Walmart - Brand Audit

Save Money, Live Better

WALMART BRAND AUDIT JULIE-AREND JAMES-BROOKS SUPRIYA-MURTHY

Audit Methodology History  Brand Positioning   Current Branding Activities Marketing Mix (4 Ps) Competition Brand Strengths & Weaknesses Brand Exploratory Recommendations

Brand Positioning ØMarket Analysis ØTarget Markets ØBrand 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

Market Position in 2009 #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)

Evolving Target Market Value shopper  Values

low cost above all else  Mostly female and suburban/rural Price-sensitive brand enthusiast  Wants to live on $50K and look like they make $75K  Suburban/urban

Evolving Target Market Hispanics African Americans Baby Boomers / Empty Nesters Price-Sensitive Affluents  Mostly college-educated white males  “Why pay more for the same thing?” Affluents  $500

store

bottles of wine in the Plano, TX

Brand Elements Sam Walton An evolving logo  The “spark” Name Change

1964

The Blue Vests

1981

Sponsorships Follow them on Twitter? Slogans  “We sell for less.”  “Always low prices, Always.”  “Save Money, Live Better.”

1992

2008

Current Brand Positioning 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” 

Strategic Brand Alliances “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

Market Positioning & Competitor Analysis ØMarketing Ps ØCompetition Positioning

Marketing Ps Product Smart choice in Categories – Electronics, Apparel, Home Décor, Pharmacy, Grocery Well known product brands – Tide, Coca-Cola Private Labels - Great Value, Equate, Ol’Roy Dog Food, HomeTrends Price Lowest price/ price matching Private labels – 40% of sales Saves the average American family $2,500/ year

Marketing Ps Place 6,000+ stores in 15 countries 3,500+ stores in USA Promotion TV, Print & Internet Advertising Walmart Wellness Center program Infant & Child Safety Event, Code Adam Missing Children’s Network Soundcheck - Walmart online concerts New environmentally friendly stores

Competition Positioning

Points of Parity & Difference

Brand Strengths 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 employees Access to huge marketing and promotion dollars e.g. charities such as Children’s Miracle Network

Brand Weaknesses Limited world breadth Negative 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 Exploratory & Recommendations ØConsumer Perceptions ØBrand Equity Pyramid ØImproving/Leveraging Brand Equity

Consumer Perceptions “ ..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’”

Positive Brand Associations Saves Time, Money and Stress Everyday Low Prices Zero Time Shopping Robust Supply Chain Smart Choice Discount s Variet y Valu e

Negative Brand Associations Chea p Basic Low Quality Outsourcin g Old and Outdated Employee Unfriendly Just Value – No Values Poor Customer Service Dirty and Disorganized

Secondary Brand Associations

Brand Equity – Current & Desired RESONAN •BiggestCE employer + •Supports Causes + •Loyalty , Engagement & Attachment - - -

JUDGMEN TS + •Live Better

üEngender Loyalty üIncrease Attachment üAmp up Community

FEELINGS

•Big Box Monster •Low Price Paradox – •Happy Families + •Brand Credibility + •Mass appeal + & •Brands: Respect & Accomplishment + +

IMAGERY

PERFORMANCE

•Commercial Success + •Convenience & Access + •Everyday Low Prices, Price •Store Atmosphere + & Matching, No Hassle Returns + + •Basic & No Frills + & + •Walmart is for everyone + •Meets Variety of Shopping Needs +

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

üDrive Quality Positioning üIncrease Engagement

üImprove Service üRevamp Image

üMove up from Salience & Performance Dimensions

Brand Equity Revamp  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

Improving/Leveraging Brand Equity  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 brands  Reduce “pay-to-play” politics, Increase lobbying for causes

Questions

Supplemental Slides

The Onion 11/30/2005

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