Walmart Marketing Strategy & Marketing Mix (4Ps) | MBA Skool (2022)

Marketing Strategy of Walmart analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Walmart marketing mix, help the brand succeed in the market.

Walmart marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

Let us start the Walmart Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

In this article:

  • Product Strategy
  • Pricing Strategy
  • Place and Distribution Strategy
  • Promotional and Advertising Strategy
  • Service Strategy

Walmart Product Strategy:

The product strategy and mix in Walmart marketing strategy can be explained as follows:

Walmart is multi-brand retail store; hence, it has a combination of all departments. The various kinds of departments in Walmart include Electronics & Office, Movies, Music & Books, Home, Furniture & Patio, Home Improvement, Clothing, Shoes & Jewelry, Baby & Toddler, Toys & Video Games, Food, Household & Pets, Pharmacy, Health & Beauty, Sports, Fitness & Outdoors, Auto & Tires, Photo, gifts & personalized shop, Halloween, Party & Sewing. Walmart also have special departments based on season such as Halloween Party costumes. Each individual department has variety of products such as Wearable Tech, Cell phones, Tablets, Computers, Home automation, Office supplies under Electronics & office, Music videos, TV Shows, songs, and books under Music & Books, Bedding, Home décor, furniture, Kitchen & Dining, Vacuum & Floor care, Patio& Garden, Storage & Organization under Home, Furniture & Patio. Under Home Improvement there are products like Heating & cooling equipment, Paints, Wall Papers, Garage equipment, etc. Hence this gives an insight on the marketing mix product strategy of Walmart. While its business has flourished in countries like USA, UK, Canada, it hasn't been able to prosper a lot in Japan, China, Germany etc. The company has also invested in fintech services, online marketing etc.

Walmart Marketing Strategy & Marketing Mix (4Ps) | MBA Skool (1)

(Video) The 4 Ps of The Marketing Mix Simplified

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Walmart Price/Pricing Strategy:

Below is the pricing strategy in Walmart marketing strategy:

Walmart is a market leader but it prices its product very competitively.

Walmart sets records in its marketing mix pricing strategy by pricing its product the least. It procures products in very large quantities across the world and hence can easily price its products lower than its competitors can, thereby enjoy the benefits of economies of scale. Walmart charges the products approximately 15% lower than its competitors do. They use different pricing strategies depending on the buying behaviours of the customers. Special terms such as “Always low prices” and “Everyday low prices” have been coined to signify that every product is priced differently every hour based on the demand and time. Their tagline, ‘Save money. Live better’, itself depicts the tremendous importance the company gives to pricing of its products. Thus, ‘Every Day Low Price’ (EDLP) is the cornerstone of Walmart’s strategy.

Walmart Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read

Walmart Place & Distribution Strategy:

Following is the distribution strategy in the Walmart marketing mix:

Walmart has 10,000+ retail units across the world in 20+ countries, which include Walmart US, Sam’s club and Walmart International outlets. The distribution strategy includes direct delivery to stores by vendors who are the suppliers of the retail stores. The products are delivered in huge volumes to the stores. There are over 150 distribution centres of Walmart which use cross docking method. The hub & spoke method is used by Walmart wherein the goods are centrally ordered and then sent to individual stores. The transportation is achieved through a fleet of 6,100 tractors, 61,000 trailers and more than 7,800 drivers. They majorly stress upon reduction costs of transportation and supply chain and make greener transportation. The items are placed in rural and urban stores on shelves.

It has various types of stores that include Walmart discount stores, Walmart super centers, Walmart neighborhood markets, Walmart express stores.

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The promotional and advertising strategy in the Walmart marketing strategy is as follows:

Walmart promotes through a plethora of sales promotions such as product bundling and its competitive pricing strategies. As a part of its marketing mix promotional strategy, Walmart adopts an aggressive brand promotion strategy. The e-commerce website attracts customers by gifting its customers. Walmart uses pricing strategies that contribute to the maximum turnover of the company. The websites uses slogans like ‘Grab it before it’s done’ to attract its customers so that they buy their product without thinking much just so that the offer does not expire. But, regardless of every other promotional strategies, “ Every Day Low Price” happens to be the most important strategies of Walmart to promote itself.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Walmart.

People:

Walmart is a global organization with a huge focus on people. The employees and staff are an asset for Walmart as they are ones who handle all the customer queries at the stores. Walmart has an extremely well trained staff and are highly motivated to serve their customers. Walmart has more than 2 million employees worldwide and close to 1.5 million are present in USA. Walmart reaches out to close to 200 million customers.

Process:

Processes at stores at Walmart are extremely efficient and help the customers to shop with ease. The process include having easily available trolleys, systematic product placement & categorization, multiple payment counters, various modes of payments etc. Also, the backend processes like procurement, warehousing, distribution etc of Walmart are also a benchmark for the retailing industry. Due to the pandemic, the company changed some processes which has improved the overall efficiency of processes & profits for the company.

Physical Evidence:

The physical evidence of Walmart is seen by more than 11000+ stores spread across the world. Each and every store has got multiple category of products, efficient product placement etc. Also Walmart has several offices spread across the world, which adds to the value of the brand. Hence, this concludes the entire Walmart marketing mix.

About Walmart:

Walmart is the leading Multinational retail corporation founded in 1962, and incorporated in 1969, it is headquartered in Bentonville, Arkansas. The company is a family business because it is mainly controlled by the Walton family. Walmart company operates across the globe with over 11,500 retail units in 28 countries and as e-retailers in 11 countries. The company operates in hyper markets, discount departmental stores, e-retail and groceries. It delivers high quality merchandise at the cheapest prices. Walmart always maintains its highest position with its efficiency, strong logistics and supply chain management. Initially started with only physical retail outlets, Walmart later also moved to e-retail in 2000. The company boasts "Always Low Prices" and thus uses highly customer-centric approach to continue to be the market leader.

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Walmart was declared as largest company by revenue according to Fortune Global 500 list. Walmart has plans of rooting its operations across the globe and continuing to become the biggest retailer since it has planned to invest up to $1Bn in Flipkart which an Indian e-commerce giant.

This article has been researched & authored by the . It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse marketing strategy and 4Ps analysis of more brands similar to Walmart. The Marketing Strategy & Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories.

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(Video) The 4Ps of Marketing: Price: It Captures the Value

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FAQs

What are the 4Ps 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.

What is the marketing mix used in Walmart? ›

Walmart Marketing Mix – Promotion

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.”

What are the various strategies introduced by Walmart? ›

Walmart store uses popular slogans, which are connected to low prices. A few examples include “save money, live better,” “the lowest price store,” “everyday low price,” etc. It applies the strategy of “diversified advertising media” to promote. This includes from social media, billboards to TV ads and websites.

What pricing strategy does Walmart use? ›

Walmart achieved their success in large part due to their Everyday Low Price (EDLP) strategy, a strategy that offers low prices to customers throughout the year instead of offering these low prices only on sales events. This strategy increases both sales and customer loyalty.

What are the 5 P's of merchandising Walmart? ›

The 5 P's of marketing are part of what is often referred to as a “marketing mix”. A marketing mix is the actions brands take to market their products and services by using a specific framework with the five biggest components of successful marketing: product, place, price, promotion, and people.

What type of market segmentation does Walmart use? ›

Walmart uses mono-segment type of positioning and accordingly, Walmart marketing management appeals to single customer segment who place greater value on the price attribute of products compared to other attributes.

What is Walmart's strategy what is the basis on which Walmart builds its competitive advantage? ›

Wal - Mart 's strategy is to sell branded products at low cost . Wal - Mart 's competitive advantage is cost leadership . The basis on which Wal - Mart builds its competitive advantage are the company 's management controls , organizational structure , human resource management , and culture .

What makes Walmart successful? ›

One of the key factors in Wal-Mart's success was its dedicated and committed work force. Thanks to Wal-Mart's stock purchase plan, the wealth of these employees was directly tied to the market value of the company's stock, creating a direct link between growth and its effect on stock price and company morale.

What is in the marketing mix? ›

The marketing mix, also known as the four P's of marketing, refers to the four key elements of a marketing strategy: product, price, place and promotion.

What is Walmart's positioning strategy? ›

Thus, Wal-Mart's positioning strategy was 'Low Price' and 'Satisfied Customer Service' which included a Wide assortment of good quality merchandise, friendly service, convenient hours and pleasant shopping experience. As per Porter's definition of Strategy, Walmart was offering both value and low price to customers.

What makes Walmart different from its competitors? ›

Low Prices

Walmart's “Every Day Low Price”, strategy of providing good quality products at lower rates has been a major competitive advantage over other retailers since decades. This was made possible by coming up with efficient and smart cost structures that enabled low prices for everyone.

Does Walmart use a push or pull strategy? ›

Wal-Mart focus's on the customer and employs a pull strategy, where the demand from customers is the basis for production for Wal-Mart suppliers.

How does Walmart create value for its customers? ›

We do that by offering products that make a difference in communities. We carry products that support American jobs and sell produce sourced from local farms. We share profits with our associates – like the performance bonuses 99% of our stores earned last quarter-- and invest in their careers.

What are the 4 types of marketing strategies? ›

The four Ps are a “marketing mix” comprised of four key elements—product, price, place, and promotion—used when marketing a product or service. Typically, businesses consider the four Ps when creating marketing plans and strategies to effectively market to their target audience.

What are the five Ps of marketing strategies please explain each? ›

The 5 areas you need to make decisions about are: PRODUCT, PRICE, PROMOTION, PLACE AND PEOPLE. Although the 5 Ps are somewhat controllable, they are always subject to your internal and external marketing environments. Read on to find out more about each of the P's.

What are the 5 P's of strategy? ›

What are the 5 P's of Strategy? In 1987, the Canadian management scientist Henry Mintzberg distinguished five visions for strategy for organisations. He calls them the 5 P's of Strategy. They stand for Plan, Pattern, Position, Perspective and Ploy.

What is Walmart's customer base? ›

In fiscal year 2022, there were approximately 230 million customer visits each week to Walmart stores throughout the world, down from 240 million on a weekly average a year earlier. As of that year, the world's biggest retailer reached around 573 billion U.S. dollars in revenues, and about 568 billion in net sales.

What strategies is Walmart adopting to make its operations efficient? ›

Walmart's generic strategy for competitive advantage, and intensive growth strategies emphasize low costs and low selling prices. To fulfill these strategies, the firm focuses on maximum efficiency of its retail service operations.

What is the cornerstone of Walmart's strategy? ›

The cornerstone of Walmart's business strategy is its everyday low prices. The brand sells a very large range of products and its focus always remains on providing the least prices. The millennial customers are interested in three things. They are convenience, low prices and product quality.

Which of the 4 P of marketing is most important? ›

Price: The Most Important P in the Marketing Mix.

What is the importance of 4 Ps in marketing? ›

The 4Ps of marketing is a model for enhancing the components of your "marketing mix" – the way in which you take a new product or service to market. It helps you to define your marketing options in terms of price, product, promotion, and place so that your offering meets a specific customer need or demand.

What is marketing mix explain the 4p's of marketing? ›

Product, price, promotion, and place form the four Ps of the marketing mix. These are the key factors that are involved in introducing a product or service to the public.

What does the product portion of the 4 P's of marketing focus on? ›

In short, the product is everything that is made available to the consumer. In the 4 Ps strategy, this means understanding what your offer needs in order to stand apart from competitors and win over customers. In other words, what makes your product so great or unique?

What products does Walmart offer? ›

The stores feature wide, clean, brightly lit aisles and shelves stocked with quality items including: family apparel, automotive products, health and beauty aids, home furnishings, electronics, hardware, toys, sporting goods, lawn and garden items, pet supplies, jewelry, and housewares.

What are Walmart's competitive advantages? ›

Low Prices

Walmart's “Every Day Low Price”, strategy of providing good quality products at lower rates has been a major competitive advantage over other retailers since decades. This was made possible by coming up with efficient and smart cost structures that enabled low prices for everyone.

What is the slogan for Walmart? ›

Walmart Slogan: “Save Money. Live Better.” Meaning. Walmart's slogan is more than simple advertising — the four-word branding represents Walmart's worldwide mission and also has a rich history dating back to its founder.

What is marketing mix 4 Ps with example? ›

What are the 4Ps of marketing? (Marketing mix explained) The four Ps are product, price, place, and promotion. They are an example of a “marketing mix,” or the combined tools and methodologies used by marketers to achieve their marketing objectives. The 4 Ps were first formally conceptualized in 1960 by E.

Which of the 4 P of marketing is most important? ›

Price: The Most Important P in the Marketing Mix.

What are the importance of the four product strategies? ›

These are called the 4P's and are product, price, promotion, and place. These four components help determine a clear and effective strategy to bring a product to market. Each element is crucial in its own right and needs to be given due focus.

Why is Walmart so successful? ›

One of the key factors in Wal-Mart's success was its dedicated and committed work force. Thanks to Wal-Mart's stock purchase plan, the wealth of these employees was directly tied to the market value of the company's stock, creating a direct link between growth and its effect on stock price and company morale.

What is Walmart best known for? ›

Walmart, in full Walmart, Inc., formerly Wal-Mart Stores, Inc., American operator of discount stores that was one of the world's biggest retailers and among the world's largest corporations. Company headquarters are in Bentonville, Arkansas.

Who is Walmart's top competitors? ›

Walmart competitors include Costco, Amazon, Target, Rakuten and Sears Holdings Corporation.

Why is Walmart unique? ›

As the largest retailer on Earth, Wal-Mart is most conspicuously unique in terms of its size. With nearly 3,550 stores visited by roughly 100 million people each week, Wal-Mart is a convenient shopping mecca for American consumers.

What is Walmart's slogan 2022? ›

N said on Wednesday that it is rolling out a new advertising campaign with the slogan, "Save Money. Live Better," replacing the motto "Always low prices" after 19 years. The new slogan comes as Wal-Mart is incorporating more of an emotional tone into its advertising as it tries to boost sales at its U.S. stores.

What is Walmart's logo called? ›

Learn the story behind the Walmart Spark—what it represents from our past, and what it stands for going forward. In 1962, A spark of inspiration led Sam Walton to open the first Walmart, forever changing the way people shop and live.

What is Walmart's old slogan? ›

After 19 years of being known for "Always Low Prices," Wal-Mart, the world's largest retailer, recently changed its slogan to "Save Money. Live Better." Its advertisements, which commonly featured a smiley face zooming through the store and "rolling back" prices, have also been revamped.

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