Wal-Mart Strives to Improve Lives

Wal-Mart has finally figured it out. Even though it follows a low-cost strategy, it shouldn’t be all about saving money. They have realized that their strategy also needs to be about improving the lives of their customers. With this realization, they have launched a new marketing campaign that is intended to make customers feel better about shopping at Wal-Mart. This new campaign called “Save Money, Live Better,” focuses on customer experiences rather than the older campaign that only concentrated on having the lowest prices. Wal-Mart came in to the market and completely dominated the low-price retail stores. Now, they are hoping to keep low prices while providing more variety and better experiences for their customers. In this article, I will be discussing what Wal-Mart is doing differently now to keep its customers satisfied.

In 2006, Wal-Mart made a mistake when it decided to try and go upscale without first considering its customers. Their main competitor Target had huge success with differentiating itself from the discount retailer by providing much more high fashion products that were still very reasonably priced. When Wal-Mart decided to try this strategy, it failed. They didn’t realize who their core customers were or what they really wanted. Wal-Mart customers are there to get a great deal. In an article from the International Herald Tribune titled “Wal-Mart’s New Strategy Goes Back to Basics: Saving Money,” the author expresses that Wal-Mart’s diverse customers all want the same thing: low prices, just like they always have. As a marketing major, I know the whole idea behind marketing is to discover and satisfy consumer’s needs. Wal-Mart’s failed strategy is a clear example of why finding out what your customers want is essential before ever changing your core strategies.

Once Wal-Mart executives saw that they had chosen the wrong strategy, they realized that they needed to get back to its core values. Wal-Mart needs to be about saving money for the customers to make their lives better. They have scaled back the higher priced and fashionable items and gotten back down to what is really important to the Wal-Mart customer: low prices on great brands and products. Personally, I agree with this newer strategy and it makes me feel better about shopping at Wal-Mart. The new commercials they have been running convey the feeling that Wal-Mart cares about its customers rather than just advertising their everyday low prices. The commercials show normal families in their everyday lives and tells a story about how Wal-Mart helps to make their life better. According to the SEM’s we discussed in class, this new strategy really conveys good feelings that make you think that Wal-Mart cares for its customers.

I have decided to take a closer look at Wal-Mart as my individual report because it is the most powerful company in the world today. It has a huge impact on our society and I am also interested in learning more about their newest goal to become more environmentally friendly. Wal-Mart is hoping to turn around the bad reputation is has and wants to become a company that is seen in a good light that truly cares about its customers. I think they are on the right track. My paper will go beyond the price cutting strategies of Wal-Mart into how it can use its power to better the world.

Source:
http://www.iht.com/articles/2007/03/01/business/walmart.php