Save Money, Live Better

JULIE-ARENDJAMES-BROOKSSUPRIYA-MURTHY

WALMART BRAND AUDIT

History Brand Positioning  Current Branding ActivitiesMarketing Mix (4 Ps)Competition Brand Strengths & WeaknessesBrand ExploratoryRecommendations

Audit Methodology

Brand Positioning

Market AnalysisTarget MarketsBrand Elements

It all started back in Arkansas . . .

• Founded in 1962 by Sam Walton

• By 1977, W-M was staple of rural southern life

• By 1977, W-M’s share price had increased 30 fold

• Founder Walton’s actions set the tone for W-M’s brand

#1 in retail with annual revenues exceeding $400 billion

That’s 5.7 times more than the next largest retailer, Home Depot . . .

. . . and 6.2 times more than the next largest clear competitor, Target . . .

. . . and 8.7 times more than Sears Holding Company (Sears, K-Mart, et al)

Market Position in 2009

Value shopperValues low cost above all elseMostly female and suburban/rural

Price-sensitive brand enthusiastWants to live on $50K and look like

they make $75KSuburban/urban

Evolving Target Market

HispanicsAfrican AmericansBaby Boomers / Empty NestersPrice-Sensitive Affluents

Mostly college-educated white males “Why pay more for the same thing?”

Affluents$500 bottles of wine in the Plano, TX

store

Evolving Target Market

Sam WaltonAn evolving logo

The “spark”Name ChangeThe Blue VestsSponsorshipsFollow them on Twitter?Slogans

“We sell for less.” “Always low prices, Always.” “Save Money, Live Better.”

1964

1981

1992

2008

Brand Elements

Low cost “Save money”

Quality “Live better”

Smart “Why pay more for the same thing?”

Eco-Friendly “for both the future of our business and the

future of our world” People Friendly

“At Wal-Mart, it all starts with our people” “All-American”

“committed to creating opportunities so people can live better”

Current Brand Positioning

“The brands you love cost less at Walmart.”

• Stanley Tools• Compaq• McDonalds• Subway• Wrangler• Hanes• Woodforest

National Bank

Strategic Brand Alliances

FLW Outdoors• “Take a Kid Fishing”

Event• Cosponsor of the

Walmart Bass Fishing League, Walmart FLW Walleye Tour, Walmart FLW Series

• FLW Fantasy Fishing

Strategic Brand Alliances

Market Positioning & Competitor Analysis

Marketing PsCompetition PositioningPOPs and PODs

ProductSmart choice in Categories – Electronics,

Apparel, Home Décor, Pharmacy, GroceryWell known product brands – Tide, Coca-ColaPrivate Labels - Great Value, Equate, Ol’Roy Dog

Food, HomeTrendsPriceLowest price/ price matchingPrivate labels – 40% of salesSaves the average American family $2,500/ year

Marketing Ps

Place6,000+ stores in 15 countries3,500+ stores in USAPromotionTV, Print & Internet AdvertisingWalmart Wellness Center programInfant & Child Safety Event, Code Adam Missing Children’s NetworkSoundcheck - Walmart online concertsNew environmentally friendly stores

Marketing Ps

Competition Positioning

Target – High end shopping experience, Elitist Positioning• Caters to Urban and Stylish markets

Kmart - Discount Retailer, Generic commodity type positioning

• No clear target market segmentation• Straddles high design as well as low prices

Points of Parity & Difference

POPs• Offer lower cost products

• Offer wide range of product categories in one location (convenience store)

• Specialty stores, Grocery stores not considered competition

• 24 hour supercenters (Walmart, Kmart)

PODs• No slotting fees• Interest free financing• Additional in-store

services• Paired with Sam’s Club

volume discounter• Offers largest selection of

branded items• Offers wider range of

product categories (hunting gear/guns, vehicle maintenance supplies, fitness equipment)

• Most stores offer full grocery line

• Portfolio includes Walmart Realty, Walmart Vacations and two transport logistics groups

Offers consumers product value, convenience and huge selection

World-wide force and leverage – suppliers must comply with Walmart demands

Outstanding IT capabilities and utilization, efficient supply chain management

High investment in employeesAccess to huge marketing and promotion

dollars e.g. charities such as Children’s Miracle Network

Brand Strengths

Limited world breadthNegative customer associations with the

Walmart experience Long lines Undesirable customers Little salesperson support for high involvement

purchases Industrial “no – frills” look and feel of stores

Puts Mom & Pop stores out of business

Brand Weaknesses

Brand Exploratory & Recommendations

Consumer PerceptionsBrand Equity PyramidImproving/Leveraging Brand Equity

“ ..most value. Cheapest price for a quality product at Walmart”

“..Food Stamps, Crowds, Carts in Parking Lot”“..stores are picked over and destroyed”“…I’m not going to wear a Walmart shirt or

anything”“…I don’t buy at Walmart – home

improvement items, clothing, shoes, food..”“ It’s a one – stop shop”“…‘Better’ but far from ‘Best’”

Consumer Perceptions

Everyday Low Prices

Value

Discounts

Saves Time, Money and Stress

Smart Choice

Zero Time Shopping

Variety

Robust Supply Chain

Positive Brand Associations

Low Quality

Outsourcing

Employee Unfriendly

Cheap

Old and Outdated

Basic

Just Value – No Values

Poor Customer ServiceDirty and Disorganized

Negative Brand Associations

Alliances & PartnershipsNational Urban League, National Association of

Women Business Owners, AARP, El Hispano Newspaper, National Federation of the Blind

Media & NetworksCountry Music, Pop Culture, Twitter,

wakeupwalmart.com, walmartwatch.com

Suppliers & ChannelsBig Brands, Minority & Women Owned

Businesses

Events & CausesWalmart Foundation (grants, outreach &

support), Diversity Scholarships

Industry & Business Analysts“The Walmart Effect”, “The Walmart Way”,

“United States of Walmart”

Private Interest GroupsLabor Unions , Small businesses,

Employees & CustomersDead Peasant Insurance Policies, Wage &

Hour violations

Secondary Brand Associations

SALIENCE

PERFORMANCE IMAGERY

JUDGMENTS

FEELINGS

RESONANCE

•Convenience & Access +•Store Atmosphere + & - •Basic & No Frills + & -•Walmart is for everyone +

•Retail one stop shop for lowest prices + •Savings for the entire family +•High Awareness & Recall +

•Big Box Monster -•Happy Families +•Mass appeal + & -•Brands: Respect &Accomplishment + +

•Commercial Success + •Everyday Low Prices, Price Matching, No Hassle Returns + + +•Meets Variety of Shopping Needs + •Poor Service -

Brand Equity – Current & Desired

Improve ServiceRevamp Image

•Live Better + •Low Price Paradox –•Brand Credibility +

•Biggest employer +•Supports Causes + •Loyalty , Engagement & Attachment - - -

Move up from Salience & PerformanceDimensions

Drive Quality PositioningIncrease Engagement

Engender LoyaltyIncrease AttachmentAmp up Community outreach

Moving up the retail caste system – logo and slogan change, prime time TV endorsements, multicultural marketing

Increasing & Improving Compliance Proactive Sustainability Initiatives – green supply chain,

solar/wind powered super centers, green packaging & labeling

Renewed Employee Focus – Career development, ‘Wal-Marting Across America’, Expanded health insurance coverage

Public Relations initiatives – Walmart Foundation, “Why Wal-Mart Works & Why That Drives Some People Crazy” (documentary)

Internet Presence – Twitter, Walmartstores.com – portal establishing Walmart’s policies on Health & Wellness, Careers, Community & Giving, Diversity, Sustainability

Brand Equity Revamp

Build Resonance – Shopper (loyalty) rewards programs, “Outsourcing = Outreach”, Community giving – participate & publicize (TV, Print campaigns), Buy Local

Customer Engagement – Interactive ads, Design your own ad, Slogan and Store theme contests, In store give-aways, Free samples

Employee friendly image – Increase awareness on workplace education efforts, Child-care centers in-store, Employee break-rooms, “Compliance” campaigns

Image makeover – Organize store layout, manage shopping carts, In-store MBWA, “Are you finding everything you need?”

Quality positioning of in-house & lesser known brandsReduce “pay-to-play” politics, Increase lobbying for causes

Improving/Leveraging Brand Equity

Questions

Supplemental Slides

The Onion11/30/2005

There’s a full-size McDonalds inside despite the miniature sign.