Submitted By;

Umar Ali M19MBA007

Submitted TO;
DR. Samar Rahi
Subject;
Brand Management
Topic:
Walmart’s Marketing Programs to Build Brand Equity
 Walmart

As a part of my MBA project under subject titled Brand Management, I have selected Walmart
as a Brand and Designed its marketing programs to build brand equity. Walmart was
Established in 1962, It started its operations more than 50 years ago. Walmart is undoubtedly
largest and biggest retail store in the world and deals in many product categories and services.
The retailer operates more than 11400 retail stores worldwide. It is present in over 56 countries
worldwide. Revenue of Walmart for fiscal year 2020 is $524 billion, Walmart employs over 2.2
million employees worldwide. Walmart is key player in retail business. Surviving in the retail
market requires more than just luck or a large capital base. It continued its policy to provide its
customer multiple goods and services at lowest price every day. They focus on making a
difference in the lives of their customers, and helping customers and communities save money
and live better. Wal-Mart started its public trade on the New York Stock Exchange in 1972,
recording sales of $78 million in its 51 stores. With the fast growth, Wal-Mart was operating in
11 states with 276 stores by the end of 70’s decade. In the 1980s, the first Sam's Club opened,
serving small businesses and individuals, and the first Wal-Mart Supercenter opened. In the
early 1990s, the company was the number-one retailer in the nation. In 1992 it enjoyed the 1
billion sales revenue in one week. Only one year after, it entered into the Mexican market, in
1995 in Canada, in 1996 in China, and by 1999 the company entered into the European Union
by entering in the United Kingdom market. Walmart now operating in Africa, Argentina,
Canada, Central America, Chile, China, India, Japan, Mexico, United Kingdom.

Product and Services Categories of Walmart

Before discussing the level of products offered by Walmart it is of most important to know
about the product and services in which Walmart operating for more than 50 years
Walmart’s primary product is its retail service, including retail service fulfilled through e-
commerce. The company also offers on-demand digital content streaming services, as well as
house brands or private-label brands, such as Great Value and Sam’s Choice. Walmart stores
sell a wide variety of products. These stores offer the products which customers wants.
Furthermore, Selling and promoting a product that people want is easier than trying to
introduce innovation in the market. They offer a wide variety of products in almost every
category. These range from groceries, hardware, furniture, appliances, health
goods, wellness, to entertainment. Walmart buy in large quantities to achieve discounts
and economies of scale. It maintains a strong relationship with its suppliers. Walmart white
labels products that are then exclusively available in Walmart stores. Hayneedle Furniture,
Moosejaw, Bonobos, ELOQUII, and Art.com are some famous brands operating by Walmart.

Five Levels of Product

Walmart product and services fulfill the requirements of five level of a product from which a
customer benefited in the following way,

Core benefit level; Walmart Products and services fulfill the basic needs and wants of human
and it also helping people to satisfy their needs and wants at low cost.

Generic Product level; Walmart providing different products under its different brands
name which are generic level products e.g. Art. Com and Hayneedle Furniture

Expected Product level; Walmart customers expected product is low cost, easy access and
quality. Walmart providing the expected product performance and benefits to its customers.

Augmented Product Level; Walmart has been Augmenting its products by utilizing new
technologies, inventory systems, just in time approaches and online dealing through different
platforms and through Walmart.Com.

Potential Product Level; Walmart is brand growing every day of year and every year, it is
providing potential products and services to its customers and introducing new products and
acquiring the brands that customers loved most and selling under Walmart’s umbrella.
Brand Equity
Being №1 in a consumer’s mind will help a business to grab a major market share and have a
sustainable business. Successful brands are easily identifiable by the customers, whenever they
think of particular product category. So, how can a business enter a consumer’s mind by being
first? The business has to create a new category that doesn’t exist in a consumer’s mind. And
when a brand creates that particular category in mind of customers it leads to building Brand
Equity in mind of the customers. Whenever the customer recall of a product that particular
brand will come to mind as first choice in mind of the customer.

Walmart’s Brand Equity

Walmart created brand equity through different activities and recognized itself as low cost and
convenient products providing brand in the world. So it has millions of customers around the
globe, these customers loyal to Walmart and frequent user of its product and services.

Sources used by Walmart to create brand equity

Walmart used multiple and all possible sources to build brand equity. Following are some
sources of brand equity for Walmart.

Walmart Brand Awareness

Walmart engaged in Communication, advertisements, sales promotions, personal selling, and
public relations to create awareness about its products and services. The company advertises
on newspapers, television, and websites. Special deals and discounts are used to attract more
consumers to Walmart stores and websites. The company applies personal selling in its stores,
where sales personnel persuade customers to try new products or package deals. In terms of
public relations, the corporation uses press releases and charity programs, among other
initiatives, to inform customers and investors about policies, programs and strategies, partly
addressing strategic concerns involved in Walmart’s corporate social responsibility and
stakeholder management approaches. Thus, the awareness component in this helps improve
the ability to attract customers and build the company’s brand. Walmart offers reliable
warranties and replacement policies for a majority of their items sold, which gives customers
peace of mind when purchasing.

Walmart Image as a Brand

Walmart has strong image and association in mind of customer as Low cost and easy accessible
products provider brand. Due to its unique distribution and useful products and services
customers are loyal to its image and name and buy frequently from its stores due to which
Walmart has highest sales turnover every year. Walmart Created strong brand image in a way
that customers never ever has doubt over its products because these products are easily
exchangeable and can be replaced and take back by the Brand. So overall Walmart has strong
brand association because of quality, convenience and low cost.

Customers Based Brand Equity of Walmart

Walmart created the CBBE by providing the full awareness about the brand. Customers know
about the Walmart, its low cost products, has positive image about the brand and has strong
association to the brand. It leads to creating the overall positive brand value of Walmart in
mind of customers.

Depth of Brand Awareness

Walmart customers easily understand and recall the product and services category which
shows the great impact of brand awareness and salience on customer’s mind.

Breadth of Brand Awareness

Walmart customers purchase and consumes the product and services of brand which shows the
breadth of brand awareness among customer’s mind and Walmart is the most trustworthy
brand for its customers. Frequent purchase and consumption took place due to great
understanding of depth of brand awareness.

Walmart Brand Positioning

For fifteen years (Before Wal-Mart), Sam had been running a chain of independent variety
stores in smaller towns. Those stores gave the revenues of $1.4 million by 1960. Things
appeared fine. But Sam felt otherwise. He and his team had been working very hard but the
business itself appeared to be of limited growth. He could not push the sales beyond a limit. He
felt that he had to find an idea with a better payoff for all their efforts. Sam visited nearby
towns, did detailed research and found out that the future appeared to be headed towards
‘discounting stores’. He saw that some larger stores were doing revenues of more than $2
million from each store while his fifteen stores together generated only $1.4 million. Sam, then
visited more discounting stores all around the country and studied the concept in-depth. It was
clear for him that discounting would go and dominate the market. “Buy it low, stack it
high, sell it cheap” was the guiding principle of discounting. Sam had only two choices —
Stay in the variety store business which would be going to be hit hard by the discounting wave
of future or open a discount store. He wisely chose the second option. The policy of discounting
stores went successful and the brand enjoyed immense growth in several years and becomes
the high revenue generating brand. Walmart positioned its product and services as Everyday
low cost in mind of the customers.
Maintaining Brand Positioning
Walmart as a Brand designed several policies and systems to maintain its unique brand
positioning in mind of the customer as Low Cost Every day provider brand. It uses the
technology, designed inventory management systems, order placing and use of bar codes in
order to keep the prices low and compete in the market against competitor. It maintained its
positioning in the market in the following way.

Target Market
Walmart Targeted the price conscious and low cost product and services seeker audience.
Before positioning your business, there is need to freeze the target customer segment, Focus
on a particular need, work on it, make product/service distinctive(Positioning) and dominate
the market. Sam observed every competitor in the discounting business. Kmart and other
bigger retailers were not going to towns below 50,000 populations. Other medium-size brands
like Gibson did not go to towns below 12,000 populations. Nobody was ready to provide
products at discounted prices to the people living in small towns. But people in smaller towns
were well aware of the ‘discounting stores’ as they had friends and relatives in the cities and
some of them had even visited those stores. The awareness was there. Thus, Sam Walton
decided to open Walmart stores in small towns having a population of around 5000.

Walmart Competitors and Nature of Competition

Direct Competition
Walmart has direct competition in the large scale discount stores industry with Target,
Kmart and Costco, Walgreens Boots Alliance, Home Depot, Wholesale as its
closest competitors in the United States.

Indirect Competition/Multiple frame of references

Indirect Competitors of Walmart are Toy ‘’R’’ Us, mom and pop shops, grocery stores
and sta0nd stores etc. Walmart has also positioned itself among other grocery chains such
as Kroger, Publix, Safeway, Albertsons, Publix, Winn- Dixie and many other regional chains and
independents.

Point of Parity
Walmart has point of parity Selling goods at low price.

Ponit of Difference
Walmart has point of difference like Quality products, Inventory management, Customized
advertisements and distribution network.
Brand Elements of Walmart
The main brand elements are URL’s, Logos, symbols, characters, slogans, jingles, packages and
signage. Walmart poses the all brand elements in term of modern brand elements.

Brand Name
Brand Name is Walmart. It is internationally and locally pronounced and used in trading,
buying and in departmental trading.

Brand product and services

These range from groceries, hardware, furniture, appliances, health goods, wellness, to
entertainment.

Brand as Symbol
Spark picture with full glowing with yellow colors.

Brand Slogans
Save money live better
Saving people money, so they can live better

URL’S
WWW. Walmart.com and Art. Com etc.

Brand Criteria
Walmart fulfill the brand criteria as it consists of the element that build a brand. It is easily
recognized by the customers and it fulfill the six brand criteria. It is easy to memorize and
pronounce. Spark gave the feeling of bright growth and quality products of brand. Walmart has
its slogans encouraging customers to purchase products e.g. Save money live better. Its name is
internationally recognized and accepted whenever think of low cost products and services.

Naming Guidelines
Walmart fulfill the naming criteria as it is easily understandable, meaningful, transferability
means internationally used, and adaptable. Walmart name bring sense of ease and thousands
of products at one place and at low cost.

Brand association
Walmart has strong brand association as it has millions of customers all over the world. Loyalty
of customers results in frequent purchase and consumption of product and services.
Packing
Walmart packing strategy identify the brand and conveys the descriptive and persuasive
meaning and also assist in brand recognition. It uses bubble wrap, packing tap, stretch wrap,
furniture moving and wardrobe boxes. It uses its name and logo while packing the parcels.
Walmart also provide customized packing for special occasions and orders.

Integrating Marketing Program for Walmart

The strategies and tactics behind marketing programs have changed dramatically in recent
years as firms have dealt enormous shifts in their external marketing environment. If Walmart
hire us as to create marketing plan for them by using all their available elements of brand and
resources, we would design such programs on updated policies and techniques in accordance
with changed Marketing environments.

Objective of Marketing Plan

While designing marketing program for Walmart our focus is to utilize all resources in efficient
and effective way. Concentrate on key elements, Use of updated technologies, Approaching
total quality management approach and using customized policies in such a way that it
enhances overall brand value of Walmart. Our Focus would on followings while designing the
marketing strategies for Walmart,

Analyze the market situation

It is of most importance to understand the nature of the market in which band operating. We
as marketer would understand the retail industry environment and the nature of competition in
discounted products retail industry, it is helpful in understanding which policy and marketing
approach will helpful in the designing of a market plan.

Target Audience
Information about the targeted group and segment play vital role in the designing of marketing
plan to build brand equity. In case of Walmart target audience is price conscious and low cost
product seekers.

Market Approach
Market approach used by us would be One to one marketing and Permission marketing to keep
the customers aware of the Walmart product and services. Market penetration and the
Psychographic and demographic segmentation should use to target the customers and provide
product and services. Buy in bulk, stack it and sell at low price should be continued strategies
for attaining the sustainability in the market. Offering the prospect an incentive to volunteer.
Customizing the product and services according to the changed taste of customers.
Product Strategy
Walmart stores sell a wide variety of products. They should bring to the market what customers
want. Selling and promoting a product that people want is easier than trying to introduce
innovation in the market. They keep offering a wide variety of products in almost every
category. These range from groceries, hardware, furniture, appliances, health goods, wellness,
to entertainment. Buy in large quantities to achieve discounts and economies of scale. Maintain
a strong relationship with their suppliers. Walmart white labels products should be available in
Walmart stores. Walmart’s primary product is its retail service, including retail service fulfilled
through e-commerce. The company keep offering on-demand digital content streaming
services, as well as house brands or private-label brands, such as Great Value and Sam’s Choice.
Sales personnel should be trained to assist shoppers in finding the goods they need at the
company’s stores. Walmart’s corporate culture will play a critical role in supporting the
strategic management of the business, Because, Shoppers expect easy one-stop shopping at
the company’s stores and e-commerce websites.

Prices and Pricing Strategies

Walmart uses an Everyday Low Price (EDLP) pricing strategy as a factor in the company’s
revenue model. The objective of this pricing strategy is to attract large numbers of customers to
achieve high sales volume and, consequently, a profitable business. The company should keep
following that strategy and implement it in the company. High sales volume ensures
profitability despite thin profit margins and low selling prices linked to Walmart’s cost
leadership generic strategy for competitive advantage. The pricing component is a contributor
to the company’s competitiveness in the retail industry. In addition, Walmart uses market-
oriented pricing as a strategy for many of its products, such as house-branded goods, as well as
media content available from the movie-streaming subsidiary, Vudu.

Design and Delivery of product

Walmart uses the intensive distribution strategy or intensive distribution channel design for this
marketing element. In the strategy, the company’s stores and e-commerce websites generally
offer the same variety of goods and services, and all stores have similar functions in their
operations. This element of Walmart’s marketing helps attracts customers by making shopping
convenient in terms of strategic physical locations of stores and the high accessibility of online
services. The combination of online and non-online distribution channels for retail and other
services maximizes the company’s reach in its target markets around the world. In a way, this
element of the marketing relates to Walmart’s corporate structure based on how the
organizational design involves divisions for e-commerce and non-online operations.
Distribution Center
Walmart's 150+ distribution centers are hubs of activity for our business. Our distribution
operation is one of the largest in the world servicing stores, clubs and direct delivery to
customers. Walmart transportation has a fleet of 6,100 tractors, 61,000 trailers and more than
7,800 drivers. The distribution center network ships general merchandise, dry groceries,
perishable groceries, along with other specialty categories to our consumers daily. There are 6
disaster distribution centers, strategically located across the country and stocked to provide
rapid response to struggling communities in the event of a natural disaster. Each distribution
center is more than 1 million square feet in size and employs 600+ personnel unloading and
shipping over 200 trailers daily. Every distribution center supports 90 to 100 stores in a 150+
mile radius.

Channel Strategy
Walmart uses the direct distribution strategy which is effective and should be continued
because when the brand buys directly from the manufacturer it reduces the third party
commission and help in keep the cost minimize. It is effective as it helps in sustainability and
the growth volume of the business.

Online Channels
Walmart should keep on competing online stores so that other competitors may not take away
business of the brand, If Walmart not compete online Amazon .com and Ebay.com may took
over the potential segment of customers looking for cheap product online.

Communicate the Value

Walmart should keep on communicating the value they offered to customers e.g. Low cost and
save money slogans should be highlighted in advertisement and in marketing campaigns so that
customers can realize the value delivered to them.

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