Course Title: Marketing Management

Course Code: Bus 314 (Section-2)

A Journey of WALTON

Submitted by:

Rifat Rahman

Program: BBA Program

Fall 2021

University of Liberal Arts Bangladesh

Walton group is one of the largest multinational electrical, automobiles and electronic appliances
brand in Bangladesh. They started their business since 1977 after the independence of
Bangladesh. First they were in importing business, they used to import Television from abroad
and sell them in Bangladeshi market. In the year of 2008 Walton entered in manufacturing of
Refrigerator, Freezer, Air conditioner, compressor, television and home and electrical
appliances. Now they are expanding their operations in IT industry. They are the first
Bangladesh Company whose are manufacturing mobile and smart phone in Bangladesh. Walton
have become the most trusted and prestigious Brand in Bangladesh through manufacturing
quality products, competitive price, design, innovation, extensive market coverage and prompt
after sale service. Though Walton is an established company in Bangladesh they are competing
with other domestic and international company to hold their position in Bangladeshi market.

Walton is famous for manufacturing Refrigerator, Television and Air condition in Bangladesh.
Also they have hi tech electronic products in Bangladesh market which are trying to make place
in the Bangladeshi market. Walton has currently 75% market share of Refrigerator, 50% market
share of Television and 20% market share of Air Condition in the total share of Bangladeshi
market. Walton are developing their hi-tech products which they assume that will lead the
Bangladeshi market in near future. Furthermore, the company is conducting research &
development with electric vehicles, and Walton may be seen in this market in the future.

Walton produces different types of electric and electronic products. So they follow different
marketing and selling strategy for targeting customers for their different products. For example
they target older & poor people and offer them simple phones with general needs. They have
multimedia phones too for entertainment lovers. Also they target android Smartphone users and
introduced Primo series which are faster to use. Walton mainly concentrates on demographical
base. Walton’s demographic base includes age groups & income groups. Walton segments the
age group into the younger generation, adult generation and the older generation. Again they
segment the income group into the low-income group and middle-income group . Also Walton
follows low cost selling strategy for their product. In this strategy Walton manufacture products
at lowest possible price in the market. They focus on production concept, where the manufacture
their product concentrate on market demand. These types of marketing and selling strategies
Walton are following to reach their customer and retain them.

Walton marketing strategy is to target the lower income and middle income people of
Bangladesh. And they are being able to reach and retain their customer. But in the completion,
Walton’s competitors are coping their strategies and attracting Walton’s customer. And this is a
great challenge for Walton to attract new customers and retain regular customers. Its usual to
complete with competitors, but when they are coping Walton’s strategy then that is much tough
to stay in competition. In conclusion, the marketing strategy for Walton is competitively very
high because the competitors are cloning their strategy and to survive Walton are investing more
money in research and development which is increasing the price of Walton’s product.

The market of electronics for Walton is becoming more challenging to hold their marketing and
selling position. Enter of new domestic and Chinese cheap company in Bangladeshi market to
holding the position at market its much challenging for Walton. As the competitor’s are stealing
Walton’s customer and interrupting the market price. Which is now disrupting the marketing and
selling strategy of Walton as they they’re investing more than usual in Research and
Development. Those are good in some terms, but the worst part is they are stealing ideas of
innovation from Walton’s research and development.

Walton uses different mediums such as print media, pos material, TV commercial, billboards and
holdings for their advertising. Walton often use print media for advertising, for this job they have
their own department. Their job is to print poster at newspaper such as magazine’s and daily’s.
Also they use Point of Sale (Pos) materials for their advertisement, where they display posters
and stickers in the stores and in different areas. They also use TV commercials. As everybody
know that TV is a most common entertaining medium so TV commercials is one of the most
attractive way of doing advertisement. So Walton dose regular TV commercials on different
channels. Last but not the least, Walton is very much conscious about their billboards and
holdings. They have so many sites in different location for their billboards. Now a days social
media is available everywhere and Walton use this opportunity to advertise their product by
posting their commercial at social media.

Walton has direct and indirect distribution channels for selling their products. In direct selling
distribution channel they supply their product in their shop using transportation. They have their
own transportation for this service. In this distribution channel Walton has more profit margins.
One the other hand, in Indirect selling distribution channel they have whole sellers and agencies
to cover all area of Bangladesh. Because it is very difficult for them to cover all area of
Bangladesh. These whole sellers and agencies are the option Walton has to assure their
customers for the availability of their products.

To retain customer it is important to build customer relationship and Walton are very responsible
to build customer relationship. For building customer relationship Walton provides warranty for
their product, EMI, discount, calendar, occasion discount, festival offers etc. These small efforts
from Walton for their customer creates soft corner to customer heart for Walton. These makes
customer to stay loyal to Walton and Walton to retain their customer.

SWOT analysis of WALTON

Strengths
1. Walton produces more than one type of product under one roof. So
even if one brand fails in the market, Walton can back up the
losses using the other brands.

2. Walton is the largest local Brand in Bangladesh who

manufactures TV, freezer, motor-cycle etc locally. They have
outlets all over the country.

3. Walton has nationwide service network which provide services

 eight hours a day and five days in a week. Walton provides long
warranty period so if any product shows difficulty, users can take
it to nearest service shop.

4. Walton have around 600 retail store all over the country which
helps them to grow faster and reach customers more effectively.

Weakness
1. Walton has less market capital than the competitor. Because of low
market capital Walton cannot invest more money in Research &
Development facilities to introduce new products. This is a huge
weakness for a local company.

2. Even though the wage rate in Bangladesh is very low but the
export cost of the manufacturing materials is very high so the
average cost per product is more expensive than some of its
competitors.

3. Banks in Bangladesh offers load in very high interest rate so when

the company needs capital it cannot take sufficient loan because of
the interest rate.

Opportunities
1. Since Walton is currently offering only type of product and the
current market is not mature so Walton has huge opportunity for
future to Develop and improve new products.

2. The current production rate of Walton is satisfactory but not

sufficient to meet with the demands.

3. Walton has a huge opportunity to upgrade their current

system so that they can introduce high quality product to
 market. With high quality products they can enter into upper class
market segment.

4. At present Walton is only offering 11 types of electronic

products. If Walton upgrades their current facility they will have
the ability to produce more diversified products. Since the current
market is not mature so it is an easy entry market for Walton.
With diversified portfolio Walton can diversify the risk of loss.

Threats
1. At present Walton is only offering product for lower and middle
class product. The market is not mature so in near future multiple
competitors can enter into the market. This can be a huge risk for
Walton.

2. The capital of Walton is limited as it is mentioned in the contract

form. So in future if Walton wants to increase its fund it can face
shortage.

3. The current market has a lot of High end multinational competitors

like Sony, Singer, LG, Samsung etc. these high end competitors
can enter into the low end market in any time which can be a risk
for Walton. Also these high end competitors put a huge barrier to
enter into high end market.

4. The political and economical condition of Bangladesh is very

unstable. Change of a political party in every five year has a huge
influence in the market. This is a huge risk for Walton.
Walton is one of the leading companies, focusing on the area of electronics in Bangladesh. It is
dedicated to creating and delivering products of unquestionable quality that enable people to
enjoy more entertainment and comfort. In this spirit, Walton encourages its employees to ensure
quality products and service. No doubt in Bangladesh Walton is one of the top four. Walton has
also endeavored to strengthen its Sales in all over the country. They are optimistic about their
perpetual growth and success
References:

1. About Walton. Walton bd. Retrieved December 23, 2021, from

https://waltonbd.com/about
2. History and Rise of Walton: Bangladesh’s Leading Electronics and Tech Giant (2021,
August 22). Business inspection. Retrieved December 23, 2021, from
https://businessinspection.com.bd/history-and-rise-of-walton-bangladeshs-leading-
electronics-and-tech-giant/
3. Sattar, S.. Marketing strategy of Walton Bangladesh. The Strategy Watch.
https://www.thestrategywatch.com/marketing-strategy-of-walton-bangladesh/
4. Market Position of Walton A Case Study of R.B Group. MSR Blog. Retrieved December
24, 2021. From http://www.msrblog.com/business/marketing-business/market-position-
walton-case-study-r-b-group.html