Marketing Strategy Report: Wal-Mart's E-marketing Analysis

This report provides a comprehensive analysis of Wal-Mart's e-marketing strategy. It begins with an executive summary outlining the report's purpose, which is to suggest an effective e-marketing strategy for Wal-Mart to improve its online presence and compete with rivals like Amazon. The report includes a market overview, comparing Wal-Mart's performance to Amazon's, and highlights the challenges Wal-Mart faces in the e-commerce sector. A strategic analysis, including Porter's Five Forces, evaluates the competitive landscape. The report then generates SMART objectives to increase online sales, focusing on specific, measurable, achievable, realistic, and timely goals. It also covers strategies for evaluating and implementing the objectives, including performance metrics like ROI and customer satisfaction. Finally, it details the importance of tracking, analyzing, and optimizing the e-marketing efforts using big data and social media. The report concludes with a call to action to improve the company's performance.

Running head: MARKETING STRATEGY
Wal-Mart’s E-marketing strategy
Name of the Student:
Name of the University:
Author note:

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Executive summary
The purpose of this report is to suggest a marketing strategy of Wal-Mart. Therefore, the
company will get a proper outcome of their emarketing strategy. Wal-Mart has different products
like electronics, movies, clothing, health and beauty products supply, craft supplies and grocery.
Performance objectives of the company are also outlined. The main competitor of the company
is Amazon, the giant retailer in the international context. The main criteria of the emarketing are
also to strategically analyze the performance and Wal-Mart position in the industry. The search
engine optimized website is also necessary to gain the advantage. Therefore, the objectives are
also analyzed in the process. The evaluation and monitoring process is also analysed in the text.

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Table of Contents
 Market overview in my perspectives........................................................................................4
 Performing strategic analysis...................................................................................................6
 Generating SMART objectives................................................................................................7
 Evaluating the strategies.........................................................................................................10
 Implementing the objectives..................................................................................................11
 Tracking, Analyzing and optimizing the objectives...............................................................12
References......................................................................................................................................14

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 Market overview in my perspectives
The marketing plan by electronics medium is known as the emarketing plan of the
company. Wal-Mart is a giant retailer in America. Therefore, the company has more experience
in the brick and mortar sale rather than the presence in the social media or in online marketing.
Wal-Mart has different products like electronics, movies, clothing, health and beauty products
supply, craft supplies and grocery. Wal-Mart also has gone international and expanded their
company in Argentina, Brazil, Canada and UK as well as Africa. Therefore, the marketing
strategy of the company should be dynamic with the trend of the company. The detailed
implementation plan is also outlined in the text. Though the company is in Ecommerce sector
only 2.8% sale is from online until 2017. This is a shocking aspect of this giant retailer, as this
does not apply to their advantage (Kalyanam & McIntyre, 2012). The fourth quarter’s result is
very poor for the company in 2015 though they came from the very experienced background.
The ecommerce giant Amazon has captured 43% of the US ecommerce sales in the US. The
online retail purchase of Amazon is also improving in the recent years. The comparison between
the two is given in the chart (Digital Commerce 360, 2018).

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Figure: Revenue in billions of Amazon and Wal-Mart
Sources:(Digital Commerce 360, 2018).
2013 2014 2015
Amazon 67 billion 79 billion 92 billion
Wal-mart 10 billion 12.2 billion 13.7 billion
Source : (Digital Commerce 360, 2018)
Figure: Revenue from the internet marketing
Wal-mart is still facing challeges regarding the online purchase of their products. Though
there have been some improvement in the sales in Wal-mart has seen 18 billion revenue from its
online purchase in 2016 (Digital Commerce 360, 2018).

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Figure : Wal-Mart’s online sales
Sources: (www.walmart.com, 2018)
 Performing strategic analysis
Strategic analysis of the Wal-Mart’s performances is also a point is known to contribute to the
Porter’s five forces analysis of Wal-Mart
1. Threat of rivals - this threat is greatly high for Wal-Mart. There are many established
retailers in the US as well as in the international context. Target, Costco wholesale,
Burlington stores and others. These companies are very important part of US. Moreover,
the retail industry is one of the most evolving sector in the market, which possess more
threats to the Wal-Mart (Smith & Chaffey, 2012).
2. Threat of the bargaining power of customers – the threat of bargaining power of
customers is related to the purchasing power of the customers. If the other competitors
have cost advantage in the market, they will have lesser advantage. The bargaining power
of customers is less in US as they have cost leadership in the market.
3. Threat bargaining of suppliers – Wal-Mart has more challenges with the suppliers. The
company has formed long-term relationship with it suppliers over the years (Smith &

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Chaffey, 2012). As the company is very important part of the economy, they have more
supremacy over their suppliers' relationships and negotiate well with them.
4. Threat of substitutes – the threat of substitutes of the company is average for Wal-mart.
However, the company has more importance rather than their competitions. The
competitive prices Wal-Mart offers are essential as this contributes to their overall
marketing strategies.
5. Threat of new entrants – this threat is less as the company is known less. The retail sector
is a capital-intensive structure. Therefore, to put the establishments or the brick and
mortar stores of the company are avoided (Smith & Chaffey, 2012). The in the
ecommerce sectors are growing with more specialized and exclusive approach to sales
strategies that are very important part to be considered for Wal-Mart.
6. The social media and mobile marketing opportunities are high for Wal-Mart. The
ecommerce of the company presents immense opportunities. The presence of the
company in the ecommerce sector is also very important part to be considered while
setting the objectives.
 Generating SMART objectives
The main objective of Wal-Mart is to increase its online presence in the industry. The
search engine optimized website is also necessary to gain the advantage. Therefore, the
smart objectives are given below.
1. Specific objectives – the specific objectives of the company is to change the
current strategy and align the main goal with the specified goals. Therefore,
considering this goal is essential for Wal-Mart. Increasing the
 Net sales

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 Operating incomes
 earnings per share
are the main objectives of this company. The other objectives related to online sales are
also part of the set objectives. As an insight received from the overview the company is
failing to push online sales. Therefore, it can be said that the company must consider
 development expansion Incentives (DEI)
 investment in the online optimization of the search categories as well as local
SEO (Search Engines Optimization)
 investments allowance (Smith & Chaffey, 2012)
 Increasing qualified leads generation
 Managing online reputation and identity
 Building a brand value and identity
 Activity Based Costing
2. Measurable - the measurable objectives helps in identifying the proper collection of
metrics that alleviates the development of the company. The company objectives
must be measurable in indicating the goals of the organization. As the specific
objectives are identified in the last discussion, the metrics that will help in measuring
the outcome to the inputs are
 Payback period for the development of the investments strategies
 Profitability with respect to investments allowance in the ecommerce’s sale e
 Revenue
 Costs per lead
 Lead conversion ratio

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 Visits on the 12 different online pages of the company
 Online customers value proposition
 Content strategy
3. Achievable – the achievability of the company must be regarded. As from the
market overview, it can be seen with compared to the market leaders that the
company lags from the sales by 70 %. Therefore, a strong internet-marketing plan
is needed for Wal-Mart. However, it should be a long-term plan. The internet
marketing is considered more reasonable rather than the direct marketing plans.
The estimated targets should be set near 15% increase in market share and 20%
increase in sales over two years of the implementation plan. The budget should
also be considered in the matter. Improving the supplier’s relationship and market
connections should also be decided in this matter.
4. Realistic - the budget plan is essential for the company. The store must undertake
strategies that align its objectives to the strategic changes in internet and social
media marketing planning. The plan would include the reduction in cost structure
and cost control strategies. The main criteria for the activity based costing for lean
management process to increase the value addition for internet marketing are
 Identifying the activities
 Identify firm specific non value added activities
 Understanding the linkages between the root causes
 Triggers for ads and activity linkages
 Establishing the related performance measures
 Reporting the Non value added activities

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This is one of the most important parts of realistic approach. In the apparel department
Activity Based Costing and lean management, system is necessary for the company. To increase
the operational effectiveness and operating incomes, it can be suggested to be adopted. The
pricing strategy of the company is of great advantage for them as they are the cost leader in the
industry.
5. Timely - the overall marketing budget is dependent upon the majority of
marketing activities. The major retail ecommerce brand spends 2 – 15 % of the
revenue in the online marketing activities. Therefore, the Wal-Mart must consider
more than 6% of their revenue in the online budget. SEO and Pay per click
advertisements should be considered in the process. More than 81% of the online
budget must be allocated in the process. The period of online marketing is less
than that of direct marketing. A 100 million turnover of a company contributes of
39% of their turnover in SEO online marketing. The timely customer acquisition
cost by channel, by time based cohorts, conversion rate by channel and cohort.
The churn rate by the acquisition channel and time based cohorts in churn rate
should also be given emphasis making strategic decision (Olyazaeva, 2015). The
Customer Life Time value should also be checked to get the change in the profit
of the budget. The metrics that should be timely checked to get the objectives is
brand equity, price and promo, word of mouth, social media marketing through
(Twitter, Pinterest, FaceBook, emails, You Tube), online display ads as well as
offline marketing.

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 Evaluating the strategies
The performance metrics are one of the most important indicators of the
company. The main criteria for setting standard performing criteria are to gauge the
outcome of the company. For evaluating the strategies, the following performance
objectives have been identified.
 The ROI – the return on the investments is a major concern of the business
expense. The overall expense in direct marketing and online campaign are also
important indicators that should be analyzed in the company (Kukreja, 2016).
 Sales Numbers – As the objective is to maximize the wealth, they must consider
the current marketing plan.
 The customer response – the customer satisfaction scores is the essential criteria
for the company. To create a proper customer value proposition that supports the
customers Lifetime Value is main criteria for the company (Nur’ainy et al., 2016).
 Cost – These standards of the products should be evaluated to get the operating
income controlled in Wal-Mart.
 Implementing the objectives
Implementing the marketing objectives is an essential step in building an efficient
marketing plan. Therefore, the following steps are very important part to be considered in
setting the objectives.
o Setting the right expectations – this concept is relative to the expectations of the
company. As for the last 4 years the company is busy in developing the content of
the website, they needs momentum to catch the volume of sales that Amazon
does. The expectations should be realistic (Strauss, 2016). Setting a higher

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expectations are not fruitful if not feasible. Therefore, a realistic approach is
necessary.
o Communication plan – the marketing team must communicate the plan to every
personnel in the company. In addition, the communication plan of the
organization should be overviewed. To make this plan effective the entire
organization must feel the dire need of communication.
o Building the timeline of the task is also essential for the company. The marketing
strategy must be outlined in detailed. To deliver each project in time this should
be manageable by the team (Tan, Y & Neo 2016).
o The performance measurement outlined above should be given emphasis while
considering the implementation plan. The ROI, profitability, payback period,
sales number, customer’s response and other cost control strategy should be given
emphasis in this matter (Strauss, 2016).
o Response time is necessary for the company to monitor and evaluate.
 Tracking, Analyzing and optimizing the objectives
As using, the social media is very important for an ecommerce and it is reasonable
process to track and control the internet marketing process. Big data is used in the
company to mine the data collected from the website (D’Arcy & Marketing, 2012).
Amazon also has a separate division to track and analyze the data got from the customers
(Krishnamurthy, 2016).
Five-factor model of Seth Godin’s is also a part of strategy that analyses the data.
The five essential factor models are data, stories, connection, interaction and products or

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services. These elements must be considered in the company’s social media marketing
plan (Strauss, 2016). The five essential factors must be incorporated in the company’s
strategy. Connection and interaction between the strategies and enlightening the
customers about the services and the products (Krishnamurthy, 2016). However, Wal-
Mart is in the industry for a long time, they have more experience and large data base
information about their customers.
 Understanding the data gathered from the customers
 Using big data technologies to consolidate the data and predictive analytics
modeling to get the meaningful outcome of the context
 Brands needs to track the media performance, Wal-Mart can also divide and track
the ROI and use the critical digital media contents (Kukreja, 2016).
 The in-house and sister brands of the companies should be strategically used to
achieve the proper portfolio of the sub brands. Like Wal-Mart as a super market
can house the brands of the company (D’Arcy & Marketing, 2012). Multiplying
the connections in an incremental media support process can be used in
optimizing the presence of the website.

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