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Though it was operating worldwide through its 6200 stores, claiming to be one of the biggest global companies, its sales figures were declining alarmingly due to various factors. Wal-Mart had faced criticism for focusing too much on driving prices down at the expense of its suppliers and its employees.
The retailer was drawing staunch criticism from labor unions and anti-sprawl activists.
Its critics were quick to dismiss any move by Wal-Mart to promote a more favorable image of itself. However, the retailer's environmental initiatives had drawn support. Some marketing experts supported the retailer's re-branding drive saying that the simple communication would appeal to the American consumers.
At a time when the US economy was in the news for constant foreclosures and collapses of mortgage business which prompted the stock market to go haywire, the retail giant made a smart move in positioning itself as a retailer that helped people to save money and improve their financial health. However, others felt that the new advertising campaign left a lot to be desired. They felt that the new marketing communication would only reinforce the perception that Wal-Mart was a place where poor people shopped.
The campaign was squarely hinged on a price claim and did nothing to build the image of the brand or promote brand loyalty, they said. The debate notwithstanding, industry watchers were keeping a close watch on Wal-Mart's re-branding exercise and its impact, as the retail giant's customers were considered to be the true depiction of the American buying behavior.
Additional Readings & References
1. "Wal-Mart Looks to the Past for its Future," www.abcnews.go.com, September 12, 2007.
2. Jonathan Birchall, "Wal-Mart Adopts 'Emotional' Marketing Effort," www.msnbc.msn.com, September 13, 2007.
3. Sarah Mahoney, "Wal-Mart Introduces First New Tagline in 19 Years," www.publications.mediapost.com, September 13, 2007.
4. Colleen Bohen, "Wal-Mart Updates Tagline with Life-style Conscious Message," www.twice.com, September 14, 2007.
5. Barbara Lippert, "Wal-Mart as Savior?" www.adweek.com, September 17, 2007.
6. Bob Garfield, "Long-Awaited Wal-Mart Ads Are Obvious ... Yet Brilliant," www.adage.com, September 17, 2007.
Cases on Related Topics
1.
The Good and Bad of Wal-Mart's Culture
2.
Wal-Mart in 2005 Business Strategy Case Studies Collection
3.
Wal-Mart in 2004 : Creating a New Image
4.
Wal-Mart's Supply Chain Management Practices
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