Some brands have grown exponentially since their inception. Walmart is one of them. How did they manage it? What did they do to increase their customer base? What did they do to keep their consumers coming back? We think Walmart’s Marketing Strategy played a significant part in all this, especially its digital marketing strategy. This article analyses a few digital marketing strategies used by the company and the Marketing Mix of Walmart to better understand 4 strategies – pricing, products, placing/distribution and promotion so that you can get an insight into what they have been doing.
Walmart is one of the most well-known multinational retailers. Sam Walton created the company in 1962, and it was incorporated in 1969. The Walton family owns and controls the firm, which is located in Bentonville, Arkansas. Walmart has over 11,500 retail locations in 28 countries and 11 e-commerce sites. Hypermarkets, discount stores, and department stores are all part of the retail corporation’s operations.
The brand maintains its highest position with its efficiency, strong logistics, and supply chain management. Walmart initially started as a physical retail outlet, and later moved to e-retail in 2000. The company is known for its consistently low prices and also utilizes a highly customer-centric approach.
According to the Fortune Global 500 list, the firm was declared as the largest company by revenue. It has plans of rooting its operations across the globe and continuing to become the biggest retailer.
What’s new with Walmart?
Here’s what was buzzing around Walmart recently:
- Walmart Plus Week 2023: Walmart Plus Week is a week-long sales event for Walmart Plus members, with exclusive discounts on a wide range of products.
- Walmart GoLocal: Walmart GoLocal is a delivery service that delivers groceries and other items from Walmart stores to customers’ doorsteps.
- Walmart Drone Delivery: Walmart is testing drone delivery for groceries and other items in select markets.
- Walmart InHome Delivery: Walmart InHome Delivery is a service that delivers groceries and other items directly to customers’ refrigerators.
- Walmart Health & Wellness: Walmart is expanding its healthcare offerings, including opening new Walmart Health centers and offering more telehealth services.
- Walmart Financial Services: Walmart is expanding its financial services offerings, including offering more banking and lending options.
- Walmart Advertising: Walmart is expanding its advertising platform, offering businesses more ways to reach Walmart customers.
- Walmart Marketplace: Walmart Marketplace is a third-party marketplace where sellers can sell their products on Walmart.com.
- Walmart Fulfillment Services: Walmart Fulfillment Services is a service that helps businesses fulfill their online orders.
- Walmart eCommerce: Walmart is investing in its eCommerce business, including expanding its online selection and improving its delivery options.
- Walmart Sustainability: Walmart is committed to sustainability, and is working to reduce its environmental impact and operate more sustainably.
Let’s now understand the target audience of Walmart better with the help of a buyer persona.
Buyer Persona of Walmart
A buyer persona generally refers to the detailed information of an ideal customer of a company. When it comes to Walmart, people from India use it the most. This buyer persona will help you understand the attributes of a regular Walmart user.
Construction Project Manager
- Value for Money
- Convenience and Time Efficiency
- Family Well-Being
Interest & Hobbies
- Home Improvement
- Checkout Wait Times
- Product Availability
- Crowded Aisles
- Limited Product Variety
Social Media Presence
From the table above we can conclude that an ideal Walmart User is motivated by value for money, convenience, family well-being, and sustainability, with interests in home improvement, sports, grilling, and gardening.
Want to know about the current challenges of Walmart? Read a detailed SWOT Analysis of the brand before moving on with marketing strategies.
Let’s start discussing the main segment of this case study – The marketing Mix of Walmart below.
Marketing Mix of Walmart
A marketing mix is a tool that contains a set of actions that a company uses to promote its brand or product in the market. The 4Ps make a traditional set of the marketing mix – Price, Product, Promotion, and Place. However, nowadays, the marketing mix increasingly includes several other Ps like People, Process, and Physical Evidence as mix elements.
Overall, we will be exploring the 7Ps marketing mix of Walmart to know about its distinctive and noteworthy techniques in popularizing its business in this competitive era. Let’s gander about it in the coming section.
1. Product Strategy of Walmart
As an international retailer, Walmart carries any product or brand that a customer might encounter in his daily life. Movies, crafts, presents, college supplies, electrical items, home appliances, jewellery, toys, outdoor living, funeral, food, video games, and many other product categories are among the numerous available.
Walmart also has seasonal categories, such as costumes for Halloween parties. Under Electronics & Office, you’ll find Wearable Tech, Cell phones, Tablets, Computers, Home automation, Office supplies, Music videos, TV shows, songs, and books; under Music & Books, you’ll find Bedding, Home décor, furniture, Kitchen & Dining, Vacuum & Floorcare, Patio Gardens. Heating and cooling equipment, paints, wallpapers, garage equipment, and other items are included in the Home Improvement category. As a result, this provides insight into Walmart’s marketing mix product strategy.
Walmart has a wide range of products and they can be brought either online, or offline which makes it feasible for the customers. Now let’s look into the pricing strategy of Walmart.
2. Price Strategy of Walmart
Walmart’s business strategy does not entail product manufacture; instead, it buys things in enormous numbers from all over the world to take advantage of economies of scale. As a result, Walmart may offer products at a 15% discount compared to other merchants. Walmart employs a variety of pricing techniques to capture the attention of customers and force them to purchase discount strategies.
The terms “Always cheap pricing” and “Everyday low prices” were invented by Sam Walton, and they refer to the fact that each product is offered at a different discount price depending on the time and demand of the hour. In comparison to other merchants, consumer electronics are offered at a relatively low price.
As its tagline says, Walmart provides the product at low and reasonable prices which is accessible to many people throughout the world. So, let’s quickly dive into the distribution strategy of Walmart.
3. Place & Distribution Strategy of Walmart
Walmart runs more than 10,020 retail locations in 28 countries under 60 different banners. It sells brick and mortar (conventional stores) as well as brick and click (e-commerce). Each Walmart store is more than a million square feet on average. Walmart’s retail activities are divided into the following categories:
- Walmart discount stores
- Walmart supercenters
- Walmart neighbourhood markets
- Walmart Express stores
Walmart has around 4600 US stores, 650 Sam’s Club stores, and 6200 international stores. Vendors who are retail store suppliers distribute directly to stores as part of the distribution strategy. The products are delivered to the stores in large quantities. Walmart has around 150 distribution centres that use cross-docking techniques.
Walmart employs the hub and spoke approach, in which commodities are ordered centrally and then distributed to individual stores. A fleet of 6,100 tractors, 61,000 trailers, and more than 7,800 drivers are used to convey the goods.
Now we’ve got the idea of how Walmart distributes its products all across the world. Let’s get into the section of marketing mix called promotional Strategy in the coming section.
4. Promotional Strategy of Walmart
Walmart has its in-store promotional activities, such as product bundling and pricing schemes, which include sales promos. Customers who place online gifts bring in a lot of money for Walmart’s online store. Walmart’s pricing techniques, such as “Everyday low prices” and “Value of the Day,” improve sales turnover.
Customers are enticed to the online store with appealing slogans such as “Grab it before it’s gone,” which encourages them to make a purchase decision as soon as possible before the bargains expire.
So, attractive slogans are one of the strategies used by Walmart. Now, let’s peek into the marketing mix of Walmart namely People.
5. People Strategy of Walmart
Walmart is a multinational corporation that places a strong emphasis on its employees. Employees and staff are a valuable asset to Walmart because they are the ones that deal with all consumer inquiries in the stores. Walmart’s employees are well-trained and enthusiastic about serving their clients. Walmart employs about 2 million people worldwide, with around 1.5 million in the United States. Walmart attempts to clinch the deal.
Thus, Walmart has a quite large audience. Now let’s try to get into the marketing mix of Walmart called the process.
6. Process Strategy of Walmart
Walmart’s processes are incredibly efficient, allowing customers to buy with ease. Having readily available trolleys, systematic product arrangement and categorization, several payment stations, and various ways of payment are all part of the process. Walmart’s backend procedures, such as sourcing, warehousing, and distribution, serve as a model for the retail business.
Let’s now explore the last marketing mix section of Walmart – Physical Evidence below.
7. Physical Evidence Strategy of Walmart
Walmart’s physical presence may be found in over 11000 locations throughout the world. Every store has a variety of product categories, as well as effective product positioning. Walmart also has various offices around the world, which contributes to the brand’s worth.
Hence, this concludes the entire Walmart marketing mix. Let’s wrap up the case study of Walmart with a conclusion.
How does Walmart use digital marketing in their strategy
1. Search Engine Optimisation
Samsung has put a lot of effort into SEO.
As per Ubersuggest data, it ranks in India for 74,117,749 keywords as of September 2023. Its organic traffic is 668,427,267 sessions per month. The stats are almost similar to their SEO performance in April 2023.
Here are some of their Search Engine Optimisation techniques :
2. Social Media Marketing
Walmart is active on a variety of social media platforms, including Instagram, Facebook, Twitter, TikTok, and YouTube. The company uses social media to connect with its customers, promote its products and services, and provide customer support.
Walmart’s social media marketing strategy is focused on creating engaging content that is relevant to its target audience. The company posts a variety of content on its social media channels, including:
- Product announcements and reviews
- Behind-the-scenes photos and videos
- Tips and tutorials
- Contests and giveaways
- User-generated content
Walmart also uses social media to listen to its customers and respond to their feedback. This helps Walmart to understand its customers’ needs and wants, and to improve its products and services.
Here are some specific examples of Walmart’s social media marketing campaigns:
- #WalmartWednesdays: Walmart uses the #WalmartWednesdays hashtag to promote its weekly deals and promotions on social media. This hashtag allows Walmart to reach a wider audience and to generate buzz around its weekly sales.
- Walmart TikTok Challenge: Walmart recently launched the #WalmartChallenge on TikTok, encouraging users to create videos of themselves shopping at Walmart. This challenge has been very popular, with over 100 million views on TikTok.
- Walmart YouTube Channel: Walmart’s YouTube channel features a variety of content, including product reviews, cooking tutorials, and behind-the-scenes videos. Walmart uses its YouTube channel to connect with its customers and to provide them with valuable content.
Walmart’s social media marketing strategy is effective because it is focused on creating engaging content and connecting with its audience. Walmart uses a variety of social media channels to reach a wide audience and to create a community around its brand.
In addition to the above, Walmart also uses social media to:
- Promote its CSR initiatives
- Partner with influencers to promote its products and services
- Run paid advertising campaigns
Walmart’s social media marketing strategy is a key part of its overall marketing strategy. By using social media to connect with its audience, promote its products and services, and provide customer support, Walmart is able to build brand loyalty and drive sales.
Top Competitors of Walmart
Here’s the list of top competitors of Walmart:
As we wrap up our analysis of Walmart’s impressive digital marketing strategy, it’s clear that staying up-to-date with the latest trends and techniques is key to success in the digital marketing world.
Whether you’re a marketing professional or just starting out, be sure to check out our free digital marketing masterclass to gain a solid foundation in the essentials of digital marketing.
Who knows, you might just develop the next big marketing strategy like Walmart’s! Don’t forget to share your thoughts and comments on Walmart’s strategy in the comments below.