Learning Team D: Walmart's Market Positioning And Media Stra
Learning Team D: Walmart's Market Positioning and Media Strategy
Walmart has evolved from a single discount store into the world's largest retailer, boasting over 11,695 stores across 28 countries, employing approximately 2.3 million people, and generating projected revenues of $485.9 billion in 2017. Its vast presence and affordability position Walmart as a dominant force in retail, emphasizing a brand strategy centered on positioning itself as the most affordable and accessible retailer globally. This paper explores Walmart’s market positioning approach, the deployment of traditional media via television advertising, and how it differentiates itself from primary competitors such as Costco, Target, and Dollar General.
Overview of Walmart’s Brand Strategy and Market Position
Positioning, as defined by Kotler and Keller (2016), involves designing a company’s offerings and image to occupy a distinct place in consumers’ minds. Walmart leverages this concept by positioning itself as the lowest-cost retailer with the widest accessibility. Its strategy emphasizes competitive advantages over rivals through price leadership and broader distribution channels. Walmart’s consistent messaging highlights affordability, variety, and convenience—attributes central to its brand identity.
Competitive Landscape and Differentiation
Walmart’s primary competitors include Costco, Target, and Dollar General, each targeting different segments of the retail market. Costco appeals to high-income shoppers seeking bulk purchases with its membership model. Target attracts middle-income consumers with a focus on style and affordability, whereas Dollar General tends to serve low-income, rural communities with smaller, frequent trips. Walmart differentiates itself by not requiring memberships, offering a broader product range, and maintaining lower prices than Costco and Target. For Dollar General, Walmart emphasizes size diversity and a wider product assortment to appeal to a broader audience.
Traditional Media Strategy: Television Advertising
Among traditional media, television remains the most effective for reaching broad audiences due to its extensive reach and influence. Walmart’s media plan utilizes targeted TV advertising tailored to each competitor’s core customer base to reinforce its positioning.
Target Commercials
Target’s median age hovers around 40, with households earning approximately $64,000 annually and a large proportion with children. To reach this demographic, Walmart plans to advertise on networks like A&E, which attracts viewers aged 25–54, aligning with Target’s audience. Commercials will focus on Walmart’s lower prices for comparable products, emphasizing savings and convenience without membership fees.
Costco Commercials
Costco’s typical customers are high-income, often Asian, seniors who shop in larger quantities (InfoScout, 2017). For this segment, Walmart will target the History Channel, whose audience ranges from 25-64 years old. The advertisements will highlight Walmart’s lack of membership fees, ability to purchase individual items, and comparable product quality, positioning Walmart as a more accessible alternative to Costco.
Dollar General Commercials
Dollar General’s shoppers are primarily low-income, African American, and tend to make small, frequent trips (InfoScout, 2017). Walmart’s messaging on TV will be placed on channels like TV One, which caters predominantly to African American audiences. The ads will emphasize Walmart’s larger product variety and diversity, appealing to the specific needs of this demographic and positioning Walmart as a more inclusive and comprehensive shopping destination.
Conclusion
Walmart’s strategic use of television advertising across channels aligned with its competitors’ target markets underscores its commitment to reinforcing its brand position as the most affordable, accessible retailer. By tailoring messages to distinct consumer segments and emphasizing its competitive advantages, Walmart maintains its leadership in the retail sector. Its traditional media approach supports its broader strategic goal of market dominance through clear differentiation and targeted outreach.
References
- InfoScout. (2017). Costco Shopper Insights. Retrieved from https://infoscout.com
- InfoScout. (2017). Dollar General Shopper Insights. Retrieved from https://infoscout.com
- Kotler, P. T., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
- Morningstar. (2017). Wal-Mart Stores Inc. Retrieved from https://morningstar.com
- PG Media. (2017). Cable Network Profiles. Retrieved from https://pgmedia.com
- Rush, M. (2017). Watching TV is the nation’s most common leisure activity. Chron. Retrieved from https://medium.com
- Target. (2017). About Target. Retrieved from https://corporate.target.com
- Walmart. (2017). About Us. Retrieved from https://walmart.com