The Wal-Mart Effect

By Scott Burns of The Spark Agency

There’s a Jykell & Hyde battle raging in boardrooms across corporate America.

On one side, we have a savvy, in-the-know VP-Marketing that understands that the old product development & marketing models are extinct. On the other side, we have an under-the-gun, sleep deprived VP-Sales who keeps one eye on the stock ticker and another on the Board of Directors.

Unfortunately, this person is often one in the same. Fighting the daily battle of increased revenue & a responsibility to the shareholders versus the understanding that in the new economy less is more, this person is being pulled in two completely opposite directions.

This is called the Wal-Mart Effect.

For just about every major consumer products manufacturer, Wal-Mart is their largest retailer. And as everyone’s largest retailer, they have begun dictating not only how manufacturers sell & market their products…but what those products are, what they’re called and how they’re packaged.

If Wal-Mart comes a’ calling, telling you to create a product that they will sell exclusively, guaranteeing you increased revenue, market-share, and ultimately, profits…and if you don’t, they’ll offer the opportunity to each and everyone of your most bloodthirsty competitors.

Who are you loyal to? The shareholders? The consumer? The retailer? Or the brand? And if you pick one…can you survive without the other?

See also: Coke: Wal-Mart Shakes Up Delivery System