Contemporary Marketing Challenges: Walmart's Digital Strategy Analysis

This report provides an analysis of Walmart's digital marketing strategies, focusing on its adaptation to contemporary marketing challenges. It examines Walmart's use of digital marketing, including social media, e-commerce, and search engine optimization, and how these strategies contribute to its competitive advantage. The report highlights the impact of technology on business, contrasting Walmart's approach with traditional methods, such as those employed by Sainsbury's. It explores how social media influences traditional business models, affecting sales, brand image, and customer reach. The analysis covers customer relationship management, market research, and customer base expansion, emphasizing how Walmart leverages digital tools to understand and meet customer needs. The report concludes by assessing the effects of digital marketing on sales and profitability, providing insights into the importance of adopting modern marketing approaches to maintain a strong position in the retail sector. This analysis is particularly relevant for understanding the evolving landscape of marketing and the importance of digital transformation for businesses.

Contemporary Marketing
Challenges

INTRODUCTION
Business market is comprised of many new things and innovations which are helpful in
overall development of business. Management have to consider such approaches which facilitate
growth and over all development through which an organisation will become able to gain
sustainability. But, there are many marketing challenges are determining which affect and made
impact on an entity (Bharwani and Butt, 2012). Hence, it is a duty of managers and leaders to
evaluate all such facts and things and take adequate steps for overcoming from them. For this
project, there are mainly two concepts are identifying which are related with critical marketing
problems and issues. One of a topic is related with human organ in which selling of human
organs is a controversial fact and many people take their own will money for the body parts.
Thus, this stated as problem because number of human organs donor are identically find out.
Hence, several steps have to carry out for development of human organs with suitable suggestion
of its improvement. Another option is related with digital marketing with shopper research.
There are vast number of development is taking place in retail sector and for this Walmart
adopted this technique in their business. Thus, business become completely differ from
traditional segment in which face to face interaction with seller is essential.
ASSESSMENT 1
ASSESSMENT 2
OVERVIEW
Wal Mart is one of the largest multinational American corporation that operates as a
hypermart, discount shops etc. Company got founded in the year 1962 July 2, with a largest
revenue generating company (Boone and Kurtz, 2013). With rapid change in time and
technological development, organisation start using several revolutionary tool in which they start
operating business through digital marketing. Thus, this concept aids them in better and effective
growth and development which get identify through their revenue generation capacity by taking
position of second largest retail segment E commerce company. Wal Mart stores Inc. total sales
with E commerce is about 13,284 US million with a market share of 2.8% after Amazon.
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New Development in digital marketing
Digital marketing:- Digital marketing defined as marketing of products with the use of digital
sources like internet, social networking, e-commerce etc. Today every organisation wants to
introduce itself in the market as a brand leader though its products. It’s a major task for a
company to promote its products in the market that's why organisation uses different approaches
and techniques to introduce their product in the market (Catterall, Maclaran and Stevens, 2013).
Here are some current digital marketing trends which are being used by the companies at very
large scale these techniques are: -
 Social media marketing: - Social media is perfect sources to promote and introduce the
new product in the marketing. An organisation can make large number of customer
through social media.
 Mobile marketing: - Mobile marketing is the fastest and growing source of digital
marketing. Through mobile marketing its easy to convey the details about the products to
the customer.
 E- commerce websites: - E- commerce websites have been spread their web in the world
and it’s become a trend in digital marketing because customer gets vital range of products
and stuffs on these e-commerce websites.
 Search engine optimisation: - Search engine optimisation is a technique to make search
results better on search engines to the customers. Motive of search engine optimisation is
to get search result of the any information on the top in the list.
 E-mail marketing: - E-mail marketing is known as formal way of marketing of the
products. In this method companies gives the products information’s and provide offers
to the client.
Let's Look an overview about Walmart retail stores marketing strategies: -
Walmeart is one of the growing e-commerce website across the world which is giving a tuff
competition to its rival companies. Walmart focused on its customer requirements and products
verities and set up its stores accordingly (Fillis, 2011). Its growth rate in groceries, food, daily
items is getting higher rate since 2011. Its most near competitor is Amazon e-commerce network.
Walmart already guessed the next digital environment in earlier stage. It putted its
research and developing sources skills in future digital marketing strategies. And that is the result
we are seeing this multinational e-commerce group is increasing day by day.
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Walmart had a large number of customer market its was its best and effective part of this
organisation that it would not had to find the market to introduce its products to the customers.
The best part of its digital marketing strategies was that it implementations was concerned and
centralised around the customer interests and their needs (Grimm and et. al., 2013).
Impact of technology on business
Technology play an effective role in business development and growth by providing
effective and efficient results. Thus, management have to prepare their strategies according to
requirement of time frame so that all targets get ascertain properly. Along with this, it is a duty of
managers to identify all resources which fit into business sector through which successful
implementation of action plan get done. Sainsburry is using traditional approach of business
which is a major reason behind their decline in shares rate as compared to Wal Mart. Hence,
proper strategies have to get utilise by adopting effective resources so that positive impact of
technology on business get made.
In present world context, Wal Mart is using social media as a best platform for
commencing their business operations. By using digital marketing concept wide reach to target
users get done. Hence, management take such steps properly and implement all factors
effectively. By using social media as a source, management become able to work on all of their
objectives properly and increase in annual sales will also took place. Certain number of points
and objectives got ascertain by Wal Mart through using social media on which Sainsburry have
to work properly: Customer relationship management: Social media is a best platform through which a
company can maintain their user relationship by providing them more and more
information about every brand and offers which are taking place. Customer relationship
management is an important task for making and conducting all sort of working in an
adequate manner (Grönroos and Gummerus, 2014). Market research: Social media work as a helpful measure through which an organisation
can easily conduct their marketing research. For this perspective, management have to
organise several survey through online marketing which aid them in analysing negative
and positive factors according to customer perspective. Customer base expansion: One of a major work which have get done by using digital
marketing tool is increase customer base which is helpful in enhance the sales and
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profitability of business. Management can provide corporate message through social
media channel to their target number of customers and provide necessary information as
well. This new form of marketing is so helpful and consider as modern marketing
approach (Kapoulas and Mitic, 2012). Competitive advantage: Reason behind success of WalMart is using social media as a
platform for selling and gain competitive advantage. Many retail sector organisations are
still using traditional approach and they are not capable in providing goods and services
to wide range of users. Thus, this competitive advantage would gain by reference retail
outlet which is helpful in long term context. Marketing of product: In present world, more than 80% users are online and spent around
more than 8 hours on social media. Thus, nothing is better than using social media as a
platform for marketing of a product. This also made them aware about brand qualities.
 Increase in sales: One of a major advantage and impact on business through social media
is enhancing sales and annual growth rate. This fact gets done by providing adequate
information to target users about brand and reaching to more and more number of
customers as well.
These all are positive impact of using and implementing new technology in business by taking
social media as a platform. As compared to Sainsburry which are still using traditional marketing
concept which state about a face to face interaction with customer. Hence, their area of extension
is limited along with that they are not as much as capable in creating a customer relationship like
Wal Mart do. Also, this work as a major reason behind increase in sales and profitability of an
organisation which is essential for making a stable sustainable business project. Thus, Sainsburry
have to adopt all such strategies properly which support them in establishing a perfect business
entity.
Along with this, Wal Mart become able to conduct a market research as well by applying
digital marketing tool for making the long term consent of business. Thus, this factor is helpful
for business in avoiding negative factor from business in overall context (Lefebvre, 2012).
Impact of social media technological development on traditional business
Social media play an effective role for every business concern for maximising their sales
and revenue. Every day many people visit to many companies’ sites with a motive of purchasing
and in festival season their sales get just double of their regular generation. Traditional business
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are such stores where user have to visit physically for buying and procuring of goods and
services.
Thus, many business firms have to use new technologies which are related with their
business so that they become able to attain all targets on time. From past few years, it get
determine that many traditional business consent are using new and modern approach of
payment through scanners, bar codes, using payment machines etc. But they are still not using
modern business approach properly which is using social media as a platform for connecting
more and more number of customers (Pomering, Noble and Johnson, 2011). Thus, social media
made a vase impact on many traditional business and their operations as well. For such business
concern who used modern consent become abler to maximise their revenue and profit generation
capacity. Following are the points which are concerned with Sainsburry who are not making
their business properly digitalise by selling their products through online. Hence, they are not
using Facebook, twitter, Orkut for product development and growth of business. On the other
hand, Wal Mart adopt this technique properly and implement it as well and as a result they
generate more and more profit.
 Affect sales of a business because many customers want services which get attain just
through One click. Hence, social media provide a platform through which user easily
purchase product according to their wish without any bargaining process.
 Social media is helpful in making the different brand image of a company because it
requires huge amount of fund get invested. Thus, people who adopt luxury lifestyle prefer
products through online shopping rather than traditional marketing.
 Another major limitation which related with traditional business is that they are not
become able to reach to wide range of customers. Thus, as a result social media support
in grabbing more market share by such entities whom are dealing through online as they
have wide range of user base.
 Traditional business process does not have proper tools to identify preference of their
customer which is essential for every product selling (Popkin, 2011). They focus more on
products who have good profit margin and never consider customer satisfaction as
essential factor. This will create a negative impression of a business concern on their
target user base.
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 This social media technological development will affect their business which after a limit
create a situation of business wind up. This is another major negative impact by social
media on business development and growth.
Sainsburry have to analyse all these impact on business and modify it according to requirement
of time. Thus, by applying adequate strategies management become able to overcome from them
properly. Along with this, they can use effective promotional campaign by creating their page on
Google and social media and alter it properly according to time frame. Thus, from above
statement it gets determine that traditional business made a negative impact on business which
restrict them in effective growth (Sheth, 2011).
Adaptation of new strategies to remove threat from business
Everything require several changes and modification which are playing an effective role
in getting improve according to time. Business environment is dynamic in nature and thus
organisation have to prepare such strategies which are flexible in nature. Flexibility is a only
measure which enable an entity to overcome from business uncertainty. Thus, business
organisation has to adapt new things according to time so that all of their working get improve in
minimum time manner.
Traditional business segment has to use new business methods but not completely as they
might have lack of fund. But if they are already dealing at global level and have sufficient
amount of money than they have to use it and promote business through social media as well.
Along with this, they also start trading their products and services through door to door delivery
which support in providing a tough competition to all of their keen competitors.
Sainsburry have to prepare their strategies which support them in overcome from a threat
of online business competition. As it is seen that from last 2-3 years, online shopping market is
taking place and growing very rapidly. Hence, management have to consider adequate strategies
which are helpful in dealing with such threats and risk which affect the growth and profitability
of business:
 Use new methods of payment which is helpful in paying through plastic money.
Sainsburry already adopted this segment in their business for making their user more
relax about procuring of products and services (Xiangping, Huang and Zhigang, 2012).
 Provide more and more offers through paying plastic money which support in attracting
more and more number of customers. Like providing reward points which are redeemable
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in nature at any time for a purchasing of particular amount of goods and services. This is
another helpful measure for an entity in satisfying user.
 Provide door to door services by one calling which is helpful in placing order properly to
ultimate customer (Bharwani and Butt, 2012). This is another important factor which
reduce threat of online business impact on traditional concern. Customers want such sort
of services which get done on minimum time frame and with proper quality with low
energy consumption. Door to door delivery make this terminology easier through which
many users get satisfied by such quality products which they get from company.
Sainsburry have to implement this working at workplace which aid them in increase their
number of customer through providing door to door service like online business.
 Flexibility of changing products and easy return policies are two major things which
provided by online business but cannot provide by retail stores. In case of any deviation
find out with products, retail would not bear such risk and try to avoid to net take return.
Thus, Sainburry have to modify their policies of return of products. Although, in case if
customers do not get satisfied with quality of goods and services them management have
to take return of such goods. This factor is helpful in removing threat of online business
with comparison of traditional business organisation.
Recommendations for refining strategies
By discussing all the ways and impact of digital marketing strategies , it can be said that
digital marketing is very essential in an organisation. Using traditional techniques for running
business , companies are wasting their time and energy and are getting nothing. Traditional
marketing techniques does not work well on customers because they are now expecting much
from companies. By using it, companies will loose out their customers (Boone and Kurtz, 2013).
It is a well known fact that marketing is ever changing and a constantly evolving field.
Old techniques are considered as irrelevant now and does not provide growth. So,
recommendations to improve these strategies are as follows:-
1. Align Strategies- it should be seen that marketing strategies should be linked with
business strategies of business and strategies should be developed for functional areas
within marketing as well.
2. Analyse competition:- competitive analysis is highly recommended in most of the
business. But competitive analysis doesn't only mean to check out then process of
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products and services of competitors but it should also try to trap into the existing
customers and ask them the difference between the products they use and products of
customers. For this, a competitive link analysis tool is used .
3. It should have taken care that customers should feel their importance in organisation. If
they will feel so then they will become loyal customers of company in no time (Catterall,
Maclaran and Stevens, 2013).
4. Stage should be set for long term value:- while preparing digital marketing strategies ,
focus should always be on long term goals. When technology changing in an exponential
rate, there are so many ideas that are flowing as trends, so company should make use of
this and try to grab customers.
CONCLUSION
It gets concluded from the above report that digital marketing is a helpful measure through
which an organisation become able to generate more and more profit for their future
ascertainment of targets. There are various number of approaches get identify which are
related with online marketing of business but for every traditional business consent these
techniques are harmful. Hence, such business entities have to prepare proper strategies
which are helpful in overcoming from treat of online and digital marketing concept. For this
statement, company have to take several recommendations and implement them into
business. These suggestions are helpful to refining all strategies of an organisation in
making their operations effective and adequate. Hence, all these steps have to get done
properly for making adequate business transformation.
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REFERENCES
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Online
Improving digital marketing strategies.2017.[Online].Available
through:<https://www.emarsys.com/en-uk/resources/blog/5-ways-to-improve-your-
digital-marketing-strategy/>.[Accessed on 18th October].
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