3C, Slogans and Wal-Mart

June 25, 2008

Wal-Mart’s has been using and investing marketing dollars in their “Always low prices” slogan for over 19 years which resulted in a strong recognition in consumers — over 60% in a survey recognized the slogan as Wal-Mart’s. But in 2006-2007 Wal-Mart had some changes in their 3C namely:

Customer — Wal-Mart segmented its customers into “Price Value Shopper, Brand Aspirations, and Price-Sensitive Affluent” and just prior to Sept 2007, they also learned that they save the typical family 2500/yr

Competitors — Some articles say suggest they did not meet their expectations in the back to school season in 2006 and were beaten by competitors with more emotional advertising. Wal-Mart also faces constant facing pressure on their business practices about how they deliver low prices.

Capability — They do have low prices but in the past never addressed or messaged what are the implications of low prices for their customers

Therefore, September 2007 the decided to make a change to a slogan with more emotional appeal: “Save Money. Live Better.”

If this was your decision, would you have made the slogan change?


2 Responses to “3C, Slogans and Wal-Mart”

  1. Joseph Young Says:

    I think it was a good move by Wal-Mart to move towards a more emotional slogan. When Wal-Mart first started working on operational efficiencies, they were able to gain a competitive advantage over other companies. But nowadays, competitors such as Target have these same operational efficiencies. So that advantage to provide lower prices has eroded. This leaves them with two choices.

    Go into a price war. Bad idea as both companies (assuming duopoly) will end up loosing in the long run.

    Appeal to the customers emotionally. They have spent a long time building their brand as a low-price leader. They can use that relationship to show how their prices lead to a better quality of life. This is something that can’t be compare quantitatively, while being difficult to copy by competitors.

  2. radymarketingon Says:

    How else would you try to disconnect the low price = low quality inference? Target, among other things have worked hard to not position as low quality (using designer brands, for example), but rather as affordable cool. If Target succeeds at winning the young buyers, they have a strong long term advantage.

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