Advertising and Marketing Strategies of Walmart: A Case Study

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Advertising and Marketing
Communication Plan Model 2
Course Name – Advertising
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One of the biggest American based multinational retail departmental and grocery stores
operating in more than 27 countries and having approximately around 11300 stores. Walmart
is known for generating the highest revenue in the world and hold the honour of the largest
employer in the private sector. One of the reasons for such huge success can be credited to
the advertising and marketing communication plan implemented by the company. Hence the
report discusses the advertising and marketing plan of the company in the below report.
Marketing Background
External Influences
• Economic Trends – Due to the fewer tax bills and more employment opportunities in the
US has helped Walmart to increase its trend in the economy (Domm, 2018) sector. One of the
strategies used are keeping the lower prices for the item and great selection of merchandise
has drawn the attention of the customer.
• Social and Demographic Trends – Walmart is ahead of its competitor has (Francese, 2019)
carefully analysis the population factor of each country. Its analysis of the birth rates, the
economic condition of the country and the people trend of buying the product.
• Technology Trends – Walmart has adopted various innovative technology like Walmart Pay
an online payment app, Scan and go application for customers to check the items by own and
SmartLife to help customers during in-store shopping. Walmart has taken us of digital and
online platform and constantly trying hands to improve the customer experience.
Figure 1: Smart Life

(Source : Francese, 2019)
Figure 2: Scan & Go
(Source : Francese, 2019)
• Regulatory Trends – to manage the changes happening the Walmart has used the five major
approach of porters to increase the effectiveness of the production. Wal – Martto one of the
branches of Walmart follows the procedure for treating (O’Connell, 2019). everyone equally.
Age and gender are never considered as the criteria for hiring people.
Market Analysis
• Market Size and Growth – Walmart has grown to be the largest retailer in the world
expanding its business in more than 27 Countries. The (O’Connell, 2019). total net sale as of
2019 is estimated to be around 514.4 billion USD increasing 2.9 % from previous years.
Walmart has a total of 11300 stores globally.

Figure 3: Sales trend
(Source : O’Connell, 2019)
Figure 4: Stores of Walmart
(Source: MacroTrends. 2018)

• Market Segments (Product Classifications) – Walmart is famous for its retailing in
department and grocery store. The product and services offered by the (Washington, 2017)
Walmart are electronics, jewellery, music and movies, retails good, photo as well as financial
services like Walmart – 2- Walmart, Walmart pay, Walmart money card.
• Seasonal Analysis – Walmart operates in the globe as three main segments: Walmart U.S,
Sam’s Club the U.S and Walmart international. Various (Kapler, 2010) factors affect the
sales of the Walmart as in 2019 Walmart has reduced its fiscal from % 4.90 to $ 4.65.
Figure 5: Seasonal Analysis of Walmart
(Source: Kapler, 2010)

Competitor Analysis
• Market Share Trends – Walmart has three main sectors of business and the market share of
Walmart is very high. In the food sector, it shares about more (CSIMarket. 2018). than 99 %
of market share and similarly, in electronics and other items, it is shown in the figure below.
Figure 6: Market share in the food sector
(Source: CSIMarket. 2018)
Figure 7: Market share in all products
(Source: CSIMarket. 2018)
Figure 8: Market share in electronics and all product
(Source : CSIMarket. 2018)
• Marketing / Marketing Communications Strategy Assessment – Walmart has focused its
marketing communication strategy by following the approach of Marketing Mix analysis and
focused its target on the price. Walmart has tried to keep the (Nonetheless, 2018) prices as
low as possible for people to have a better life.

Target Market Analysis
• Consumer Data – Walmart customer are generally people of middle income and aim to
deliver the daily product to everyday people. Walmart helps people to save their money due
to its cut down process of the product.
• Consumer Behaviour (Loyalty) – With the wide range of product and services offered by
the Walmart the consumer prefer to go to Walmart. Moreover, it also offers discounts, better
shopping area and customizes services for all of its consumption.
Product (Brand) Analysis
• Sales Volume Trends – Walmart sales from 2006 to 2019 are shown in the figure and it is
observed that it has increased per year with a total of 514 million (MacroTrends. 2018) USD
this year in 2019.
Figure 9: Sales
(Source: MacroTrends. 2018)
• Market Share Trends – The chart shows the Walmart market share from 2006 to 2019. It is
observed that is consist of a total of $ 320.36 Billion in the market share. Walmart is the

public traded company and hence its market value is shown in the figure and is the leading
grocery retailer in the world.
Figure 10: Market Share
(Source : Dudovskiy, 2016).
• Marketing / Marketing Communications Assessment – One of the initial steps taken by
Walmart is the Marketing Communication mix and Focuses on four P’s that are the product,
price, product and promotion. Walmart has focused its aim more (Ferguson, 2019) on the
price sector.
• Image and Reputation – Walmart reputation can be seen in terms of its employee and the
total customer it has. Walmart has more than 243,837 employees (McMillon, 2017) it has
happy customers from all over the world.

Marketing Communications Plan
Target Market Profile
• Demographic - Walmart has generally focused its strategy for middle- and lower-class
people who are dependent on the paychecks. Walmart has a wide range of product from new-
born to the old age group. They have a product for all the (Dudovskiy, 2016). category of the
age.
• Psychographic – Main focus or target customers of the Walmart are lower-class people,
working-class and the middle-class people. These are (Dudovskiy, 2016). the people who are
struggling. They proposed a plan so that these class people can save money.
• Geographic Positioning Strategy – Walmart has focused its target on both regional as well
as keeping the density. They have expanded their business in all over the globe operating
domestically as well as internationally. Walmart (Dudovskiy, J. (2016). has its store in both
urban as well as rural areas.
• Positioning Strategy Statement – Walmart positioning Strategy states that It is the retailer
shop which provides everyday product under one roof at the lowest reasonable prices with the
high quality of the product. Its aims at offering excellence operational and managing
inventory.
• Positioning Grid (optional) Budget – Walmart has helped customer to be smart and invest in
the new technology to enhance the experience of the customer. It has followed Servant
Leader so that it remains committed to the motto of saving money to help them live better
and experience more.
• Budget Available for Plan - To implement this plan the budget decided is $ 100 million.
Advertising Objectives
• Awareness – Walmart is based on the theme “Everyday Low Price” so that it can provide
everyday products at a lower price and help its customer to save the money and experience
the better quality of life and enhance their experience.
• Preference – Walmart has focused its target for the middle-class people who are working.
They have provided a wide range of products for all the age group of people irrespective of
nation, country, age, colour.

• Trial – Various new strategies were implemented by Walmart like Smart Life, which is the
online tablet available in the Walmart store for the guidance through the store and aid with
the store item and product.
• Image – The changes made by the Walmart like in positioning the strategy and can help
customers with new services like pick up and provide superior and more customized services
to its customer.
• Buzz – There is high competition faced between the Walmart and the Amazon and hence
various new strategies and new stores were opened.
• New Targets – India is the new target for expanding its business. Recently Walmart has
collaborated with of the India’s online platform Flipkart to (Ferguson, 2019) grow and
expand its business.
Creative Plan
• Creative Objectives (list format) or Key Benefit Statement with Support Claims Statement
– Walmart has its own set of policies and procedures to remain committed to providing a safe
and affordable product to the customer.
• Creative Strategy (tone, style, theme, appeal techniques) – the logical infrastructure, one-
stop shopping and highly management inventory has helped to promote their product.
• Creative Execution - Walmart has opened new stores in various new cities across the globe
and the stores were present in good condition. To communicate with its customer, various
applications were made to take feedback and suggestions from consumers.
Media Plan
• Media Objectives – the main objective of the media is to attract more customers and expand
business all over the globe.
• Media Strategy – As the technology is increasing day by day and the online platform is
growing at the greater phase, Walmart has introduced its (MacroTrends, 2018) online
services so that customer can buy their product online. It also created a website and many
applications which can be easily used by the customer.
• Media Execution – To achieve the goal and expand the business, it has created a website so
that customer can order item sitting at home. It also used the digital marketing technology

and various online and social media platform has enhanced and promoted the product of
Walmart.

References
Domm, P. (2018). Walmart’s best sales in a decade show US consumer is alive and well
because of the tax cut, jobs growth. Retrieved July 27, 2019, from CNBC website:
Francese, P. (2019). How Walmart stays ahead by following demographics | SmartBrief.
Retrieved July 27, 2019, from SmartBrief website:
https://www.smartbrief.com/s/2019/05/how-walmart-stays-ahead-following-demographics
How Walmart Is Harnessing Technology to Create the Next-Gen Superstore. (2019).
Retrieved July 27, 2019, from Future Stores website:
https://futurestoreseast.wbresearch.com/walmart-harnessing-technology-to-create-next-gen-
superstore-ty-u
O’Connell, L. (2019). Walmart - Statistics & Facts | Statista. Retrieved July 27, 2019,
from Statista website: https://www.statista.com/topics/1451/walmart/
O’Connell, L. (2019). • Walmart’s revenue 2006-2019 | Statista. Retrieved July 27, 2019,
from Statista website: https://www.statista.com/statistics/183399/walmarts-net-sales-
worldwide-since-2006/
Washington, T. (2017). What Kind of Service Does Wal-Mart Provide? | Bizfluent. Retrieved
July 27, 2019, from bizfluent website: https://bizfluent.com/info-8296998-kind-service-
walmart-provide.html
Kapler, M. (2010). Wal-Mart analysis with Seasonality Analysis tool. Retrieved July 27,
2019, from Yolasite website: http://kapler.yolasite.com/wmt_case_study.php
Walmart Competition Market share by Company’s Segment - CSIMarket. (2018). Retrieved
July 27, 2019, from CSI Market website:
https://csimarket.com/stocks/competitionSEG2.php?&code=WMT
Nonetheless. - Case study: Wal-Mart and its communications strategy. (2018). Retrieved July
27, 2019, from Nonetheless website: https://nonetheless.weebly.com/case-study-wal-mart-
and-its-communications-strategy
Walmart Market Cap 2006-2019 | WMT | MacroTrends. (2018). Retrieved July 27, 2019,
from Macro trends website:
https://www.macrotrends.net/stocks/charts/WMT/walmart/market-cap
Ferguson, E. (2019). Walmart Inc.’s Marketing Mix (4Ps) Analysis &
Recommendations - Panmore Institute. Retrieved July 27, 2019, from Panmore website:
http://panmore.com/walmart-marketing-mix-4ps-analysis-recommendations
McMillon, D. (2017). Walmart Reputation | Comparably. Retrieved July 27, 2019, from
Comparably website: https://www.comparably.com/companies/walmart/reputation
Dudovskiy, J. (2016). Walmart Segmentation, Targeting and Positioning - Research-
Methodology. Retrieved July 27, 2019, from Research Methodology website:
https://research-methodology.net/walmart-segmentation-targeting-and-positioning/