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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