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Pricing is the most effective marketing tactic that organizations employ to remain effective in goods and service delivery by maximizing costs and minimizing the loss of buyers. Depiction of this is done through a close analysis of strategies within target and Wal-Mart, which are globally renowned organizations that put in practice the tactics of price strategy given realization of their goals. The companies are classifiable as the big box retailers, where competition for customers is the major agenda for both organizations. However, Wal-Mart has stood out as the most competitive big-box retailer, due to the unique pricing strategies that have seen it provide the customers with low-cost items, which has culminated in an increased net income and lowered costs. Moreover, the organization works according to its slogan of “Spend Less. Live Better”, which has effectively put it at the helm of retail business as a leading low-cost provider. Consequently, it has stood out as a global competitor. On the other hand, Target Corporation is also a big-box retailer that emulates Walmart’s pricing strategies by providing its customers with low-cost products. Moreover, it is one of the organizations that employ product differentiation to lure customers for special unique goods. This term paper elucidates the pricing strategies and tactics observable within Target Corporation on one hand and the Wall-Mart company on the other.

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Wal-Mart Pricing Tactics

Firstly, the pricing tactics within Wall-Mart Corporation are following its policies, which depicts a correlation between better lives and the general cost of living, where the slogan of saving money for better lives is the driving tool. The ensuing idea is that the company thrives on low-cost production for the better lives of its customers. This is through the fulfillment of the basic goals within the major slogan spanning from private label, price leadership, and integrated communication of brand to zero waste on facilities.

Private label is the categorization of products for identification. This is a strategy that Wal-Mart has put in place to stand out as a company, whose goods are identifiable through labels. This is a contributory factor towards creating customer confidence. The private label of the product is also essential in distinguishing the company from its competitors. This strategy has also been beneficial to the company through value creation, where consumers are looking for these labels to save money, through the confirmation of product originality from the labels. This has become a booster to the company and the consumer as it has led to reduced counterfeits, thus building customer confidence. The price that the consumers pay for is proportional to the label produced, implying that there are no chances of fake products for the cost no matter how low.

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The other strategy that the Wal-Mart company is putting in practice to remain competitive globally is price leadership, where the company operates on the “everyday low pricing” phenomenon. This is a strategy that aims at giving consumers the best cost for each product category. The company provides value for its consumers by cutting down on costs of production, which in turn lowers the cost of pricing that has enabled it to control the market price for its competitors like the Target corporation. This aspect of control of market prices has been the factor underpinning the gain of market share. It has also been the tool for placement of the company at the helm of competition as a leading cost-effective corporation. Moreover, it has attracted more customers, thus defining the aspect of increased turnover rates and profitability.

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Moreover, the Wal-Mart company is evolving through integrated brand communication through co-branded advertisement campaigns. This is the aspect of communication of products through online and roadshow promotion for firsthand acquaintance with the consumers. This is also a form of communication of lower prices, which has attracted more consumers looking for the products. The system of the advertisement has had a shift from roadshows to computerized communication through the employment of social networks like tweeter that are faster, more efficient, and cost-effective. This has also impacted the cost of input. Consequently, it has influenced the cost of prices. In addition, it has created awareness of the goods and services within the jurisdiction of the Wal-Mart company.

The company is also renowned for its zero waste on facilities policy, which is a contributory pricing strategy. This is a policy that defines sustainability within the company as the maximization of efficiency and value creation from the raw material to the final product transition without waste on facilities. This is a sound process of overseeing the process of manufacture of goods in such a way that there are no losses on resources. It is the source of impact on the quality and price of the final product. It is also a form of standardization of the price of products through reduced cost of production. The higher management within the company is dedicated to overseeing the production, packaging, storage, and selling of the goods with the ultimate policy of zero waste on facilities and increased profits.

Pricing Strategy within the Target Corporation

The other strategy that the Wal-Mart company is putting in practice to remain efficient in terms of pricing its goods is a shift in supply chains. This is a form of connection between goods and consumers via transformation in goods transportation and consequent supply, where there is a reduced price on goods on reduced truck mileage. Consequently, there is a reduced price on an increased consignment of goods. This has attracted more purchases as the discount offered on more goods shipped from the company acts as an incentive.

Secondly, the pricing strategy within the Target Corporation depicts policies, which are more charitable than business-oriented. The fact is that the organization employs the Red card loyalty program, which views to provide a 5% discount on off purchases. This is a form of offer, which has seen a reduced price on goods to attract more customers. This is also a form of competitive tool since it is a unique strategy that differs from its competitors like Wal-Mart.

The Target Corporation also puts in place the cost-plus pricing strategy, which determines the price of products from evaluation of the production costs, to storage then to shipment plus the predetermined profit, which gives the best possible cost of the final product. This form of determination of the price is a form of consideration of the customer’s needs through the price reduction on the final product. This helps in maximizing the cost of the final product without profitability loss. It is also a form of maintaining the quality of the products, which builds customer confidence.

A target corporation is also a form of definition of the odd-even pricing strategy, where a price is predetermined from the next dollar amount. This is through setting prices slightly lower by scents like setting one dollar less than the next category of the dollar. For instance, $1999 implies that the perception of the buyer lies within the lower levels or the preceding affordable limit. The above figure puts the perception of a buyer into thinking that the price is affordable. This might contrast with the figure such as $2000, which is a unit higher than the preceding level of the thousand of a dollar. This form of pricing is essential in attracting the consumer’s resistibility to purchase, which is fundamental in selling products within the organization.


Conclusively, the pricing strategies within the target corporation and the Wal-Mart company signifies the attraction of customers through cutting down on the cost of the products. In both companies, there is a depiction of consumer satisfaction within low-cost margins without minimization of the value in the final product. This is also a competitive advantage, which has put the companies at the helm of the global market. The form of pricing in Wal-Mart is slightly different from that of the target in that the target corporation has an indirect impact on shaping the prices through some form of charity. For instance, there are some incidences of offers. On the other hand, the pricing system within Walmart Company shows a clear system of daily forms of cut on the cost of products. This is done by overseeing the process of production t to reduce its cost. The lowered cost of production has a positive impact on the price of the final product by lowering the cost. This is also essential in increasing profitability without a decrease in effective consumers. It is also a source of value creation and confidence within the customers’ fraternity. Overly, the system of lowering costs on products daily within the Wal-Mart company has been the force of purchase power within the organization. This has enabled it to out-compete its global competitors, like the Target Corporation, and become the major controller of the market prices.

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