Wal-Mart Stores, Inc. (NYSE:WMT), which continues to wrestle with the notion of re-inventing itself under former Target Corp. (NYSE:TGT) marketing chief John Fleming, has given the old heave-ho to Omnicom, one of the world's largest ad agencies and a longtime Wal-Mart partner. As Wal-Mart continues to try and brand itself as a low-cost good provider with a trendy image -- I'll believe it when I see it -- the world's largest retailer will be dumping a division of Omnicom, much like it did with Bernstein-Rein Co. from Chicago earlier this summer -- and after 32 years together.What is Wal-Mart trying to do? Make radical moves in its marketing strategy, which are no doubt spearheaded by Fleming. Fleming re-invigorated Target and imbued that retailer with what I consider to be an impeccable sense of style and savvy marketing that filled in a niche that Wal-Mart did little to attract. Wal Mart wants to go for those shoppers who still prefer shopping in a discount environment but want an upscale overall experience.
Ever been into a Target? The aisles are wider, the colors (mostly red) are more vibrant, the stores much (much) cleaner than any Wal-Mart I've seen and the selection of merchandise -- higher-margin merchandise among the standard discount fare -- is not there by accident. Can Wal-Mart try and duplicate this experience by changing ad agencies? Or will ad agencies just re-brand the image of the retailer and create campaigns for different media (television, Internet, newspaper)? The proof is in the pudding -- the stores themselves are the brand, not the image that can become a false portrayal with "creative" marketing.
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Reader Comments (Page 1 of 1)
10-31-2006 @ 7:58PM
Bill said...
Wal-Mart's marketing change has been spearheaded by John Fleming who became chief marketing officer in 2005. Fleming, who had previously headed up walmart.com, has been shaking up the discounter's marketing strategy in an effort to get its well-heeled shoppers to buy more merchandise beyond food.
10-28-2006 @ 8:47PM
Anne Simons said...
Interesting post, Brian. There's lots of talk about reinvention, but precious few examples of any companies that have successfully accomplished it. Up until recently I wasn't so sure that Wal-Mart would be successful, but I've been in some new and remodeled stores in the Atlanta Metro area that are beautiful, brand new signage, employees wearing polos and khakis instead of those smocks and smiley buttons and huge aisles. But what convinced me the transformation is more than skin deep is the range of quality brands, as well as private labels that are much better made and fit better than the cheap brands of the past. I think they're serious about rebranding themselves and will be successful at it.
10-28-2006 @ 12:13PM
Brian said...
Let's hope they do continue the re-invention. When traveling recently, I did visit some local stores and did see huge differences. In my home area, though, nothing has changed -- yet. Have to give them time.
10-28-2006 @ 5:33PM
bl said...
I shop at Walmart & Target. I'm a shareholder of Walmart. I hate Targets return policy and upper management. Rude and does not carry about the customer. Walmart just needs to up date their commercials. Clean and modernize their stores. Better cashiers. and the people at the door is a waste. Their customer sevice counter also needs up dating. Walmart has to stop speaking spanish over the speakers. More stock on shelves. Most important walmart needs to have better locations. They are too far out where as Target is almost on every corner.
10-28-2006 @ 8:32PM
John Garrahy said...
Agreed that Target stores are clean and the aisles are wider. But, rest assured the stores are not crowded. Shopped at a Target store in NE Florida late on a Friday afternoon, October 26th. 32 cash registers across the front end, six open - three on either end of the store. Store not crowded, plenty of parking spaces available.
11-16-2006 @ 6:12AM
Al & Gloria Benson said...
Our Wall Mart was built in o5 and was called a test store and it was beautiful and we bragged about the store to everyone. Clean,everything beautiful and good quality, shelves full, flowers beautiful and everything we needed was there. The groceries were fresh and we did our shopping in one store and what a treat for two retirees. However we don't know what has happened in the last 3 weeks as everything is so different, our shelves are empty, the store isn't as clean, the flowers for the garden are old and we use to buy all our garden flowers at Wal Mart. Frozen food section are not full. We have one check out lady that you should model all check out people after as she has her mind on you when doing your checking and is really effecient. Our test store is sad now and we use to be so proud. We have faith that you can bring our Wal Mart back and we won't be leaving you in your down times. The name brands like faded glory,george,black & decker, dickies and we could go on and so keep up the good brands and add some more good brands. Please get our beautiful flowers back.