Walmart Marketing Case

Walmart & E-Mart

Case Assignment

1. When compared to its success in the U.S., why did Walmart fail in Korea? Use key marketing concepts learned in this course to explain. |

Bad TPO (Time, Place & Occasion)- Patriotism after AFC 1997

When Walmart entered the Korean market in 1998, it was a period when patriotism wave was strong during the wake of the Asian Financial Crisis in 1997. It weakened the domestic economy and then, Korea had a very strong We culture (the people donated their gold voluntarily to buy US dollars. They tried to avoid spending on imported foreign goods. At that time, even children brought gold to join the movement). Most Korean brands with English names had to emphasize the fact that they are made by Korean companies. With this strong patriotism environment back then, for a foreign brand like Walmart to enter, it was a tough fight for survival.  

Inconsistent Branding- Usage of the MACRO brand name

For more than a year, Walmart used the MACRO brand name as it was engaged in a legal battle with a Korean supermarket chain with its brand name. As a result, Walmart lost the opportunity to position its brand in the Korean market with its original brand name.

Furthermore, the MACRO stores that Walmart took over were located in the suburbs, which made them less favorable as compared to their competitors in terms of accessibility and awareness of the brand. Even though Walmart eventually managed to use its brand name, there could have been negative pre-existing perceptions about the “Walmart” brand name which was previously used by the Korean chain.

Middlemen control failure

1. Internal agency: Instead of hiring Korean managers who understand the Korean market, consumers’ tastes and purchasing patterns, Walmart insisted on hiring foreign managers who lacked the relevant expertise.

2. Outside partner (suppliers): When dealing with its external partners (suppliers), Walmart used a coercive (push) approach, which only...