Assignment No 2

Walmart & its Marketing Campaigns

 Table of Contents
EXECUTIVE SUMMARY........................................................................................................1

1. INTRODUCTION..............................................................................................................1

2. QUESTIONS......................................................................................................................2

2.1. WALMART’S MARKETING CAMPAIGN & TAGLINE.......................................2

2.2. PROTECTION FROM RISE OF ECONOMY...........................................................2

2.3. FOLLOWING OF WALMART’S STRATEGY BY OTHER SUPERMARKETS...4

2.4. WALMART’S ONLINE STRATEGY SUSTAINABILITY.....................................4

3. CONCLUSION...................................................................................................................5

3.1. RECOMMENDATIONS............................................................................................5

REFERENCES...........................................................................................................................6
 EXECUTIVE SUMMARY
Going for making a right decision is an art within the quickly changing business markets
being a holistic strategy where marketers usually make decisions regarding bringing changes
within their products or services using the marketing information that is provided to them
while considering the political, economic, social, or technical conditions. Understanding the
markets and then making decisions can help the companies in bringing great outcomes in
terms of profits and loyal customers. One of biggest retailer is Walmart which is working
since 1961 there to meet needs of customers while using number of marketing strategies and
techniques in order to meet the customer needs and be successful in the business. Company
faced great downfall as of 2000 but then after adopting different marketing strategy it was
able to get a good position in market. Walmart went for introducing a save money and live
better tag line based strategy where it focused on providing good quality of products while
doing price cutting to great extent in order to attract huge number of customers during the
recession process which went successful and company was able to gain profit due to sales in
masses. However company needs to introduce certain ideas in its stores around the world in
order to be successful in times when economy is good.

1. INTRODUCTION
Walmart introduced new marketing strategy as of 2007 with a tag line of Save Money Live
Better which was focused on ensuring a better growth of the company. This campaign was
based on bringing changes within the prices of goods and services by reducing them to great
extent in order to enhance the saving of customers and thus encouraging them to repurchase
from Walmart as Walmart is paying not just attention towards profits but keeping its attention
towards society and people as well. The expense structure was made in such a way they every
family was able to save around 3100 dollars a year which was quite reasonable when it comes
to shopping. Along with that Walmart focused on decreasing the energy costs which
eventually helped in retirement savings and healthcare coverage. Along with that Walmart
went for TV commercials which eventually decreased the energy costs of company. Likewise
the cost of electronic goods price eventually decreased during the holidays. Moreover
Walmart went for introducing great marketing strategies which helped them in gaining great
extent of consumer market. Walmart proved its customers that it can flourish its activities as
the economic conditions are not much favorable while bringing decreases in prices of
products eventually increases the overall selling of goods and services.

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 2. QUESTIONS
2.1. WALMART’S MARKETING CAMPAIGN & TAGLINE
The new marketing campaign of Walmart and its tagline became operational as of 2007 so to
ensure the company to grow properly. Within the new marketing campaign the focus of
Walmart is on reducing the expenses of their consumers while enhancing their savings. This
is a strategy which is adopted by Walmart which is expected to bring increase within sales of
Walmart along with bringing a great increase in market share which can be only possible if
the strategy is implemented as per the requirements in a proper way. In order to implement
the strategy properly and bring positive outcomes Walmart went for using television
commercials which helps in doing marketing of brand at a mass level. Within TV
commercials Walmart promoted itself as a single company which is there to help families in
properly managing their budgets. Along with that within current strategy Walmart revealed
several positive influences on society including the retirement, family savings, and healthcare
coverage. Likewise the new marketing campaign of Walmart focused on getting attention of
customers which are more focused on environment friendly businesses just as Walmart
focuses on conserving environment through recycling of materials, going for more and
greener products, and bringing decrease in energy consumption process. This helps Walmart
in developing a positive image within market and customers as being a socially and
environmentally responsible business. The social responsibility of Walmart also came
through a project of Walmart named as Project Impact which focused on improving the
overall shopping experience of Walmart (Brea-Solis et al., 2015).

Walmart went for launching a new campaign during the recession time while having great
price cut on all of its popular products especially giving great discounts on holidays. Due to
decrease in prices of products there were great changes in product mix as focused shifted
45% towards consumables whereas the competitors maintained the product mix of 20%
consumable and 40% of home products. All of the great discounts were provided along with
new market mix strategies which helped Walmart to great extent. The new tagline and
marketing campaign helped Walmart in gaining consumer attention to great extent as number
of customer purchasing Walmart products increased to great extent (Steen, 2016).

2.2. PROTECTION FROM RISE OF ECONOMY

As per the current case study one thing is quite clear that when the economy is in recession
Walmart focuses on refusing odds in order to increase their sales and perform better within

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the market. As during difficult times customers went to Walmart as it was providing
affordable prices with good quality of products where low prices make customers believe that
they can actually purchase more for paying less at Walmart rather than going towards other
stores pay more for buying less (Bailey et al., 2018). But the similar cannot be situation
especially when the economy starts getting well and purchasing power of people eventually
increases as there is need of changes in strategies in order to attract customers as they can
easily pay to other stores and buy goods they want. The buying power and liquid cash among
the customers increases and they go for purchasing whatever they want from any store of
their choice rather than going just to Walmart because of less prices. Due to such reasons the
competitors of Walmart are quite good when it comes to performing in market and have great
market share and profitability thus threatening Walmart (Walmart 2015). Hence it is highly
required for Walmart to protect itself in such a difficult situation which can be only possible
by following methods:

i. Walmart should go for strengthening its loyalty program in order to make sure
than when a customer once purchases products he gets such a good experience
that comes back again for purchasing.
ii. It should focus on widening its product portfolio by adding as much as possible
products in order to not leave any place for customer to go to alternative stores.
When a store is having everything a customer needs he/she will never switch
towards others.
iii. Finally Walmart should go for using aggressive diversification which includes
going for adding number of amenities to a single store as just bank, fast food, and
health clinic etc. which can help the customers to have great comfort while
visiting the place. Likewise by adding such things when customers will stand by
such places they will visit Walmart as well.
iv. Walmart can go for using marketing information system so as to go for using all
the information being held within the company including the customers,
employees, equipment, products, and services, in order to collect accurate
information which can eventually lead to helping the company in making
appropriate decisions on right time. This can help them in doing well when it
comes to increase in economy.
v. By analyzing the macro-environment can be very useful for Walmart as it will
help in analyze the changes within major factors including the demographic

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 factors, environmental factors, economic factors, and social or cultural factors
competitive advantage help in making better marketing decisions which
eventually leads to increase in customers during the economic peak times.

2.3. FOLLOWING OF WALMART’S STRATEGY BY OTHER

SUPERMARKETS
Walmart is one of highly successful business within the market as it is having great supply
chain and low cost pricing strategy which are two main useful strategies of Walmart. The
other supermarket will find it quite difficult in imitating the strategies of Walmart and get
success at the same time as the supply chain success of Walmart is based on its strong
bargaining power with suppliers which is not so easy for all the companies. When other
retailers are having same ability to bargain they can achieve success but such ability is not so
easy to be adopted by companies as no matter how much they are good at but cannot meet the
level of Walmart (Anyon, 2014). Likewise Walmart is using low pricing model strategy
which is based on economies of scale which company has achieved after great number of
effort done on overall working of Walmart which cannot be easily achieved by every single
company as not all companies are having ability to meet economies of scale and be efficient.
There are relatively very low profits on certain number of products of Walmart but the
overall profitability of Walmart is relatively high as the sales volume of Walmart is very
high. There are around 11000 stores of Walmart all along in world due to which the company
is able to generate profit to great extent.

2.4. WALMART’S ONLINE STRATEGY SUSTAINABILITY

Walmart’s strategies are highly sustainable when it comes to long term as Walmart is having
control over the supply chain to great extent and is having a smooth flow of overall products
from all of its suppliers. Along with that Walmart is having an ability of own production
facilities which helps it in reducing the prices of goods and services to great extent due to
which Walmart is able to sell its products to customers at relatively lower prices (Yee &
Yazdanifard, 2015). Through current online strategy Walmart has been able to attract great
customer base who are great loyal to it and support the business while ensuring that the
business is overall successful in the long run. The best practice which has been introduced
within Walmart is being embedded in organizational culture which ensures that Walmart
should serve its customers bring a point of reference while running the overall business. As
the current world has been totally digitalized the customers are more focused on purchasing

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everything from their home and the online strategy of Walmart will be highly attracted by
customers and there will be great increases in sales of Walmart.

3. CONCLUSION
Walmart went for introducing marketing strategy as of 2007 with a tag line of save money
live better which was developed in order to make sure that there is better growth within sales
of Walmart. This campaign was adopted within the recession period as when people were
suffering to great extent due to worst economic conditions and were not in a position to
afford living easily even. In such situation Walmart focused on making such plans for their
customers that they become able to save enough of money while purchasing their households
in reasonable prices. Walmart created awareness among their customers using TV
commercials as majority of people were looking at the economic conditions and political
conditions on televisions and TV commercial can better help in creating awareness among
them. Due to the new launched campaign majority of people went for purchasing their
households from Walmart at nearly affordable prices thus having an ability to save around
3100 dollars a year which eventually made shopping highly reasonable to great extent. Likely
the TV commercials eventually reduced energy costs of Walmart as well which helps in
increasing the retirement savings along with health coverage. The company reduced overall
prices of electronics and toys during holidays and made great changes within the outlets
which eventually attracted the customers to great extent and eventually the overall prices of
goods eventually increased to great extent. Walmart went for price cutting and made it
possible to increase its productivity only because it was able to reach the economies of scale,
had great bargaining power with suppliers, and eventually was having self-manufacturing
option which eventually made price cutting quite possible. Such strategies are highly
sustainable and can be used by other companies as well but reaching that point is not an easy
task for everyone.

3.1. RECOMMENDATIONS
Walmart was able to do price cutting within the difficult times of people i.e. recession and
made it possible for customers to purchase goods at affordable prices which eventually
attracted great number of customers to great extent but this strategy was effective to great
extent in worst times and still company needs to put more effort in order to maintain their
sales during good times as well. Walmart should focus on providing and ensuring that
customers are being provided great customer service in order to make them loyal customers,

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and should not leave any gap within the store and add all the things a customer would love to
purchase so that they don’t have to leave the store and move towards others for purchasing.
Walmart should adopt aggressive diversification of adding amenities as it will attract
customers to great extent by creating a need and increasing their sales. Walmart can also go
for using systems to gather right information regarding their employees, customers, products,
and other concerned things in order to bring improvement within products and services
quality as well as quantity so as to satisfy them and make them loyal to Walmart.

REFERENCES
Brea‐Solís, H., Casadesus‐Masanell, R., & Grifell‐Tatjé, E. (2015). Business Model
Evaluation: Quantifying W almart's Sources of Advantage. Strategic Entrepreneurship
Journal, 9(1), 12-33.

Walmart (2015). Walmart strategy drives growth and sustainable returns, Plans $20 billion
share repurchase program over two years. Retrieved 3 July 2021 from:
https://news.walmart.com/news-archive/2015/10/14/walmart-strategy-drives-growthand-
sustainable-returns-plans-20-billion-share-repurchase-program-over-two-years

Steen, J. C. (2016). How customer shopping motivation influences perceived design of the
retail environment. Atlantic Marketing Journal, 5(2), 8.

Anyon, J. (2014). Radical possibilities: Public policy, urban education, and a new social
movement. Routledge.

Bailey, C., Mankin, D., Kelliher, C., & Garavan, T. (2018). Strategic human resource
management. Oxford University Press.

Yee, F. M., & Yazdanifard, R. (2015). How Consumer Behavior is affected by Sight and
Hearing in Terms of Promotion? Global Journal of Management and Business Research.