Effective in branding itself as the low cost leader, Wal-Mart’s efforts to attract purchases of higher end merchandise have not met expectations according to a leaked report to The New York Times. Brand perceptions take years, if not decades, to craft and the report showcased a disconnect with Wal-Mart’s approach to reach new audiences. A key takeaway is that consumers are looking to the overall values of what the brand represents – not just “lowest cost”.
Special call-outs were made to local firms Target, BestBuy and Kohls on how their differentiating brand strategies have been successful in reaching new consumers.
All was not dire for the Bentonville crowd, they do take a leadership role in what is termed the “zero-time”shopper:
That [Wal-Mart's] environment is conducive to “zero-time” shopping, in which a customer spends just a few seconds thinking about a product, like a new bottle of dishwashing soap. “But people don’t buy electronics, home décor and apparel in zero time,” the report says.
Of course, I have to feature my favorite loyalty program to address zero time shopping. It’s all about the brand perception at the point of purchase while consumers are making the on-shelf decision.