Customer Based Brand Equity – Wal-Mart
Wal-Mart is a transnational mega corporation operating in 27 countries with more than 11 000 stores. In Canada alone, Wal-Mart operates 396 retail outlets quite an impressive number considering they have only been operating in Canada for just over 20 years.
Wal-Mart in terms of Brand Equity is quite a contradiction. They continue to lose overall brand value and yet are still the most valuable brand in North America and are ranked in the top 20 brands based on brand value globally. Wal-Mart is a love it or hate it brand. Despite its value, it has nearly as many detractors and is it supporters of the brand.
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Low prices, in stock and with a huge selection; these are the simplified versions of Wal-Mart’s promises to its customers. Exemplary service is not a promise Wal-Mart makes nor is it something customers necessarily expect. Wal-Mart is reliable in its continued value based pricing. It also offers great return policies, which help ensure customers belief in the reliability of the brand. Even if the product fails, the brand will be there to help you.
Wal-Mart is seen, especially in the United States as an institution; a vision of the American dream. It has a rich history that started with a single store opened in 1950 in a tiny Arkansas town, which grew into this billion-dollar company and an American staple brand. It is almost an American fairytale. Wal-Mart has three distinct customer profile categories; the value based shopper, the brand hunter and the wealthy saver. The value-based shopper is looking for the best deal and cannot afford to shop elsewhere. The brand hunter is looking for name brand items at discount. The wealthy saver is someone who can afford to shop elsewhere but enjoys a good deal.
Quality and Credibility are things that customers do not always associate with Wal-Mart. Customers tend to associate Wal-Mart with value over quality. Wal-Mart carries many different brands that each have their own representation of quality. Quality is not the first descriptor used when speaking of Wal-Mart as an individual brand. This is especially true when it comes to Wal-Mart’s own house brands. In recent years Wal-Mart has expanded its product lines to carry higher end household brands such as Kitchen Aid etc. Which are slowly starting to change attitudes to a slightly more quality brand....