Walmart has become America’s household name, thanks to its popularity among the masses. At Walmart, you can find everything you need under one roof, convenience millions of people love.
As such, most people probably wonder how Walmart has gained much popularity and ask, what is Walmart’s marketing strategy? How did Walmart grow so quickly? Here’s what I found out!
What Is Walmart’s Marketing Strategy In 2023?
Walmart uses the 4P marketing mix to outlay a comprehensive marketing plan that would yield the company’s overall success as of 2023. Using the 4Ps marketing mix provides strategies of product innovation, pricing, place of sale, and promotion planning. Therefore, Walmart provides a wide array of items at competitive prices.
If you want to gain more insight into Walmart’s marketing strategy, the marketing mix, and much more, keep reading!
What Are The 4Ps For Walmart’s Marketing Strategy?
The 4Ps of Walmart’s marketing mix or strategy include the product, price, place, and promotion.
These elements entail the following:
- The definition of the products being sold
- The prices of the products
- The place of retailing these products
- The promotional activities for the products on sale
Further, integrating these elements results in customer conversion and loyalty to Walmart stores.
How Does Walmart Use The 4Ps Of Marketing?
Walmart uses the 4Ps of marketing as the primary marketing plan that results in successful organizational operations.
Moreover, here’s how Walmart uses product, price, place, and promotion in the retail enhancement operations:
Product In Walmart’s Marketing Mix
As a multinational retailer, Walmart offers customers a wide range of day-to-day products from both famous and private-label brands.
As a result, Walmart becomes more appealing to consumers who consider the store a one-stop shop.
In the product mix, Walmart employs the following key strategies:
- Offering a wide array of products (college essentials, electronics, jewelry, groceries, video games, home appliances, and much more).
- Buying products in high volumes to promote discounts and achieve economies of scale.
- Provision of white label products that are only in Walmart stores.
- Maintaining strong relationships with manufacturers and suppliers.
Price In Walmart’s Marketing Mix
Walmart has been identified as a cost leader in the retail industry due to its efficient pricing strategies.
For example, Walmart’s marketing strategy involves procuring products in large quantities to benefit from the economies of scale.
As a result, this strategy offers consumers products at more competitive prices than most other retailers.
Also, the low pricing strategy by Walmart attracts more and compels a purchasing behavior that promotes customer conversion and consumer loyalty.
Using the “Every Day Low Prices” slogan, Walmart ensures that all products are discounted based on the demand of the hour.
Moreover, Walmart has excelled in its price positioning using the following strategies:
- Offering competitive prices and focusing on bulk sales to maximize overall sales.
- Good procurement strategies to uplift its bargaining power and maintain affordable players throughout the supply chain.
- Provides product diversification so that complimentary products can drive sales if a product is under-promoted.
- Utilizing universal barcodes and SKU systems that enhance the supply chain’s efficiency and lead to low pricing.
- Availability of different purchasing options and payment plans for large purchases.
Place In Walmart’s Marketing Mix
Walmart’s place of sales is dependent on the company’s distribution strategy.
For example, with over 10,000 retail stores and clubs spread across 24 countries, Walmart sells its products in brick-and-mortar stores and eCommerce platforms.
Additionally, Walmart operates as Walmart US, Walmart International, and Sam’s Club business segments which are further categorized into:
- Walmart Supercenters
- Walmart Discount Stores
- Walmart Neighborhood Markets
- Walmart Express Stores
On top of that, Walmart employs the following strategies to ensure that the place of sales contributes to the success of the marketing mix:
- A reliable and efficient eCommerce platform that allows customers to purchase items without leaving their physical locations.
- A well-planned and managed distribution center facilitates the accessible collection of store orders and delivery to the customers.
- An advanced system that can track the inventory while it’s in transit.
- The strategic location of stores within the market.
- Provision of means for fast and efficient delivery of items (a fleet of delivery trucks).
- Branding and differentiation of the different outlets.
- Use of cross-docking techniques in the distribution center to minimize operational costs.
Promotions In Walmart’s Marketing Mix
To increase sales efficiency, Walmart conducts different in-house promotional activities through different pricing strategies and product bundling.
For instance, Walmart makes significant sales from online stores where customers place online gifts.
Furthermore, the “Every Day Low Prices” strategy by Walmart and the “Value of the Day” program increases the company’s sales turnover.
Also, other strategies by Walmart’s online store include slogans such as “Grab It Before It’s Done,” which compels customers to make purchasing decisions before the deal’s expiration.
Moreover, additional strategies by Walmart to create product awareness include:
- Frequent running of promotions with discounts in all seasons.
- Walmart utilizes different advertising media such as billboards, social media, TV ads, and the company’s eCommerce platform.
- Walmart provides reliable replacement policies and warranties for most of its items to give customers peace of mind during purchase.
- Walmart ensures secure shipping methods for those who purchase items online.
What Other Marketing Strategies Does Walmart Use?
As much as the 4Ps of Walmart’s marketing mix form a fundamental basis of its marketing plan, other elements promote Walmart’s marketing strategy, including:
The People In Walmart’s Marketing Mix
With approximately two million employees worldwide, Walmart’s marketing strategies rely on its associates for the complete success of the system.
Further, Walmart associates are valuable to the marketing mix since they offer customer variable assistance during their shopping experience.
With that, Walmart employees undergo thorough training to promote enthusiasm while serving customers.
The Process In Walmart Marketing Mix
Walmart’s processes also play a massive role in the company’s marketing strategies.
For example, the efficiency of processes such as readily available trolleys, categorization and systematic arrangement of products, and several self-checkout stations appeal to customers.
In addition to this, the backend procedures such as warehousing, sourcing, and distribution create overall business efficiencies.
In conclusion, Walmart applies different marketing strategies to ensure its business runs efficiently and appeals to more customers.
With that, these marketing strategies heavily rely on the 4Ps of a marketing mix (product, price, place, and promotion) to ensure Walmart’s success.