Law and Management

Maintaining a brand reputation in a very competitive market like the US market can be a challenge for corporations. A brand reputation carries almost all the corporate reputation and is a reflection of the ethics, business practices, corporate vision and helps to build a very solid loyalty of customers along with building what could be a very lucrative brand equity.

Building brand equity takes years of hard work by the corporation in improving, presenting, building and selling goods and services in the consumer market.

Reputation I will add, is defiantly in the top three most important goals of any corporation when it is ready to introduce its brand in the market. To better understand this concept, we will explore a clear example of the biggest retailer in the world and see how effective they have been in introducing its brand in the US consumer market.

The Wal-Mart Brand and Company

Wal-Mart was founded by Sam Walton, a local businessman born in Oklahoma, who started Wal-Mart from a $20,000 loan from his father-in-law to become the owner of the biggest retailer in the world.

In his book, “Made in America”, Sam Walton talks about opening the first true Wal-Mart on July 2, 1962 in Rogers, Arkansas.

Since 1962, many events have happened in the world – the Berlin Wall fell down, the Soviet Union broke apart, a man walked on the moon, and Wal-Mart has now over 3,000 stores worldwide in 15 countries. The 2008 fiscal year sales of $404 billion, and employing over 2.1 million associates worldwide makes Wal-Mart the largest employer in the United States and the third largest employer in the world.

Wal-Mart Marketing Strategy

“Save Money Live Better”, “We Sell More For Less” are phrases which are very popular all over the United States. And yes, Wal-Mart has made these two phrases their main focus, and their customers identify Wal-Mart in the consumer market. According to a 2007, independent research from Global Insights, Wal-Mart saves American families $2,500 each year, regardless of where they choose to shop.

The company has been able to promote itself as a good neighbor. Even with the critiques from all the sides, Wal-Mart has been able to fight back with innovating ideas to promote its business. A recent article published by the South Central Federation of Labor accuses the company of many violations, “Wal-Mart drives U.S. jobs overseas, Wal-Mart is the largest outlet for imported goods in the U.S. It buys its products from countries where child labor, slave labor and the suppression of human rights are common place. Wal-Mart’s world-wide buying practices are taking jobs from U.S. workers” (source: South Central Federation of Labor).

In many cases some accusations might be true. For example, Wal-Mart does buy products from other countries, but which major corporation doesn’t? More and more goods are now made in China not because it is Wal-Mart’s choice, but because China has been able to build goods at a cheaper price and many other elements are included into the equation.

The marketing strategy of Wal-Mart has become aggressive in order to promote its ideas and corporate values. For example, according to the company’s facts, in 2007 Wal-Mart stores, Sam’s Club and the Wal-Mart Foundation gave more than $296 million to 4,000-plus communities in the United States.