4Ps Marketing Mix of Walmart

This research paper elaborates the pricing, promotion, product and distribution channel of Walmart in order to find out whether the company uses similar policy of marketing mix in four of its major operating countries or not.

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MBA-Marketing Management
4Ps Marketing mix of Walmart
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4Ps MARKETING MIX OF WALMART
Abstract
Marketing mix of companies helps in getting a knowledge about business strategies
and policies that revolves around the firm’s nature. Walmart is one of the most renowned
company in global scale which is also listed under Fortune 500 company’s list. This research
paper will elaborate the pricing, promotion, product and distribution channel of Walmart in
order to find out whether the company uses similar policy of marketing mix in four of its
major operating countries or not.

4Ps MARKETING MIX OF WALMART
Table of Contents
Introduction................................................................................................................................3
4Ps marketing mix concept of Walmart.....................................................................................3
Differences observed..................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

4Ps MARKETING MIX OF WALMART
Introduction
Walmart is one of the leading international companies that was founded in the year
1962 and got incorporated in the year 1969. Headquartered in Bentonville, Arkansas,
Walmart operates in more than 28 countries with over 11,500 retail units and in 11 countries
as e-retailer. United Kingdom, China, US and India are four major countries where Walmart
has established an efficient and strong supply and logistic chain management (Walmart Inc.,
2018). Walmart provides service to customers in delivering quality merchandise at best rates
and is declared as largest company in terms of revenue by Fortune 500 international company
list in service industry ( Carpenter, Bauer, & Erdogan, 2012).
4Ps marketing mix concept of Walmart
Source: (4 Ps of Marketing (Product Mix), 2018)

4Ps MARKETING MIX OF WALMART
Product: Walmart’s core business is providing customers with retail services for which the
company attracts its customers by enabling them with effective and convenient service. For
example, sales personnel of the company are trained in such a manner that they assist
shoppers with finding goods of their choice. Convenience in product selection is offered as
Walmart stores comprises of wide array of products in almost all of its retail and online
stores. Since customers experiences one-stop shopping experience with Walmart, they find
shopping easy with it and thus product component in marketing mix of the company affects
highly while defining customer experience and overall influence of store sales (Marcilla,
2014).
Price: Walmart uses pricing strategy which includes Everyday low Price i.e. EDLP pricing
strategy. In fact, this low pricing technique are frequently observed in advertisements made
by Walmart. The chief objective behind this pricing strategy is to support the generic
business strategy of Walmart, that is cost leadership (Govindarajan & Gupta, 2017).
Moreover, this strategy helps in generation of huge sales and thereby Walmart enjoys the
benefit through economies of sales. Walmart charges less than 15% on some of its products
as compared to its competitors. Therefore, this marketing mix in pricing contributes as main
component for enabling successful competitiveness in retail service industry.
Place: In distribution strategy of Walmart, the company uses intensive distribution channel
strategy. Under this strategy, Walmart offers same variety of products in all of its stores along
with employee’s responsibilities towards stores management. In order to reach more
customers, the company keeps on expanding its business by opening more retail stores and
thus gets public attention by enabling convenient shopping experience in geographical terms.
The company also use direct delivery systems in which vendors and suppliers of retail stores
gets their goods delivered by the company’s supply chain network (Marcilla, 2014).

4Ps MARKETING MIX OF WALMART
Promotion: Marketing communication or promotional mix of Walmart is composed of sales
promotion, advertisements, public related service and personal selling. Company uses
advertisers like newspapers and websites to promote their products special deals and
discounts. Package deals and new products are sold personally by sales person of stores by
persuading customers. Walmart’s online websites offers customers with gifts and cash on
delivery facilities that enhances its online sales also. Walmart public relations are maintained
effectively as it uses press releases to keep its stakeholders and investors informed about
company policies and strategies. The company also sponsors many charity functions to
remain in news and in front of customers eyes. Thus, it can be said that promotion in
marketing mix of Walmart helps the company in establishing strong customer relationship
along with improving its brand image (Marcilla, 2014).
Differences observed
Although Walmart is an international company, it uses different name in several
countries. Even the pricing strategy of the company varies according to market. For example,
in India and China, the price of products is placed lower as compared to US since India and
China are economically weaker than US. Whereas low pricing strategy for UK has been kept
to give tough competition to its competitors. Distribution channels of the company also
differs in different countries. In India, the company owns best wholesale stores but in US, the
number of retail stores are higher than China, India and UK (Thomas, 2017).

4Ps MARKETING MIX OF WALMART
Conclusion
Walmart is one of the most attractive companies mentioned in Fortune 500 company’s
list in service related industry. It employees’ large number of people while giving exclusive
care to its customers like valuable assets. The standardised marketing mix policy of the
company can be summarised as an excellent marketing strategy. The availability of variety of
products, enhanced distribution channel, low pricing policy and effective methods of
promotion contributes all the necessary factors required in successful internationalisation of
the company.

4Ps MARKETING MIX OF WALMART
References
Carpenter, M., Bauer, T., & Erdogan, B. (2012). Management Principles. Creative
Commons.
4 Ps of Marketing (Product Mix). (2018). Retrieved from
https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/6778-4-
ps-of-marketing.html
Govindarajan, V., & Gupta, A. K. (2017). Taking Wal-Mart Global: Lessons From
Retailing's Giant. Retrieved from https://www.strategy-business.com/article/13866?
gko=e19cb
Marcilla, L. B. (2014). Business analysis for Wal-Mart, a grocery retail chain, and
improvement proposals . Missouri.
Thomas, T. (2017). How Walmart pivoted its India strategy and succeeded. Retrieved from
https://www.thehindubusinessline.com/companies/how-walmart-pivoted-its-india-
strategy-and-succeeded/article9944164.ece
Walmart Inc. (2018). Walmart-About Us. Retrieved from https://corporate.walmart.com/our-
story