March 26, 2013
Is Publix Right to Take It to Walmart in Comparison Ads?
A number of retailers around the country have been grumbling that Walmart hasn’t played fair in some of its price comparison ads. Whether fair or not, the simple fact is that retailers targeted by Walmart’s "Market Basket Challenge" need to respond.
Back in January, RetailWire reported that Publix began running its own weekly comparison ads announcing, "Walmart doesn’t always have the lowest price."
Apparently, Publix must be finding some success with its approach as reports confirm the supermarket chain is running radio ads and buying billboard space to drive the message home. The campaign is currently being run to support Publix stores in Alabama, Florida, Georgia, South Carolina and Tennessee.
"We want our loyal and potential customers to know that we offer more than clean stores, quality products and friendly service. We offer great value," Shannon Patten, a Publix spokesperson, told the Tampa Bay Times.
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Discussion Questions
Is Publix taking the right approach in its response to Walmart’s “Market Basket Challenge” campaign? Is this an approach that other retailers can or should emulate?
Poll
On any given Walmart “shopping list” comparison ad, there are usually some items listed where the competition is actually lower even if Walmart wins on the tape total. It’s hard to verify whether the Publix list was cherry-picked to single out items where they were temporarily cheaper than Walmart because of price promotions—or whether these are legitimate, consistent price comparisons.
The real point is that the Walmart campaign is drawing blood. However, traditional grocers are playing on dangerous territory if they think they can beat Walmart on price over the long haul, or even make price the centerpiece of a marketing campaign. Better to figure out other ways to engender traffic and loyalty, especially in contrast to Walmart’s service standards.
You can’t blame Publix for its defensive position, faced with those Walmart ads. I think it’s an appropriate response in this case.
This strategy could work for other brands also if they are faced with losing business to Walmart. They just need to be careful to share correct information in a positive manner. As a consumer, I don’t appreciate ads that appear to be underhanded and mean spirited.
I think Walmart made a mistake taking on Publix. Usually Walmart will do their market basket challenge on more financially distressed chains. Publix has the wherewithal to fight back. Sure Walmart is going to have lower prices but Publix has more money than God, a cult of fanatical employees, and a market share off the charts. Trying to fight Publix is like trying to fight a war in Afghanistan. You just ain’t never gonna win.
For Publix this is the right approach. Most of the other chains Walmart picks on, well, they can’t emulate it because they don’t have the money or wherewithal to do so. Other chains will sometimes try claiming they have quality or service, but end up just embarrassing themselves because consumers know those financially distressed chains are all bark and no bite.
My advice to Walmart would be to keep going after Winn-Dixie, BI-LO, Food Lion, Supervalu, Harris Teeter and such. Then split the spoils of war with companies like Publix. Walmart should be an ally of Publix, not an enemy. Winn-Dixie, Bruno’s, Food Lion, Sweetbay, and Albertsons have closed stores by the bushel in markets where Walmart and Publix compete. Come on Walmart, Publix is your best friend.
Interesting, because Publix is not doing this here in Atlanta, where I live. Their TV ads pitch service, specialty, and the weekly deals you can find, but don’t do direct comparisons. I’m thinking long-term, Walmart could turn this to their advantage. Publix is better off taking the high road.
I don’t generally advocate a tactic just because the other party has done the same. However, it is important to note that Walmart has used a similar approach against other grocers in specific competitive markets and so they should not be surprised to see someone using it with them.
That said, price is only one axis of value and although an important axis, if the message and resulting execution is not managed well, it can have a negative impact on other key value propositions. Publix will need to manage this carefully so that they don’t damage a very strong brand image and value proposition built over years, particularly as they also continue to compete with more service-oriented retailers.
Publix radio ads emphasize that Walmart isn’t always cheaper, and encourage consumers to take advantage of BOGOs at the entrance, and use their weekly ad to save money. So, they are acknowledging that Walmart is probably cheaper on a typical basket, but that consumers can save if they take advantage of the promos and specials at Publix. So, the shopper has to decide if they prefer the shopping experience at Publix enough to worry about the circular and BOGOs in order not to pay a premium for shopping there. Clearly, many do. But, I would suggest Publix be careful not to get drawn into a head-to-head pricing duel with Walmart, as I can’t see how they win that battle.
This is an interesting debate. I could look at this and say someone should “take the higher ground,” but shoppers should be informed of both sides of the coin; it’s only fair. Walmart is taking direct aim at grocers and it’s their prerogative to respond.
Should this become a habit for retailers? The messaging could get stale, as Walmart is speaking to an entire group while retailers are talking to one company. If retailers are going to craft a message, they need to execute quickly, accurately, and effectively.
As others have pointed out, this sort of thing can degenerate into the equivalent of a schoolyard shouting match. It’s fine for Publix to fight back once if they feel Walmart is being misleading, but then they need to focus on other strategies. Publix has a lot more to offer besides price, and competing on price alone is a losing game.
I agree with David. I was surprised when these ads started running here (Florida). But then , why not take on the giant (Publix) in their own back yard, so to speak?
I have a price comparison for both Publix and Walmart. It is Passover. Both are selling a five pound box of matzoh for the “incredibly” low price of $12.99. Costco is selling the same item for $8.99. Maybe Walmart should challenge them as well.
On another note, Publix may not be the least expensive grocer. But there is no one close when it comes to service. Go find someone at Walmart who can assist you or smile when doing it. At Pubix service is what it is about. At Walmart, service is an imposition.
A pox on all their houses!
This whole competitive strategy of who can we beat up and bully—especially picking on someone a fraction of your size—just leaves me kind of empty. The thing is the bullying isn’t just between mega chains, it has a ton of collateral damage too. The suppliers are hurt most of all.
Was there ever a time when retail was fun and energizing? Where through service and innovation and relationships you could make a good living and people just loved working with customers?
I know…I’m a naive, touchy-feely, woo woo, why can’t we all just get along kind of guy, but this whole circumstance just doesn’t feel right. Right now, though I didn’t initiate it, I’ve been “honored” with preliminary interest from Walmart about a new consumer product I’m launching. Honestly my gut says to run even before the first date. Am lacing up right now. I don’t like hanging around people who try to strangle and crush others.
No good retailer, such as Publix, can afford to let the Goliath from Bentonville steal away their customers with dubious price comparison ads … particularly when Publix also offers more to consumers in other ways than does Walmart. So fight on Publix.
Other food retailers who do not have all of the advantages that Publix has built up over the years, must be circumspect in challenging Walmart on price alone. That would likely be a road to retail perdition. You need more than price to whip Walmart.
I’m with Al. I like the idea of responding to the Walmart ads, but you don’t want to let that message slide into a head-to-head price war. I like that Publix is still stressing what makes their stores better while conveying value. They just can’t and shouldn’t lead with value.
Walmart is known for competing on price, while Publix is known for the value, which includes clean stores, great service and quality products at a competitive price. Competitive price does not mean lowest price. It means a fair price.
Any retailer needs to be careful when they compete on price. If a price conscious customer is focused solely on the lowest price, as soon as the competitor offers the lowest price, the customer moves. Low pricing strategies work in certain sectors of retail.
It seems that Publix is taking on Walmart to prove that the price differences aren’t so different. Publix needs to be careful with this strategy that it doesn’t come off as a low cost promise.
General rule: Compete on your strengths. Successful companies have a strength—a reason people buy from them. Both Walmart and Publix know their strengths and need to make them crystal clear to the consumer.
While Walmart hammers away, those who are being hammered have been cautious in responding because they’re darned if they do, darned if they don’t. If they focus on their quality, selection, service and argue that “price isn’t everything,” they’re essentially conceding that yes, they do have higher prices. If they try to challenge Walmart on price, they can only do so with cherry-picked items (as Publix is doing with its sale items). But then doing nothing has its own risks.
Walmart is essentially on the offense, trying to steal customers away from the grocery stores by saying you don’t need to bother with coupons or sales circulars here, you can just come in and grab what you want and save money. It appears as though Publix is playing defense, not necessarily trying to attract new customers, but trying to keep current customers from straying by reminding them how they can save by shopping the sales and advertising itself as being “coupon friendly.”
Which argument you ultimately believe, just depends on what kind of shopper you are.
I think the initial question should be “Why is Walmart using Publix as a comparison?” Could it be that Publix has been kicking Walmart’s butt? I shop Walmart on a regular basis and I can attest that they are often much higher than competition on many products. For instance, cereal, laundry detergent, paper products are often cheaper at other retailers that I shop on a regular basis.
I am sure that if Publix was not doing the right thing and getting results, they would quit as they are not a company that is given to whims and emotion. Additionally, Publix manages to stock their shelves—a feat Walmart doesn’t come close to managing. And the people of Publix are much more pleasant that the people of Walmart!
First of all, what are we afraid of?
We as independents have been getting pounded for years, with the media telling people to shop at the mega stores, and wholesale clubs to save serious money. I feel like Rodney Dangerfield! I get no respect, and I have never taken this perception lying down.
To battle the giants, it takes savvy, creativity, a laser-like focus on procuring awesome deals, and a marketing strategy that will generate perimeter sales. I have written several ads asking the customer to go down to Walmart, and ask someone for a 2″ porterhouse steak from their meat dept. I than mentioned that there isn’t any butcher to help you, so come on down to my store, and we’ll take care of it for you.
That is the jist of how I do things, and customers love to buy meat deals, that not only cost less, but gives them the satifaction of choosing what they want, and having it done right, with a smile to boot.
Yes I know I’m rambling, but I’m tired of the thinking that Walmart is the answer to everything sold in America. I am going to sing the praises of a well-run independent business any time I can, as we need the small business to survive in order to provide checks and balances. If none of us were here, the price of bread at Walmart would be $5 loaf, and you know it.
This does not excuse anyone from deserving any success if they choose to bury their heads in the sand, and not keep up with their business practices. A modern clean store, with the services that customers need is only the beginning, and it takes all the other things I mentioned above to have a chance at profitability.
Phew…. I’m exhausted, but I firmly believe that we need to not only challenge ourselves, but also keep the customers informed as to how we can compete, and beat Walmart, not only on price, but also with the intangibles that we do better. Have a great day!
This is an approach that retailers will increasingly use. Publix is taking the right approach in response to Walmart’s basket challenge. Walmart has been on the attack for years; it is great to see a company respond accordingly.
Having fired off a response to Walmart’s price comparison ads, Publix should return to promoting its strengths in customer experience and service quality. Shoppers are smart enough to know that Publix, like many grocers, employs a high-low strategy, and that Walmart’s EDLP will yield the lowest total basket cost most of the time. If Publix wants to get into a scrap with Walmart, they would be smarter to lampoon the “service” customers get at Walmart Supercenters.
Retailers should always respond to a competitor’s misleading and/or inaccurate claims, assuming that these claims are costing the retailer business. Frankly, it’s surprising that Publix would be losing business to Walmart as the demographics are quite different. The fact that they are expanding the campaign suggests that Walmart is cutting into their business.
If Publix does not respond, then consumers are likely to believe Walmart’s claims are true across the board. I think it is necessary to respond in kind if only to mitigate customer loss.
It seems to me that depending on what the specific purchases are, in some cases each grocer could come out ahead. If a grocer was extremely confident in their pricing, it would be interesting to create a website where consumers enter last week’s bill and have it competitively priced. Then the consumer could see directly the savings they would receive by shopping at the competitor.
“We want our loyal and potential customers to know that we offer more than clean stores, quality products and friendly service. We offer great value,” Shannon Patten, a Publix spokesperson, told the Tampa Bay Times.
The reason that Shannon Patten can make this statement is that Publix is capable of fulfilling that promise—day in and day out.
You can only do it if you can fulfill it. Consumers know the difference. I’m quite sure that the customer’s at Tony Orlando’s store understand it.
The reason that others fail or get crushed in the process that Publix is going through is generally, their words don’t equate to their execution.
I’d be willing to bet (not $10,000 dollars of course), that a two inch porterhouse from Tony O’s would bring any steak lover a smile. Retailers have to be able to execute to the level of their claim. Everyone at Publix has a stake in it (no pun intended). That makes it a whole lot different in their ability to execute.
Good job, Publix.
Yes, yes, and yes! Comparative advertising has long showed that it works, and it is very memorable. The message is simple, and the impact is tremendous. Why wouldn’t you want to use comparison advertising might be a better question when competing against Walmart?
Publix has the buying power to focus on select merchandise pricing to play a high-low game, as well as offer the service to a loyal customer base, that still eludes Walmart. Retailers have to be quick and light on their feet to make fast changes like this.
Publix fits that bill.
Price, ouch….the easiest thing to imitate. Did the shopper really tell either retailer something in research that they need help with price decisions?
Not the first time price basket comparison has been used as a strategy, but it should be the last. Full shopping baskets in Atlanta compared basket savings vs Publix…in the last century. The tactic is history, Publix took ground in Kroger and Winn-Dixie land and never looked back. Can’t find any whitepaper on the winners that compared their price to Publix or Walmart….
Mom told me to have a bully strategy, to know who the bully really is, and only fight as a last resort.
Allow me to start this by stating that I am BIASED and LOVE Publix. Having said that, it scares me that Publix is going down this road because you can NOT beat Walmart on price. Publix does need to let people know that they DO have similar, or better pricing, but Publix is SO MUCH MORE than Walmart could EVER hope to be. Walmart is quantity and volume in a bland, non service, uninspiring place.
Publix is excellent service with fantastic product with opportunity for wonderful food in SO MANY departments—full service meat, seafood, deli, floral, etc., etc.
Comparison is not fair—Walmart is price and cheap Publix is service and excellence. You get what you pay for. But it is GOOD for people to KNOW that Publix is not necessarily much more expensive.
Publix clearly beats WMT on most dimensions other than price (experience/service, merchandising, quality) and if there is an opportunity to mitigate what is a clear pricing advantage at WMT, why not? Publix still wins for groceries, especially to customers who value product quality and service/customer experience relative to price.
This is absolutely going to work.
Publix already kills Walmart on customer service, perishables, grocery selection and not being gross. Why not hammer Walmart on price?
Publix is a high-low retailer, so every week they’ll have plenty of items on sale for less than Walmart’s EDLP. If Publix stays on message long enough, they will convince plenty of people they don’t have to put up with 2nd-rate service and selection to get a good deal.
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On any given Walmart “shopping list” comparison ad, there are usually some items listed where the competition is actually lower even if Walmart wins on the tape total. It’s hard to verify whether the Publix list was cherry-picked to single out items where they were temporarily cheaper than Walmart because of price promotions—or whether these are legitimate, consistent price comparisons.
The real point is that the Walmart campaign is drawing blood. However, traditional grocers are playing on dangerous territory if they think they can beat Walmart on price over the long haul, or even make price the centerpiece of a marketing campaign. Better to figure out other ways to engender traffic and loyalty, especially in contrast to Walmart’s service standards.
You can’t blame Publix for its defensive position, faced with those Walmart ads. I think it’s an appropriate response in this case.
This strategy could work for other brands also if they are faced with losing business to Walmart. They just need to be careful to share correct information in a positive manner. As a consumer, I don’t appreciate ads that appear to be underhanded and mean spirited.
I think Walmart made a mistake taking on Publix. Usually Walmart will do their market basket challenge on more financially distressed chains. Publix has the wherewithal to fight back. Sure Walmart is going to have lower prices but Publix has more money than God, a cult of fanatical employees, and a market share off the charts. Trying to fight Publix is like trying to fight a war in Afghanistan. You just ain’t never gonna win.
For Publix this is the right approach. Most of the other chains Walmart picks on, well, they can’t emulate it because they don’t have the money or wherewithal to do so. Other chains will sometimes try claiming they have quality or service, but end up just embarrassing themselves because consumers know those financially distressed chains are all bark and no bite.
My advice to Walmart would be to keep going after Winn-Dixie, BI-LO, Food Lion, Supervalu, Harris Teeter and such. Then split the spoils of war with companies like Publix. Walmart should be an ally of Publix, not an enemy. Winn-Dixie, Bruno’s, Food Lion, Sweetbay, and Albertsons have closed stores by the bushel in markets where Walmart and Publix compete. Come on Walmart, Publix is your best friend.
Interesting, because Publix is not doing this here in Atlanta, where I live. Their TV ads pitch service, specialty, and the weekly deals you can find, but don’t do direct comparisons. I’m thinking long-term, Walmart could turn this to their advantage. Publix is better off taking the high road.
I don’t generally advocate a tactic just because the other party has done the same. However, it is important to note that Walmart has used a similar approach against other grocers in specific competitive markets and so they should not be surprised to see someone using it with them.
That said, price is only one axis of value and although an important axis, if the message and resulting execution is not managed well, it can have a negative impact on other key value propositions. Publix will need to manage this carefully so that they don’t damage a very strong brand image and value proposition built over years, particularly as they also continue to compete with more service-oriented retailers.
Publix radio ads emphasize that Walmart isn’t always cheaper, and encourage consumers to take advantage of BOGOs at the entrance, and use their weekly ad to save money. So, they are acknowledging that Walmart is probably cheaper on a typical basket, but that consumers can save if they take advantage of the promos and specials at Publix. So, the shopper has to decide if they prefer the shopping experience at Publix enough to worry about the circular and BOGOs in order not to pay a premium for shopping there. Clearly, many do. But, I would suggest Publix be careful not to get drawn into a head-to-head pricing duel with Walmart, as I can’t see how they win that battle.
This is an interesting debate. I could look at this and say someone should “take the higher ground,” but shoppers should be informed of both sides of the coin; it’s only fair. Walmart is taking direct aim at grocers and it’s their prerogative to respond.
Should this become a habit for retailers? The messaging could get stale, as Walmart is speaking to an entire group while retailers are talking to one company. If retailers are going to craft a message, they need to execute quickly, accurately, and effectively.
As others have pointed out, this sort of thing can degenerate into the equivalent of a schoolyard shouting match. It’s fine for Publix to fight back once if they feel Walmart is being misleading, but then they need to focus on other strategies. Publix has a lot more to offer besides price, and competing on price alone is a losing game.
I agree with David. I was surprised when these ads started running here (Florida). But then , why not take on the giant (Publix) in their own back yard, so to speak?
I have a price comparison for both Publix and Walmart. It is Passover. Both are selling a five pound box of matzoh for the “incredibly” low price of $12.99. Costco is selling the same item for $8.99. Maybe Walmart should challenge them as well.
On another note, Publix may not be the least expensive grocer. But there is no one close when it comes to service. Go find someone at Walmart who can assist you or smile when doing it. At Pubix service is what it is about. At Walmart, service is an imposition.
A pox on all their houses!
This whole competitive strategy of who can we beat up and bully—especially picking on someone a fraction of your size—just leaves me kind of empty. The thing is the bullying isn’t just between mega chains, it has a ton of collateral damage too. The suppliers are hurt most of all.
Was there ever a time when retail was fun and energizing? Where through service and innovation and relationships you could make a good living and people just loved working with customers?
I know…I’m a naive, touchy-feely, woo woo, why can’t we all just get along kind of guy, but this whole circumstance just doesn’t feel right. Right now, though I didn’t initiate it, I’ve been “honored” with preliminary interest from Walmart about a new consumer product I’m launching. Honestly my gut says to run even before the first date. Am lacing up right now. I don’t like hanging around people who try to strangle and crush others.
No good retailer, such as Publix, can afford to let the Goliath from Bentonville steal away their customers with dubious price comparison ads … particularly when Publix also offers more to consumers in other ways than does Walmart. So fight on Publix.
Other food retailers who do not have all of the advantages that Publix has built up over the years, must be circumspect in challenging Walmart on price alone. That would likely be a road to retail perdition. You need more than price to whip Walmart.
I’m with Al. I like the idea of responding to the Walmart ads, but you don’t want to let that message slide into a head-to-head price war. I like that Publix is still stressing what makes their stores better while conveying value. They just can’t and shouldn’t lead with value.
Walmart is known for competing on price, while Publix is known for the value, which includes clean stores, great service and quality products at a competitive price. Competitive price does not mean lowest price. It means a fair price.
Any retailer needs to be careful when they compete on price. If a price conscious customer is focused solely on the lowest price, as soon as the competitor offers the lowest price, the customer moves. Low pricing strategies work in certain sectors of retail.
It seems that Publix is taking on Walmart to prove that the price differences aren’t so different. Publix needs to be careful with this strategy that it doesn’t come off as a low cost promise.
General rule: Compete on your strengths. Successful companies have a strength—a reason people buy from them. Both Walmart and Publix know their strengths and need to make them crystal clear to the consumer.
While Walmart hammers away, those who are being hammered have been cautious in responding because they’re darned if they do, darned if they don’t. If they focus on their quality, selection, service and argue that “price isn’t everything,” they’re essentially conceding that yes, they do have higher prices. If they try to challenge Walmart on price, they can only do so with cherry-picked items (as Publix is doing with its sale items). But then doing nothing has its own risks.
Walmart is essentially on the offense, trying to steal customers away from the grocery stores by saying you don’t need to bother with coupons or sales circulars here, you can just come in and grab what you want and save money. It appears as though Publix is playing defense, not necessarily trying to attract new customers, but trying to keep current customers from straying by reminding them how they can save by shopping the sales and advertising itself as being “coupon friendly.”
Which argument you ultimately believe, just depends on what kind of shopper you are.
I think the initial question should be “Why is Walmart using Publix as a comparison?” Could it be that Publix has been kicking Walmart’s butt? I shop Walmart on a regular basis and I can attest that they are often much higher than competition on many products. For instance, cereal, laundry detergent, paper products are often cheaper at other retailers that I shop on a regular basis.
I am sure that if Publix was not doing the right thing and getting results, they would quit as they are not a company that is given to whims and emotion. Additionally, Publix manages to stock their shelves—a feat Walmart doesn’t come close to managing. And the people of Publix are much more pleasant that the people of Walmart!
First of all, what are we afraid of?
We as independents have been getting pounded for years, with the media telling people to shop at the mega stores, and wholesale clubs to save serious money. I feel like Rodney Dangerfield! I get no respect, and I have never taken this perception lying down.
To battle the giants, it takes savvy, creativity, a laser-like focus on procuring awesome deals, and a marketing strategy that will generate perimeter sales. I have written several ads asking the customer to go down to Walmart, and ask someone for a 2″ porterhouse steak from their meat dept. I than mentioned that there isn’t any butcher to help you, so come on down to my store, and we’ll take care of it for you.
That is the jist of how I do things, and customers love to buy meat deals, that not only cost less, but gives them the satifaction of choosing what they want, and having it done right, with a smile to boot.
Yes I know I’m rambling, but I’m tired of the thinking that Walmart is the answer to everything sold in America. I am going to sing the praises of a well-run independent business any time I can, as we need the small business to survive in order to provide checks and balances. If none of us were here, the price of bread at Walmart would be $5 loaf, and you know it.
This does not excuse anyone from deserving any success if they choose to bury their heads in the sand, and not keep up with their business practices. A modern clean store, with the services that customers need is only the beginning, and it takes all the other things I mentioned above to have a chance at profitability.
Phew…. I’m exhausted, but I firmly believe that we need to not only challenge ourselves, but also keep the customers informed as to how we can compete, and beat Walmart, not only on price, but also with the intangibles that we do better. Have a great day!
This is an approach that retailers will increasingly use. Publix is taking the right approach in response to Walmart’s basket challenge. Walmart has been on the attack for years; it is great to see a company respond accordingly.
Having fired off a response to Walmart’s price comparison ads, Publix should return to promoting its strengths in customer experience and service quality. Shoppers are smart enough to know that Publix, like many grocers, employs a high-low strategy, and that Walmart’s EDLP will yield the lowest total basket cost most of the time. If Publix wants to get into a scrap with Walmart, they would be smarter to lampoon the “service” customers get at Walmart Supercenters.
Retailers should always respond to a competitor’s misleading and/or inaccurate claims, assuming that these claims are costing the retailer business. Frankly, it’s surprising that Publix would be losing business to Walmart as the demographics are quite different. The fact that they are expanding the campaign suggests that Walmart is cutting into their business.
If Publix does not respond, then consumers are likely to believe Walmart’s claims are true across the board. I think it is necessary to respond in kind if only to mitigate customer loss.
It seems to me that depending on what the specific purchases are, in some cases each grocer could come out ahead. If a grocer was extremely confident in their pricing, it would be interesting to create a website where consumers enter last week’s bill and have it competitively priced. Then the consumer could see directly the savings they would receive by shopping at the competitor.
“We want our loyal and potential customers to know that we offer more than clean stores, quality products and friendly service. We offer great value,” Shannon Patten, a Publix spokesperson, told the Tampa Bay Times.
The reason that Shannon Patten can make this statement is that Publix is capable of fulfilling that promise—day in and day out.
You can only do it if you can fulfill it. Consumers know the difference. I’m quite sure that the customer’s at Tony Orlando’s store understand it.
The reason that others fail or get crushed in the process that Publix is going through is generally, their words don’t equate to their execution.
I’d be willing to bet (not $10,000 dollars of course), that a two inch porterhouse from Tony O’s would bring any steak lover a smile. Retailers have to be able to execute to the level of their claim. Everyone at Publix has a stake in it (no pun intended). That makes it a whole lot different in their ability to execute.
Good job, Publix.
Yes, yes, and yes! Comparative advertising has long showed that it works, and it is very memorable. The message is simple, and the impact is tremendous. Why wouldn’t you want to use comparison advertising might be a better question when competing against Walmart?
Publix has the buying power to focus on select merchandise pricing to play a high-low game, as well as offer the service to a loyal customer base, that still eludes Walmart. Retailers have to be quick and light on their feet to make fast changes like this.
Publix fits that bill.
Price, ouch….the easiest thing to imitate. Did the shopper really tell either retailer something in research that they need help with price decisions?
Not the first time price basket comparison has been used as a strategy, but it should be the last. Full shopping baskets in Atlanta compared basket savings vs Publix…in the last century. The tactic is history, Publix took ground in Kroger and Winn-Dixie land and never looked back. Can’t find any whitepaper on the winners that compared their price to Publix or Walmart….
Mom told me to have a bully strategy, to know who the bully really is, and only fight as a last resort.
Allow me to start this by stating that I am BIASED and LOVE Publix. Having said that, it scares me that Publix is going down this road because you can NOT beat Walmart on price. Publix does need to let people know that they DO have similar, or better pricing, but Publix is SO MUCH MORE than Walmart could EVER hope to be. Walmart is quantity and volume in a bland, non service, uninspiring place.
Publix is excellent service with fantastic product with opportunity for wonderful food in SO MANY departments—full service meat, seafood, deli, floral, etc., etc.
Comparison is not fair—Walmart is price and cheap Publix is service and excellence. You get what you pay for. But it is GOOD for people to KNOW that Publix is not necessarily much more expensive.
Publix clearly beats WMT on most dimensions other than price (experience/service, merchandising, quality) and if there is an opportunity to mitigate what is a clear pricing advantage at WMT, why not? Publix still wins for groceries, especially to customers who value product quality and service/customer experience relative to price.
This is absolutely going to work.
Publix already kills Walmart on customer service, perishables, grocery selection and not being gross. Why not hammer Walmart on price?
Publix is a high-low retailer, so every week they’ll have plenty of items on sale for less than Walmart’s EDLP. If Publix stays on message long enough, they will convince plenty of people they don’t have to put up with 2nd-rate service and selection to get a good deal.