Who Knew Walmart Was Crushing It Online?

Hola 🖐

Ever wondered how Walmart manages to stay on top of the retail world?

Spoiler alert: it's not just about those low prices 🤔 Or at least did you ever think of Walmart as a social media and e-commerce guru?

Yeah, me neither. But guess what? I was scrolling through Instagram the other day (don't judge!) and BAM – there's Walmart, killing it with trendy content and deals.

Seriously, it got me thinking...

They are clearly doing something right, and with the whole fight for online shoppers, I figured there might be some juicy marketing secrets we could catch for ourselves.

Come on, coffee's on me 😉 (or maybe a quick Walmart run).

Understanding the Market

Sam Walton founded Walmart in 1962, which has grown into the world's largest retailer by revenue today, known for its "Everyday Low Prices" strategy.

With over 10,500 stores in 24 countries and an e-commerce presence, Walmart has had to adapt its marketing strategy to stay ahead of the curve and address a diverse customer base. Here's how Walmart uses various marketing channels to retain its dominance:

Target Market

Walmart's target market is broad, including various demographics:

• Age: All age groups, with a significant focus on families.

• Location: Both urban and rural areas, with a strong presence in suburban regions.

• Income level: Primarily middle to low-income consumers looking for affordable products.

• Shopping behavior: Value-conscious consumers who prioritize cost savings and convenience.

Competitors

Walmart faces competition from various retailers and e-commerce giants:

• Amazon: Dominates online retail with a vast product selection and fast delivery.

• Kroger: Competes in the grocery sector with a strong presence in the U.S. market.

• Costco: Attracts price-sensitive customers with bulk purchasing and membership perks.

• Target: Competes with Walmart on price and product variety, with a focus on a more curated shopping experience.

Pain Points Addressed

Walmart has successfully addressed several customer pain points:

• Affordability: By leveraging its large-scale operations, Walmart offers products at lower prices than many competitors.

• Convenience: With numerous locations and a vast online platform, Walmart provides easy access to several products.

• Product variety: Walmart's vast inventory includes everything from groceries to electronics, meeting diverse customer needs.

Unique Selling Proposition (USP)

Walmart's USP lies in its ability to offer many products at consistently low prices, with a vast physical presence and a growing online platform. This makes Walmart a one-stop shop for people prioritizing affordability and convenience.

Marketing Strategies

Rather than focusing on one specific aspect at a time, Walmart follows mixed marketing strategies. Although each focuses on achieving specific tasks, they all combine to reach the ultimate goal at the end of the day - retaining customers with the best customer experience.

Omni-Channel Retailing

Walmart has adopted an omnichannel retailing strategy, integrating its physical stores with its online presence to provide a unique shopping experience.

1. Buy Online, Pickup In-Store (BOPIS)

• Customers can order products online and pick them up at a nearby Walmart store, combining the convenience of online shopping with the immediacy of in-store pickup.

• Statistics: As of 2023, 25% of Walmart’s online orders are picked up in-store, showing the success of this initiative.

2. Walmart+ Membership

• Launched in 2020, Walmart+ offers benefits such as free shipping, fuel discounts, and scan-and-go options for a membership fee, improving customer loyalty and convenience.

• Statistics: By the end of 2023, Walmart+ had over 32 million subscribers, contributing significantly to revenue growth.

E-commerce Expansion

Walmart has expanded its e-commerce capabilities to compete with online giants like Amazon.

1. Acquisitions and partnerships

• Walmart acquired Jet.com in 2016 and has partnered with Shopify to expand its online marketplace.

• Statistics: Walmart’s e-commerce sales grew by 79% in 2020, driven by these strategic moves.

2. Innovative technologies

• Walmart has invested in augmented reality (AR) for virtual try-ons and AI technologies for personalized shopping experiences.

• Example: The Walmart app’s AR feature allows customers to see how furniture will look in their homes before purchasing.

Sustainability Initiatives

Walmart is committed to sustainability, aiming to reduce its environmental impact through various initiatives.

1. Project Gigaton

• Launched in 2017, this project aims to reduce one gigaton of greenhouse gases from Walmart’s supply chain by 2030.

• Statistics: As of 2023, Walmart has already reduced over 500 million metric tons of emissions, progressing towards its goal.

2. Renewable energy

• Walmart is investing in renewable energy sources, targeting to power 50% of its operations with renewable energy by 2025.

• Example: Walmart installed solar panels on the roofs of over 400 of its stores so far, generating clean energy and reducing costs.

Current Developments

The marketing strategies Walmart follows are impressive by the numbers it has managed to bring in, but what is Walmart currently focusing on?

Health and Wellness

Walmart is expanding its footprint in the health and wellness sector to address growing consumer demand.

1. Walmart health centers

• Walmart Health centers offer affordable healthcare services, including primary care, dental, and mental health services.

• Statistics: By the end of 2023, Walmart had opened over 50 health centers, with plans to expand further.

2. Prescription services

• Walmart’s $4 prescription program provides access to affordable medications, making healthcare more accessible to its customers.

• Statistics: This program has saved customers over $10 billion since its beginning.

Technology and Innovation

Walmart is leveraging technology to enhance the customer experience and streamline operations.

1. Automation in fulfillment centers

• Walmart uses robotics and automation in its fulfillment centers to improve efficiency and speed up order processing.

• Example: The usage of Alphabot, an automated system, has increased the speed and accuracy of order fulfillment.

2. Blockchain for supply chain

• Walmart is utilizing blockchain technology to improve supply chain transparency and traceability, particularly in its food supply chain.

• Example: Walmart’s blockchain system can trace the origin of a food item in seconds, improving safety and quality control.

Conclusion

Walmart’s marketing strategies and continuous innovations have solidified its position as a retail leader. By focusing on affordability, convenience, and sustainability, Walmart effectively addresses consumer needs and stays ahead of the competition.