Walmart Global Marketing Strategy
Walmart Global Marketing Strategy
Walmart Global Marketing Strategy
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Table of Contents
1. Introduction............................................................................................................... 1
2. Walmart’s International outlook image and profile....................................................1
3. Marketing Environment of Walmart in the UK and Canada......................................3
3.1.1 Macroenvironment of Walmart in the United Kingdom........................................3
3.1.2 Macroenvironment of Walmart in Canada...........................................................5
3.2.1 Microenvironment of Walmart in the United Kingdom.........................................6
3.2.1 Microenvironment of Walmart in Canada............................................................8
4. Marketing Entry Strategy.......................................................................................... 9
4.2 Entry Strategy in the UK.......................................................................................10
4.2 Entry Strategy in Canada..................................................................................... 10
5. Segmentation, Targeting, and Positioning..............................................................11
5.1 Segmentation of Walmart in the UK and Canada.................................................11
5.2 Targeting of Walmart in the UK and Canada........................................................11
5.3 Positioning of Walmart in the UK and Canada.....................................................12
6. Marketing Mix Decisions for the UK and Canada...................................................13
6.1 Marketing Mix Decisions of Walmart in the UK.....................................................13
6.1.1 Product...........................................................................................................13
6.1.2 Price...............................................................................................................14
6.1.3 Place.............................................................................................................. 15
6.1.4 promotion.......................................................................................................16
6.2 Marketing Mix Decisions of Walmart in Canada...................................................17
6.2.1 Product...........................................................................................................17
6.2.2 Price...............................................................................................................18
6.2.3 Place.............................................................................................................. 19
6.2.4 promotion.......................................................................................................20
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1. Introduction
In today’s fast-paced globalised economy, it has become crucial for franchises like
Walmart to expand their vision with an effective marketing strategy to the targeted
customers globally. According to Kozlenkova et al. (2021), global marketing refers to the
strategies and procedures used to promote goods and services in various foreign
nations worldwide. As a result, global marketing strategies have been immensely vital to
address within the organisational context. This paper will critically examine Walmart’s
global marketing initiatives in Canada and the United Kingdom, two nations with diverse
retail industries. With the aid of situational analysis tools like the PESTLE and Porter’s 5
examined in the two countries used as a case study. Furthermore, the market entry
strategy based on segmentation strategies used by Walmart in the UK and Canada will
franchising, and export/import. This paper will examine and analyse a quick overview of
regarding the United Kingdom and Canada market environments. In addition, a general
illustration of the vital marketing mix for Walmart’s products and offerings will be
Operating in 24 countries with 10,623 discount shops, superstores, retail locations and
warehouse membership clubs, Walmart has developed into the biggest supermarket
chain and one of the most recognisable and profitable brands worldwide (Statista,
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2023a; Walmart, 2023). The retail chain has an advantage over its rivals thanks to its
low prices and large product assortment. Walmart had net sales of about 568 billion
dollars in the United States worldwide in 2022 (Statista, 2023b). Sam’s Club, Walmart
International, and Walmart US make up the bulk of Walmart, and the latter division is
where a large percentage of the company’s sales are recorded. Sam’s Club, which has
operations both domestically and internationally and competes with Costco in the US,
exclusively operates in the US, and the global segment is represented in 24 countries
worldwide. Even though the company shut down operations in the UK and Japan in the
first quarter of 2022, these numbers increased by 2.3 percent from the previous fiscal
year, reflecting the company’s recent rapid growth (Statista, 2022a). Figure 1 illustrates
the worldwide net sales of the company from 2006 to 2023. The company’s financial
stability and competitive strategy are responsible for the brand’s ongoing success
(Singh, 2022). The brand’s distribution network effectively handles inventory and
storage issues thanks to current technologies. Many household items are among the
many products that Walmart stores offer. Among the other industries are those for
recreation. Walmart is the primary retailer of food, accessories, clothing, and other
goods for millions of customers worldwide. In 2022, Walmart had about 230 million visits
from customers weekly, and its warehouse business, Sam’s Club, made 2.2 billion
dollars in revenue from membership fees (Statista, 2023c). In 2022, a Statista study
found that 96 percent of customers were acquainted with the Walmart trademark, and
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Walmart has an effective online store that sees a spike in traffic right before the holiday
shopping season. Its internet sales have increased dramatically over the past few years,
with an estimated 73 million dollars in revenue in 2022 (Statista, 2022b). Walmart’s core
competencies are founded on its business tenets, which include a greater focus on the
Figure 1. Walmart’s global net sales from 2006 to 2023 (Source: Statista)
With the PESTLE analysis, which will be covered in-depth below, the macro
understood.
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Factors Overview Impact on Organisation
Economy The projected economic output for 2022 and 2023 is Moderate
forecast to increase by 3.9 percent and 1.8 percent,
respectively, indicating that the UK economy is
expanding (Statista, 2023e).
The rate of unemployment is 4.1% (Statista, 2023g)
Corporate tax rate of 19% (PWC, 2023a)
Lowered consumer spending
4
Storage and preservation of foodstuffs consumables
Environmental The significant amount of waste grocery shops produce Very High
is a significant environmental problem, especially
concerning packaging and food waste.
Environmental, water, and air safety
With the PESTLE analysis, which will be covered in-depth below, the macroenvironment
Political Has a superior relationship with the rest of the world (Shin High
and Jin, 2022).
Stable Government
One of the safest countries to do business.
Walmart’s operations in Canada haven’t ever been stopped
since the government has always ensured they are
secure (Prakash et al., 2022).
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on economic matters.
High rate of GDP
Environment Environmentally fragile country due to high annual tourists Very High
visit.
One of the countries with the largest landscapes attracting
many tourists.
Competitor Analysis: The estimated valuation of retail chains in the UK for 2021 was
£211.9 billion. From the five primary retail stores, supermarkets saw the largest
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valuation percentage with £91 billion. The top five retailers in the food industry are
Consumer Analysis: The UK food and grocery retail market is being impacted by
disruption, holiday savings and their ripple effects, and the expansion of rapid delivery
channels. Customers sensitive to price increases typically make fewer purchases or pay
less. This will benefit private-label product offerings, and retailers focusing on innovative
products and range improvement will surpass brand rivals in market share.
Table 1: Market share of Walmart’s direct competitors in the UK (Source: Statista, 2023)
£)
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Figure 2: Most popular supermarket chains in the UK in 2022 (Source: Statista)
Competitor Analysis: The Canadian retail sector is expanding, with a more than
$117.3 billion market value in 2022 (IBISWorld, 2023). Costco, Amazon, Target, and
Empire Company Ltd. are among the most prominent retailers that compete with
Walmart in Canada (CMC, 2023). The table below shows the main supermarket chains
Consumer Behaviour: Consumers’ levels of mass spending in the country also vary.
Canadians are known for consuming a lot of goods and services, which gives Walmart
the highest chance of getting good customer reviews because they are more likely to
make purchases. If businesses fall short of customers’ expectations, they risk losing
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Table 2: Market share of Walmart’s direct competitors in Canada (Source: CMC, 2023)
$700.00
$600.00
$500.00
$400.00
$300.00
$200.00
$100.00
$0.00
Walmart Costco Target
Figure 3: Chart showing the market share of Walmart’s major competitors in Canada
Kärkkäinen (2005) defines the entry strategy as a technique enterprises use to launch
resources.
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4.2 Entry Strategy in the UK
Walmart paid £6.7 billion to acquire ASDA in June 1999. Because of the brand’s
familiarity with British consumers, Walmart kept ASDA. Wal-Mart acquired this because
it saw that the British company possessed essential characteristics that would assure its
survival, such as its larger-than-average stores, corporate culture, and a potent clothing
brand similar to those in the United States (Burt, 2001). Also, the consumer was
Walmart used the acquisition mode strategy to penetrate the Canadian markets.
Walmart announced its arrival in Canada in 1994 when it acquired 120 of the 142
Woolco Discount Shops just north of the border from the Woolworth Corporation
(2012), Woolco Shops had total sales of $1.14 billion in 1993. Other American retailers
issue of constructing stores, but Walmart managed to bypass it. Walmart gained entry
into Canada faster by purchasing established Woolco Shops, most of which had floors
measuring 100,000 square feet or more, along with lucrative and strategic leases
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5. Segmentation, Targeting, and Positioning
A market is divided into segments based on needs, behaviours that call for certain items
or traits, or the marketing mix (Brochado and Martins, 2008). Walmart uses market
segmentation to choose the locations of its retail locations and the kinds of products it
United Kingdom. The products have been segmented depending on the demographics
of the customer base, including their age, gender, and preferred tastes. Consumer
attitudes, lifestyles, and beliefs make up the psychographic factors used to categorise
respects the consumer’s mentality and recognises that they want necessities at the
lowest prices feasible. In reaction, Walmart has also implemented Canada’s EDLP -
Market targeting involves choosing the core demographic among all potential customers
(Jaideep, 2015).
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In the UK market, Walmart primarily employs a differentiating strategy through Asda.
Due to the competition in the marketplaces, Asda had to create a differentiated strategy.
Asda tries to maintain a distinctive campaign for every occasion and holiday for the
target audience. Hence, Asda targets mostly urban dwellers in the UK due to this.
consumers to the brand (Bu and Wu, 2022). Because everyone is a potential customer,
Walmart does not rely on differentiation to succeed. The pricing of Walmart’s products is
product and how it informs potential customers about that offering (Boatswain, 2015).
The success of the company depends on its positioning strategy. Walmart has
In the United Kingdom, Walmart, through ASDA, models the omnichannel positioning
strategy. This strategy allows consumers to choose various integrated alternatives for
their purchasing experience. By linking people via in-store social, digital checkouts,
Click & Collect services, and a smartphone app to assist with meal planning and
budgeting, ASDA enables consumers to move between actual and virtual locations
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In Canada, Better Homes & Gardens licence is the foundation of Walmart Canada’s
current home branding initiative, encompassing both hard and soft home categories
(Mammarella, 2007). Every product stands out from the competition glaringly, giving
shoppers the impression that it came from Walmart’s fashion and value chain
Canadian stores. This insert, dubbed “Grocery Shelf,” offers a substantial return on
The marketing mix (MM) is the collection of marketing variables under the company’s
control that it employs to try to achieve the targeted amount of sales in the target market
(MASB, 2021). Walmart’s marketing strategy in the UK and Canada is discussed using
6.1.1 Product
Implementing the most effective marketing strategy is a crucial element that encourages
a major grasp of the value being added within the firm and its functioning within the new
marketplace. Ivanyshyn et al. (2018) emphasise that the company can attempt to
restore its current product or use the best strategies to support adaptation through time
to obtain a stronger foothold in the market. Hence, since the acquisition of Asda by
Walmart, it has provided a wide range of products in the United Kingdom through
standardised branding. Asda offers a distinctive and wide variety of services. For
example, the retail company has specialised branded consumable goods like baked
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beans, chips, and fish pies sold exclusively in its stores (Asda, 2023a). Moreover, its
primary supermarket retail business offers banking services, a mobile phone provider
using the EE network, and other services (Sensi, 2022). Every one of these fits into
Asda’s overall product strategy. Asda is also active in online and brick-and-mortar retail,
selling anything from groceries to gadgets, clothing, and other goods. In addition, it
provides home delivery for goods, and its largest store features a choice of 30,000
6.1.2 Price
Through Asda, Walmart believes in the price above perception, using a low pricing
strategy as the key to selling enormous numbers of goods. Walmart uses several
Since it understood its target market and refused to forgo quality to cut costs, Asda has
become a hugely successful and well-liked brand. As a result, expenses have been
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further decreased, and profit margins have been greatly increased. In addition, the
business is renowned for keeping steadfast, moral connections with its international
suppliers, allowing for the best possible start to delivering raw materials and cost-cutting
6.1.3 Place
Asda’s (Walmart’s) main goal regarding place mix is to guarantee that consumers can
easily find the products they require when they require them. For this reason, it has
established numerous locations across the UK and has a significant internet following.
Asda modified its business style from “Simple and Fresh” to “Walmart Style” after being
acquired by Walmart, with three zones of uncomplicated retail stores distributed across
the country. Its website’s URL is www.asda.com, and there are more than 630 of its
stores throughout the UK. It offers a variety of retail formats, including supermarkets,
Asda Living, superstores and petrol filling stations (Asda, 2023c). With a large
assortment of food, George clothing, and non-food items, Asda’s supercentres are the
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biggest supermarkets in the franchise. These stores are typically supported by
6.1.4 Promotion
Asda, a subsidiary of Walmart, interacts with its consumers via television, newspapers,
and other channels. Additionally, it employs several sales advertising techniques. Price
discounts, buy one get one free offer, and other special promotions are quite popular in
the UK (Asda, 2023b). ASDA uses sponsorships as a promotional strategy as well. Its
partnership with the renowned sports charity SportsAid strives to support talented
British athletes in various ways, including financially. Moreover, The Asda Foundation,
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Figure 5.2: Advertising sign showing the sales promotion strategy by Asda (Walmart)
6.2.1 Product
Walmart has always focused on a specific range of goods since its inception. Similarly,
it has always prioritised maintaining the best service offerings possible to draw clients to
the brand from its inception in Canada. Because it follows a consistent strategy, its
service offerings haven’t seen many adjustments. With a large selection of products, it
serves almost every category. Examples include food, tools, furniture, medical supplies,
wellness, and entertainment. It has stayed in touch with its suppliers and ensured the
products are supplied on schedule. Only Walmart stores in Canada have access to
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Figure 5.1: List of Walmart product offerings
6.2.2 Price
To grow its business in Canada, it has created customer-friendly pricing strategies that
strongly emphasise selling to boost sales rather than price excesses (Copeland &
Labuski, 2014). The company has formed agreements to keep costs down with the
most reachable partners in the supply chain. While operating in Canada, it has
Canadian market by using the standardisation strategy, which involves using equivalent
from the standardised value-based pricing and the available product options. Walmart
prices the goods about 15% less expensively than its rivals. Depending on how their
clients buy, they employ various pricing tactics. Every product has a changing price
every hour, dependent on demand and time, as shown by using special words like
“Always cheap prices”. The phrase “Live better” alone demonstrates the high priority the
corporation places on the cost of its goods (Walmart, 2023b). Consequently, the crux of
Walmart’s strategy is its “Everyday Low Price” (EDLP) philosophy. The strategy draws
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Figure 6.2 Product Prices displayed at a Walmart store in Ontario, Canada
6.2.3 Place
Wal-Mart developed no specific place strategy for conducting business in Canada. This
has been the case since it began operating there after buying the Woolco division of
Woolworth Canada. This indicates that the store uses most of the Woolworth Canada-
identified locations. Nonetheless, the company has been opening additional locations in
areas with many potential customers. Additionally, it has been locating particular areas
that can help it achieve its long-term commercial objectives. This technique, however,
and shifting cultural elements” (Roberts & Berg, 2014, p. 121). Also, Walmart offers an
internet shopping. Because the company has a strong e-commerce operation that
enables clients to buy everything with one click, this has drawn more target customers
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to the business. Walmart has significantly invested in its omnichannel network to grow
experiences by launching store upgrades that harness the firm’s omnichannel offering.
These programmes collectively show that Walmart has strongly emphasised the
Canadian adaptation process, which calls for changes to the company’s global business
(Valderrey, 2016).
6.2.4 Promotion
The employment of successful promotional methods by Wal-Mart Canada is another
significant marketing strategy the company employs in the country. The business
advertises its items on a wide range of platforms. Celebrities are frequently employed to
make captivating advertisements to attract more clients. Sales promotions also support
the objectives of the business. Seasonal price cuts are another feature of promotions
(Copeland & Labuski, 2014). Every time the shop wants to offer different commodities to
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Figure 6.4: Sales promotional strategy employed by Walmart
7. Conclusion
Walmart’s decision to go global was a great success for the company, as seen by its
dominance in the markets analysed in this report. Walmart’s achievement has been
hailed as a triumph in business for its ability to maintain domestic and international
operations. Despite their difficulties in the various markets they have successfully
Walmart has excellent strategic management abilities with its adaptation strategy due to
its meticulous selection of target markets and locations, both of which pave the way for
please customers from all socioeconomic groups. Walmart provides a large selection of
goods, covering all product types from the most expensive to the most affordable, which
remains the lowest retail price in the retail sector. Hence, Walmart will have brand-loyal
important international decisions. The report’s analysis demonstrates that Walmart has
applied superb global marketing strategies for distributing its products to foreign
adaptation process in the case studies analysed. However, its location strategy in both
delivery, and internet-based shopping. Given the results of the entire report, it is likely
that Walmart will adopt globalisation ideas like the Hofstede cultural dimension theory
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