When we teach marketing, our adult students love to talk about Wal-Mart. For the most part, these students decry the retail giant for unfair labor practices and stocking too many foreign products. Of course, these same students faithfully shop Wal-Mart on a regular basis. We steer the discussion to distribution to explain why Wal-Mart is the most cost-efficient merchant in the history of retailing. We also explain to students that same store sales are flat, and that Wal-Mart is changing their product and audience strategy. But before these new strategies can take hold, Wal-Mart continues the Public Relations campaign to bolster their tarnish image. Just last month, for example, Wal-
Mart tested two television ads claiming title as a good employer and good corporate citizen. Wal-Mart claimed that the average family saved $ 2300 per year shopping at their stores. Unfortunately, the ads resulted in complaints to the state attorneys general of test markets Arizona and Nebraska, claiming the ads were fraudulent and deceptive.
Marketing Blurb believes Wal-Mart can morph somewhat and survive. We encourage them to accelerate the process. PS—we do not shop at Wal-Mart. This is not a form of protest, nor a desire to pay more at other retailers. We do not shop at Wal-Mart because the stores are overstocked, and we believe a merchandise display might easily collapse and kill us.
Photo Credit: CBS News
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