Save Money, Live

Better

WALMART BRAND AUDIT

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

 “Why pay more for the same thing?”

Affluents
 $500 bottles of wine in the Plano, TX
store
Brand Elements
Sam Walton
An evolving logo 1964
 The “spark”

Name Change
The Blue Vests 1981

Sponsorships
Follow them on Twitter?
1992
Slogans
 “We sell for less.”

 “Always low prices, Always.”

 “Save Money, Live Better.” 2008

 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 üEngender Loyalty
üIncrease
RESONAN Attachment
•BiggestCE
employer + üAmp up
•Supports Causes + Community
•Loyalty , Engagement
& Attachment - - -
üDrive Quality
JUDGMEN FEELINGS Positioning
TS +
•Live Better •Big Box Monster - üIncrease
•Low Price Paradox – •Happy Families + Engagement
•Brand Credibility + •Mass appeal + & -
•Brands: Respect &
Accomplishment + +
PERFORMANCE IMAGERY üImprove Service
üRevamp Image
•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 + üMove up from
SALIENCE Salience &
•Retail one stop shop for lowest prices + Performance
•Savings for the entire family + Dimensions
•High Awareness & Recall +
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.