Marketing Plan
A marketing plan varies according to organizational strategies and techniques. However, some factors are found in all plans for marketing. They include situational analysis, marketing mix, control, evaluation, strategic planning, problems, and opportunities. Walmart is a well-known wholesale retailer that has branches all over the United States and so many other parts of the world.
Walmart is famous for offering products at low prices. This marketing strategy has been made possible through proper product evaluation and sourcing (Pride & Ferrel, 2013). The company is able to get goods at prices that allow them to sell at very low prices compared to their competitors. It is a significant part of the success achieved by Walmart. Situational analysis of a marketing plan involves product environment, marketing strategies, and product analysis. The low prices offered by Walmart are aided by proper environmental scan and efficient product analysis. Everyone wants to spend less and get additional products hence the high number of customers in Walmart (Soderquist, 2005).
Walmart makes use of promotions and advertising to achieve marketing goals. The company has a huge source of revenue, which avails the resources needed to support big campaigns. Advertising and heavy promotions paint Walmart as the destination for all products. The one place where one can shop for all types of products. Stocking different products from different manufacturers gives Walmart a competitive advantage. It also makes it easy to create convincing advertisements. Walmart also used the concepts of marketing mix its marketing plan. The company analyzes the effects of price, place, and product on overall company performance. A careful balance of these factors has made marketing effective in Walmart.
Place
The place is among the factors considered in the marketing mix. Distribution is the movement of goods from the manufacturer to the buyer. It bridges the gap between production and purchase. Efficient distribution networks spell success because there is time wastage, high revenue, and a high level of product accessibility (Soderquist, 2005). Walmart is able to provide products at low prices because its efficient supply chain model. The model focuses on minimizes the costs in the supply chain to allow consumers to enjoy products at low prices and at the right time.
The efficient supply chain model found in Walmart began when the retailer made agreements with manufacturers to reduce the number of links. Each company is responsible for managing its products at the Walmart warehouse. The company eliminated some chain links to reduce costs. Walmart also forms strategic relationships with credible suppliers. The company focuses on price and reliability. They form partnerships only with suppliers who can meet the demands set by Walmart. It has a network of global suppliers all over the world. The goods move from manufacturers to Walmart warehouse or from manufacturers to a strategic partner and the Walmart warehouse. Walmart handles supplying the products to all its branches. The big Walmart warehouses are set at strategic locations to make it easy to transport the products to Walmart branches. The organization has network suppliers all over the globe, which makes it possible for all Walmart branches to receive products at the right time. The company uses advanced technology to track product transport, delivery, forecasting, and time.
Competitive Advantage
Walmart branches tend to be found in strategic locations in most of the cities. The company tends to set up branches in busy malls or department stores. Walmart chooses strategic locations for their branches to make it easy to supply and replenish products and access a huge customer base (Pride & Ferrel, 2013). Access to the huge base of consumers and an efficient supply system is a competitive advantage since it helps Walmart to cut down operational costs.
In the United States, Walmart branches are located an average of 130 miles from the each strategy Walmart warehouse. The average distance influences location because the longer the distance; the higher the costs needed to replenish the products. Walmart has a competitive advantage because of an efficient supply chain model that ensures the company distributes and replenishes branches at a relatively cheaper cost.
Walmart tends to place their branches in busy cities, which influences the number of people who go through the stores. (Ireland, Hoskisson, & Hitt, 2008) The company has many branches in different parts of the world with different names. Most of these branches are found in the busy cities. In the United States, Walmart branches are set outside the city centers to make it easy for the consumers who might require parking space while shopping. The locations of these branches are partly responsible for the huge revenue generated by Walmart. Walmart gains a competitive advantage of attracting many customers because of its location.