Walmart one of the biggest chains of retail store was founded by Sam Walton in 1962. He adopted the strategy of selling same products with lesser value than its competitors and that became a trigger to its sale and expansion. Walmart became one stop destination for every need of individuals offering food, clothes, photo lab, optical center, hair salon etc. It became the most earning revenue company by 1991 with the earning of $32 billion from stores spread over 33 states. Its expansion boomed with first international store in Mexico and then over 5600 international location by 1991. Walmart worked on three basic believes first is respect of every individual, second best services and products to its customer and third Excellence: constantly thinking of ways to supply a better service and product.
Early marketing campaign was based on word of mouth, good PR image amongst its customer and massive store expansion. In 1992, Walmart introduced its well known tagline “Always low prices, always” which became popular as a company’s brand image resonate with millions. In the year 1996 Walmart started its price rollback campaign with familiar yellow smiley face as the star of campaign. Walmart hit many hurdles on its way to 21st century. It was criticized for taking away business of small stores, lawsuits were filled against Walmart failing to take care of its employees and exploiting them and lost 70% of its employees. From 2000 to 2005 its stock price reduced to 27% and remainedlow till 2007. With lots of negative impression and increase in competition Walmart lost its exclusive rights of yellow smiley face in its advertising campaign.
Walmart released a series of new creations to improve image and sales. Walmart’s new tagline “Save Money. Live Better” is indeed a great and perfect step for repositioning their brand picture and improve market shares. Walmart concentrated on regaining trust of their employees, customer, shareholders. They launched a generic drug of $4 which was successful. In new construction Walmart implemented environmental friendly by using recycle materials, reduced transportation costs, spread awareness and encouraged customer to use green products. Television commercials showed Walmart’s great steps towards environment, 401(k) employees health care coverage and retirement savings. Its next move towards adopting new product mix and low prices leads companies sales to rise during the time of recession.
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Walmart’s most recent strategic marketing plan has its own pros and cons.
- PROS: The economy of the company got wings and started going up with its new strategies. Walmart offers variety of different products at one destination which in result saves time of customer hopping different shops, it offers low prices than local retailer which saves you more money, Walmart is a huge employer and has diverse business models.
- CONS: Smaller stores can get negative response from its customer as people are more likely to see Walmart as giant stores. Competitors can hit Walmart by providing good quality of product with fair prices. Walmart needs to strategize its market mix and use it for better outcomes.
