What is Walmart Marketing Mix?
Walmart is a powerhouse of a business, and one of its key strengths is its marketing mix. Surviving in the retail market requires more than just luck or a large capital base. For such a large business, Walmart’s management practices give it continuity. The giant retailer’s success lies in the Walmart Marketing Mix.
Walmart Marketing Mix – A Preamble
- Established in 1962, Walmart started its operations more than 50 years ago.
- Walmart is the largest retail store in the world and often enjoys the largest revenue base.
- The retailer employs over two million employees and operates more than 10,000 retail stores worldwide.
- It is present in over 50 countries worldwide.
Walmart is the world’s largest retail company and is a publicly-traded family business. To manage such a large business, Walmart needs to effectively employ what we can refer to as the Walmart Marketing Mix. It is the same marketing mix strategy that can be employed in other businesses, but the retailer’s strategy is considered very successful. Provided below is an explanation of how Walmart handles its marketing mix core principles. The five core principles of a marketing mix are Price, Product, Promotion, Place, and People.
Walmart Marketing Mix – Price
The price of a product influences its future success and long-term continuity. It determines the profits realized from the sale and the competitiveness of the product in the market. If the product is priced high, the profit per unit sold will be high. On the other hand, if the prices are low, demand is more likely to be high. Companies can either go high value, low volume or low value, high volume. Walmart has perfected its price positioning in the following ways:
- Customer-friendly prices and focus on bulk sales to maximize prices rather than overpricing products.
- Excellent procurement strategies that allow the company to bargain with the most affordable players in the supply chain to keep the prices low.
- Diversification ensures that complimentary goods can drive the sales of other products if one is under-promoted.
- Universal barcoding and SKU systems create a more effective supply chain that allows for lower prices.
- Varying purchase options, with the ability to pay cash, or to pay installments for larger purchases (such as in the case of appliances or furniture).
Walmart Marketing Mix – Product
Walmart stores sell a wide variety of products. They bring to the market what customers want. Selling and promoting a product that people want is easier than trying to introduce innovation in the market. In selecting their product mix, Walmart employs the following strategies:
- They offer a wide variety of products in almost every category. These range from groceries, hardware, furniture, appliances, health goods, wellness, to entertainment.
- They buy in large quantities to achieve discounts and economies of scale.
- They maintain a strong relationship with their suppliers.
- Walmart white labels products that are then exclusively available in Walmart stores.
Walmart Marketing Mix – Promotion
Promotional strategies are the strategies an organization uses to attract or enlighten the public about its product.
- Walmart runs frequent promotions, with available discounts across all seasons.
- The store uses slogans that are associated with low prices like ‘save money, live better,’ ‘lowest price store,’ ‘worry-free fresh,’ and the most common ‘everyday low prices’.
- Walmart employs a diversified array of advertising media, ranging from TV ads, billboards, social media, and even their eCommerce platform.
- They provide secure shipping methods that ensure the highest level of service for customers who purchase online.
- Walmart offers reliable warranties and replacement policies for a majority of their items sold, which give customers peace of mind when purchasing.
Walmart Marketing Mix – Place
Location is vital in any business undertaking. Business placement and geographical accessibility are key elements for customers. Walmart employs various strategies to ensure that all factors related to the place as a marketing mix element are efficient and effective:
- A strong eCommerce platform that allows customers to purchase goods without having to visit a physical location.
- A well-planned network of distribution centers that make it easy for stores to collect their orders, as well as to deliver their products directly to consumers.
- Advanced IT systems enable the organization to trace products regardless of whether they are in transit or inventory.
- Great geographical placements, particularly in the USA, with Walmart outlets strategically located.
- A fleet of delivery trucks for efficient door-to-door deliveries.
- Branding and differentiation of their many Walmart outlets, such as Walmart Supercenters, Walmart Neighborhood Market, Walmart Express Stores, and Walmart Discount Stores.
Through the marketing mix, there are a few things that can be learned from Walmart:
- Effective pricing of products is key to generating demand. Businesses must inherently know where to position their products and how to price them for their target demographic.
- An efficient supply chain allows retailers to pass down cost savings to their customers, especially when middle-men are eliminated.
- Organizations can use promotions not only to increase demand but also to instill trust and confidence in their buyers, particularly regarding return policies and warranties.
- In today’s fast-moving world, a digital presence is almost as important, if not more important, than a physical presence. Also, the strategic geographical dispersal of physical outlets is also an important part of marketing strategy.
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