Wal-Mart's new mantra
Wal-Mart's chief marketing guru has settled on a new slogan/mission that calls back to their roots. In this coverage from the International Herald Tribune, John Fleming is interviewed about the redirection.
The article notes "Low prices, always" gave way last year to "Look beyond the basics," with less than terrific results. Now the internal corporate mantra and soon public strategy is "Saving people money so they live better lives."
From the article:
From poor mothers in Arkansas to upper-middle class dads in Connecticut — want the same thing from the chain: low prices. So what does this mean for Wal- Mart's upscale, designer-inspired ambitions, which promised to nudge shoppers who dwelled in the land of $5 shampoo into the territory of $31 trench coats by Mark Eisen?
It is still there, Fleming said, but it has been scaled back (stylish clothing line Metro 7 is in 700 stores, down from 1,500), and proceeding more judiciously, with an eye toward who shops at Wal-Mart's stores, rather than who executives would like to shop at its stores.
From now on, all product decisions will be directed toward three groups of consumers that, according to Wal- Mart, represent the majority of its business.
There are "price value shoppers," mostly suburban women who have a low income and want to stretch their money further; "brand aspirationals," often urban residents who also have a low income but are obsessed with brands; and "price-sensitive affluents," who have an above-average income but still hate over paying..
TK: Did Wal-Mart executives have a greater interest in organics than most of its customers? Probably so, but if Wal-Mart offers good values on organic produce to more affluent consumers who "hate overpaying," the category isn't going away.
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