The recommendation is primarily focused on 4P marketing mix evaluation and assessment of the Canadian market for Walmart Plus as a direct Amazon Prime competitor. Although the program possesses a wide range of critical strength points, it is also important to pinpoint the presence of the major threats. The first suggestion is based on the product itself, which needs to include key grocery options and primarily prioritize food. According to the recent statistical data, the online food delivery market in Canada is worth approximately C$3,240 million, and it is expected to grow in the coming years (“Online food delivery,” 2020). In addition, a significant portion of the customer base is shifting from restaurant delivery to platform delivery, which also includes ones such as Walmart Plus. There is also an opportunity to deliver fresh food and pre-packaged meals, which can easily and effectively implement within Walmart’s infrastructure. The company already possesses key ingredients for the realization of the given aspect of the business, where the only essential element is logistics.
In the case of prices and pricing strategies, the most relevant and plausible recommendation is centered around focusing on the low-income segment of the population. The approach is possible due to the lower membership cost of Walmart Plus, where the difference between it and Amazon is equal to $21. In other words, the pricing advantage can lead to the expansion of the customer pool, where new entrants are the ones who could not afford Amazon’s services due to higher membership fees. The competitiveness is especially prevalent in the grocery segment of the service because Walmart has a strong and well-established network of suppliers and vendors.
The place is another important component of the 4P marketing mix concept. The main recommendation is to utilize the already existing infrastructure across the country. The given approach will inevitably lead to an improved service due to consistent and quick delivery. The general setup for logistics is present in an incomplete form, where the company needs relatively small modifications in order to develop a highly competitive grocery delivery system. Therefore, Walmart should greatly use its wide encompassment in terms of geography and locational accessibility. In addition, the programs should ensure that the overall speed of delivery is quickest in the market, where it can offer the same day or 2-hour shipping options. In other words, the latter aspect can be achieved through effective logistical integrations.
The last and one of the most essential aspects of the marketing mix is promotion. Walmart Plus program should primarily rely on its key strength of possessing a large existing client base. A large segment of the population is well-aware of Walmart as one of the leading brands for cheaper shopping. Therefore, the promotion needs to be highly specific and centered around Walmart Plus. Promoting Walmart as an entire company is pointless and ineffective due to its prevalent presence on the market. The marketing teams need to utilize the well-established reputation of Walmart in order to advance the purchasing options of grocery delivery through the program. The emphasis needs to be put on the low prices and timing, which are critical in regards to food products due to the freshness factor. In addition, the given strategy can reverse the threat of coronavirus pandemic into an advantage, where people are more reluctant to proceed with offline shopping.
Reference
Online food delivery. (2020).