Archive for the ‘Having the right target’ category

Did Wal-mart Forget What Made Them Famous?

February 24, 2011

The Wall Street Journal reported in their Tuesday edition that “Wal-Mart is in the midst of its worst US sales slump ever.”   In an attempt to be more competitive, the $300 billion retail chain tried to broaden their target audience beyond the American working class and appeal to a broader audience.  So they added organic foods and skinny jeans and cleaned up the aisles to attract a higer income customer. 

Appealing to an audience that is too broad will usually result in connecting with very few.   Segmenting the market into specific targets and serving the unique needs of that target is an approach for connecting with many.  It is counterintuitive, but unfortunately for Wal-Mart, so true.  You can’t be all things to all people.  The surprise is that even bright people at the biggest discount chain in the United States can make that basic mistake.

If Wal-Mart can fall into that trap, how easy is it for someone providing professional services to do the same.  Being famous for something by being laser focused wins over being a generalist and chasing everything. 

A Wal-Mart Store