Month: October 2013

Recently Wal-Mart Stores has revamped its legal practices in Asia and started to acquire more Chinese markets. Wal-Mart received many negative attentions in the previous years regarding the safety issues with the Bangladesh factory and the violation of laws in India. However, they are continuing with their plans to invest in China. The company said that they will put down $82 million dollars to upgrade Chinese stores.

In my opinion Wal-Mart is facing many obstacles because most Chinese consumers do not perceive Wal-Mart as a high-end foreign brand anymore. They can still recall the incident in Chongqing where ordinary pork was mislabeled as an expensive organic one. Additionally, Chinese consumers are also aware that Wal-Mart stores are built like warehouses with poor shopping environment. This could hurt Wal-Mart’s image as a sophisticated foreign brand. Hence, Wal-Mart faces many threats in the legal department, as well as its brand positioning.

However, there are some existing opportunities for Wal-Mart such as the online shopping services. Recently, online stores like Yihaodian and Taobao are receiving a lot of positive attention.  Chinese consumers enjoy the convenience of online shopping. If Wal-Mart can sell its products through Taobao or open their own online store then their sales will increase dramatically. This is also an opportunity for them to restore their image as a foreign brand with superior quality.

http://online.wsj.com/article/SB10001424052702303722604579116923897616240.html

Target, after following its lead retailer Wal-Mart, decided to offer prepaid mobile service to its costumers. The $35 plan consists of unlimited calling and texting. After using Target’s mobile plans for six-months costumers will automatically receive a $25 Target gift card.

In terms of brand positioning, it’s obvious that Target is not the “first” in the field. This can be potentially problematic because the easiest way of getting into the mind of the consumer is to be the first. It is often easier for consumers to recall who is the first in the field, but not who is second. Although target’s value proposition is unique but it is not the first unique position in the mind of the consumer, (where as Wal-Mart has already positioned itself as the first). Furthermore, people generally associate Target Corporation with discount retailing and not mobile services. It can be difficult for consumers to believe Target is capable of producing efficient mobile services when they have only known Target for discount retailing. Brands should not compete with other brands that have already positioned itself as the best in a specific category. Since Rogers have already placed itself as being one of the best in the mobile service provider field, it makes little sense to compete with Rogers and other mobile service providers in this category. Based on these too points it may seem disadvantageous for Target to debut as a mobile service provider.

http://news.cnet.com/8301-1035_3-57605798-94/target-follows-walmart-with-launch-of-prepaid-mobile-service/