April 17, 2005

The Hartman Group

The Hartman Group has several interesting essays about Wal-Mart.

where wal-mart can't dance: changing the rules of the game

As soon as it comes into town, you can't win if you're going to play by the Wal-Mart rules. It's a formula of utility.

But if Wal-Mart scores high on the utility index, I'd bet its score on the emotional index is about as low as you can go. People go there because it's practical, not because they love to go there, in spite of what their ads may try to show. It's about as soulless a place as you can find on the national retail scene.

watching wal-mart

You see, it's not so much that consumers don't like Wal-Mart as much as it is just not a salient part of their everyday life. For many, if not most, a visit to Wal-Mart does little more than a visit to the gas station.

All of this raises the question, how can we collectively be so obsessed with a contemporary institution that appears only modestly relevant to our individual, everyday lives?

the retailer as brand

The retail promise may be a specific shopping attribute. So, the Wal-Mart brand promise is lowest prices everyday. The Target brand promise is good design at a low price. The Nordstrom brand promise is exceptional customer service. Each of these organizations have all successfully converted a physical store into a branded retail environment that meets the lifestyle needs of their shoppers on trust and value. These store environments provide a forum for interaction and community that further define the essence of the store brand and give it a personality. It is these elements of trust, value, interaction and personality that appeal to consumers and form a strong retail brand.

Would consumers be confused at all if Wal-Mart started saying they were "a brand you can trust"? Unlikely, as consumers probably think this already, it just hasn't been put into words. This is similar to the Whole Foods Market model, which communicates its brand every day: You (the consumer) don't need to know about all the manufacturer brands and ingredients that go into the products because we (WFM) have done the work for you. Just come into our stores and know that you can "trust" all of the products here because you can trust us (WFM).

Posted by Kevin on April, 17 2005 at 02:27 PM