Brand identity constantly changes depending on consumer perceptions and marketing strategies.
Walmart's corporate strategy has always targeted to operate according to customers' expectations
to gain and sustain their loyalty. Some of Walmart's performance strategies include; quality
products, unbeatable prices, and an easy and comfortable shopping experience. The brand
persona has always aimed at servant leadership that is committed to reducing customer
expenditure and increasing savings.
Walmart is working to redeem and maintain its stature by responding to customer feedback
comments innovatively and interactively. Walmart social strategy has boosted customer
relationships by allowing consumers to interact with their sellers. According to the Digiday
report, Walmart has increased its app downloads by 50%. This strategy aims to take advantage of
real-time trends and improve the brand's voice. Experts have termed this strategy brand
anthropomorphism, a human attribute of relating with non-human entities such as a brand
corporation. Social media is a vital tool to enhance brand anthropomorphism. Customer
interactions in social media boost the awareness of a company's product, thus soliciting longterm relationships.
Another strategy that Walmart has adopted to improve its brand is forming partnerships and
alliances with other retail companies. In 2020, Walmart acquired Shoe buy, an online shoe
retailer, to challenge competitors such as Amazon. Another acquisition this year was Moosejaw
for $ 51 million, an online outdoor retailer. This acquisition is a corporate strategy to improve
brand performance and penetrate new markets.
Most of Walmart's average customers are less wealthy and a bit older than those of Amazon's
and Target's. Despite the consistent effort by the retail intelligence team to make substantive
changes in terms of reputation and culture, the company has made minor advancements to attract
wealthy customers. Walmart slates acquisitions such as Modcloth and Bonobos is a strategy to
change customer's perception.
Brand Strengths and Weaknesses
one of the most recognizable strengths of Walmart's brand is customer-centric performance.
Walmart Inc. has long been known to help customers save money and enjoy quality products
simultaneously. New technologies that seamlessly incorporates e-commerce in retail outlets
saves time for customers.
EDLP constantly lures customers into the over 11 400 stores distributed across the United States
and other countries. This pricing philosophy is efficient in controlling expenditure and improving
customers' buying power. The company has implemented one eligible marketing upgrade: the
Walmart +, an omnichannel shopping technique that utilizes an entirely free shipping experience,
unlimited deliveries, mobile scan & go for indoor shopping, and fuel discounts. Walmart's
Omnichannel capabilities create a flywheel effect that enhances customer relationships where
customers choose Walmart as a primary destination.
Results from the SWOT analysis prove that Walmart has an ever-increasing market dominance
and marketing strategies. The company is a hallmark for shopping convenience, affordability and
accessibility.
Another strength is brand omnipresence, especially in every major city in North America.
Walmart stores are evenly distributed in a super-structured way. Discount stores are located in
standard size places while "supercenters", which are much larger, are located in major cities and
towns. According to Statista, Walmart operates more than 11 500 stores worldwide.
Walmart's global organizations enable it to control more markets and thus generate sufficient
funds for growth and expansion. Additionally, global supply chain logistics empowers the
company to manage demand-specific risks such as inconsistent supply chains effortlessly. The
global supply chain is governed by sophisticated technology that monitors and controls supply
across different stores.
Global supply chains also enable the company to purchase bulk products, thus allowing for easy
manipulation of prices. Products in the stores are expansive and influence customers to buy
goods of different genres simultaneously. Shifted focus towards online retail is a move to
counteract competitors' strategies and tap other customers worldwide.
Walmart Brand Weaknesses
Brand weaknesses can be identified from the SWOT analysis of a company. A brand can be
declared weak if it is incapable of communicating company values to customers and
stakeholders. Also, a brand is ineffective if it fails to claim a price premium for the additional
discounts it offers.
Walmart has been identified to be running on low-profit margins following its emphasis on cost
leadership. Competitive prices translate to low profits generated despite the massive sales.
Therefore, Walmart relies heavily on economies of scale to attain high sales, leading to higher
profits. These significant differences in profits and revenues make Walmart's competitors be
influential, and their brands rated more superior.
Product duplication and strategy imitation reduce Walmart's dominance in the market. Its
enormous diversity has made it susceptible to being victims of copycat brands. Companies that
imitate brands duplicate perceptual and distinctive features of another company's brand. Retail
companies that successfully imitate Walmart's brand pose as a threat to its success. Consumers
may fall trap of copycat brands and thus ultimately reduce product purchases of the victim
company. Brand infringement in terms of packaging and graphic similarity may ruin the
reputation of the victim company.
Limited differentiation makes it difficult for Walmart to compete effectively with other brands
such as Amazon and Kmart. Product differentiation are the attributes that make products and
services to stand out and distinguish a company from its competitors. The main aim of product
differentiation is to attract customers and maintain brand loyalty. Walmart has long focused on
providing affordable products thus giving limited attention to the quality of products.
Also, Walmart strategies emphasize on mass production to maximize profits. Sustainable and
consistent brand management can reduce brand deterioration.
Product Packaging and Branding
Walmart's branding and repackaging styles are exceptional. Recently, the company launched a
Great Value (GV) branding technique that emphasizes on provision of better products. GV is an
example of a National Brand Equivalent whose price is 20% lower compared to other retailers.
Every Great Value Brand pass through a process of random test for quality before being
approved. this latest design will be a resounding success that will enable the company to
counteract bran imitations.
Walmart announced a plan to ensure a 100 % recyclable packaging brand by 2025. The company
further advanced its goals in 2019, to ensure 100% recyclable, and industrially compostable
packaging to eliminate unnecessary plastic packaging. These plans are part of the Sustainable
Packaging Goals more specifically in the U.S and North America.
Valuation Methods for Brands
Brands are examples of intangible assets in a company. Methods used in the past to measure and
account for brands have failed considerably to deliver anticipated results. These methods have
often been short termed and do not provide for incentives to invest in brands. Branding is a
powerful determinant of competitive advantage in the market. Before attempting to adopt a brand
valuation method, one should be cognizant of the gross value of the branded product. Other
factors such as design and packaging also come into play. Net brand value is a suitable
performance metric since the main aim of a valuation method is to control the value of an
intangible asset. Two best valuation method for assessing brand performance include Cost-based
method and price-premium method.
Coast-Based Method
This method concerns the value of the brand by summing up all the cost since the development
of the brand. One assumption used in this method is that brands that generate high cost are
highly-valued.
Walmart's brand in 2021 was valued at $ 93.2 billion dollars which was a rise compared to the
results of fiscal year 2020 ($ 77.5 billion dollars)