Walmart is a household name around the world. It is one of the world’s biggest retail brands, with 230 million customers going to the store in one week globally. In this article, we will discuss the Walmart marketing strategy.
In the year 2022, Walmart had a huge incoming revenue of over 572 billion USD till now and saw an increase of 3.54% in profits from the year 2021.
The retail brand of Walmart is no longer limited to the US. It has become a global sensation with an estimated 11000 stores worldwide. This massive success and growth do not come out of sheer luck or chances.
There is a complete strategy at play to push the company beyond borders.
Number of Walmart stores worldwide from fiscal year 2008 to 2022. Source: statista.com
The 7 strategies you need to remember
With a careful mix of 4Ps and other tactics, Walmart has a solid marketing strategy that can provide highly valuable lessons for all companies.
Let’s break this enigmatic success shroud of this global giant and understand some top ways the Walmart marketing strategy is fruitful. Keep reading.
1. Involve the stakeholders in the process
One of the biggest reasons for Walmart’s stability and success is the dedicated associates working tirelessly to provide a better customer experience.
Walmart understands better that if employees are not involved in a company’s success, it can be hard to strengthen the roots and take the brand forward. All the workers need to be committed to the company.
A great way to do it is by giving the employees a stake in the company. If the company’s success is directly linked to the employees’ success, they won’t work as if it is only their job; rather, they will put in honest efforts to breed successful practices.
Employees are also the link between the company and the customers. They deal with the people who come in to buy something or have any queries.
So, employees need to be one of the company’s top priorities. Walmart doesn’t just hire people and leave them to do their daily assigned tasks. The retailer ensures that employees are a central part of the process.
Walmart Marketing strategy. Image source: walmart.com
2. Fishing for new target markets
A great thing to learn from the Walmart marketing strategy is that you should never rely on a business path; if there is an opportunity to grow, take it.
Walmart became hugely successful back home in the US, but this did not become a reason for it to stop right there and become complacent.
Instead, Walmart knows most domestic markets in the US have now become saturated. The population of the US only makes up a small portion of the world population.
Staying in the US alone meant missing out on more than 90 percent of the global population. When Walmart reached a pinnacle in the existing market, it was time to go fishing.
As a part of the Walmart marketing strategy, the company went global, opening stores in other attractive markets like Europe. Currently, Walmart has stores in more than 24 countries worldwide, with over 11000 of them.
Walmart’s international strategy might not have been supported at first, but currently, it contributes to a major portion of Walmart’s total revenue.
3. Adapting to the latest tech advancements
Another feather in the company’s hat is the quick adaption to the latest tech trends and incorporation of them into the Walmart marketing strategy.
Physical stores are slowly vanishing from the business scene. They are still a major part of the shopping experience, but people rapidly switch to online shopping or eCommerce mode, especially after the pandemic.
Several companies over the years completely deteriorated or saw a striking downfall after they refused to change with the changing technological environment and infrastructure of the businesses.
The Walmart marketing strategy pushes the company to adapt and try new tech advancements. As a result, Walmart is no longer just a physical retailer and wholesaler; it also has an eCommerce system where customers can buy stuff from the brand online.
You can still visit a physical store if you want to, but if you need to get something delivered to your home, Walmart is also at the forefront.
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4. The distribution and location strategy of Walmart
The distribution and location portion of the Walmart marketing strategy is also highly successful and practical. Ensuring the best location and distribution strategy involves incorporating the best technology to build optimal processes.
Besides having a very strong eCommerce platform, Walmart has strategically located distribution centers so the stores can pick up the orders from these centers and deliver them on time to the end customer.
This strategy applies not just to the distribution centers but also the physical outlets. The stores worldwide, especially in the US, are located at some of the best points, so the deliveries and orders can be sent to the customers on time.
The company also has a great transport system with huge trucks responsible for bringing orders to the customer’s door.
Moreover, having a great distribution strategy also involves keeping a tight track of the inventories, so the company knows beforehand when certain products are not in-store or on their way.
5. The famous pricing strategy
The biggest and major part of the competitiveness of the Walmart marketing strategy is the slogan that the company runs on – Everyday Low Prices. The retail industry is a very crowded, and Walmart has managed to come out at the top by being a cost leader.
This cost leadership in the retail industry means that Walmart is focused on and promotes selling products for the lowest possible prices. Customer loyalty and conversion is not their main concern.
Walmart wants to attract the biggest crowd of customers to the store with its streamlined process of shopping.
The massive sales of the company offset the low prices in the store. Walmart sells in bulk, so it can also profit from low-priced products. The company is brilliant at negotiating deals with suppliers to get the most affordable prices for the store, which has allowed the brand to keep true to its slogan.
Moreover, several product categories are being sold in the store. This diversification of the products ensures that different categories balance each other out. So, if one of the products is not doing well, the other one will do more than expected sales.
For bigger purchases, Walmart has a few different payment plans available, so customers don’t have to spend a huge amount all at once.
6. Big promotional gestures to stay at the forefront
The Walmart marketing strategy is big on promotion. The brand promotes everywhere. It has marketing strategies for TVs, social media, billboards, PR, newspapers, magazines, and more.
Walmart runs ads on different platforms and via different channels with irresistible slogans like “Grab it before it’s done.”
The brand almost always has some discounts, deals, or special offers running in ads. These are available for physical stores as well as online shopping. Coupon codes are also offered occasionally.
Moreover, the company does not only have a striking social media presence. It also advertises in newspapers and on TV.
Press releases are sent out to inform people of significant changes. A part of the Walmart marketing strategy is to sponsor charities. The philanthropic activities promote the company name in goodwill and as a socially responsible brand.
There are also long warranties and security for purchases with safe shipping, which builds customers’ trust. An in-person promotion is certainly happening when the customer comes to the store. There are trained salespeople that encourage and convince the customers to buy stuff.
7. A one-stop destination for all needs
This is another big magnet for people and a central part of Walmart marketing strategy. Walmart has grown to become a one-stop destination for people. This tugs at the convenience-seeking strings of customers.
Instead of having to go to different shops for various purchases, Walmart has a roundup of all essential items like back-to-school, college things, home décor, electronics, utensils, appliances, and more. Some white-label items are not available in any other store.
All this has been possible because Walmart has strong ties with the suppliers and distributors.
People can not only find all they are looking for at Walmart, but they can also get them at discounted prices. This is especially easy for families with little kids who cannot switch stores for every little thing.
A one-stop destination for all needs: Walmart marketing strategy.
A huge portion of the target segment is attracted to Walmart just by carrying diversified products under one roof.
Walmart Marketing Strategy – End Note
It is common for businesses to try to become all at once. The Walmart marketing strategy has successfully been able to play to its strengths. The reason for the success of Walmart is straightforward branding.
They wanted to become leaders in best prices, so they aligned all their marketing mixes with cutting costs and improving sales.
Branding is a center piece of marketing strategy. A business should have a definite quality or an attribute based on which the company will begin promotions.
If you are looking to grow as a company, choose how you want to brand yourself in front of the customers, and the rest of the marketing tactics will fall into place.
Thank you for taking the time to ready my article on the Walmart Marketing strategy! If you want to read more on Marketing strategies, you can also check these articles:
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FAQs
What made Walmart so successful? ›
Walmart's success can be attributed to having their own supply chain to streamline fulfillment and cut down on costs. It also provides them with more control over their logistics network. In this article, we take a closer look at the Walmart supply chain and why it continues to be so successful decades later.
What marketing strategies does Walmart use? ›The store uses phrases like "Save money, live better," "lowest price store," "worry-free fresh," and "everyday low pricing" to get the consumer excited. Walmart uses many different ways to advertise, such as commercials on TV, billboards, social media, and eCommerce websites.
What strategy does Walmart successfully follow? ›Low Pricing Strategy: Walmart has been known for its "Everyday Low Prices" strategy, which involves offering products at lower prices than competitors. This pricing strategy has helped Walmart to attract customers who are looking for value and affordability.
What are the 7 marketing functions and their importance in strategy? ›The 7 functions of marketing are promotion, selling, product/service management, marketing information management, pricing, financing and distribution. Understanding the core functions of marketing can help you better focus your efforts and strategies to support your business.
Why are the 7 P's of marketing important? ›Importance Of 7 Ps Of Marketing
The 7Ps model helps us to: Set objectives and provide a roadmap for your business objectives. Conduct SWOT analysis, and undertake competitive analysis. Review and define key issues that affect the marketing of its products and services.
Walmart is committed to 4% sales growth and 4% operating income growth over the next three to five years, and margin recovery is a priority.
What is the most successful Walmart? ›In fact, the Doral Walmart has the highest sales of any store in the entire country.
What is Walmart marketing? ›We orchestrate marketing campaigns that speak to millions of daily shoppers. Our work spans the digital and physical space and combines the work of numerous internal teams and external advertising and media agencies. Our marketing teams work together to show our customers how they can save money and live better.
What is Walmart's strategic positioning? ›Always Lowest Price — Having lived among people of smaller towns and having run fifteen variety stores for the last fifteen years in those small towns, Sam Walton figured out one major requirement from the customers. They always buy products from a place where it would be priced lower than other places.
How does Walmart attract and retain customers? ›Walmart offers the lowest prices to attract customers and focuses more in making bulk sales rather than a few. It doesn't believe in overpricing the products. Diversification makes sure that their complimentary products drive sales of a product even if another is under-promoted.
Why is marketing important for Walmart? ›
Walmart marketing mix ensures that customers (who always expect lower prices) are shown necessary promotions to save money. Their slogans are repeated across the stores to maintain this brand identity of being a low cost retail store.
What are the 7 P's of marketing select 7? ›Since then, the theory has been expanded into the 7 P's of marketing. Which are: Product, Price, Promotion, Place, People, Packaging, and Process.
What is marketing the 7 P's? ›Product, price, place, promotion, people, process and physical evidence should be considered holistically to ensure you're sending a coherent and consistent message about your business and brand.
What is the most important 7 Ps in marketing? ›In school, we learn that there are 7 Ps in the marketing mix: product, place, people, process, physical evidence, promotion, and price. Traditionally, each of these P's has been an important way to differentiate your company from the competition.
How do the 7Ps help a business? ›The 7Ps helps companies to review and define key issues that affect the marketing of its products and services. A popular marketing model, the marketing mix is can also be referred to as the 7Ps framework for the digital marketing mix.
Why 7Ps is better than 4Ps? ›The difference between 4Ps and 7Ps lies in the purpose we want to achieve. The extended marketing mix helps businesses with a deeper understanding of how to meet the needs and expectations of customers.
What is Walmart functional strategy? ›The functional area of Walmart is synchronized with its strategic goal to make effective use of its resources. The company also focuses on measuring the gap between its present strategy and the expected strategy to control the desired outcome and increase its productivity.
What is Walmart's #1 selling item? ›Coffee makers are frequently mentioned when it comes to the best things to buy at Walmart. In fact, the coffee machine segment has pretty much potential, and Statista predicted its revenue can be nearly $12 billion in 2023. The market for coffee machines is also expected to grow by 2.88% annually.
What is the #1 seller at Walmart? ›However, there's one product that outsells all the rest, according to Walmart CEO Doug McMillon. The top-selling product at Walmart is, surprisingly, bananas! In a recent interview, McMillon said that Walmart sells "billions of bananas" (via Bloomberg). Bananas have been Walmart's top seller for years.
Who are Walmart's top three competitors? ›walmart.com's top 5 competitors in April 2023 are: target.com, amazon.com, samsclub.com, kohls.com, and more.
What is Walmart's unique selling point? ›
USP of Lowest price: Walmart has been known for its unique selling proposition of offering goods at “Every day low prices” and the same prices are offered throughout the chains. Products are competitively priced and Walmart bargains aggressively with the manufacturers to pass on the benefits to the end customers.
What is Walmart marketing slogan? ›Walmart's slogan is “Save Money. Live Better.” The slogan represents Walmart's mission of offering low prices on quality items to its customers in order to help shoppers live better lives.
What are Walmart's key strategic issues? ›Walmart faces five main supply chain challenges, having to do with the size and scale of its operations, sourcing goods from various suppliers and vendors, managing inventory levels effectively, and the rapidly changing eCommerce retail environment.
What are Walmart strengths? ›Being the largest retailer in the world, with unmatched scale of operations and strong market power over suppliers and competitors. Walmart is the world's largest company by revenue. It is also the world's largest private employer, with more than 2.3 million employees.
How does Walmart deliver value to customers? ›Walmart aims to deliver value by 1) offering customers everyday low pricing (“EDLP”) across consumable goods; 2) maximizing reach via a large footprint of retail stores and e-commerce. The first thing that comes to mind when you think of Walmart is cheap merchandise.
What is Walmart's top strategic objective? ›We believe we maximize long-term value for shareholders by serving our stakeholders: delivering value to our customers, creating economic opportunity for associates and suppliers, strengthening local communities and enhancing the environmental and social sustainability of our business and product supply chains.
Why do customers like Walmart? ›In addition to fast shipping, customers also value free or low-cost shipping options, with 42% saying they look for the products with the lowest shipping price and 31% of consumers saying they chose to make their purchase on Walmart.com compared to other options because Walmart offers free-shipping.
What are the 7 elements of marketing? ›Since then, the theory has been expanded into the 7 P's of marketing. Which are: Product, Price, Promotion, Place, People, Packaging, and Process.
What are the seven 7 marketing functions outline? ›In the marketing world there are seven functions of marketing and they are as follows: distribution, financing, market research, pricing, product and service management, promotion and selling.
What are the 7 steps of the selling process marketing quizlet? ›Approach the customer, determining needs, presenting the product, overcoming objections, closing the sale, suggestion selling, and relationship building.
What are the 7 P's of marketing people definition? ›
The 7 P's of marketing include product, price, promotion, place, people, process, and physical evidence. Moreover, these seven elements comprise the marketing mix. This mix strategically places a business in the market and can be used with varying levels of force.
What are the 4Ps and 7Ps of marketing? ›As mentioned above, the 4Ps include Place, Price, Product and Promotion. The 7Ps model, on the other hand, is a combination of the 4Ps with 3 additional segments, which refer to People, Process and Physical evidence. People are presenting how our business works inside.
What are the 5 elements of marketing strategy? ›The 5 P's of marketing – Product, Price, Promotion, Place, and People – are a framework that helps guide marketing strategies and keep marketers focused on the right things. Let's take a deep dive into their importance for your brand.
What are the 7ps of service marketing strategy? ›Seven Ps of Service Marketing: product (service), price, place (distribution), promotion, people, physical evidence, and process. Marketers work on creating a proper blending of these seven Ps to satisfy the needs of consumers in the service sector.
What are the 4 C's of marketing management? ›The 4 C's of Marketing are Customer, Cost, Convenience, and Communication. These 4 C's determine whether a company is likely to succeed or fail in the long run. The customer is the heart of any marketing strategy.
What are the 3 C's in business? ›The 3 Cs of Brand Development: Customer, Company, and Competitors. There is only a handful of useful texts on strategy. Any MBA student will be familiar with these: Competitive Advantage and Competitive Strategy by Michael Porter.
Which of the 7 functions of marketing is the hardest to do online and why? ›Pricing involves setting the price for a product or a service to maximize the profit, keeping in view the consumers' perception of the value, production price and the competitors' pricing. This is the toughest of the seven marketing functions since it involves an extensive understanding of the market.
What are the 8 major marketing functions? ›There are eight functions are essential to the marketing of all goods and they are: buying, selling, transporting, storing, grading, financing, risk taking, and securing market information.
What are the 7 types of selling process? ›There are seven common steps to the selling process: prospecting, preparation, approach, presentation, handling objections, closing and follow-up.
Which of the 7 core functions of marketing deals with how to get goods to customers? ›1. Finding the Best Distribution Channels. Distribution is about how to get the goods or services that you want to sell to the people who want to buy them. It's great to have an idea for a product, but if you can't get it to the customers, you won't make money.
Who invented the 7 step of sales process? ›
Sales Process (7 Steps) by Jubair Hossain
We know even for the most natural salesperson; it can sometimes be difficult to turn potential leads into closed sales.