Customer Benefit Package

Customer Benefit Package

Prepared for

John Doe

Instructor

Operations Management

Prepared by

Connie North

January 31, 2012

Consumers shop in discount stores for general merchandise and categories such as consumer electronics, house-wares and H&BC. But how many of those hard lines customers can be coaxed across the aisle to purchase meaningful quantities of clothing?

In a country filled with retailing options. Why do consumers choose Wal-Mart as an apparel outlet? A gold star goes to those who answer "price." Considering Wal-Mart's market position, it is not surprising that low prices are the "main advantage" of shopping at Wal-Mart.

Wal-Mart's broad assortment orientation is also apparently appreciated by consumers who shop the store for apparel. "Selection," which for the purposes includes references to size, color and fit, is named the second most important advantage for buying clothing at Wal-Mart.

a) Wal-Mart has the reputation for having the lowest prices. In fact, they try to be the jack of all trades, but sometimes the smaller mom and pop stores offer the personal service, something the larger department stores lack. The smaller suit department can offer more knowledge about the clothing that they carry. The small clothing store can offer the products at a lower price for the short-term, but in the long-term they will not be able to keep up with Wal-Mart.

Wal-Mart uses market research to see who they need to cater to and stick with their customer's price frugality. The smaller clothing department can't compete with the basement bargain prices at Wal-Mart, but they can challenge their dominance by offering personal service, quality products, and most of all rely on word of mouth advertising. Wal-Mart suffers from poor public image and the small stores can use that to their advantage. This can be attributed to small stores catering to specific needs of the customers...