M RahmanMarketing mix of Walmart (4Ps of Walmart)
This is a detailed analysis of the marketing mix of Walmart. It examines the 4Ps (Product, Price, Place, and Promotion) of Walmart and explains how it has been implementing these marketing techniques to support its growth. Walmart is one of the largest companies in the world.
Product strategies of Walmart
Walmart has a wide range of products which are listed in different categories. The main categories are Electronics & Office, Movies, Music & Books, Home, Furniture & Appliances, Home Improvement & Patio, Clothing, Shoes & Jewellery, Baby & Toddler, Toys & Video Games, Food, Household & Pets, Pharmacy, Health & Beauty, Sports, Fitness & Outdoors, Auto & Tires, Photo & Personalized Shop, and Sewing, Crafts & Party Supplies (Walmart, 2023).
As seen above, customers can buy virtually everything they want from Walmart. This mega range of products helps the company offer its customers what they need/want and the convenience they look for. However, its product recalls due to mis-labelling and other issues require it look into the quality matter further.
Walmart has developed a range of private label brands, such as Great Value, Equate, and Mainstays, which offer quality products at lower prices than other national/international brands. This not only helps to reinforce its commitment to affordability but also allows it to differentiate itself from competitors and capture a larger share of the market.
Pricing strategies of Walmart
Pricing is a key area of discussion in this marketing mix of Walmart (4Ps of Walmart). To stay ahead of competition, Walmart focuses on low prices on a broad assortment. Every Day Low Price (EDLP) is the central focus of its pricing strategy.
This pricing strategy is consistent with Walmart’s business strategy of cost leadership. With this, it can make existing customers satisfied and attract new ones. Due to a number of factors, it enjoys low costs and therefore, is able to offer the customers a low price.
In addition to a low pricing strategy in general, Walmart also uses other pricing strategies e.g. psychological pricing and competitor pricing. In the past, it did a price comparison test in at least 1,200 U.S. stores in a bid to close a pricing gap with Aldi, Kroger Co, and other discounters. This is an example of competitor pricing strategy. However, it should be mentioned that price war is not always the best strategy to beat competitors.
Place/distribution channels of Walmart
Walmart has over 10,500 stores and clubs. Over 45,00 of them are in the USA, and the rest are in over 20 countries (Walmart, 2023). Walmart has different retail divisions i.e. discount stores, supercenters, neighbourhood markets, and Sam’s club. Discount stores offer a variety of quality and value-priced general merchandise, while supercenters offer full grocery lines and general merchandise.
Most of the supercenters offer 24 hours a day service. Neighbourhood Markets offer groceries, pharmaceuticals and general merchandise, while Sam’s club is a member-only warehouse which offers a broad selection of general merchandise and large-volume items at value prices (Walmart, 2023). However, it is worth mentioning that Walmart has been accused of poor business practices concerning foreign product sourcing and treatment of suppliers.
Walmart’s store locations and layout play a significant role in its marketing strategy, as they contribute to the overall shopping experience and help to drive customer satisfaction. Its store locations are carefully selected based on factors such as population density, accessibility, and proximity to key amenities, ensuring that they are conveniently located for customers.
Walmart is one of the fastest growing e-commerce organisations in the world and has a number of websites. The largest website is Walmart.com. According to a number of sources, this site sees up to 100 million unique visitors a month. Walmart has also an app called Walmart app. Thus, it is very clear that Walmart has very dynamic and efficient distribution channels which make shopping very convenient for the customers.
Promotional strategies of Walmart
Promotional strategy is the last element to address in the marketing mix of Walmart (4Ps of Walmart). Walmart makes use of advertising, sales promotion, public relations, and other methods to take its messages to the target audience.
Walmart has a massive advertising budget and invested 3.11 billion U.S. dollars in advertising in the United States in 2021 (Statista, 2023). It has used newspapers, TV, Internet, and other advertising methods over the years. However, it is worth noting that some of its ads caused controversies in the past.
In addition to advertising, Walmart also uses other methods of promotion. For example, it regularly uses sales promotion in the form of special deals and discounts. Its CSR programmes are very well-known as well. It awards grants to organisations of all sizes. Walmart and the Walmart Foundation have given billions of dollars in cash and in-kind contributions globally in the last several years.
Walmart utilises social media and content marketing to engage with its customers, sharing relevant and timely information, such as new product releases, seasonal promotions, and helpful shopping tips.
Summary of marketing mix of Walmart (4Ps of Walmart)
Walmart’s success in the retail industry can be largely attributed to its effective and innovative marketing strategies, which have enabled it to consistently deliver on its value proposition and maintain a competitive edge. Each of the marketing mix components plays a critical role in this.
However, it is worth noting that Walmart needs to bring about improvements in some areas. For instance, an analysis into the customer feedback on Truspilot shows that many customers are unhappy with retailer due to several issues such as order cancellation, confusing pricing, and poor customer service (Trustpilot, 2023).
We hope the article on the ‘Marketing mix of Walmart (4Ps of Walmart) ’ has been useful. You may also like reading SWOT analysis of Walmart. Other relevant articles you may be interested in are:
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Last update: 24 May 2023
References:
Statista (2023) Walmart Stores’ advertising spending in the United States (in billion U.S. dollars), available at: https://www.statista.com/statistics/192068/us-ad-spending-of-walmart/ (Accessed 08 May 2023)
Trustpilot (2023) Walmart, available at: https://uk.trustpilot.com/review/www.walmart.com (accessed 24 May 2023)
Walmart (2023) About us, available at: https://corporate.walmart.com/our-story (Accessed 24 May 2023)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.
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