How to make the products more popular in the market? Walmart wants to be bigger

 

Walmart is a big traditional retailer in the world. When face the development of On-line shopping, they have a sense of crisis. They shout ‘Walmart wants to be bigger’.

Clear self-cognition is the foundation

Recently,Walmart promoted a new campaign: Unveil New Lines of Ugly Apples And Potatoes. Are the managers of this company crazy? We shouted out! As the biggest retail enterprise, the answer is obviously not. This marketing strategy is the new ploy to reduce rampant food waste of Walmart: Selling ugly produce.

Market is a complex organic ecological system. The rule of ‘Natural selection and survival of the fittest’ is the rule of market. The ugly food for a market grocer always means profit loss. To be surviving, Walmart aims to make their products more popular among the consumers among market competition. No matter the product looks ugly or beauty, they must make full use of all kinds of commodity. In this angle, combining with the firm’s smart new ploy, Walmart leads the way. They are good at considering marketing rule such as 5Cs, STP and the 4Ps (Iacobucci, 2014).

The firm plays more importance on marketing strategy and plan, even for the ugly fruits, whose foundation is a clear self-assessment. Walmart is on the road of capturing the biggest retailer in the world.

Marketing plan refers to some specific provision and detailed instructions that aim to achieve the marketing goals of enterprises and various business units (Mitchell &Sharma, 2013). The components of a marketing plan fit with Walmart’s marketing management framework perfectly.

IMAGE1

SWOT is the tool

Well-informed marketing strategy and plan is the guarantee for Walmart’s effective marketing. The leaders of Walmart are also theorists, to formulate such a strategy, IMAGE2they adopt SWOT analysis. This is the resourceof the idea of selling the ugly produce. The following figure 2 is the concrete process of marketing strategy and plan.

 

Figure 2 marketing strategy and plan process

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From the aspect of theory, the tool of SWOT analysis is the basic of marketing decision for Walmart. As the following figure 3 shows, the SWOT matrix contains four aspects: weakness, strength, opportunity and threat (Basu, 2014). The task of Walmart’s self-assessment is to convert its weakness into strength, treat into opportunity, and match IMAGE4their strength and opportunity. Then they can make their products more popular in the market. As we all know, Walmart as the biggest traditional retailer in the world, it has a clear marketing strategy and plan thanks to its precise SWOT analysis. First is strength, Walmart is a famous retail brand, it is famous for its good and inexpensive goods, various and one-stop shopping. Secondly is weakness, due to its enormous business development, Walmart may lose the control power in some areas. They may have many commodity with short shelf life are wasted. To avoid the loss, Walmart has a smart new ploy: Selling ugly produce. Third is the opportunity. Walmart takes the way of acquisition, merger or strategic alliance cooperation with other international retailers, and they focus on specific markets such as Europe or the greater China region. Walmart also can tap its market by the market development opportunities of seek new store location and type. The last one is threat. Walmart’s dominate position in retail makes it become a target for all competitors to catch up. The globalization strategy of Walmart makes it possible for it encounters political problems in their businesses. So Walmart should convert its weakness and threat in the process of marketing SWOT analysis.

 

On the basic of marketing SWOT analysis, Walmart have a clear develop gaol (Pesonen & Horn, 2013). They know exactly what they should accomplish during their market activities. They fight for the least amount of waste, and obtain the biggest profit. Under the guide of the goal, the administrators of Walmart make specific market strategy of selling ugly produce. The concrete market strategy is like the Ansoff’s growth matrix, which is one of the most widely used marketing strategy analysis tools. Walmart firstly considers that whether the existing product can get more market share in the existing market, they sell then when they seem beauty. Secondly, they develop new markets for the ugly product. Thirdly, the producers will explore potential new products for the existing market. Fourthly, the diversity strategy is adopted. They use their advantages of products, technology and market.

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Market strategy and plan assure the popularity

‘Walmart Unveils New Lines of Ugly Apples and Potatoes’ is a new initiative for the nation’s biggest grocer. They convert their weakness into advantage. The reason that Walmart can survive in the market competition successfully is that they has a clear self-assessment. As a traditional retailer, they have their own segmented marked and target customers. Walmart has precise development goal. The development target gains from their SWOT analysis about their survival situation and company condition. After the analysis of 5Cs, STP and 4Ps, the firms form their own market development strategy and plan. All these market strategy and plan make Walmart’s products more popular in the market.

 

 

Published By LEI YANG 216057801

Chf@deakin.edu.au

 

References:

 

Basu, S. (2014) ‘Product market strategies and innovation types: finding the fit!’, Strategic Direction, 30(3), pp.28-31.

 

Iacobucci, D. (2014) Marketing Management, New York: Cengage Learning.

 

Mitchell, R. &Sharma, A. (2013) ‘Challenges and Strategies for Growth of Thermal Spray Markets: The Six-Pillar Plan’, Journal of Thermal Spray Technology, 22(5), pp.559-563.

 

Pesonen, H. & Horn, S. (2013) ‘Evaluating the Sustainability SWOT as a streamlined tool for life cycle sustainability assessment’, The International Journal of Life Cycle Assessment, 18 (9), pp.1780-1792.

 

Walmart (2016) Available at: http://www.walmart.com/

 

Purdy, C. (2016) Walmart has a smart new ploy to reduce rampant food waste: Selling ugly produce [online] Available at: http://qz.com/739772/walmart-has-a-smart-new-ploy-to-reduce-rampant-food-waste-selling-ugly-produce/?utm_source=YPL&yptr=yahoo [Accessed July 23, 2016]

 

Grossman, S. (2016) Walmart Unveils New Lines of Ugly Apples and Potatoes [online] Available at: http://www.huffingtonpost.com/entry/walmart-ugly-vegetables-produce-apples-potatoes-spuglies-texas-florida_us_578fafefe4b07c722ebd5623?utm_hp_ref=walmart [Accessed July 02, 2016]

 

 

 

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