Paper Topic

I want to write about Wal-Mart. Are they an example of how to listen to customers, or are they merely pulling the wool over our eyes? I think it is commendable how much they keep the customer in mind. They take low profit margins so they can pass the savings onto their customers. Every penny is squeezed from their suppliers, and they're not keeping the savings. We are. I also think that their green initiatives/ sustainability movement was partly customer driven, partly business move. It's interesting that they are one of the only companies doing well right now, but I can't say I'm surprised either. It's only logical that an economy like this would force consumers to be more price conscious and essentially downgrade to Wal-Mart. More people are spending less and saving more. Many commercials, including Wal-Mart's, have emphasized this shift. While I am proud of Wal-Mart for harnessing their wide reach and massive size in order to promote sustainability, I'm also a little skeptical. Now, I'm not necessarily skeptical about their commitment to sustainability- I don't believe their latest initiatives are simply a ploy. I believe that Wal-Mart is making an honest effort to make our world better, cleaner, greener. And, if Wal-Mart can do this without raising prices and simultaneously increasing their bottom line, all the more reason to go green. Most companies take losses when they convert to a sustainable strategy, which make the move look less attractive. But Wal-Mart is proving that you can help the world and make money. What I am skeptical about are the other issues they have failed to address, mainly employee treatment. Are they paying employees less, offering fewer benefits, not allowing unions, and inhibiting female job growth because consumers are not demanding that employees receive equal pay, more benefits, unions, and equal opportunities? Is Wal-Mart listening to only feasible, mutually beneficial costumer insights, such as sustainability? At the same time, I understand that you can't make everyone happy. Solving these issues will not make Wal-Mart the most liked company. They will always have enemies. I just want to know when, if ever, does Wal-Mart stop listening to what their customers want? What segment does Wal-Mart seek to make happy? Maybe they don't care about the group of people that are interested in human rights. Maybe they think that low price trumps everything, and their customers are unwilling to bear the cost to resolve these issues. In a nutshell, I'd like to learn how much or how often Wal-Mart listens to their customers.

In a previous blog, I mentioned that I am pro Wal-Mart. When I'm not grocery shopping for the experience, I want to get the most for my money. The fact that Wal-Mart is attempting to be more sustainable reinforces my decision to shop there. I'm rather proud of Wal-Mart for shouldering the responsibility of bettering our environment. They're not perfect, but they have set an example for other giant companies to follow: going green is profitable. I have also studied Wal-Mart in four other classes, so it's a recurring theme in my college career. I think a lot of people, whether they admit it or not, are intrigued by Wal-Mart. In my history class last semester, my teacher argued that Wal Mart has replaced GM as the template for American companies. I hope that theory holds true for their sustainability initiatives as well. Furthermore, corporate social responsibility is a topic that has recently captured my attention, mostly because it optimistically believes that a soulless corporate company can have a soul. I'd like to believe companies can remain profitable while creating a greener future.

As I see it right now, I believe that Wal-Mart has been an effective listener of consumer insights. Customers are the reason Wal-Mart finagles every penny from suppliers and can price their goods below anyone else. I'm also interested in Wal-Mart's communication efforts. They are very transparent about saving money and less communicative about their sustainability practices. I have a feeling the latter is driven by the economic downturn and the fact that their most loyal customers will not choose Wal-Mart on the basis that it is more sustainable. In the article Economic Blues Leave No Room for Green, which I found in Advertising Age, author Jack Neff reinforces my hunch. According to him, "when Wal-Mart launched a new campaign targeting opinion leaders around the political conventions last month, the message was about how the company is stimulating the economy by saving people money, with none of the sustainability themes that have been common in such ads in years past." Neff's article focuses on the messages that Wal-Mart chooses to display to their consumer and the rest of the public. Another article I found in Women's Wear Weekly analysed Wal-Mart's segmentation strategy. This was also interesting because it accurately points out that the segment the millennium generation cares most deeply about environmental concerns. Therefore, if Wal-Mart wants to develop relationships with these customers, they must effectively communicate their sustainability initiatives. Additionally, Wal-Mart cannot continue to ignore their growing human rights/ labor problems. They will eventually have to acquire new costs in order to resolve these issues and appease their younger, future customers. On the other hand, Wal-Mart must also retain their current, more price conscious consumers. Here lies the conundrum, who does Wal-Mart listen to?