Product, Brand and New Product of Walmart

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Product management, brand promotion, and new product innovation is essential for organizations to keep advantages in the highly competitive business environment. Good is an object provided to customers with physical appearance and practical use, such as food, groceries. Service is professional help provided by professionals, such as haircut, consulting. Products offered by enterprises may be goods or services, or both. But modern business put higher requirements on both goods and services (Iacobucci, 2014). For example, a supermarket displays lots of goods on its shelves; the products of the supermarket are its goods. However, the service of sales and the cashier influence the buying decision of customers. Product is no longer a single concept of goods or service, but an integration of goods and service (Bettencourt & Brown, 2013). Not only is the product, branding a significant method for success marketing and final profitability of an organization. Walmart, one of the most successful supermarket retailers in the world, is successful in product management and branding.

War-Mart promotes its brand for customers to save money and live better. The Every Day Low Price (EDLP) is the cornerstone of its strategy, not only the product strategy, but also the branding strategy (Walmart Corporate, 2016). Branding deliver the brand name, slogan, symbol, or other elements to customers, focusing the target market, convincing customers by the goods and services of a brand. Branding is the process of connecting target customers with products, encouraging customers to buy, and creating customer loyalty (Iacobucci, 2014). Walmart is the largest retailer, and the fastest growing brand in the world. People sense the brand Walmart as convenience, cheap, reliable based on its rich variety of products with low price (Low prices + great-assortment + easy shopping = back to class at Walmart, 2016). The one-stop shopping experience provided by Walmart is welcomed and appreciated by customers. That’s the results of War-Mart successful branding, delivering the brand value to customers and finally improve the brand development.

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Source: Walmart Corporate (2016)

Walmart has built its low price brand as a unique value proposition based on a broad assortment. All kinds of store formats, including the Walmart Supercenter, Walmart Discount Store, and Walmart Neighborhood Market, are forceful illustration of Walmart brand. The Walmart stores put foundations for branding (Walmart Corporate, 2016).

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Source: Walmart Corporate (2016)

Based on its 11,500 stores under 63 banners in 28 countries, Walmart put its products from grocery and entertainment to sporting goods and crafts on the shelves (Walmart Corporate, 2016). The deep assortment of Walmart products is a direct presentation of its brand based on its global distribution channels to customers. Walmart believes that though providing people accessible and cheap products whenever and wherever, Walmart produces services to customers’ lives. In other words, Walmart provides convenient buying service to customers based on its stores and products. In addition, Walmart aims at providing better service more than customer expected. In addition to the retail goods, Walmart also provides photo services, pharmacy service, financial service, and wireless service (Lusch & Vargo, 2014; Walmart Corporate, 2016).

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Source: Walmart Corporate (2016)

Besides, Walmart promoting the genuine spirit of giving. Walmart put emphasis on community giving and global responsibility. Walmart share its success with the society and its partners. In every community Walmart serves, Walmart devotes to making changes. Individuals and enterprises can apply for grants from Walmart, and Walmart provide associate scholarship to schools. Walmart volunteers are mainly its employees to make changes to the community, Walmart has launched global giving projects to serve society and help customers (Walmart Corporate, 2016).

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Source: Walmart Corporate (2016)

In financial year 2015, Walmart has donated more than $1.4 billion in cash and in kind. In addition to the capital, Walmart volunteers have contributed over 1.5 million hours to social activities (Walmart Foundation, 2016). Moreover, Walmart undertake its global responsibility. Walmart has invested $2.7 billion over 2 years in order to raising the wages of its US employees. More than 1 million farmers and workers are trained by Walmart supplier support program in the world. In environment protection, 35.6 million metric tons of greenhouse gas emissions have been reduced from the supply chain of Walmart (Global Responsibility -Walmart, 2016).

The product and branding strategy make success of Walmart sustainability. However, to keep competitive advantages, the new product strategy should be adopted. According to the product lifecycle theory, product experiences a process from introduction, growth, maturity, to saturation (Stark, 2015). Walmart has developed sustainability index to measure the life cycle of its products on sales (Walmart announces sustainable product index, 2009). For Walmart, the product lifecycle is applied to product labeling, attaching the lifecycle information to products, so that customers can get more information about the products before they decide which to buy. Walmart is building product lifecycle database, not only trying to provide better service and shopping experience to customers, but also benefit the brand to innovate new products. In this case, Walmart has increased its product range and replace its products by environmentally friendly ones, to reducing the environmental impacts of products from cradle-to-grave (Walmart Corporate, 2016). In conclusion, Walmart improve the product lifecycle information not only for its lifecycle management, but also provide the information to customers to improve its service quality. The product, branding, and new product strategy of Walmart is an integrated unit, making the company global success (Iacobucci, 2014).

Published By LEI YANG 216057801

chf@deakin.edu.au

Reference

Bettencourt, L. A., & Brown, S. W. (2013) ‘From goods to great: Service innovation in a product-dominant firm’. Business Horizons56(3), pp. 277-283.

Global Responsibility -Walmart (2016) Available at:

http://corporate.walmart.com/global-responsibility (Accessed: Aug. 10th, 2016)

Iacobucci, D. (2014) Marketing Management (MM), 4th Edition, Cenage Learning.

Low prices + great-assortment + easy shopping = back to class at Walmart (2016) Walmart. Available at: http://news.walmart.com/2016/07/25/low-prices-great-assortment-easy-shopping-back-to-class-at-walmart (Accessed: Aug. 10th, 2016)

Lusch, R. F., & Vargo, S. L. (2014) The service-dominant logic of marketing: Dialog, debate, and directions. Routledge.

Stark, J. (2015) Product lifecycle management. In Product Lifecycle Management (pp. 1-29). Springer International Publishing.

Walmart announces sustainable product index (2009) Walmart Corporate. Available at:

http://corporate.walmart.com/_news_/news-archive/2009/07/16/walmart-announces-sustainable-product-index (Accessed: Aug. 10th, 2016)

Walmart Corporate (2016) Available at:

http://corporate.walmart.com/ (Accessed: Aug. 10th, 2016)

Walmart Foundation (2016) Available at:

http://giving.walmart.com/foundation (Accessed: Aug. 10th, 2016)

 

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