In-Depth Marketing Analysis: Assessing Walmart Canada's Performance

This report presents a comprehensive marketing analysis of Walmart Canada, a prominent division of Canadian Walmart. It begins by outlining the company's background and current market position, including its financials, positioning, and market share. The report identifies key client problems such as reduced sales, poor customer service, and outdated product offerings, and explores related issues like spiraling problems, competition, customer loss, and employee frustration. It employs various marketing models, including SWOT, 7Ps, 7Ss, SPICC, and PESTLE, to analyze the external and internal factors influencing Walmart Canada's performance. Additionally, Porter's Five Forces model is used to provide a deeper understanding of the competitive landscape. The analysis reveals that Walmart Canada faces challenges due to a failure to leverage demographics effectively, supply chain issues, and data system mismatches, ultimately impacting its ability to compete with online retailers and maintain customer satisfaction. Desklib provides students access to this and similar solved assignments.

Running head: MARKETING ANALYSIS
Marketing Analysis
(Walmart Canada)
Name of the student:
Name of the university:
Author Note

1MARKETING ANALYSIS
Executive summary
The following report has demonstrated the market analysis of Walmart Canada. It is one of the
popular divisions of Canadian Walmart. Firstly, the background of the company is discussed
here. Then its present position in terms of financials, positioning and market share is analyzed.
Next, the client problems are identified with related issues for the research. Moreover, the client
problems are identified as per poor service of customers, obsolete product offerings and a
reduction in sales. Further, different external and internal case of Walmart is analyzed through
different marketing models. They are SWOT, 7P’s, 7S’s, SPICC and PESTLE. At last, an
additional model of Porter’s 5 is included here, to understand the situation of the company better.

2MARKETING ANALYSIS
Table of Contents
1. Introduction:......................................................................................................................................
1.1. Background of the company:................................................................................................3
1.2. Walmart Canada’s current market position:.........................................................................4
1.2.1. Market share:..................................................................................................................4
1.2.2. Positioning:....................................................................................................................5
1.2.3. Financials:......................................................................................................................6
1.3. Identification of client problems:..........................................................................................7
1.4. Issues related to current research:.........................................................................................8
1.5. Summary:..............................................................................................................................9
1.6. Conclusion:.........................................................................................................................10
2. Situational analysis:.........................................................................................................................
2.1. PESTLE:.............................................................................................................................10
2.3. SPICC:.................................................................................................................................13
2.4. 7S’s:.....................................................................................................................................14
2.5. 7P’s:.....................................................................................................................................16
2.6. SWOT:................................................................................................................................16
2.7. Additional model to understand the market place of Walmart Canada:.............................17
2.8. Summary:............................................................................................................................19
2.9. Conclusion:.........................................................................................................................19
3. References:......................................................................................................................................

3MARKETING ANALYSIS
1. Introduction:
1.1. Background of the company:
The “Walmart Canada” is one of the divisions of Canadian Walmart. The main
headquarter likes in Mississauga in Ontario. The organization started its journey at 1994 with the
intention of purchasing the chain of Woolco Canada from F.W. Woolworth Company. It mainly
comprised of discount stores. Besides, it has competed in various sectors such as Dollarama,
Canadian tire and Home Hardware (Wynne 2016). Further, on the basis of its success of US
format, the organization was found to be focusing on widening its Supercentres, originating from
converted and new locations. This is done by providing groceries putting them to a similar
market, parallel to other supermarket chains. Then the company hold a grand opening of 15
centers in 2016, as they completed their expansion plan for the fiscal year (Alam 2017). During
April 2018, the overall count was 410 stores. This included 334 supercentres with 76 discount
stores at most of the nation’s territory and provinces. Their main landlord and principal are
SmartCentres along with First Capital Reality and Riocan.

4MARKETING ANALYSIS
Figure 1: “Front store of Walmart Canada”
(Source: O.w.n news network 2016)
1.2. Walmart Canada’s current market position:
1.2.1. Market share:
It is seen that the total sales in Canada have increased by about 2% for Walmart. Here, the
sales at the stories are open till more than a year that grew by 1.0%. Here both of these
decelerated as the net sales rose about 3.4 % and computable sales rose to about 2.5%. At
Canada, the customers have reacted to the investments that they have made in price and
contributing to various market-share gains in different primary categories of traffic-driving
(Bushnell et al. 2015). Moreover, they have expanded to multiple locations where they have
offered online grocery pickups ad launched e-commerce marketplace. This has doubled their
online assortment and continued to concentrate on primary categories such as apparel and home.

5MARKETING ANALYSIS
Further, the overall online sales have soared 50% during the initial quarter that has exceeded the
rate of growths in the retail industry. However, it has been slower than the past quarters 60%
increment. This has added 8% basis points to various third quarters as compatible to the gain in
sales (Konur and Geunes 2018).
Figure 2: “Growth of market share at Walmart Canada”
(Source: Lawrence 2016)
1.2.2. Positioning:
The above statistics have highlighted that the amount of retail stores of Walmart in
Canada from the year of 2012 and 2018. It is seen that there are 410 retail stores till 2018. This is
same as the number of stores as the prior year.

6MARKETING ANALYSIS
Figure 3: “Current market position of Walmart Canada”
(Source: The statistics portal 2018)
1.2.3. Financials:
Walmart Canada has underscored their distinct resources, strong innovation and
execution in October 2018. This is done at the Investment Community meeting. At the same
place, Walmart was to Webcast 2018 at October 2018. On August 18, in this year Walmart
announced their completion of Walmart Investment on one of the leading marketplace
ecommerce Platform. Wal-Mart Canada has tightened their levels of inventory in common
categories of merchandizes (Myers et al. 2017). Their inventory has increased at a slower pace
than its sales. Here, the retailers have never broken out their real Canadian sales, though they
have been estimated to be more than 25 billion dollars. They entire fourth-quarter has fallen to

7MARKETING ANALYSIS
about 3.70 dollars U.S. dollars and about 4.57 billion one year earlier. This has reflected the
effect from various discounted real estate severance and projects. It has excluded items, and the
earnings at every share of about 1.30 dollars have exceeded the average estimations of 1.29
dollars of analysts (Joseph 2015). Here, the revenue has risen about 1 percent to 130.9 billion.
This is the depreciation of Mexican peso to U.S. dollar curbing growths. It has excluded the
fluctuations in currency and the sales reached about 133 billion dollars.
1.3. Identification of client problems:
The issues of the clients are identified with relevant issues around the current research.
Reduced sales Adding huge end-products at low costs, relative to others, is a smart
strategy for Walmart Canada. The activity has taken them out of
deeper discounter or cheap employee positioning with reduced price or
choosing a quality position. However, failing to maintain the idea to be
less expensive than the rest has hindered their success. Their base
customers and digital clients, who are of a different group than the ones
visiting physical stores have seen Walmart breaking faith. This is done
with their core principles of the promise of the brand. Thus they have
commenced a vital mistake (Diehl and Bishop 2017). However,
Walmart Canada should attract slightly distinct demographics,
publicized by them as they move on. As the new shopper demographic
support higher priced products, lower than the others, then the strategy
would take time. However, this is time consuming.
Poor customer
service
Walmart being the low-price leader has not always been winning on prices.
Competitors of Walmart Canada has been offering lesser process on similar
items. Hence it is hated by various customers. Further, it is also found that
customers have disliked shopping at Walmart, as they have been facing

8MARKETING ANALYSIS
trouble in seeing what they have needed. Customers have been facing
doubts to get in and out of the stores easily that they have liked to do (Pesch
and Bennett 2015). Moreover, many of them have left instead of grabbling
every item on the lists. Furthermore, Walmart Canada has also involved
long waits at checkouts and their return lines. Further, merchandize of
Walmart Canada has not always been up to that snuff.
Outdated
product
offerings
Walmart has not designed products and product lines for maximizing
benefits. Here, out of every available potential, Walmart has been unable to
decide which one to offer. Further, Walmart Canada has lacked in
developing a framework to balance costs to develop and provide an
important line of services and products against demands of customers for
extra choice (Pesch and Bennett 2015).
1.4. Issues related to current research:
The various problems of Walmart Canada are determined through the following aspects.
Spiraling
problem
For example, the sales for Levi for Walmart Canada peaked in 1996 at
an amount of 7.1 billion dollars. However, it is seen in the previous years
that the organization spiraled down in consecutive six years in a row, to
the cost of 4.1 billion dollars. Moreover, through the first six months of
the year 2003, their sales declined with another 3% (Greco, Figueira and
Ehrgott 2016). Hence, Walmart has not brought mew products needed by
consumers. Thus Walmart never has benchmarks for driving the people
down in prices.
Competition This can be explained by an example. The retailers of Canada has witnessed
stiff competition from organizations like Amazon. This has pushed a lot to
invest in terms of home delivery and online sales.

9MARKETING ANALYSIS
Loss of
customers
This can be highlighted by the case where the company has accidentally
provided their customers with 21k dollars. However, they have pleas to take
that back as not considered seriously. This type of negligence has lead
Walmart Canada to lose their customers.
A decline in
market share
due to low
sales
The marketing team of Walmart Canada has a disproportionate quantity of
advertising spend on various items with low of price point. Here, the
merchandizing team has not been prepared for a surge in demand (Burger,
Combs and Bauer 2015). This has led to stock outs and various loss of sales.
Hence, they have faced a decrease in market share.
Frustration
and morale
of employees
It is seen that within 2016 to till date, about 12% of employees are found to
leave their job due to technology frustrations. About 45% of office workers
complained that their greatest disappointment from technology at the
workplace had been too many emails and different email downtimes (Du,
Deng and Qian 2018).
Bankruptcy Walmart Canada has witnessed pretax losses of about 5.4 billion dollars on
various discounted operations during 2014. Again there has been projected
pretax losses of about 275 billion dollars over cut activities during fiscal 2015
(Santos and Laczniak 2015).
1.5. Summary:
Walmart Canada is the world’s one the popular retailers have faced various challenges.
This is happening in the present situation when low prices and different one-stop shopping are
just some clicks away from over mobile phone and tablet computers. Similar to multiple retail
chains catering to various working class people, they are victim to uneven financial recovery.
Further, the shoppers have been no longer intending to spend times in huge supercenters. Thus
they have been moving towards various online competitors such as pharmacies, dollar stores and
Amazon.com.

10MARKETING ANALYSIS
1.6. Conclusion:
The above study shows that Walmart Canada has been failing because of lack of use of
demographics to their advantage. The current issues with supply chain have denoted that the
retailers struggled to put their primary predicts on the shelves. At other cases, they have gone too
far away to “Canadianize” their merchandizes they have in their stock. Their employees have
been mismatching data systems that have led to employee frustrations like confusion and delays
as sorting products are concerned.
2. Situational analysis:
The “situational analysis” indicates method collections, used by managers for examining
various external and internal factors. Here, it is used to study the business scenario of customers
and capabilities of Walmart Canada. This is done through the following models.
2.1. PESTLE:
Political Factors:
The potential external elements in a remote or macro environment of Walmart includes
the following
 Political pressure for higher wages which is a threat.
 Political support for globalization, which is an opportunity.
 High stability of politics, which is an opportunity.
These indicate that Walmart Canada must denote the threats of greater wages. It is a threat since
it has been going against cost minimizations important for generic strategic of cost leadership of
Walmart Canada (Santos and Laczniak 2015).
Economic Factors:

11MARKETING ANALYSIS
This includes the following.
 A decline of unemployment a Canada.
 Continuous growth of developing nations’
 Stability of important economies.
All of the above factors are opportunities. These indicate that Walmart Canada must exploit
their scopes across the world. They must focus on the fast-growing economies of developing
nations (Rashid 2017).
Sociocultural or social factors:
This includes the following.
 Urban migrations
 Trends in cultural diversity
 Trends in health lifestyle
These are all opportunities for Walmart Canada. They must adjust their strategies for
exploiting the rise in consumer demands in various areas (Myers et al. 2017).
Technological Factors:
They are the following.
 Rise in mobile device usages among various consumers.
 Big data ad business analytics.
 A rise in business automation.
Again, the factors are opportunities for the company. It is seen that online marketing and
selling has risen their revenues (Wang, Fan and Wang 2018).
Environmental and ecological factors: