In addition to its many strengths, Walmart has a competitive marketing mix that gives it an advantage over its competitors.
The retail market cannot be survived with only a large capital base and luck. Despite being a large company, Walmart is able to maintain continuity with its management practices. It is Walmart’s Marketing Mix that makes the giant retailer successful.
An Introduction to Walmart’s Marketing Mix
- Over 50 years ago, Walmart began operating.
- With Walmart having the largest retail presence and revenue base in the world, it often enjoys the greatest profits.
- More than 20,000 retail stores are operated by the retailer worldwide, which employs over two million people.
- Over 50 countries are represented by the company.
A publicly traded family company, Walmart is the world’s largest retailer. As a large company, Walmart must use a marketing mix called the Walmart Marketing Mix to effectively manage its business. The retailer’s marketing mix strategy is widely regarded as highly effective, though other businesses can use it as well.
Below you will find Walmart’s marketing mix core principles. The five core principles of a marketing mix are;
1. Marketing Mix – Price at Walmart
Long-term success of a product is influenced by its price. A product’s competitiveness in the market is determined by the profits realized from its sale. In general, high prices of products will result in high profits per unit sold. In contrast, low prices are likely to lead to high demand. A company can choose a high-value, low-volume strategy or a low-value, high-volume strategy. In order to perfect its price positioning, Walmart has taken the following steps:
- Rather than overpricing products, customers will benefit from prices that are friendly to them.
- By negotiating with the most affordable players in the supply chain, the company maintains low prices.
- It is possible to drive sales of complementary products when one product is under-promoted.
- In order to create a more efficient supply chain, universal barcoding and SKU systems are needed.
- Various payment options (such as financing for large purchases like furniture or appliances), including the option to pay cash.
2. Marketing Mix – Product at Walmart
Walmart sells a variety of products. Customers want them to bring what they want to the market. Introducing innovation into the market is more difficult than selling and promoting a product people want. The following strategies are employed by Walmart when selecting their product mix:
- Almost every category of product is available at this retailer. Groceries, hardware, furniture, appliances, health products, wellness, and entertainment are all available here.
- To achieve economies of scale and discounts, they buy in large quantities.
- Their suppliers are well-respected.
- Afterwards, Walmart exclusively sells white-labelled products.
3. Marketing Mix – Promotion at Walmart
In order to attract or inform the public about a product, an organization uses promotional strategies.
- Discounts are available throughout the year at Walmart, thanks to its frequent promotions.
- The store advertises its low prices with slogans such as “Save money. Live better,” “Lowest price store,” “fresh worry-free,” and “Everyday low prices.”
- TV ads, billboards, social media, and Walmart’s eCommerce platform are a few of the means Walmart uses to advertise.
- Online shoppers can purchase from them with confidence because they provide secure shipping methods.
- With most of Walmart’s products, customers can rest assured that warranties and replacement policies are reliable.
4. Place – Walmart Marketing Mix
Any business endeavor requires a good location. In order to attract customers, businesses need to be located in a geographically accessible area. Several strategies are employed by Walmart to ensure that its marketing mix optimizes all factors related to place:
- The ability to buy goods without visiting a physical store through an eCommerce platform.
- Stores can collect orders easily from distribution centers and have their products delivered directly to consumers through a well-planned network.
- The organization is able to track products in transit or in inventory using advanced IT systems.
- Walmart outlets are strategically located all over the world, particularly in the USA.
- Deliveries from door-to-door with an efficient delivery fleet.
- Various outlets of Walmart, including Walmart Supercenters, Walmart Neighborhood Markets, Walmart Express Stores, and Walmart Discount Stores, are differentiated and branded.
Walmart can be learned several things from its marketing mix:
- To generate demand, products must be priced effectively. In order to reach their target demographic, businesses must know where and how to position their products.
- Retailers can pass on savings to their customers through an efficient supply chain, especially when middlemen are eliminated.
- Promotion of a company’s products can increase demand as well as build buyer confidence, especially regarding return policies.
- It is almost as important to have a digital presence today as it is to have a physical one in today’s fast-paced world. Marketing strategy also involves dispersing physical outlets strategically geographically.