Walmart recently admitted that a merchandising strategy it implemented in 2008 cost it market share, revenue and customers. As cited in a Reuters article, that decision to eliminate products that weren’t top sellers across the United States meant items that are a necessity in cold weather climates, like snow blowers, but aren’t needed in a broad swath of southern states, were not to be found in Buffalo, Cleveland and Minneapolis. Frustrated consumers went elsewhere.
To win customers back, Walmart returned to its founding principles and added approximately 8,500 items to store shelves, piling merchandise covering multiple price points to the ceiling.
Walmart also acknowledged that they de-emphasized the low price guarantee in its messaging, further eroding customer confidence that the big box retailer had everything they needed at the best possible price.
To address this perception problem, a new ad campaign developed by The Martin Agency pronounces their client’s refocus on carrying the items people need at the lowest advertised price. Each commercial opens with “one of these items doesn’t belong here” flowing down the checkout belt followed by a scene where all items come into play:
I love it. Curiosity reels you in as you observe the products on the checkout belt. “How do these all go together?” you ask yourself. Talk about captivating your audience. The slice of life vignette is funny and engaging. The beauty of this creative approach is that it’s easily replicated:
Walmart’s YouTube channel features seven commercials in this vein. They’re all cute and some are laugh-out-loud funny.
Perhaps worried that the announcer’s message at the end of these commercials doesn’t adequately accentuate the price match guarantee, The Martin Group produced this ad:
Hmmm, this commercial deserves a little extra attention, probably because I find it so annoying. I think everyone recalls that Walmart promises to match any advertised price. Everyone except the cashier apparently. Oh, and the customer, who displays genuine surprise when told Walmart will, in fact, match the competitor’s price. Really?
All you have to do is ask. Thank goodness you don’t have to bring in the competitor’s ad anymore. Frankly, though, it troubles me that I have to ask. Why not have my back and proactively match a competitor’s lower price? That’s true customer service and that’s how you actualize your low price guarantee and garner customer loyalty. When an item is scanned, Walmart’s system should automatically adjust for a competitor’s lower price, alert the cashier, and print the saving on the receipt. The cashier then tells me, the customer, that I just saved money via the Walmart low price match guarantee.
It’s a mystery to me why companies ever abandon their key differentiators. Go with what got you there is a champion’s mantra and Walmart is well served to remember their fundaments. Fortunately, The Martin Group has developed an attractive and clever ad campaign with legs that will likely bring back many of the people of Walmart who left them.
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