Monday, July 20, 2009

Is WalMart a Store or a Media Channel or a Printer or a Supermarket or Drugstore? Yes.

Last week we learned that PNI is moving into SMB marketing collateral sold at the WalMart photo counter. This morning I found the snippet below
from Advertising Age
Marketing: Walmart Browbeats Marketers Over Ad Budgets "BATAVIA, Ohio (AdAge.com) -- Walmart has launched an aggressive push to have marketers divert their consumer media and marketing budgets into the giant retailer's growing ad budget and in-store marketing programs, using a simultaneous push to clear underperforming brands off its shelves as extra leverage.
The implied threat for marketers that don't go along with demands for more marketing funds is an increased risk of delisting.
The implied threat for marketers that don't go along with demands for more marketing funds is an increased risk of delisting.

In recent months, the country's largest retailer has been quietly rolling out a system -- the cost-supplement initiative -- that marketers and industry consultants say directs marketers to divert money proportionate to their share of sales to Walmart marketing programs. Walmart is looking for a share not just of trade-promotion funds but also consumer-ad dollars. The vehicles Walmart wants funded include co-branded TV and other media ads, in-store TV and banner ads on Walmart.com.

Bold play
It's probably the boldest retailer grab for suppliers' consumer-marketing funds ever, if only because the amounts involved are so huge. Some package-goods companies do more than 30% of their U.S. business at the retailer.

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