Marketing communication strategies and applications

Marketing Communications: Wal-Mart vs. Target

It's an ill wind that blows nobody good." As the American economy continues to contract, and seems increasingly likely to be propelled into a deep recession, at least a few brands are profiting from this downturn. Discount marketers such as Wal-Mart and Target are seeing higher rates of foot traffic, as former Macy's and Circuit City consumers turn to these retailers to buy clothing, electronics, and other basic household items.

However, the branding of these two discount retailers could not be more different. Wal-Mart stresses its homespun image. One recent advertisement for Wal-Mart depicted a self-proclaimed stay-at-home mom "waking up" after dreaming of leisure, and detailing all of the bargains she could find at Wal-Mart to help her get everything done and lessen the pressures of her busy life. The implication was a defense of the stay-at-home mom lifestyle which presumably was one filled with the financial sacrifices inherent in living in a single-income household. Since fewer and fewer families will have this luxury, the advertisement no longer airs, but it is instructive in noting the demographic and region of the country Wal-Mart is 'pitching' its product towards.

Wal-Mart 'cheers,' the company's infamous distain for unions and openly dictatorial attitudes about the enforced cheerfulness of its 'greeters' are all obviously designed to appeal to what might have once been called a 'red' demographic in the United States. Significantly one of the few areas of the United States that Wal-Mart has not strived to conquer is New York City. Wal-Mart's layout of a store is even targeted to consumers who make infrequent trips to stores to do all of their shopping for everything from pillows to CDs -- to healthcare, as Wal-Mart also boasts discount healthcare clinics for routine visits to the doctor for flu shots and throat cultures. This shopping pattern is entirely at odds with urbanites living on the East Coast.

However, Target, although a discount marketer, does not merely craft itself as a company that sells the products at the lowest prices, all of the time -- indeed its products are often very slightly higher-priced than that of Wal-Mart. Instead, it cultivates an edgy consumer image, and has asked cutting-edge designers to create exclusive clothing, makeup, and chocolate lines for the retailer that are not priced at extreme bargain rates, but have a reputation for quality at moderate prices. Bright colors, clean stores, and well-lit aisles are all characteristic of Target. Target is not simply an inexpensive place to shop, but a fun place to shop. Like Wal-Mart Target does focus on middle-income consumers with families. But its image also attracts higher-end consumers who wish to find bargains on clothing basics, as well as household items. Its image is of uniqueness and personalization, rather than simply of providing low-cost items.

If the economy continues to worsen, more and more of those high-income consumers looking to save a few pennies are likely to go fleeing to Target. Target has not had a chance to fully respond to the swift and seismic shocks that have rocked the world economy, but over the past five years as Wal-Mart has consistently advertised its offering "the lowest prices, all of the time," Target has expanded its range of designer goods. Whether Target's lower-income consumers will flee to Wal-Mart to save a few pennies remains an open question.