Walmart Marketing Mix and 7Ps (Updated 2024)

The Marketing mix of Walmart analyses the 7Ps of Walmart, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Walmart. Walmart Inc. is an American multinational retail corporation that operates hypermarkets, other discount stores, department stores, and grocery stores and has a vast supply chain in the United States. Walmart is headquartered in Bentonville, Arkansas. The founders of Walmart were Sam and James “Bud” Walton. The company was founded in 1962.

Walmart is one of the world’s largest companies, with a revenue of $611.3 billion. Walmart has many competitors, such as Amazon, Target, Home Depot, and Kroger. Walmart’s retail business model is focused on low prices and keeps prices low via Economics of scale and operating at a large scale. This allows the company to negotiate better prices with its vendors and suppliers, thereby passing on the benefits of cheap pricing to end customers. In this article, we will analyze the Walmart Marketing Mix in detail.

About Walmart

• Type: Retail corporation
• Industry: Retail
• Founded: July 2, 1962
• Founders: Sam Walton and James “Bud” Walton
• Headquarters: Bentonville, Arkansas, United States
• Area served: Worldwide
• Key people: Greg Penner (Chairman) and Doug McMillon (CEO)
• Number of employees: 2.2 million

Walmart Product Strategy

 

Walmart stores have a wide selection of products for its customers, which it sells via its various physical and online stores.

The new Product Mix of Walmart in 2024 is as follows (Source).

1. Groceries: This includes a vast selection of fresh produce, meat, dairy products, baked goods, canned and packaged foods, and organic options. Walmart Supercenters also feature deli and bakery sections.
2. Electronics and Appliances: Walmart sells various electronic goods like TVs, laptops, cell phones, cameras, and small and large home appliances.
3. Home and Furniture: This category includes furniture for all areas of the home, bedding, home décor, kitchenware, and garden supplies.
4. Apparel and Footwear: Walmart offers clothing for men, women, and children, including basics, fashion apparel, shoes, and accessories.
5. Health and Beauty Products: This encompasses pharmacy services, over-the-counter medications, personal care items, beauty products, and wellness supplements.
6. Sports and Outdoors: Sporting goods, fitness equipment, outdoor gear, bicycles, and accessories are available under this category.
7. Toys and Video Games: A range of toys for different age groups, video games, and gaming consoles are part of Walmart’s product mix.
8. Automotive Supplies: This includes car parts, tools, accessories, and automotive services in some locations.
9. Crafts and Party Supplies: Art and craft supplies, party decorations, and sewing materials are also available.
10. Pet Supplies: Food, toys, grooming products, and other pet-related items are offered for various types of pets.
11. Baby Products: This category includes baby gear, clothing, diapers, food, and other essentials.
12. Books, Movies, and Music: The product offerings include books, DVDs, and music CDs.

Walmart Pricing Strategy

Walmart’s pricing strategy is multifaceted and designed to target customers and reinforce its brand positioning as a value leader in the retail sector. Here’s a breakdown of critical aspects of Walmart’s pricing and promotional strategy below:

1. Everyday Low Prices (EDLP): Central to Walmart’s pricing strategy is the concept of “Everyday Low Prices.” This is not just a marketing slogan; it’s a fundamental business model. Walmart consistently aims to offer products at lower prices compared to competitors rather than rely on frequent sales or promotions. This strategy simplifies decision-making for cost-conscious consumers and helps build long-term customer loyalty.
2. Cost Leadership: Walmart achieves its low pricing through a vigorous cost leadership strategy. This involves efficient supply chain management, bulk purchasing, and negotiating with suppliers to reduce costs. These savings are then passed on to the customers through lower prices. This approach gives Walmart a competitive edge and sets a price benchmark in the retail industry.
3. Price Matching: Recognizing the highly competitive retail environment, Walmart often employs a price-matching policy. This policy assures customers that they are getting the best available price by offering to match a competitor’s price if it’s lower. This strategy reinforces their commitment to affordability and encourages customers to shop at Walmart, knowing they won’t find lower prices elsewhere.
4. Dynamic Pricing Strategy: With advancements in technology and data analytics, Walmart utilizes dynamic pricing in its online platform. Prices may vary based on demand, competition, inventory levels, and other market factors. This flexible pricing strategy allows Walmart to stay competitive in e-commerce and respond quickly to market changes.
5. Psychological Pricing: Walmart employs psychological pricing strategies to make prices appear lower than they are. For example, pricing items at $9.99 instead of $10 makes them seem more affordable. This strategy, while subtle, can effectively influence consumer perception and purchasing decisions.

Walmart Place Strategy

Walmart has 4700 stores and 210 Distribution centers. A Walmart is within 10 miles of 90% of the US population. Naturally, we should study the Walmart distribution strategy and supply chain and how it is so successful.

Here’s the place of the digital marketing strategy of Walmart.

1. Extensive Geographic Coverage: Walmart strategically places its stores in various urban, suburban, and rural areas to maximize accessibility for a diverse customer base. This extensive geographic coverage ensures Walmart’s presence in nearly every region, making it convenient for customers to shop in-store.
2. Supercenters and Smaller Formats: The company operates different store formats, such as Supercenters, Neighborhood Markets, and Walmart Express. Supercenters offer a wide range of products, including groceries and general merchandise, while smaller formats cater to quick shopping needs in urban and densely populated areas.
3. Online and Omni-Channel Presence: Walmart has invested heavily in its platform and mobile app, allowing customers to shop online and choose from various delivery options, including in-store pickup and home delivery. This omni-channel strategy integrates physical and digital shopping experiences.
4. Global Expansion with Local Adaptation: Internationally, Walmart tailors its stores and product offerings to suit local preferences and cultural norms. This approach helps establish a strong local presence and adapt to worldwide markets.
5. Supply Chain Efficiency: Walmart’s strategic placement of distribution centers and use of advanced logistics technology ensures efficient supply chain management. This enables quick restocking of stores and reduces lead times, enhancing customer satisfaction through product availability.

Walmart Promotion Strategy

Walmart continuously runs promotions to bring customers back to its stores and online marketing and to introduce its offerings to new customers. Walmart’s promotions generally focus on saving money and encouraging customers with new products and launches. Based on Walmart’s marketing mix, these commercial plans contribute to its success. Some of the tactical promotions that Walmart is currently running in 2023 include.

Promotional strategies

• Walmart+: Like Amazon Prime, Walmart+ is a program by Walmart that gives premium features to its Walmart+ subscribers. Free shipping, discounts, and other benefits are offered.
• Discounts: Walmart may offer discounts of up to 50% on a particular line of products. These may be electronics, clothing, or consumer goods. Similar discounts are available on Schooling supplies.
• Free shipping: Walmart gives free shipping for orders over $75 to Walmart+ members
• Coupons: A variety of Coupons are used by Walmart to push customers towards buying from them. These coupons may be found online, in their Walmart App, or via print ads. However, the combination of coupons and discounts brings a lot of customers back to Walmart.

Traditional Promotional Strategies

• Pricing Communication: Walmart ensures its EDLP pricing communication reaches all its end customers.
• TV Commercials and Print Media: TV commercials, print media, newspapers, magazines, and other such marketing tools are used by Walmart regularly for promotional activities. With these forms of media, Walmart advertises all its latest offers as well as its latest products.
• In-Store Promotions: Walmart uses point-of-purchase displays, in-store events, and product demonstrations to promote products within the store. This results in higher customer attraction.
• Digital Marketing: Walmart has a strong presence on Social Media. Walmart’s Facebook page has 3 million followers. Its Twitter page has 1.3 million followers.
• Sales promotions: Black Friday and back-to-school days are some ways that Walmart runs its sales promotions.

Here is a TV ad launched by Walmart that tells you that when you shop at Walmart, you know how to find joy in all the little things for less. As we can see, the TV ad focuses mainly on low prices.

Overall, Walmart uses various promotion tactics to attract customers, including sales discounts, coupons, loyalty programs, in-store events, and marketing strategies such as seasonal discounts. They push the brand recall via television and social media ads.

Some Recent Video ads and Print ads for Walmart are:

Walmart People Strategy

When applied to Walmart’s retail service, the “People” component of the 7Ps Marketing Mix refers to the employees working for Walmart and the customers who shop at their stores. Here are some key points regarding the “People” aspect of Walmart’s service marketing mix:

Employees

1. Diverse Workforce: Walmart employs a diverse workforce in terms of ethnicity, gender, and age, reflecting the diverse customer base it serves.
2. Training and Development: Employees receive training and development programs to enhance their customer service skills and operational efficiency.
3. Employee Benefits: Walmart offers competitive wages, health benefits, retirement plans, and employee discounts to ensure the well-being and satisfaction of its workforce.
4. Career Opportunities: The company has numerous career advancement opportunities, from entry-level positions to management roles, emphasizing internal promotions.
5. Employee Engagement: Walmart focuses on engaging its employees through feedback mechanisms, employee recognition programs, and fostering a culture of inclusivity and respect.

Customers

1. Customer Diversity: Walmart serves a broad spectrum of customers, from individuals to families, spanning various income levels and demographics.
2. Customer Service: The company prioritizes customer service, ensuring staff can assist, answer queries, and manage checkouts efficiently to enhance the shopping experience.
3. Feedback Mechanisms: Walmart actively seeks customer feedback through surveys, social media, and direct communication to improve its service offerings continually.
4. Customer Loyalty Programs: While Walmart does not have a traditional loyalty program, it offers various savings and discount programs, such as Walmart+, which provides benefits like free shipping and discounts on fuel.
5. Community Engagement: Walmart engages with the communities it serves through charitable contributions, local event sponsorships, addressing community-specific needs, fostering a positive image, and building customer loyalty.

Walmart Process Strategy

The “Process” component of the 7Ps Marketing Mix focuses on the procedures, mechanisms, and flow of activities by which services are consumed. This encompasses a wide range of operational and customer service processes designed to enhance efficiency and customer satisfaction for Walmart. Here are some key points regarding the “Process” aspect of Walmart’s service marketing strategy mix:

Streamlined Shopping Experience

1. Self-Checkout: Walmart offers self-checkout stations to speed up the payment process and reduce wait times.
2. Mobile App: The Walmart app facilitates a seamless shopping process, including online shopping, in-store product location, and mobile payment options.

Inventory Management

1. Automated Replenishment Systems: Utilizes advanced inventory management systems to ensure products are restocked efficiently, minimizing out-of-stock situations.
2. Vendor Managed Inventory (VMI): Collaborates with suppliers to maintain optimal inventory levels, improving product availability.

Supply Chain Efficiency

1. Cross-Docking: Implements cross-docking in its supply chain to reduce storage costs and shorten delivery times, ensuring products move directly from suppliers to Walmart stores.
2. Logistics Network: Leverages a sophisticated logistics network, including distribution centers strategically located to minimize transportation costs and time.

Customer Service Processes

1. Return Policy: Offers a straightforward and customer-friendly return policy, allowing in-store and online returns for most items.
2. Customer Feedback Systems: Implements multiple channels for customer feedback, including surveys and social media, to gather insights and improve service quality.

Online and Omnichannel Services

1. E-commerce Platform: Provides an extensive e-commerce platform, enabling customers to purchase various products online.
2. Pickup and Delivery Services: Offers various grocery and merchandise pickups and home delivery options, including same-day delivery services.

Health and Safety Protocols

1. COVID-19 Response: Implemented health and safety measures, such as sanitization procedures, contactless payment options, and social distancing guidelines, in response to the COVID-19 pandemic.
2. Emergency Preparedness: Maintains emergency preparedness processes to ensure store operations can quickly adapt to various situations, protecting employees and customers.

Employee Training and Development

1. Customer Service Training: Provides extensive employee training to enhance customer interaction, problem-solving, and service delivery.
2. Technology and Operations Training: Employees receive training on the latest retail technologies and operational processes to improve efficiency and service quality.

Walmart Physical Evidence Strategy

The “Physical Evidence” component of the 7Ps Marketing Mix refers to the environment in which the service is delivered and any tangible goods that facilitate the service or other promotional strategies used to communicate the service. For Walmart, physical evidence encompasses the tangible aspects of its retail and online presence that contribute to the customer experience. Here are key points regarding the “Physical Evidence” aspect of Walmart’s service marketing mix:

Store Layout and Design

1. Clean and Organized Stores: Walmart’s store layout is designed to be clean, organized, and easy to navigate, enhancing the shopping experience.
2. Signage and Aisle Markers: Clear signage and aisle markers help customers find products more efficiently, improving efficiency and satisfaction.

Branding Elements

1. Logo and Color Scheme: Walmart’s distinctive blue and yellow logo, along with its color scheme, are consistently used across stores, packaging, and marketing materials, contributing to brand recognition.
2. Uniforms: Employee uniforms with the Walmart logo reinforce brand identity and make staff easily identifiable to customers.

Online Platform and Mobile App

1. Website and App Design: The Walmart mobile app has user-friendly interfaces, facilitating easy navigation, product search, and online transactions.
2. Digital Receipts and Confirmations: Digital receipts, order confirmations, and shipping notifications provide tangible proof of transactions and enhance customer trust.

Checkout Experience

1. Modern POS Systems: Walmart uses modern Point of Sale (POS) systems for efficient checkout, including options for electronic payments, contactless payments, and self-checkout.
2. Packaging: Branded packaging for products and delivery parcels is physical evidence of Walmart’s service and enhances brand recognition.

In-store and Online Marketing Materials

1. Displays and Promotions: In-store displays, promotional materials, and digital marketing efforts are well-designed to highlight offers, new products, and featured brands.
2. Informational Signage: Informational signage about services, policies, and community engagement initiatives gives customers a sense of Walmart’s values and service commitment.

Cleanliness and Maintenance

1. Store Cleanliness: Regular cleaning and maintenance of stores, restrooms, and common areas contribute to a positive shopping environment.
2. Online System Uptime: The online shopping platform’s high uptime and reliable performance are physical evidence of Walmart’s commitment to quality and service availability.

Safety Measures

1. Health and Safety Protocols: Visible health and safety measures, such as hand sanitizing stations and plexiglass barriers at checkout, reinforce Walmart’s commitment to customer and employee safety.

Community Engagement

1. Local Store Events and Sponsorships: Physical evidence of Walmart’s involvement in local communities through store-hosted events, sponsorships, and charitable activities enhances its corporate image and customer loyalty.

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