Walmart Marketing Mix and Retail Strategy Analysis

Introduction

Walmart is one of the most well-known publicly traded companies in the retail industry. A leader in retail, Walmart has adopted many marketing strategies geared toward making products available to as many customers as possible, with marginal per-unit profits but high overall sales ratios. Walmart's unique marketing strategies are so successful that they have been adopted by other retailers, large and small, around the world.

A diverse product mix, targeted marketing strategies that focus on niche markets and specific audiences, and special attention to customer service and product quality have all helped propel Walmart to the top of the retail industry. Several aspects of the marketing strategy adopted by Walmart are discussed in greater detail below.

Marketing Mix and Market Strategy

Walmart's strategy over time has been to maximize its relationships with suppliers so that costs are reduced, resulting in better profit margins. Walmart's marketing strategy is built on a large, differentiated product mix and advertising geared toward customers that demonstrates a desire to build customer intimacy and long-term relationships, to remain the leader in quality and product offerings, and to promote operational excellence.

Walmart is well known for focusing on supply chain management and streamlining operations. Its marketing strategy involves communicating that the company offers innovative products at reasonable prices. Consistently in print media and in other forms of advertising, Walmart has sent the message that customer service, value, and high-quality brand-name products are the focal point of its service. This marketing message has successfully reached many different target audiences, including consumers looking for niche products and brand names at reasonable prices.

Walmart has successfully marketed itself as the world's largest retailer, though this is not the corporation's only accomplishment from a marketing perspective. In addition to recognition as the largest retailer, some have claimed that Walmart is also the world's largest company, having sold more than $244 billion worth of goods in 2002 alone.¹ This success can be attributed in part to marketing and advertising that has sold consumers on Walmart's promise of quality at a fair price. A company with a reputation for providing the widest range of products and services is more likely to attract additional customers through reputation alone than one that is less well known. Also working in the company's favor is its emphasis on brand-name offerings at reduced prices.

Walmart's marketing goal has been consistently to "command 30% of the market share in every category it covers," which for the most part encompasses all product categories — whether electronics, housewares, food, or clothing.² This is a further testament to Walmart's marketing strategy, which emphasizes a broad product mix so that consumers have many different options available to them.

Supply Chain and Pricing Strategy

Walmart has created a "downward price pressure," and its key drivers of marketing success include product configuration, category management, and the use of technology.³ Product configuration involves continuous improvement in packaging to provide consumers with a positive shopping experience. Category management involves allowing marketers to sell based on "the niche their brands fill in meeting consumers' category needs." Technology encompasses innovative packaging, delivery, and product offerings to consumers, including the use of RFID technology.⁴

Walmart has also taken advantage of technology to promote its business and become a marketing leader. The company's website is comprehensive, offering customers the convenience of online shopping and home delivery, with an even broader range of product offerings than are available in stores.⁵