In: Economics
How has Wal-Mart's marketing techniques have evolved over the past thirty years?
Walmart was founded in 1962 by Moore Walton and James Lawrence Walton, and is the world's largest retailer in terms of revenue and number of employees. In 2016, Walmart generated revenues of $482 billion. It serves more than 26 billion customers per week across its 11000-store channel in 28 countries.
Segmentation approach helps to consider the various consumer sub-segments and their changing needs. Walmart uses methods for the psychographic and demographic segmentation. It understands the consumer's psychology, and recognizes that at the lowest possible prices the customer needs daily goods. Thus, Walmart introduced the EDLP strategy – low prices every day.
The giant is using undifferentiated targeting strategy to capture the market globally. For Walmart, everybody is a prospect so it doesn't use differentiation to a big advantage. The quality of goods is Walmart 's biggest differentiator. Low-pricing approach for the whole market may be used.
Positioning strategy plays an significant part in the performance of the product. Walmart has described itself as a corporation selling lowest price items. In its business model it uses the Cost advantage to be sustainable. Walmart has killed many smaller stores over the decades of its operations due to its low price positioning.
Lowest price USP: Walmart was known for its unique selling proposal of offering goods at "Every day low prices" and offering the same prices throughout the chains. Items are priced competitively and Walmart actively bargains with the suppliers to pass on the savings to end consumers. "Black Friday" is one of Walmart 's famous events offering products at down-to - earth prices. This is one of the company's most popular strategies which retail giants around the world are copying.
Operations: Managing such a huge retail chain isn't easy and can't be done without management of operations. As such, Walmart pays particular attention to the way it operates so that the consumer gets his products very quickly and the shelves are always filled in. Every year, Walmart serves millions of consumers, and has a large supply chain and logistics department to handle the same.
The Walmart clients are both retail and wholesale clients. Retail buyers are primarily working class people of all age groups, people who are actively searching for value for money and everyday goods at a low price. Walmart customers are middle- and upper-income category who want best offers & discounts to purchase the basics.