[et_pb_section admin_label=”section”][et_pb_row admin_label=”row”][et_pb_column type=”4_4″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n
If you are going to write something about retail marketing you can\u2019t help but discuss Wal-Mart . So the recent announcement that Mr. Smiley Face\u2013 who starred in Wal-Mart price reduction campaign for so many years\u2013 was being put out to pasture is more than just a simple decision to change ad themes.<\/p>\n
One of Wal-Mart\u2019s strengths (and there are many) has long been their market-leading perception as the lowest -priced retailer. You name the category, ask a customer and Wal-Mart always comes out first as the store with the lowest prices. That said, and price always being the first criteria for making a store selection, this was certainly one of the reasons for the chain\u2019s growth to becoming the largest company in the world. I\u2019ve always maintained that a good price perception merely gets you on the competitive playing field in retail, but Wal-Mart parlayed their price perception in becoming king of the hill on that playing field. However, it wasn\u2019t just the low prices that has made Wal-Mart the favorite of more consumers than any other store. Their ongoing campaign with real people\u2014customers and associates talking positively (and believably) while building the trust and respect through their many good works with Children\u2019s Miracle Network, Buddy Walks, etc. \u2013 was more than just low prices always. It was genius in building customer trust and loyalty while driving prices lower for all consumers. Of course, this was to the dismay of many small retailers and suppliers who couldn\u2019t compete. But it was and is their strength far and above the low prices that old smiley kept promoting.<\/p>\n
So sales aren\u2019t growing at the double digit rates of the past, now everyone falls in love with Target (even though they do 20% of Wal-Mart\u2019s volume), and the company decides that the marketing that put them way out in front must change and bring in the competitor\u2019s thinking (Target), packaged goods marketing strategy(FritoLay) and automotive insights(Chrysler). They fire the agencies that worked so hard to bring the success. Now, let\u2019s copy the competitors in getting celebrities who nobody believes shop at the store. And while we\u2019re at it, let\u2019s ex-communicate old smiley face.<\/p>\n
It may work. But if all you do is copy the competition and resort to all the great marketing techniques that have made US automotive retailing lag behind the other countries,is that forward thinking? If you forget the key strengths that makes your check outs far more populated than the darlings of the retail press, is that being a leader? I\u2019m not sure there will be any smiley faces in the boardroom in Bentonville or in the portfolios of investors.<\/p>\n
What do you think?<\/p>\n
Ken<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"
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