Business

You can't buy publicity like that! (Actually, you can.)

Azathoth.

Posted to Business on Tue Oct 24, 2006 at 11:01:41 AM EST. RSS.

Since most Wal-Mart stores offer free overnighting priveleges for recreational vehicles in their parking lots, what could be more natural than that Ma and Pa America would travel across the United States, stopping at Wal-Marts along the way?  What could be more natural than that a slightly tech-savvy Ma and Pa America might blog about their adventures?  What could be more natural than the tales and pictures of all the smiling Wal-Mart employees they meet along the way?  Until recently, Walmartingacrossamerica was that very blog, until critics discovered certain very unnatural pieces of evidence.  

Wal-Marting Across America acknowledged that it was sponsored by Working Families for Wal-Mart, which presents itself as a grassroots organization in favor of the business giant.  After WFfW began crediting its own entries with bylines, it was rapidly discovered that the site was run by employees of Edelman, a PR firm that not only numbers Wal-Mart among its clients, but also actively uses blogging as an important media channel for its clients.
To recap the onion layers, Wal-Mart hired Edelman whose employees are the staff of Working Familes for Wal-Mart, which funded the cross-country trip recounted in Wal-Marting Across America.  But further investigation has uncovered the identities of Ma and Pa America.  Perhaps unsurprisingly, they turned out not to be average retirees:

'Laura' is a freelance writer who works for the Treasury Department.

'Jim' is a Washington Post photographer who (contrary to Post policy) moonlighted on behalf of this interest group.  The Post has insisted that the photos be pulled, and that has spelled the end of the travelblog.

Wal-Mart paid for the RV, gas, airfare and an 'unspecified amount' for the good PR.  However, given the general tenor of the blogosphere, it appears that there is such a thing as bad press.

edited by kiwiana

Tags: Wal-Mart, advertising (all tags)

This story: 21 comments (5 from subqueue)
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2

Let's think with our hearts for a moment...

natophonic.

Tue Oct 24, 2006 at 02:27:44 PM EST

4.50 (funny, funny)

There may be some truth to the criticism that Walmart has been aggressive in its quest to bring Low Prices and Great Value to the American People, but it's just my opinion that Democrats ought to reconsider their outright demonization of this company during this election season. Running a big corporation with a supply chain so large that the sun never sets on it, is hard work. And the people of Walmart are working hard. Working hard to bring products to the American consumer that they might not otherwise be able to afford.

Also, let's not forget about the jobs that Walmart provides to the honest and hard-working citizens of this country. Did you know that the CEO of Walmart works in a small office with a cheap desk and thin wood paneling on the walls like the paneling on your trailer home? Did you know that the founder of Walmart drove an old pickup truck until the day he died? Walmart is about frugality, which is an American value. Also, they help the communities when they can.

Many people have said that Walmart hates unions, but that's not true. Unions served a purpose during the 19th century, when they outlawed child labor and debtor prisons. But recently they've gone too far, and gotten greedy, with unrealistic demands like a forty-hour workweek, and this makes the American worker uncompetitive in the global economy. Let's also not forget that Walmart allows its employees to express their views; what other company would have stood by a pharmacist who refused to sell contraceptives to teenagers? It must have been difficult to put up with the dirty looks from those slutty girls, but Walmart stands behind the working man... and woman!

I don't doubt that there's a lot of strong opinions about Walmart out there. But there's a lot of nuance to this issue. And there needs to be a lot of healing. Did I mention that Walmart is going to start selling organic food?

by natophonic
[my portfolio of essays to capture the hearts and minds of liberals is available upon request]

5

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Wal-Mart And The Union Movement.

MayorBob.

Tue Oct 24, 2006 at 09:36:16 PM EST

5.00

While it's true that Wal-Mart seemed to display antipathy for labor unions and the unionization of its labor force, I'll have you know that the company struck a blow for the working man and woman ... in China.  Now it seems that all of its stores in China are unionized.  Of course the union in China is essentially an arm of the Communist Party and Wal-Mart understood that its continued operation in China depended upon its allowing its workforce to unionize, but those are mere distractions from the main point that Wal-Mart loves the working man and woman ... in China.  Elsewhere, not so much.

Illegitimi non carborundum.

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Re: Let's think with our hearts for a moment...

bigstevec.

Thu Oct 26, 2006 at 11:39:42 AM EST

5.00 (astute)

I'm with you, my friend.  Wal-Mart has done much more good for America than bad (and, no, they aren't sponsoring me).

By reducing inefficiencies, Wal-Mart's highly innovative approach to supply chain management has increased productivity in this country significantly.

Also, by lowering the prices on consumer goods, the average American's dollar goes further than it used to (not including Housing, Health Care and Oil).  The inflation adjusted price of consumer goods have fallen over since the early nineties.  The less you pay for product A, the more likely you are to also buy product B.

I realize Wal-Mart is far from perfect, especially as it relates to its treatment of its employees, but I can't overlook the increase in consumer spending and productivity that have risen alongside Wal-Mart's success.

"These are my principles. If you do not like them, I have others." Groucho Marx

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Re: Let's think with our hearts for a moment...

natophonic.

Thu Oct 26, 2006 at 12:04:23 PM EST

3.00 (obnoxious, astute)

Wow.

Apparently the most-needed new feature on treesandthings is a user-selectable table cell background image that says SATIRE.

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Re: Let's think with our hearts for a moment...

bigstevec.

Thu Oct 26, 2006 at 12:17:18 PM EST

none

Wow.

Apparently the most-needed new feature on treesandthings is a user-selectable table cell background image that says SATIRE.

I'm not sure what you mean by that.  My comment was sincere.  If you disagree with me, state why.

"These are my principles. If you do not like them, I have others." Groucho Marx

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Re: Let's think with our hearts for a moment...

MayorBob.

Thu Oct 26, 2006 at 12:18:46 PM EST

none

I think the point being made by the parent poster is that he wasn't being serious.

Illegitimi non carborundum.

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Re: Let's think with our hearts for a moment...

bigstevec.

Thu Oct 26, 2006 at 12:39:33 PM EST

none

My bad (or is it "My bag"?).  I thought it was aimed at me.  Sorry I missed the satire.

As a follow-up to my post, however, here's a good article (warning: pdf) about how Wal-Mart's supply chain improvements have benefited other stores and the entire retail industry (although the article also points out the damage to suppliers who don't play ball.  IMHO, if you can't meet the demands of your biggest customer, you shouldn't be in business).

And here's a quote from Fast Company:
There is no question that Wal-Mart's relentless drive to squeeze out costs has benefited consumers. The giant retailer is at least partly responsible for the low rate of U.S. inflation, and a McKinsey & Co. study concluded that about 12% of the economy's productivity gains in the second half of the 1990s could be traced to Wal-Mart alone.

Look, I'm not saying they're perfect (and The Flying Spaghetti Monster knows I would never shop there), but Wal-Mart's benefits to society outweigh their costs.

"These are my principles. If you do not like them, I have others." Groucho Marx

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Re: Let's think with our hearts for a moment...

cloudofdust.

Thu Oct 26, 2006 at 01:42:17 PM EST

none

(although the article also points out the damage to suppliers who don't play ball.  IMHO, if you can't meet the demands of your biggest customer, you shouldn't be in business).

I always thought the people who ultimately buy and use the product are the customers. I think businesses that lose sight of that deserve the fate WalMart has in store for them.

Here's another Fast Company article about a businessman who decided not to meet the demands of his biggest customer and why he felt that was in the best interest of his company.

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Re: Let's think with our hearts for a moment...

bigstevec.

Thu Oct 26, 2006 at 02:12:16 PM EST

none

I always thought the people who ultimately buy and use the product are the customers. I think businesses that lose sight of that deserve the fate WalMart has in store for them.

In the case of the suppliers, Wal-Mart is the customer.  But even still, by reducing costs and subscribing to Wal-Mart's supply chain, the suppliers are meeting the demands (namely low cost) of the end user/customer.

"These are my principles. If you do not like them, I have others." Groucho Marx

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Re: Let's think with our hearts for a moment...

cloudofdust.

Thu Oct 26, 2006 at 02:58:11 PM EST

none

But even still, by reducing costs and subscribing to Wal-Mart's supply chain, the suppliers are meeting the demands (namely low cost) of the end user/customer.

Possibly. Cost reduction doesn't happen by magic. Cheap means both low cost and low quality. Not every customer believes that the cheapest product is always the best product. There are customers who recognize that paying a little more for quality upfront can translate into cost savings over the long term.

WalMart wanted to sell Snapper products because the Snapper name is associated with quality. Once Snapper caves to WalMart's cost reduction techniques (off-shore manufacture, lower quality materials, etc.) that association is broken. Once WalMart has sucked the value out of a company's brand, there's nothing to stop them from tossing that company aside like a chicken bone with all the meat sucked off it and moving on the the next brand. Meanwhile, the original loyal customer base which was betrayed in order to dance with WalMart is gone, never to return.

I wonder if you read my link and whether you think Jim Weir makes any good points about the value of a quality product in the marketplace?

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Re: Let's think with our hearts for a moment...

bigstevec.

Fri Oct 27, 2006 at 07:41:30 AM EST

none

I have read the link, thanks, and he makes excellent points.  

I would never argue that there isn't a place for quality in the marketplace.  I myself am a Starbucks drinking "trader-upper".  And, yes, there has been some trade off with quality on some of the products Wal-Mart sells, no doubt.  What I'm referring to, however, is Wal-Mart's almost total elimination of inefficiencies in the supply chain.  Most of the cost savings come from just in time inventory and delivery systems.

Like I said, they ain't perfect, but I only seem to ever read about their treatment of their employees and cheap quality (both of which are legitimate arguments) and I think they deserve a lot of props in these other arenas.

"These are my principles. If you do not like them, I have others." Groucho Marx

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Re: Let's think with our hearts for a moment...

cloudofdust.

Fri Oct 27, 2006 at 08:37:12 AM EST

none

It seems every article I read (including the one I linked) acknowledges the innovations WalMart has made in the supply chain. But getting products into the stores is only half the job. You've got to then get those products out of the store.

That's where WalMart has been having problems lately. Both analysts and customers say in-store experience and product quality are problems for WalMart. The "always low prices" mantra has made the WalMart brand synonymous with low quality. Even WalMart sees that. And that may prove to be a bigger problem for WalMart than the supply chain ever was.

16

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Re: Let's think with our hearts for a moment...

Shadarr.

Thu Oct 26, 2006 at 05:00:59 PM EST

none

By reducing inefficiencies, Wal-Mart's highly innovative approach to supply chain management has increased productivity in this country significantly.

Unless the country you're refering to is China, any productivity improvements in the supply chain are completely outweighed by the decimation of the US manufacturing industry.

--
Bite the hand.

7

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Re: Let's think with our hearts for a moment...

stevetherobot.

Wed Oct 25, 2006 at 02:09:34 PM EST

none

Did I mention that Walmart is going to start selling organic food?

They've already started selling a wide range of organic products and seem to be expanding their organic offerings.

1

How dissapointing

rombuu.

Tue Oct 24, 2006 at 12:40:17 PM EST

4.00 (brilliant, funny, funny)

I mean, if you can't believe what you read on some random-ass blog, what can you believe these days?

3

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Re: How dissapointing

T Slothrop.

Tue Oct 24, 2006 at 02:40:51 PM EST

none

Although I strongly suspect rombuu and I have differing opinions about Wal-Mart and its impact on society, you gotta give credit where it is due.

{Insert amusing quotation here}

4

Have you been bought?

Thalia.

Tue Oct 24, 2006 at 06:39:07 PM EST

4.00 (interesting)

The only real question is whether such bloggers have an ethical, or possibly legal, responsibility to disclose their affiliation.  In terms of political contributions (i.e. a blog run for the benefit of a particular candidate/issue) the FEC requirements seem to be pretty straightforward.  If they're paid by the candidate/issue, that must be disclosed.  But in terms of corporations, the law does not require such a disclosure.

Personally, I would like to know if the author of a piece has been paid.  But then, I have the same complaint (only more so) about journalists who don't disclose that they were paid for writing about particular subjects.  

Thalia

6

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Re: Are you a shill?

natophonic.

Tue Oct 24, 2006 at 11:21:54 PM EST

none

I'm not sure of the current legality of shilling for a company, but the FTC seems to be closing in on that angle. However, I wouldn't be surprised to learn that there's a legal difference between telling people "this product is so great that you should buy it!" or "this company is a great investment for your IRA!", and "this company is nice to people!"

Obviously the public is going to assume that if a person/organization/company is paying someone to say nice things about them or their products, that there's a dearth of people who'd be willing to make unprompted testimonials. Goes double if the paid relationship is cagey or undisclosed. It's the difference between 'buzz' (telling your friends and anyone else who will listen about something because you honestly think it's so cool) and 'hype' (telling the world something is so cool because you've been paid to do so).

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