Marketing

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Introduction

Wal-Mart was started in 1962 when Sam Walton opened first discount store in Arkansas which he sold the same product with competitors but in lower price.  Wal-Mart strategy “everyday low price” become their foundation until today.

The company thrives on the three basic beliefs and values which are “Respect for the Individual” , “Service to Our Customers” and “Striving for Excellence”.

On the earlier, their marketing strategy is by word-of-mouth, positive PR, and aggressive store expansion. Wal-Mart introduce their well-known tagline which is “Always Low Prices. Always” in 1992 and do campaign on 1996. The campaign on 1996 is about price reduction campaign and the usage of yellow smiley face that contributes well to the company.

This company then having some issues about getting many lawsuit from the employees itself due to the poor work conditions, low payment and exposure to health hazards. Wal-Mart decided to take initiatives to overcome the issues they have by cut transportation costs and energy usage, construct new buildings from recycled materials and encourage customers to buy more green products.

In 2007, “Save Money. Live Better” marketing campaign and tagline were introduced which highlighted the company positive impact on decreased energy costs, increased 401(k) (retirement) savings, good employee health care coverage and increased family savings. This company helps family spending by saves $3 100 in year for an average family. Wal-Mart strategy of using new campaign and aggressive price cut always pays when they have incremental sales and improvement on their stock price.

Question 1

Evaluate Wal-Mart’s new marketing campaign and tagline. Did the company make the right decision to drop “Always Low Prices. Always.” As a tagline why or why not?

 “Save Money. Live Better.”

In 2007, Wal-Mart has announced a new slogan. Instead of “Always Low prices. Always” the new slogan will be “Save Money. Live Better.” “Save Money. Live Better.” combines both. “Save Money” is a feature. Meanwhile, “Live Better” is a benefit. So it should be more effective. And it is based on an important reality that Wal-Mart needs to emphasize when so many of its enemies are inclined to think that low prices translate into safety issues of their employees.

Wal-Mart help tens millions of families to have better life, by save average family about $3100 a year no matter where they shop. The television commercials highlighted the company’s positive impact on decreased energy costs, while increase 401(k) retirement saving, goods employees health care coverage, and increase family savings.

During the recession time wal-mart used the new campaign and aggressive price cuts to attract new customer. The new campaign of Wal-Mart plays a vital to promote their store and attract new new and competitive customer. The tagline “Always Low Price” the global retailer was seen by affluent consumers as cheap quality products, or low frills store organization as “The Wal-Mart for all” for all strata of consumers.