Jun

26

Taking of Property and Wal-Mart’s Teflon Branding

June 26, 2005 | Anita Campbell

This week’s edition of Carnival of the Capitalists is now posted [link no longer exists].  One of the most useful features about Carnival is that it tells you what really is on the minds of people in the blogosphere.

This week it seems to be the Kelo decision from the U.S. Supreme Court.  That split 5-4 decision allows local governments to seize private property under the power of eminent domain and transfer it to private entities under the guise of economic development.

The decision is being harshly criticized in the American blogs.  There were three entries into the Carnival roundup criticizing the Kelo decision:

  • The Entrepreneurial Mind talks about the Implications of the Kelo Decision, noting:   ”The Kelo Decision, which has effectively taken away private property rights, is getting heated attention in the blog-sphere, but only passing attention in the main-stream media.  Inc.com has yet to even run a story on this decision, which has more impact on the fundamental rights of small business than any other decision in recent memory.”
  • Resistence is futile! wails “You no longer own your home.” 
  • My Blog Site has a hilarious satire entitled “Wal-Mart To Demolish The Supreme Court For A New Super Supreme Center.”  The title articulates the fear of many small business owners.

Note the tie-in to Wal-Mart in the satire.   Interestingly, it has been tied to this decision even though as far as I am aware it has nothing to do with the case. 

Wal-Mart has been dogged with the perception that it drives small businesses out of business.  Yet, it seems to me that Wal-Mart is the teflon retailer.  The perception doesn’t seem to stop sales.

Even more amazing, Wal-Mart has successfully managed an entire business unit  –  Sam’s Club – to become the virtual purchasing agent for small businesses under the trademarked tagline ”We are in business for small business.”

But Wal-Mart’s success at avoiding the anti-small-business perception is less accident and more intelligent marketing.  Naturally, the low prices play a role in keeping business owners coming back (we’ve talked before about SMBs being cost conscious).

Aside from the low pricing, however, note the smart branding.  From the start Sam’s Club has had its own identity.  While it is no secret the unit is a division of Wal-mart, if you go to the website you see a completely self-contained and well-established brand.  You have to hunt down at the bottom of the page to see any connection to Wal-Mart. 

And then there is that tagline.  It is simple, some might say boring or mundane.  But others would say it is a stroke of brilliance. 

Nothing could be more effective in conveying a commitment to a market than “We are in business for small business.”  There is a lot to be said for taglines that are clear and definitive statements like this one, rather than catchy phrases whose meaning is nebulous.


Comments

Name

Email

Website

Speak your mind