Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Thursday, May 31, 2007

We have met the enemy and

Wal-Mart's number one challenge is its reputation, says a brutally frank document prepared by Wal-Mart's former ad agency. Wakeup Wal-Mart published the leaked document and had this press release about the report.

WASHINGTON, May 30 /PRNewswire-USNewswire/ -- WakeUpWalMart.com,America's campaign to change Wal-Mart, released a stunning new internal document prepared for Wal-Mart by its old advertising agency, GSD&M. The document, entitled "Wal-Mart Positioning Report," states, in often brutal detail, the serious public image challenges Wal-Mart faces. According to GSD&M, and described in a section entitled "Know thy Enemy," Wal-Mart's reputation problem is the #1 challenge facing the company. The 55-page GSD&M report, which was based on a series of focus groups and interviews, states, "Wal-Mart is a highly politicized brand," and its public image is directly threatened by the "corporate brand that is portrayed in the media as a bad corporate citizen who doesn't treat employees well and isn't acting as a good citizen of the planet. That brand is increasingly becoming a force that is casting doubts on the consumer brand that people know and love. If it continues unchecked, we may see avery different categorization of Wal-Mart than we saw in the preceding exercise." Among other highly significant conclusions in the "Know Thy Enemy"section, where GSD&M identifies Wal-Mart's reputation as its #1 business challenge, are (a) Wal-Mart's consumer ratings as a "company I trust andrespect" have steadily declined over the last two years, and (b) Shopping at Wal-Mart used to mean saving money and being patriotic, being a member of the community, being a part of the "American Dream." Today, it just means saving money. All value - no values.


TK: Well, the former ad agency didn't pull any punches - I wonder if that is why they are the former ad agency. With more and more media buzz about how shabbily Wal-Mart treats employees and how they pull vast amounts of goods from China, the idea of Wal-Mart representing American "values" has taken a hit over the past 15 years. We can plainly see that Wal-Mart is trying to become a better corporate citizen, particularly in relation to environmental concerns. Can it again represent "value" and "values" to the middle and upper middle class?

The first `link to the document goes to the Fresh Produce Discussion Group. The paper can also be found at www.wakeupwalmart.com.



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