Wal-Mart Stores, Inc.

Introduction

Wal-Mart Stores, Inc. is a public corporation based in the United States that operates a chain of hypermarkets, cheap department stores, and grocery stores. Sam Walton founded the corporation in 1962, and its headquarters are in Bentonville, Arkansas. Walmart has developed from a tiny cheap retailer to an international retail giant with over 11,500 shops and clubs in just over five decades. Walmart is the world's largest company by revenue, according to the Fortune Global 500. Walmart's success can be attributed in large part to the employment of a marketing mix that is centered on the nature of its retail operation (Global Responsibility Report, 2016). Its marketing mix is based on four key concepts: product, place, pricing, and promotion.

Product

Walmart operates in six strategic merchandise units namely: grocery, health and wellness, entertainment, hardlines, apparel and household items. To start with, Walmart deals in a full line of grocery products including meat, bakery, dairy, alcoholic and nonalcoholic beverages, frozen foods among other consumables. With regards to health and wellness, Walmart stores comprise of a pharmacy, optical and clinical services. The hardlines constitute stationery, sporting goods, automotive, hardware and seasonal merchandise such as Halloween costumes. Walmart also sells clothing, which includes apparel for men, women, children, infants, as well as jewelry and shoes. With regards to home products, the company sells house furnishings, home décor, bedding, appliances and outdoor living. The broad variety of Walmart's products makes it an attractive choice for shoppers around the world.

Place

Walmart provides its retail services under three main divisions namely; Walmart U.S., Walmart International, and Sam's Club. Walmart U.S. is the corporation's largest department, making up 62.3% of the total revenues for the fiscal year of 2016 (Global Responsibility Report, 2016). This segment is further divided into supercenters, hypermarkets and neighborhood markets. Walmart has also expanded internationally, by establishing stores in Canada, Africa, Asia and the UK. The Sam's club subsidiary trades in groceries, and general merchandise, often in bulk quantities. This retail format requires customers to enroll in annual membership plans. However, non-members can also purchase items by making surcharge payments. The series of locations around the world makes it easy for customers to access Walmart stores.

Pricing

Sam Walton, Walmart's founder, started the establishment with the basic principle of offering consumers the lowest product prices. This pricing philosophy is what has shaped Walmart's culture and driven the corporation's growth. According to a study, Walmart enables shoppers to save up to 15% on a typical grocery cart (Roberts & Berg, 2012). Walmart's every day low pricing strategy is made possible by two factors namely; efficiency in the supply chain management and efficacy in operations and distribution. Walmart executes the most reliable supply-chain management system, which tracks product data to and from the manufacturer, warehouse and store shelves. Also, the operation and distribution department has the company opening stores within a 200-mile proximity to existing stores. By clustering the stores in a small area, the firm makes significant savings in distribution costs, which it passes onto its customers.

Promotion

Walmart employs public relations as a promotional strategy. The corporation participates in charitable events and has branded itself as a community-based company. The Walmart Foundation Inc. was specially established to fund beneficial programs such as hunger relief, women's economic development, and disaster relief among others. Walmart also offers sales promotions facilitated through product bundling and affordable pricing (Roberts & Berg, 2012). Therefore, the promotion aspect in Walmart's marketing mix boosts the company's ability to attract shoppers to its stores.

Conclusion

Walmart's marketing mix that consists of strategic store placements, consumer-friendly prices, variety of products and sales promotions, has largely contributed to the company's growth and success. The integration of these strategies into the corporation's goals has led to a considerable increase in customer- reach and a demand for its products and services.

References

Global Responsibility Report. (2016). Walmart. Walmart Foundation.

Roberts, B., & Berg, N. (2012). Walmart: Key insights and practical lessons from the world's largest retailer. London: Kogan Page.