So, question becomes, how do you win? Business 2.0 published a pretty good article in their May 2005 issue titled "How to Beat Wal-Mart?" What's particularly interesting is that some folks have been successful even competing on price. Save-a-Lot competes by providing convenience of a smaller store in local neighborhoods that aren't name brand. To me, that seems to take away direct brand competition, which is a good thing. The Dollar Tree also attracts those looking for low price in a small store with simple pricing. In fact, their operating margins are higher than Wal-Mart's. Finally, Costco succeeds via providing higher-end products to those who want good items at lower prices. Small business is a primary market, one that Sam's Club is now going after.

There are a number of necessary fundamentals. First, you must have an objective. It may be to increase store sales. Perhaps an offer such as a free gift will do trick. Just be sure to have a clear purpose. It reduces chance of passing along a confusing message.

Then, you'll need to have a mailing list. Perhaps you have a customer database you've been collecting. This is obviously a good group. Additionally, there are list brokers who can help you get lists that are very targeted, in terms of geography and interests. These are useful for attracting new customers, while your database is great for increasing purchases from your core of customers.