Jan 23 2008
Wal*Mart v. Target
I’ve meant to comment on this for a while.
I’m suprised that Wal*Mart has taken this long to realize the importance of differentiation in branding. For years, now, Target has executed a successful campaign based on a very simply brand promise:
We’re not Wal*Mart
Target is a cleaner, friendly store that appeals to more upscale shopper. When Wal*Mart started to lose business to Target, what did they say?
Let’s be more like Target
Big mistake. Wal*Mart is not Target and never will be. And it shouldn’t be. Target will never beat Wal*Mart in the end, because nobody can do what Wal*Mart can do: offer reasonable quality merchandise at rock-bottom prices. You can’t respond to “We’re not Wal*Mart” with “We’re like Target” and expect anyone to believe you. Even shoppers who prefer Target and tell their friends they don’t shop at Wal*Mart will occasionally slip in to nab the lowest price.
When Wal*Mart sticks with the original mission (low prices), it will beat the competition. Always.
Agree. Wal-Mart is $4.88 plastic. Always has been. People may shop at Target, but I bet when they want cheaper Rubbermaid, they’re heading to Wal-Mart.
;-p