17 December 2010

Target proves why we can expect more.

About a week ago I had a conversation with some friends about Wal-Mart. At the core of that conversation, were the questions "who shops at Wal-Mart?" and "what makes Wal-Mart different from Target?"

Two big box retailers, carrying a fair number of the same brands/products, for roughly the same price. Sure, each has a handful of its own signature brands, a different logo and a different color scheme, but for the most part, it's the same space, similarly structured aisles, similar lighting, etc.

I think Target proves the power of branding better than.., well.., any other brand as far as I'm concerned. Sure, Apple is a powerhouse, but it's built itself in a very different way, a lot of which has to do with innovation. In other words, Apple actually has some hugely differentiated, not to mention slickly designed, products to rally around.

Target and Walmart are like Coke and Pepsi, minus the taste factor, which some swear is the reason for their allegiance. Perhaps Mobil and Citgo would be a better comparison, minus the price-is-all-that-matters utilitarian nature of a gallon of gas.

Beyond convenience (which one is closer to my house, on my way to work, on the right hand side of the road, has a better lit parking lot, etc), it comes down to branding. And, by "branding", I'm not neglecting the painfully obvious importance of price (make sure part of your positioning reinforces low price).

Target has a very fun, upbeat, 'hip to be frugal' positioning. Wal-mart has a very drab, utilitarian, 'low prices because we know you can't afford more' positioning, which they erroneously weave into some "live better" conclusion.

Which one of those sounds more aspirational?

Each retailer has a TV spot on air right now that deliver almost identical messages with ALMOST identical execution. By "almost", I am referring to intent or storyboard.

Essentially, each one is saying we've got everything your kid wants to see wrapped up under the Christmas tree this year. And kids are super excited about Christmas, so come on in and get everything to make their dreams come true.

The difference? Target's is soooooooooooooooooooooooo much cooler. It's inextricably linked to the brand. The music is playlist worthy. The energy is bright. The excitement is contagious.

This is just a remarkable example of the power of branding, as much as it is a reflection of how important each and every decision made during the production process actually is in building a brand. Music, casting, directors, editors, lighting, color, etc etc etc.

Take a look:





I'm not sure this is a matter of ON or OFF STRATEGY, but it sure is an example of how strategy is as much blue-printing and intelligence as it is execution and follow through.

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