully implemented within days of its selection from management.

To find the sales figures we would have to go to the accounting department where all the information on sales should be recorded. The information from department heads will be useful because it will allow us to recognize the problems and what they are doing good in each department. Inventory turnover allows us to know whether a firm holds excessive stocks of inventories and whether a firm is selling its inventories slowly compared to the industry. The inventory turnover is found in the financial ratio, which could also be found in the accounting department. Finally, customer surveys will help the whole company by getting an outsiders point of view on the company.

Up-Date

Since 2002, Wal-Mart has maintained its command over the discount retail industry. In mid-December Wal-Mart announced the promotion of John Fleming, Walmart.com's chief operating officer, to president