Introduction
The strategic marketing plan is an essential element that must be researched to fully represent and address all the imperative details of the company’s marketing plan. Walmart is a global supermarket chain that sells various products in different areas. Analyzing various segments that may differ significantly in customer focus is essential in this regard. Thus, a study of strengths and weaknesses, as well as a study of the environment, is necessary to create a comprehensive marketing plan.
Company Description
Walmart aims to improve their daily well-being by providing the best services and products. Thus, the mission is formed in such a way as to provide people with the most favorable prices that can provide them with a prosperous life by saving financial resources (Walmart International, 2023). Walmart’s vision statement is to become a leader in consumer services. The company aims to provide consumers with the best retail experience (Walmart International, 2023). This creates a positive work atmosphere that could help customers feel comfortable and encourage more purchases.
Walmart’s product line is diverse as the chain sells many products across all industries. The product line consists primarily of full-service grocery products. Products include vegetables, fruits, meats, dairy products, and packaged foods. In addition, all types of goods have online ordering options that can be delivered directly to customers at a speed that depends on where the customers live.
In addition, Walmart provides a wide selection of general merchandise, including clothing, electronics, household goods, toys, and sports equipment (Walmart International, 2023). The company also pays great attention to the well-being and health of customers, in a way, of the wide product range. In addition, technology products, clothing, and e-commerce also account for a large share of the company’s products.
Walmart is a retail company that distributes its products throughout the United States. The company’s headquarters is located in Bentonville, Arkansas, USA, and was founded by Sam Walton in 1962 (Catană et al., 2020). Walmart is on the list of the largest companies in the United States. This includes calculations of employees, revenue, market capitalization, and number of employees. Walmart operates many retail stores in countries such as the United States, Canada, Mexico, the United Kingdom, and China.
Environmental Analysis
Competitive Forces
Walmart’s competitive forces are pretty strong despite the presence of large competitors in the market that pose a threat to sales. One of the main competitors is Amazon, which provides e-commerce services. Online trading is one of the most competitive areas for a company primarily engaged in retail trading. Recently, Amazon has undertaken a strategy to expand products through online trading. Another competitor is Costco, whose main similarity with Walmart is the warehouse club model, which provides settlement of goods (Lim et al., 2021). At the same time, the companies’ product catalogs are also similar, which leads to direct competition. Costco has also taken strategic steps to strengthen its value proposition to customers. Target is another company that provides similar retail services. A similar assortment poses a threat to increased competition in the trade sector. Target has invested many resources into growing its e-commerce presence.
Walmart’s market share is significant as the company is defined as one of the largest retail resellers. The market share varies depending on the type of product the company sells. The company’s key competitive advantages are the scale and efficiency of its supply chains and product diversity (Kabir et al., 2023). This gives the organization sufficient sales efficiency, which is ensured by quickly responding to critical events. At the same time, the assortment provides sufficient customer support that distinguishes the organization from other companies in the field of commerce.
Economic Forces
The economic situation may differ in different regions, causing different impacts on consumer spending. This category includes inflation, supplier economics, and global trends that may impact how Walmart handles products in different markets. These variables can significantly impact the trading conditions the organization needs to adapt in a timely manner (Kabir et al., 2023). Considering the industry’s differences and suppliers’ influence, we can say that each factor can create a particular imbalance, disrupting competition and tilting it in favor of one of the companies.
Political Forces
One of the most influential political forces in the region is trade policy, which determines rates and tariffs that affect the cost and availability of importing and transporting goods. Strengthening environmental legislation has also impacted various areas, such as supply chains, which has led to better control of this area (Winata & Ellitan, 2023). In this regard, the company became more actively involved in initiatives related to strengthening sustainable development. Political influence can also be seen in labor legislation, which is constantly adjusted to provide workers with the most favorable conditions.
Legal, Regulatory, and Ethical Issues
Various legal, regulatory, and ethical standards may affect Walmart’s business. First, this concerns environmental rules that determine certain behaviors regarding waste disposal and energy consumption. The ban on the use of plastic bags, for example, influenced how the company implemented appropriate substitutes to maintain convenience for customers (Kabir et al., 2023). From the ethical side, it was essential to search for reliable suppliers who would meet all the organization’s requirements. Ethical considerations also require compliance with privacy laws and regulations that are significant in the digital age.
Technological Forces
New technologies and trends in hardware software could significantly impact Walmart’s operations. A company’s achievements in e-commerce may influence the organization to implement specific solutions based on artificial intelligence (Winata & Ellitan, 2023). This will enable faster order processing and improve the efficiency of data analytics, which will positively impact the automation and optimization of operations. In addition, technological innovation will increase the organization’s capabilities, significantly contributing to sales effectiveness.
Social Forces
Social trends can affect Walmart in such a way that demographic trends shape the demand for different products. An increasing share of the younger generation may shift turnover in the other direction, which will cause additional difficulties for the organization. In addition, growing trends toward digitalization can affect marketing strategies and determine the number of purchases (Winata & Ellitan, 2023). In this way, adaptation can have a beneficial impact that will reinforce the social values promoted in the organization.
Current Target Markets
One of the company’s current target markets is determined by demographics since Walmart serves many families, including people of different age ranges. A demographic feature of the market can also be called buyers who save money. This is consistent with the company’s desire to provide products at the lowest possible prices (Volpe & Boland, 2022). From a geographic perspective, target markets can be divided into urban, suburban, and rural areas.
The company has special rules adapted to each of the company’s specific customer requirements. Psychographic target markets are divided into types of buyers, such as those who value convenience, quality, and price of products. Walmart has a sufficient assortment that can fully cover all the needs of citizens (Volpe & Boland, 2022). Product Usage-Based target markets are also fully covered by the organization since the variability of goods varies from grocery to general consumer and specific.
Review of Current Marketing
The company’s current marketing tactics allow people to learn about and become familiar with its value proposition. Customers receive information about products and services from traditional advertising offers (Volpe & Boland, 2022). Walmart has an extensive network of advertising channels such as television, radio, and outdoor billboards. Online presence and e-commerce initiatives may be involved in the purchasing process. This way, the company can fully compete with other companies and offer customers quality alternatives (Volpe & Boland, 2022).
For Walmart marketing, funds are available and divided into several categories, such as total budget and seasonal fluctuations. The company spends significant resources drawing up a general plan and implementing it to disseminate helpful information. Seasonal fluctuations may introduce adjustments that require adaptation to different events, such as holidays and public events.
SWOT Analysis
Its global presence and diversified product range are the company’s greatest strengths. This provides Walmart with a solid competitive advantage over other organizations. Presence and diversity are the core competencies and assets enabling Walmart to meet customer needs effectively (Alsharari, 2021). The company’s weaknesses include intense competition in e-commerce and complex employee relations. This can be addressed by strengthening communication with employees and building corporate ethics. Based on environmental trends, the company’s opportunities include the growth of e-commerce and the healthcare market.
Walmart’s threats include changes in legislation and consumer trends. However, weaknesses and threats can be converted into strengths. Thus, strengthening the field of e-commerce can be an advantage if the company contributes properly to this area of activity. Employee relations can also strengthen if the organization establishes adequate ethical standards (Alsharari, 2021).
These newfound strengths can become opportunities for the organization to improve productivity by opening up Walmart to regulate its internal operations more effectively. To resolve supplier problems, the consequences can be reflected in more profitable deals (Alsharari, 2021). Introducing new technologies will allow Walmart to process orders fully and quickly and participate in e-commerce. Changing the product line can also attract younger generations by increasing interest.
Marketing Objectives
Walmart must expand its marketing efforts to grow e-commerce and achieve a 15% market share in the US. This must be achieved by developing a new company website and implementing special functions to attract customers (Volpe & Boland, 2022). Such work will require investment and would have to begin in January 2024, following a preparation period from November to December 2023. It is expected that the implementation of efforts to increase its presence in the online market will lead to an increase in Walmart’s share to 14-18% by the end of the 2024 reporting year.
Conclusion
Walmart’s marketing plan is developed based on a detailed study of the company’s strengths and weaknesses. These must be taken into account when planning the direction of strategic development. Moreover, an important aspect is the comprehensive perception of external factors and consideration of them to establish quality indicators that can be achieved. Increasing e-commerce development is a priority for Walmart.
References
Alsharari, N. M. (2021). Management accounting practices and e-business model in the US Walmart corporation. In Accounting and Finance Innovations. Web.
Catană, Ș., Grădinaru, C., & Toma, S. G. (2020). Sam Walton, a visionary entrepreneur. Network Intelligence Studies, 16, 113-117. Web.
Kabir, M. H., Sobur, A., & Amin, M. R. (2023). Walmart data analysis using machine learning. International Journal of Computer Research and Technology (IJCRT), 11(7), f894-f898. Web.
Lim, S. F. W., Rabinovich, E., Park, S., & Hwang, M. (2021). Shopping activity at warehouse club stores and its competitive and network density implications. Production and Operations Management, 30(1), 28-46. Web.
Volpe, R., & Boland, M. A. (2022). The economic impacts of Walmart supercenters. Annual Review of Resource Economics, 14, 43-62. Web.
Walmart International. (2023). Purpose. Corporate Walmart. Web.
Winata, M., & Ellitan, L. (2023). The effectiveness of technology development towards Walmart’s sustainability supply chain management. J-CEKI: JurnalCendekia Ilmiah, 2(2), 224-248. Web.