|
|
|
On September 12, 2007, the world's largest retailer Wal-Mart Stores, Inc., (Wal-Mart) rolled out its new branding initiative with a new pay-off line, 'Save Money. Live Better'.
The new pay-off line replaced the earlier pay-off line, 'Always low prices', which the company had been using for the past nineteen years.1
Through this re-branding exercise Wal-Mart sought to reinvigorate its brand at a time when the retailer had its worst performance in a decade.
|
Though the retail behemoth had global sales of a whopping US$345 billion in 2006, it had experienced sluggish growth during that period. It posted a growth of mere 1.9 percent in the same store sales, well behind many of its competitors.
This had led analysts to wonder whether Wal-Mart was experiencing a 'mid-life crisis'.
The re-branding initiative was handled by Interpublic Group of Co.'s Martin Agency, the lead firm hired by Wal-Mart in January 2007. The new pay-off line appeared in TV and print ads and was also featured in the store receipts and shopping bags of the retailer. The 30 second TV spots depicted how saving a few pennies daily by buying products from Wal-Mart could bring good things in its customer's life, like buying a used car or going for a family outing.
The ads were based on the results of an economic-impact study conducted by a consulting firm, Global Insight Inc. The study commissioned by the retailer found that, in the year 2006, an average American saved US$2500 by shopping at Wal-Mart.
The ads invited the viewers to a new website created by the retailer, SaveMoneyLiveMore.com, where the customers could share their stories of how they saved money by shopping at Wal-Mart, The retailer also put up a 'savings ticker' outside its Arkansas headquarters, to show "how much money American families save as a result of Wal-Mart's impact on communities."2
The retailer claimed that the ads depicted the real image of Wal-Mart and "Save Money. Live Better" was more than a pay-off line. It was adapted from Wal-Mart's founder Sam Walton's vision for the company: 'We save people money so they can live better.'
The retailer was adopting this four-letter pay-off line as a mission statement, it said. In addition to the new pay-off line and ad campaign, Wal-Mart also started remodeling its store design and layout. As part of the re-branding initiative, a string of brand additions had been made to the product assortment of the retail chain and the retailer offered price cuts on 16,000 products.
Analysts felt that Wal-Mart always wanted to promote its image as a low-priced retailer, but was now trying to shift to 'emotional marketing'. Analysts wondered whether this re-branding initiative could remake Wal-Mart's image in the eyes of the consumers.
|
1] Colleen Bohen, "Wal-Mart Updates Tagline with Life-style Conscious Message," www.twice.com, September 14, 2007.
2] Sarah Mahoney, "Wal-Mart Introduces First New Tagline in 19 Years," www.publications.mediapost.com, September 13, 2007. |
