FlightTake Off Management
Wal-Martmade the right decision to drop the ‘Always low prices” taglinein the year 2007. Although the statement was specific, it was notpractical It was found to be unrealistic by the National AdvertisingReview Board who termed it as deceptive. The statement implied thatthe stores prices were the lowest in every location and on everyitem, which later proved not to be the case. The company also facednumerous critics and lawsuits from employees who complained about thepoor working conditions and exposure to health hazards. The workersalso complained about the low minimum wage that left most of thembelow the poverty line. The bad publicity led to the loss ofcustomers and a high employee turnover in the 2000’s (Creamer,2007).
Theadoption of the new tagline, ‘Savemoney. Live better`helped to reinforce the company sales. The statement was a bettermarketing position since it combined ‘savemoney’ – a service and ‘live better’- a benefit. First, it appealed to the deprived economic conditions in 2007caused by depression. Consequently, it helped in placing the store asmore customer friendly by providing lower prices and helping thecustomers live in hard economic times. Second, it enabled the companyto demonstrate the actual results of shopping at Wal-Mart thatfurther contributed towards convincing the consumers. Wal-Mart wasable to prove that it helped people to save on energy and increasedcustomers 401 (K)- an issue of saving that was much desired duringthe economic depression. Besides, the store was able to demonstratethe extent of saving in figure terms by stating that Wal-Mart savedthe average family about 3,100 $ per annum. The use of particularadverts and campaigns further reinforced the effectiveness of the newtagline (Creamer, 2007).
Third,the indication that the store was able to provide better pays for theemployees served to convince the customers that the better priceswere not provided at the expense of the workers. It indicated thatthe company was concerned about the better lives of the employees.Besides, the product mix of the store was made of 45% consumablesincluding food that further strengthened the ‘livebetter’proposition. Most customers found out that the company appealed towhat they needed as opposed to what they wanted (Tabuchi, 2016)
Wal-Martperformed very well during the depression, and there is need to planand create a strategy for the recovery period. The first key thing isfor the company to learn from its past mistakes. There is the need toreevaluate the sources of failures and try to avoid them. Forexample, the principal source of disappointment during the pastrecession emanated from inconsistency. The company’s valueproposition failed to match with the actual position on the ground(Roberts, n.d).
Thecompany proposed for lower prices but failed to reflect the same tothe customers and the employees. It is evident that the corporationcan beat competitors by portraying its value proposition.Consequently, the organization should ensure that it does deliver thevarious promises it makes to its stakeholders, failure to which,results into bad publicity and litigations that affect the perceptionof the company. The company should take in the welfare of the shopperby providing competitive prices and paying attention to the benefitsaccruing to the buyer. Besides, the company should enhance thetreatment of its employees (Gulati et al., 2010).
Second,the organization should improve its marketing strategy by showingcorporate responsibility. Corporate responsibility goes a long way increating loyal customers and enhancing their perception of theorganization. It is also imperative to improve the client experienceby changing the outlook of the stores as a strategy to win theconfidence of the clientele (Killing, 2009).
Third,the company should work towards differentiation. Differentiation ofproducts and services helps organizations to appeal to more customersand further reinforces their loyalty. It also aids the team to cutdown on costs by supplying only the appropriate products forparticular markets. Wal-Mart should identify unpopular products andsubstitute them with favorite products (Coolidge, 2015).
Coolidge,A. (2015, April 15). Wal-Mart’s strategy may squeeze P&G, othersuppliers. Cincinnati.Retrieved on 11 Nov, 2016 fromhttp://www.cincinnati.com/story/money/2015/04/11/walmarts-back-basics-strategy-may-squeeze-pg-suppliers/25632645/
Creamer,M. (2007, September 24). Who wrote Wal-Mart’s new tagline? Er,everyone. Advertisingage.Retrieved on 11 Nov, 2016 fromhttp://adage.com/article/news/wrote-wal-mart-s-tagline-er/120643/
Gulati,R.,Nohria, N. & Wohlgezogen, F.(2010). Roaring out of recession. HarvardBusiness Review.Retrieved on 11 Nov, 2016 fromhttps://hbr.org/2010/03/roaring-out-of-recession/
Killing,P. (2009). Post-recession toolbox: Is your business ready for theupswing? IMD.Retrieved fromhttps://www.imd.org/research/challenges/upload/TC089_09_POST_RECESSION_TOOLBOX.pdf
Roberts,N. (n.d). Success in a post-recession world. Empoweryour business. Retrieved on 11 Nov, 2016 fromhttps://empoweryourbusiness.co.nz/2013/11/12/success-in-a-post-recession-world/
Tabuchi,H. (2016, January 15). Wal-Mart to close 269 stores as retailersstruggle. TheNew York Times.Retrieved on 11 Nov, 2016 fromhttp://www.nytimes.com/2016/01/16/business/walmart-to-close-269-stores.html?_r=0