Differentiation strategies in low-cost markets

¶ … Discount Retailers

Wal-Mart is the big gorilla on the street when it comes to marketing. Whether the store is a store located in Sandy, Utah or possibly Huber Heights, Ohio the customer finds the same items located in the same place in the store, for approximately the same price. The customer knows, and is comfortable with the environment which is presented in any of the Wal-Mart locations around the nation.

Wal-Mart differentiates itself from the other 'discount merchandisers' by providing substantially more product for much higher prices than the others. The dollar discounters concentrate on supplying the consumer with products that appeal to the impulse shopper than does Wal-Mart. Whereas Wal-Mart will offer many products of higher quality (and corresponding pricing), the discount shoppers concentrate primarily on price, especially those stores that tout the $1 or less mantra. In Wal-Mart's 'SuperCenter' the customer can do the weekly shopping, have a car repaired, get a haircut or nail manicure, or purchase prescription drugs, eyeglasses and examinations and even have a family photo taken. These services are nowhere to be found in the dollar discounting stores.

In the dollar discounting store's defense their goal is not the same as Wal-Mart's. It would not make sense for them to appeal to convenience shoppers. They are not trying to be everything to everybody, they are not trying to offer as many convenience services as Wal-Mart does, instead; the key to their success is moving as much product, in as short a period of time as possible.

Their primary focus is to entice the customer to purchase as many $1 products as can be afforded.

Fast Food

It does not seem as if Burger King has a specific objective in differentiating itself from its competition. For a long time, the King's mantra was to "have it your way," but even that focus has more or less slipped by the wayside. Now it does little in the way of setting itself apart from its competition, what little it does do seems to be a mimic of what the other fast food restaurants are doing. Burger King does have the whopper, which is a relatively tasty hamburger well worth the money spent to purchase it, but little else is offered there to entice the fast food consumer.