Wal-Mart a new example of “how not to”?

Wal-Mart’s Q2 results could fall short of expectations—quite a bit short of expectations. This on top of a Q1 where the Sam’s Club division had profit growth that outpaced sales growth (for the seventh straight quarter) and where, as MarketWatch put it, “problems at Wal-Mart’s namesake stores in the U.S. continued to dog the company.” What’s the matter? The director of communications at WakeUpWalMart.com has been quoted as saying, “Wal-Mart needs to realize that improving its public image and its business reputation demands they stop ignoring the fact that the American people care about values, not just value.” Hmmmm. Valuesvalue. Sounds like a good lesson in marketing! versus

Let’s assume the values Wal-Mart is charged with ignoring include equal opportunity; a fair day’s pay for a fair day’s work; and, honesty and integrity. Let’s assume that, because Wal-Mart has been slapped with a sex discrimination lawsuit filed on behalf of 1.6 million women employees; has long been accused of refusing to pay for overtime and of hiring primarily part-time employees so as to avoid the cost of full-time benefits; and, has had to fire some top execs, including former vice chairman Thomas M. Coughlin, for stealing company funds.

So, there’s the rub. Wal-Mart’s customers are working-class consumers (for the most part). Equal opportunity, a fair day’s pay for a fair day’s work, and honesty and integrity are very much part of their values, because they affect their lives on a very personal and daily basis. Many working-class Americans are all too familiar with being passed over on the job (or for a job) because of their color, ethnicity, religion, sexual orientation, gender, accent, you name it. Too many have had to work multiple part-time jobs just to barely keep food on the table; faced the county hospital’s emergency room as their only healthcare option because they have no insurance; lost an hour’s pay every time they had to meet with their child’s teacher. Too many have watched their loved ones do without even as Dennis Kozlowski billed Tyco for $1M of his wife’s 40th birthday party.

Maybe these working-class consumers shopped at Wal-Mart because it offered value. But, now that there is more choice in the marketplace, they can shop where they also see a reflection of their values. It makes sense and every small business would do well to learn from Wal-Mart’s lesson. As you craft and maintain your brand, remember who your customer’s are and what they value—which might include their values.