Walmart adds one more arrow to its quiver – marketers, watch and learn!
Published: April 03, 2023
Walmart is always about big business.
And now it only will get bigger.
In a National TV spot that is a first for Walmart, the mammoth retailer and wholesaler brought its partnership with Paramount+ under the spotlight. There are toy dinosaurs on the floor; dinosaur chicken nuggets to eat; dinosaur movies on TV; fossil fuel at the gas pump and so much more.
The focus of this campaign from Deutsch LA is on all the benefits that the subscription program will bring to its members – free delivery on orders over $35, discounts on gas, free shipping on all site-to-home orders, Walmart Rewards, and so much more.
This partnership between Walmart and Paramount opens up the ad-supported version of Paramount+ to Walmart+ members. And it is free! The two announced their partnership last August and rolled it out in September.
This partnership between Walmart and Paramount did not have a national TV push up until now, although they did some targeted paid media. This seems to have had an impact on Paramount+’s numbers, which has risen, compared to Hulu, HBO or Peacock. If all of Paramount+ subscribers joined Walmart+, then their numbers would simply double!
Now all of this puts Walmart+ and Amazon Prime on a more even footing. They both offer free shipping along with video streaming now. Amazon Prime membership costs $139 for a year, as opposed to $98 for Walmart+. The current share of US households however shows a stark difference – 61% have Amazon Prime, as opposed to 7% for Walmart.
What marketers can learn from the clash of the Titans
Clearly this is all about Walmart and Amazon. And it brings to mind an old song from the musical, “Annie, get your Gun”-
Anything that you can do, I can do better! I can do anything better than you!
While each of them claims this, they are rather similar – they both offer just about every product under the sun – from clothes to groceries to electronics. And they both deliver. Now they both have streaming video.
Amazon makes higher revenues – when you compare them on an e-commerce level. But Walmart has an established network of brick and mortar stores across the country, with bulk-buying made possible at lower prices at Sam’s Club. Amazon is also getting into that with physical retail spaces. Both of them offer pretty much the same thing.
Both of them are changing with the changes in customer needs and demands. Since the pandemic changed our shopping patterns, both of them have had to adapt and get into a multi-channel system. Amazon establishes more physical stores and Walmart went digital. They are both adept at using technology to offer great shopping experiences to their customers.
A wide range of products (just about anything under the sun) – both of them have it!
Free delivery – yeah they do!
Buy online, and do a store pick up? Sure they do!
Right now, according to Forbes, Walmart’s growth rate is higher than Amazon’s. Walmart.com’s growth in the past two years tripled, while Amazon grew by just 35%. Walmart is just entering the digital space – and is a novice there as opposed to the well-established Amazon – and this is telling.
So when it comes to a clash between Greats: between Titans: what makes one the first among equals?
Clearly it will be pricing. Service. Innovation! The ability to create engaging customer experiences. And that is where the dice will fall.
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