Lawrence Gee | Marketing, Internet, Creativity, Strategy

Wal-Mart Announces Price Cuts

The Fed had another rate cut this morning.  Will Wal-Mart do the same?  Last week, Wal-Mart annouced that it was cutting grocery prices some 10-30% in order to help consumers get excited about shopping again.  Just in time for the Superbowl, this smells alot like good ‘ol fashion marketing and promotions.  Known for Everyday Low Prices, Wal-Mart continues to build on its brand image as a low cost leader for the typical American family.  It also gets alot of free press by playing off of the Fed Rate Cuts.  Free, positive news when recession looks loomingly close is great, but will it bring the shoppers out?  I’m not sure if I would make an extra trip out to Wal-Mart but when I’m buying chips and sodas for the NY Giants victory  (ahem, cough, cough) this weekend, it’s definitly top of mind….and that’s exactly what Wal-Mart wants. 

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Give Me What I Want, When I Want It

I spent part of the past couple of days trying to find this album - Dave Matthews and Tim Reynolds, Live at Radio City Music Hall.  You would think that a release from a major artist would be easier to find.  However it took 4 stores (1 online and 3 brick and mortar) to get it done.

For the past few weeks, I’ve been seeking out new music to play on my commute to work.  On Tuesday, I knew the new Dave album was coming out so I made a visit to Target during lunch.  It was priced at $11.99 but was totally sold out.  Instead of driving to another store, I decided to wait until later that night to just purchase the album on iTunes.

When I got home and checked out the iTunes store I was annoyed to see the album selling for $12.99.  For the same music and less product and packaging, it costs more?  Of course out of principle I didn’t buy it.

Today, during lunch I visited Wal-Mart and low-and-behold it was not in stock there either.  It wasn’t until I visited Best Buy next store was I finally able to purchase the album (btw- for $11.99).

Selling is a simple concept - provide a timely solution to a customer’s need that is greater than or equal to his/her willingness to pay.  In the cases of Target and Wal-Mart, they missed the mark on being timely.  They simple didn’t provide the product when I wanted it.  iTunes missed the mark in that it was charging a price that was more than I was willing to pay.  I simply didn’t feel the product they were offering justified the price.  Best Buy won out because they gave me what I wanted, when I wanted it, and a price that I felt was fair.  Simple concept, not always done correctly.

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