Walmart Segmentation, Targeting and Positioning

Walmart segmentation, targeting and positioning is the core focus of Walmart strategic marketing. Segmentation refers to dividing population into groups according to certain characteristics, whereas targeting is associated with choosing specific groups identified as a result of segmentation to sell products. Positioning refers to the selection of the marketing mix the most suitable for the target customer segment.

Walmart uses mono-segment type of positioning and accordingly, Walmart marketing management appeals to single customer segment who place greater value on the price attribute of products compared to other attributes.

The following table illustrates Walmart segmentation, targeting and positioning:

Type of segmentation Segmentation criteria Walmart target segment
 

Geographic

Region Domestic and international
Density Urban and rural areas
 

Demographic

Age Individuals of all age categories
Gender Males and Females
Life-cycle stage Bachelor Stage young, single people not living at home

Newly Married Couples young, no children

Full Nest I youngest child under six

Full Nest II youngest child six or over

Full Nest III older married couples with dependent children

Empty Nest I older married couples, no children living with them

Empty Nest II older married couples, retired, no children living at home

Solitary Survivor I in labor force

Solitary Survivor II retired

Income Individuals and households with low incomes and middle class
Occupation Students, manual workers, floor level employees and middle level managers in public and private sectors
Behavioral Degree of loyalty ‘Hard core loyals’, i.e. individuals who always purchase the product / brand in question.

‘Switchers’, i.e.individuals who do not specifically seek out a particular brand, but rather purchase the brand available to them at time of need, or that which was on sale

Benefits sought Cost advantage
Personality Reserved and cost-conscious individuals
User status non-users, potential users, first-time users, regular users, or ex-users of a product
Psychographic Social class Lower class, working and middle class
Lifestyle Resigned, struggler and mainstreamer individuals according to Cross Cultural Consumer Characterization by Young & Rubican

Walmart segmentation, targeting and positioning

 

It is important to specify that although Walmart attempts to target customers of all ages via its marketing communication messages, particular attention is paid to young consumers, dubbed as generation X due to the strategic importance of achieving the loyalty of young consumers for long-term perspectives. Along with the promise of cheap prices, Walmart attracts Millemials via effective integration of social media marketing into its marketing communications strategy. This strategy is proving to be effective so far.As it is illustrated in figure below, Millennials favour Walmart over stores including Target, Costco, Trader Joe’s, and Whole Foods in North America[1]

Walmart segmentation targeting and positioning

Major retailers index with shoppers with age group[1]

Walmart Stores Inc. Report constitutes a comprehensive analysis of marketing strategy and business strategy of Walmart. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Walmart. Moreover, the report contains analysis of Walmart’s leadership and organizational structure and discusses the issues of corporate social responsibility.

Walmart Stores Inc. Report

[1] Boxall, A. (2015) “Walmart shifts away from print advertising and towards mobile to better target Millennials” Moby Affiliates, Available at: http://www.mobyaffiliates.com/blog/walmart-shifts-away-from-print-advertising-and-towards-mobile-to-better-target-millennials/

[2] 100 = Average Purchase Activity, Source: INFOSCOUT

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