Project on Walmart

This project provides an analysis of Walmart's marketing strategies, strengths, weaknesses, and competitive position. It also discusses the three levels of products offered by Walmart.

Running Head: Marketing & Management 0
Marketing & Management
Student Name
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Project on Walmart 1
Executive Summary –
Walmart is an American company which is based on retail and it is the world’s largest retailer
and grocery chain in whole world. Company have numerous strengths and weakness which
also describe marketing strategies of the company. Every day low price is the key marketing
strategy of the company, so because of this strategy company has various strengths such as
high productivity and growth, customer loyalty and huge customer base and also has some
weakness such as poor quality of some products, dissatisfaction of employees due to lack of
motivation and attraction towards them by the organization. Walmart create differentiation
from its competitors through various competitive strategy such as increases Omni- channel
distribution system at both in- store and online store, offering broad financial services, better
economies of scale, create large base of customers and electronic data interchange system.
They offer products in terms of three levels. First level is core products, second is actual
products and last one is augmented level of products. Augmented level is important because
it create competitive advantage to the company by offering additional services which are
differ from their competitors to the customers. Walmart can overcome issues or challenges
which are facing by them through adopting different distribution channel which help the
company in offering seamless experience of shopping to their customers, they can use direct
distribution channel which will help the company in reducing their cost and company can
also use A CRM system for promoting their products to the customers and gaining customers
loyalty over their competitors. Brand name also creates a value for the company as company
can charge price premium or high price than its competitors but there are also some ethical
issues which are involved in price premium. Wal-Mart’s marketing objectives create towards
overall corporate objectives of the company as they are closely connected with each other.

Project on Walmart 2
Table of Contents
Introduction –.............................................................................................................................3
Q1...............................................................................................................................................4
Marketing Strengths and weakness –.....................................................................................4
Marketing strategies –............................................................................................................5
Q2...............................................................................................................................................6
Competitive position –...........................................................................................................6
Competitive Strategy –...........................................................................................................7
Q5...............................................................................................................................................7
Three levels of products –......................................................................................................7
Core benefit –.........................................................................................................................8
Importance of products or services at augmented level of product to the overall offer –......8
Q6...............................................................................................................................................9
10 Issues which are facing by industrial marketing manager –.............................................9
Recommendations –.............................................................................................................10
Q7.............................................................................................................................................11
Value of a brand name –......................................................................................................11
Ethical Issues -.....................................................................................................................11
Conclusion –.............................................................................................................................12
References –.............................................................................................................................14

Project on Walmart 3
Introduction –
Walmart is an American company which is based on Retail Corporation. The company is not
only retail based but it is also the largest grocery chain in the whole world. The company was
founded by Samuel Walton and J.L. Walton in Rogers in 1962 and it’s headquartered in
Bentonville, Arkansas. Company mission is “save people money so they can live better.
Company has more than 12000 stores in 27 countries & out of 12,000 stores, more than half
of the total stores are located outside the United State of America in more than 2,400
locations in worldwide, so it represents 40 per cent of total international units and also has
more than 275 million customers. In 2019, company increases their revenue to $514.4 billion
and employs 2.2 million associated in whole world (Walmart Corporate, 2019). The company
continue to be leader in corporate philanthropy, sustainability and the employment
opportunity, so it help the company in building value to their customers and communities in
the whole world. Every Day Low Price is a key strategy for the company to grow
continuously in long run. There are three segments as Walmart International, Walmart U.S.
and Sam’s Club and there are also three types of market of Walmart U.S., one is Walmart
Supercenter, second one is Walmart Discount Store and the last one is Walmart
Neighbourhood Market (Walmart Corporate, 2019).
Walmart U.S. segment includes operating brand and their mass concept of merchant in the
U.S., Segment of Walmart International includes companies operation outside the United
State of America, it also includes various websites of retail and the Sam’s Club segment
consists of the membership clubs of the warehouse in the U.S. Company have the various
business strategies such as enhancing technology both internal as well as external to increase
the experience of the customers while their shopping, focus on creating balancing between
physical stores as well as digital store while shopping by the customers and they made plan
for introduce new club and new stores (Walmart Inc., 2018). Walmart have various policies
and practices which are according to effective environment, after taking feedback from their
employees then company implement the basic beliefs and value as per the needs of the
employees and they also provides training to their employees, good leadership skills,
effective environment and equal opportunities of the employees. The report consist of Wal-
Mart’s SWOT analysis, business and marketing strategies, marketing objectives and issue
and challenges which are facing by the company.

Project on Walmart 4
Q1.
Marketing Strengths and weakness –
Strengths:
 World’s largest retailer with more revenue and more stores
 Better economies of scale
 Low price of its products
 Strong brand value and company’s reputation with greater quality and value of the
products, so it helps the company to retain their customers, increase customer loyalty
and attract to the new customers
 Covered geographical area as company operated its business both at locally or at
globally
 Company have advanced technology and information system and proper use of this
technology, so it help the company to manage its logistic operation (Three- Year
Growth Plan, 2019).
 Better decision making
 They have maximise sales and productivity because they offer a whole type of
products at one store
 Proper supply chain management as well as logistics management
 Technology related to their system of inventory control
 Specialized human resources and investing huge amount in the training and
development of their employees
 Higher productivity and performance
 Huge customer base (Lichtenstein, 2011)
Weakness:
 Poor promotion of their products in terms of publicity
 High turnover of the employees
 Lack of flexibilities compare to their competitors
 Poor quality of the some products
 Company are facing difficulty and challenges in International market

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 Employee dissatisfaction
 Discrimination among the employees in terms of wages, benefits, promotion and
overtime pay
 Working environment are not effective
 Lack of motivation and incentives and benefits
 Lack of social responsibilities towards their employees
 Customers does not have frill experience while shopping in this company because
there is no services related to enjoyment for the customers and there is no ambiance
 Inferior quality of some of the products (Kneer, 2009)
Marketing strategies –
Following are the strengths and weakness which suggest about the marketing strategies of the
company: -
1. Maintaining effective & efficient supply chain management as well as logistic
management.
2. As company have advanced technology, so it suggest the one of the marketing
strategies as new innovation in technology which help the company to improve
efficiency, productivity and also helps in increasing the number of the customers
(Aswathappa, 2010).
3. Company encourage its employees to continuously improve their performance,
improve their speed while delivery the products to the customers and also encourage
to improve their operation system. So, this strategy of the company results in
dissatisfaction among employees and increasing the turnover of the employees
((Hicks, Keil and Spector, 2012).
4. Company believes in the continuous growth of their business in terms of employees,
customers and productivity, so it will help the company in sustaining the advantages
than their competitors or in gaining the competitive advantages and achieving their
goals and objectives. So, because of this strategy, company has strengths as world’s
largest retailer with high revenue and profit (Needle, 2010).
5. Company utilized supply chain effectively and efficiently, so it helps the company in
reducing their cost, it is another marketing strategy of the company. Cost includes
both fixed cost and variable cost which come during the production of the goods and
rendering the services. The company manage to minimise their cost through

Project on Walmart 6
budgeting payroll, it means payroll cost should not be more than the budgeting cost.
They also save their cost by reducing transportation cost.
6. Company have the strategy which is based on customer centric sales approach. They
offer product with high quality at low price to the customers and also produce product
as per the needs and requirement of the customers, so it will help the company to
create huge customer base and increase sale and revenue of the company (Ferrell and
Hartline, 2013).
Q2.
Competitive position –
Walmart is the largest grocery chain and retail company in the whole world. The company
differentiate its value from the following competitive advantages:
1. Strength in online grocery as well as in- store grocery sales – In 2018, Walmart is the
largest company in terms of sales. According to the report, more than 59 per cent
customers purchased grocery from the Walmart in three months. Company has
increased its experience of Omni- channel with in- store as well as online grocery
stores than its competitors such as Amazon and other online retailers. They will grow
its grocery sales as “click and collect” to 154 per cent average each year (Walmart as
Omni channel Competitor, 2018).
2. Offering broad financial services – Walmart offers broadest financial services to their
customers than its competitors. They increased their store traffic, so that customers
can choose products from the various varieties which are available.
3. Company have large base of customers than its competitors - Walmart have large
customers base which purchase pet products. According to the Packaged Facts, out of
the 67 million customers who buy pet products, 43 million buy from the Walmart
(The Retail Services Industry in the United State, 2019).
4. Economies of scale – The company has achieved economies of scale because it unit
costs have reduced as its stores are available at many location in whole world.
Company also made an entry barrier for the new company who want to enter in this
market.
5. Drive out costs – This has been made by creating partnership with the vendors,
creating relationship with customers, proper selection of locations for the stores and

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try to creating company’s value than its competitors. The company has also
continuously developed its strategic internal assets.
6. Electronic data interchange system – Wal-Mart’s distribution channels for the
products are very effective and efficient, so it creates entry barriers for the new
companies. They developed electronic data interchange system which helps the
company in direct communication with their suppliers, developed inventory control
and direct communication with distribution centres (Form 10-K, 2018).
Competitive Strategy –
1. Cost leadership strategy – Walmart focuses on the low product differentiation than its
competitors. So, for success in this strategy company will focus on the efficiency of
the product, make strategy related to intensive growth, management system and its
approach and other related strategy which will help the company in reducing costs
(Company Facts, 2019).
2. Market Penetration – This is the main strategy for the company for increasing its
growth. They increased their sales by offering discounts and other related offers to its
customers. The company also enhanced its online chain which helps in improving
access of the customers to their product, also help in increasing their sales and
productivity and it also contribute to the growth of the company. Its objective is to
increase the market share of the company (Hussain, et al, 2014).
3. Differentiation Strategy – Company uses the differentiation strategy to gain
competitive advantage than its competitors. They create this strategy by creating their
products unique from its competitors. The product or services must be marketed in
that way from which it feel to the customers that products are exclusive to the store.
They will achieve this strategy through offering unique offers to their customers and
creating brand image in mind of them (Walmart Announces Acquisition of Digital
Entertainment Provider, VUDU, 2010).
Q5.
Three levels of products –
There are various products and services which are offered by Walmart in terms of three levels
of products and services. At Walmart, mobile phones are offered by them in terms of three
levels of products. Each level of the product adds value of the customers. According to

Project on Walmart 8
Kotler, anything which is offered by the company for the purpose of capturing attention with
the customers, acquiring more and more customers and to satisfy a need and wants of the
customers, so these all are included in the definition of products or services. Company can
increase value of their products through its customers by fulfilling the needs of the customers,
by satisfying the desires or wants which are required by the customers and increasing the
demand of their products by making products with customer’s satisfaction. Three levels of
products are: The core benefit, the actual product and last one is the segmented product
(Becker, Uhr and Vering, 2013).
Core benefit –
The core benefit for the customers is the first levels of the products and services. The core
benefit is the needs of the customers while buying the products or services or the benefits
which satisfy to the customers in buying their products or services. Company decide core
benefits in a way which customers easily buy their products. Core product is not only product
in itself but it also a concept which describe the importance or benefits for the customers
through using the products or services. It includes what is the customer really buying, what is
the needs, wants and desire of the customers while purchasing the products, when marketer
plan or design the product or services for the customers and what does the buyer really seek
(Blythe, 2009). So, the core benefit when customer buys mobile phone is the ease of
communication. In case of mobile phones, core product is the utility which is derived from
being able to communicate with efficiency as well as speed. So, core products provide utility
to the customers regarding their products or services, so core product is the main function of
any product or services. But, core product does not offer any competitive advantage for the
company (Varley, 2013).
Importance of products or services at augmented level of product to the overall offer –
Augmented level is the last level of products and services. This level of product offer
additional benefits to the customers. It includes guarantee, warrantee, support towards
products, after sale services, provide demo services for how to use the products, other
customer services and non- physical parts of the products, so on the basis of above factors
this level can create competitive advantage for the company. In case of mobile phones, the
augmented product includes 12- month warranty for all the customers and 24- hour
replacement service for broken phones for the business customer; return facility, reputation of
company for post- sales support, brochures which guide to the customers or provide
instruction related to using the products and the policy of California B & P Code #22435, it

Project on Walmart 9
prohibits the removal of shopping carts and the unauthorized possession from their stores
(Walmart Policies and Guidelines, 2019). The main benefit of the products at augmented
level is to create differentiation than its competitors or to make product in a way which is
differ from their competitors, which can create competitive advantages for the company. So,
it will help the company in increasing value towards their business and it also contribute to
the growth of the company (Meeks and Chen, 2011).
Q6.
10 Issues which are facing by industrial marketing manager –
1. Customers are choosing multichannel buying experiences and they expect seamless
experience while shopping either from in store or online shopping.
2. Marketing managers are keeping their mind with changing expectation and needs of
the customers.
3. Maintaining or attracting the customer’s loyalty towards their products.
4. Managing internal communication system between different departments or divisions.
5. Retaining the existing employees, engaging the employees and how to encourage
them to increase their productivity and performance towards the company.
6. Finding the best solution for new technology or innovation is another challenge which
are facing by the industrial marketing managers (Rosenbloom, 2012).
7. How to grow distribution system of the products.
8. Increase in the competition is also another issue which is facing by the industrial
marketing manager.
9. Retail price inflation is also facing by the industrial marketing managers. Because of
the inflation, consumers can not purchase the products at high price, so it is the
challenge for the retailer to believe their customers that they will buy excellent value
for money.
10. Sustainability is another important issue which is facing by the retail marketing
managers as customers are increasing their demands of high degree of transparency of
their products (Saavedra, 2016).
These above issues are important to Walmart because of the following reasons:
1. As customers are expecting experience which they do not experience prior and they
are choosing multichannel experience while buying the products or services, so that

Project on Walmart 10
Walmart also needs to satisfy the needs and wants of the customers while purchasing
their products or services (Mourdoukoutas, 2016).
2. Company will try to maintaining positive relationship with their customers and their
employees and also try to increase their loyalty towards the organization. So, it will
help the company in reducing turnover rate of the employees and increasing base of
customers (Gustafson, 2014).
3. Due to retail price inflation, product prices at Walmart also increased and it’s difficult
for the company to manage the prices with high quality and value for money.
4. It is difficult for the company to grow continuously in the competitive world. So, for
the company, creation of competitive advantages or strategy is very important for
their success or constantly growing their business in long run.
Recommendations –
1. Company should adopt different distribution channels which give different experience
to the customers while buying the products or services. Customers are choosing
multichannel which provide seamless buying experience to the customers. So,
company should focus on creating unique experience for the customers at all
distribution channels and they can also create real time feedback system across
multichannel of distribution of the products.
2. Company should use the direct distribution channel while delivering the products, so
it will help the company in reducing their costs and also help the customers to save
their time and money.
3. They can provide seamless cross channel customer services, so it will help the
company in bossing their brand loyalty.
4. Walmart can use A CRM System for promoting their products to the customers and
maintaining customer loyalty. A CRM System refer as Customer Relationship
Management System which help the company in maintaining details of their
customers and they also can easily send personalized mail to their customers.
5. Company should manage their internal communication through an ERP system. It will
help in managing business operation and distribution of task across different
departments. So, it will help in deciding the product and prices of the same.

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Q7.
Value of a brand name –
Company invest resources, time, capital, talent and a lot of efforts in creating positive image
in the mind of the customers. If company have brand name then they can sell their products
and services at a premium prices over their competitors because customer ready to pay high
price or premium for greater quality of the products and services. In this case, Sony charges a
premium price for Play Station 3 than its competitors such as Nintendo and Microsoft’s Xbox
360, so because of brand value of Sony, customer prefer their products and ready to pay
premium price for the products over other competitive brands because customers wants the
high quality of the product which they want to buy (Erskine, 2017).
1. Brand name creates a differentiation than its competitors, company can illicit loyalty
from their customers and it also allow a company to charge premium price over its
competitors because consumers ready to pay more for branded products as compare to
mass- market brand and store brands.
2. It helps the company in reducing risk and higher royalty rate, so it will effect as a
higher value of the brand.
3. Brand names add value for the employees, customers and also contribute to the
valuation of the company.
4. Brand name creates differentiation for their products and services as compare to its
competitors.
5. It helps the company in building trust in mind of their customers towards product
quality, prices and other services which are provided by the company.
6. Brand value of Sony of about 8474 million U.S. dollars in 2018. It is more than
Nintendo and Microsoft’s. So, because of the brand value customers prefer Sony’s
products as compare to its competitors even at premium price.
Yes, there are ethical issues which are involved in price premium.
Ethical Issues -
1. Price Premium fixing: In includes an agreement between a group on same size of
market of people who buy and sale goods or services at fixed premium price. So,
customers cannot find alternatives or greater quality of products as compare to its
competitors.

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2. Price discrimination: Price discrimination is either anti or favouritism towards the
organization performance and productivity. Price discrimination is the pricing strategy
of selling the same products or services at different or premium price to different
customers. As company charge high price of the product at which customers are ready
to pay. So, there is issue involved for the company to decide different premium for
different group of customers and in some cases, it is not accepted socially (Carter,
2009).
3. Price skimming: There are also involved in price premium skimming. It refer as
discriminating in the price through time or when the product or services is first sold at
high price then company reduced its prices through time. Customers only ready to pay
premium price when they buy first that product. So, there are also ethical issues
involved in price skimming for the products or services.
4. In some cases, when same products or services are available at low prices then
customers does not ready to pay high price or premium price over its original price
even when they offer high quality of the products or services. So, in such cases,
company can lose its competitive advantages if they charge price premium for their
products or services (McGoldrick and Freestone, 2009).
Conclusion –
Hence, Walmart is largest grocery chain and Retail Company in whole world. Company have
various strengths as well as weakness such as low price for its products, between economies
of scale, proper supply chain and distribution system, high productivity and sales, covered
large geographical area, huge customers base, high turnover of employees because of lack of
employee loyalty and satisfaction, lack of promotion in terms of publicity, discrimination
among the employees, ineffective working environment and lack of motivation and other
benefits for the employees. So, the marketing strategies of Walmart is to offer product at low
price to their customers, offer varieties of products to the customers, promote their products
worldwide and design their products as per the customer’s needs and expectations, so it will
help the company in achieving its overall objectives as becoming first retailer who offer
seamless experience to the customers while their shopping, continuously growing their
business with high productivity and high sales volume and with customer satisfaction. So,
marketing objectives are closely connected with corporate objectives of the company.
Walmart has various competitive advantages such as huge customer base than its

Project on Walmart 13
competitors, offering broad financial services and electronic data interchange system as they
create competitive advantages by cost leadership strategy and differentiation strategy.
Company has three levels of products which deliver to the customers such as core benefits,
actual products and augmented level of product. Product at augmented level is important to
overall offer of the products to the customers because at this level company offer additional
benefits to their customers and it also help in gaining competitive advantages to the company.
There are various issues which are facing by the industrial marketing managers and it is very
important for all the company which is involved in such industry. Company can overcome
these issues by adopting different distribution channels, CRM system and ERP system. If
company has brand value then they allow charge a price premium over its competitors
because customers are ready to pay high prices for high quality.

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Consumer Research, 18(2), pp.185-201.

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Meeks, M. and Chen, R. (2011) Can Walmart integrate values with value? Journal of
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