Wednesday, May 30, 2007

Wal-Mart's mixed marketing message

The other day I wondered about Dell's mixed marketing message. Now it's Wal-Mart's turn.

Traditionally the low price leader, Wal-Mart has been trying to swim upstream -- I mean, move upscale. They want to hold on to their marketing base while attracting upscale consumers shopping for higher-quality goods.

But a confidential report based on interviews with scores of consumers concludes that being the cheapest store in town -- gasp! -- somehow conflicts with what upscale consumers are looking for. The chain's low prices suggest they sell low quality goods, which turns off upscale consumers.

... (T)he report says the chain “is not seen as a smart choice” for clothing, home décor, electronics, prescriptions and groceries, categories the retailer has identified as priorities as it tries to turn around its slipping store sales, a decline likely to be emphasized Friday during Wal-Mart’s shareholder meeting. via NY Times

“The Wal-Mart brand,” says the report, “was not built to inspire people while they shop, hold their hand while they make a high-risk decision or show them how to pull things together.”

On the other hand, Target, with its designer-inspired clothing and furniture, is perceived as the 'new and improved,' while Wal-Mart often feels like the 'old and outdated.'

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