Topic > Retail Distribution Strategy - 1170

Walmart is well known for its EDLP (Every-day Low Pricing) model. Although the EDLP seems like a pricing model, it is primarily used to differentiate the retailer from others. Evidence that EDLP is not always a pricing strategy is that EDLP “does not underprice all goods” (Lal & Rao, 1997, p. 97). This means that EDLP is a strategy to differentiate itself and not to always provide the lowest possible prices. “Walmart's mission is “We save people money so they can live better” (Walmart, 2014), which indicates that Walmart's pricing structure is how it serves its customers. After deciding what message send to its customers, a retailer must then decide the best way to actually spread the message. These can include television, radio, newspapers, direct mailing and many other methods do not unintentionally overinflate the cost of goods. However, if the retailer does not promote enough, it will fail to attract customers