Walmart Marketing Strategy – Marketing Strategy of Walmart: Walmart was founded in 1962 by Moore Walton, James Lawrence Walton, and is the world’s largest retailer in terms both of revenue and employees. Walmart had revenue of $ 482billion in 2016. Through its channel, which includes 11000 stores across 28 countries, Walmart serves more than 26 million customers each week.
Walmart At A Glance – Marketing Strategy of Walmart
Company : Walmart
CEO: Doug McMillon
Founder: Sam Walton
Year founded: July 2, 1962, Rogers, AR
Headquarters: Bentonville, Arkansas, U.S.
Annual Revenue: US$559.2 billion
Profit | Net income: US$13.70 billion
Number of employees : 2,300,000 (2021)
Products & Services: Supermarket, Hypermarket, Superstore, Convenience shop
Walmart Fun Facts: Walmart employs more than 2.3 million associates around the world. More than 75% of our Walmart U.S. store operations management team members started as hourly employees, and in FY2020, we promoted more than 200,000 people to jobs of greater responsibility and higher pay in Walmart U.S.
Marketing Strategy of Walmart
Walmart’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Walmart? Let us discuss.
Walmart Marketing Strategy – Segmentation, Targeting, Positioning
The segmentation strategy allows customers to understand different segments and their changing requirements. Walmart employs a psychographic, demographic segmentation strategy. It can understand the needs of the consumer and can offer everyday goods at lower prices. Walmart’s strategy was created to offer low prices every day.
The giant uses an undifferentiated strategy to grab the market worldwide. Walmart considers everyone a potential customer so it doesn’t use differentiation as a major advantage. Walmart’s main differentiator is its product price. The entire population can benefit from a low pricing strategy.
Strategy positioning is key to a company’s success. Walmart has been known for being a company that offers products at the lowest prices. To be financially sustainable, it uses a Pricing advantage. Walmart’s low prices have led to the destruction of many smaller retailers during its operation.
Walmart Mission Statement
“to save people money so they can live better.”
Walmart Vision Statement
“To allow the customer and communities to see what it’s like to save and have a better life”
“Save money, live better”
Marketing Strategy of Walmart – Competitive Advantage
USP Lowest price:
Walmart is known for offering goods at “Everyday low prices”, which are the same prices offered in all of its stores. Walmart negotiates aggressively with manufacturers to pass the savings on to customers. Walmart’s “Black Friday” event offers products at a bargain price. This strategy is copied by many retail giants around the globe and is one of its most successful.
Wide product ranges:
Walmart offers a wide variety of goods. The large SKUs (stock-keeping units) allow for the company to retain its customers and play over volume for profit.
It is difficult to manage such a large retail chain. Walmart pays special attention to how it operates to ensure that customers get their products quickly and that shelves are always full. Walmart serves millions of customers every year and has a supply team and operations team to handle the same.
Walmart Marketing Strategy – BCG Matrix
The Company is engaged in the wholesale and retail channels of business. It operates through three segments: Walmart International and Walmart US.
Walmart US accounted for 62% of net sales in fiscal 2016, while Sam’s Club and Walmart International accounted for 26% and 13% of net sales, respectively.
Walmart is the STAR in all segments/businesses that it operates. Although it has many rivals, Walmart holds the largest market share. The market growth rate, on the other hand, is strong enough that the competitors can also capture their niche. Walmart can be regarded as a STAR in the BCG matrix when you combine these two properties. It holds a high market share in a high-growth market.
Walmart Marketing Strategy – Distribution Strategy
Walmart is present in 27 countries around the world, apart from the United States. It operates in categories like retail, wholesale, and others. Each category operates in its formats: Supermarkets and warehouse clubs, supercenters. Hypermarkets’ cash-and-carry formats. Specialty stores. Convenience shops.
Its retail units are physical stores that are between 4000-1,80,000 sq ft. Convenience stores can be up to 2400 sq ft. Wholesale stores range from 35,000 to 70,000 square feet. This shows that Walmart is the biggest US retailer and one of the most important retailers worldwide.
Walmart US has 139 distribution locations that ship approximately 79% of its merchandise. It is also 16th globally in the terms of the supply chain.
Marketing Strategy of Walmart – Brand equity
The Company was 15 on the list of top 2000 companies and 22 on the list world’s most valuable brands by Fortune.
The brand was valued at $ 215.7 billion based on the market capitalization method. (As of May 2016, The majority of the. Brand Equity comes from the easy recall of the brand due to its low prices, and consistency.
Walmart Marketing Strategy – Competitive Analysis
It can compete with national and global supermarket giants as well as pops & mums stores in various formats. Companies such as Tesco and Amazon are some of the major competitors. Are there any major Walmart competitors in one or more of the following segments?
Walmart Marketing Strategy – Market Analysis
The dynamic modern retail industry is moving towards opportunities and challenges. It is being affected by many things such as the migration of people and changing consumption patterns due to changing lifestyles, the emergence of companies that deliver anything and everything to customers and suppliers, and increased bargaining power for both customers and suppliers.
Marketing Strategy of Walmart – Customer Analysis
Walmart customers can be wholesale or retail customers. These retail customers are mostly working-class people of all ages, who want value and everyday products at a low cost.
Walmart customers are middle- and upper-income people who seek the best deals & discounts to buy their necessities.
We hope you enjoyed this article about the Marketing strategy at Walmart. Comment below to discuss or add value to the article.
You May Also Like:
- Marketing Strategy of American Express – American Express Marketing Strategy
- Marketing Strategy of British Petroleum – British Petroleum Marketing Strategy
- Marketing Strategy of FedEx – FedEx Marketing Strategy
- Marketing Strategy of General Electric – General Electric Marketing Strategy
- Marketing Strategy of Vodafone – Vodafone Marketing Strategy
This is the Marketing Strategy of Walmart. Please let us know if you have additional suggestions to add.
Let us know What do you think? Did you find the article interesting?
Write about your experiences and thoughts in the comments below.