Lets associates star in TV commercials - Wal-Mart Stores Inc

Discount Store News, June 1, 1992 by Arthur Markowitz

BENTONVILLE, Ark. -- Wal-Mart has extended to its TV commercials its use of store employees and their families as models in ads, a promotional effort underway in monthly circulars since last fall.

Bill Fields, executive vice president, merchandise and sales, told security analysts at a recent meeting that the circular program "had a major positive impact on customers who would see associates that they knew in the stores appearing in the circulars. We have received many letters from customers telling us that it is a terrific idea. Of course, the associates are extremely pleased with this program."

Use of employees and their families is part of the chain's ongoing refinement of its ad program, begun three years ago when Paul V. Higham, who had been at Target, joined the discounter as vp, marketing and sales promotion.

That effort now includes a new, cleaner, uncluttered look for circulars and greater use of national television as the discounter enters its next growth stage as a coast-to-coast chain. At the present time, there are only a handful of states (and markets) devoid of any Wal-Mats.

The TV ads featuring employees, identified only by their first name, started to break in spot markets in March. The employees play up Wal-Mart's low prices, with the TV ads closing with the discounter's tagline: "Always the low price. Always."

(Other retailers are using employees as models. PayLess Northwest features employees in circulars while teleshopper QVC uses them in print promotions. Sears has been using employees in selected TV commercials since Thanksgiving night 1991.)

Wal-Mart's expenditure for network TV has exploded. Its cost for network TV went from $2,504,900 in 1990 to $17,745,000 last year. Spot (local) TV expenditures, while still much greater than that for network TV, declined 8.7% to $35,976,300 in 1991 from $39,407,500 in the previous year, according to figures from Leading National Advertisers/Arbitron Multi-Media Service.

In the circular ads, the individuals (or family members) are now identified only by first name and job title to preserve their anonymity and prevent harassing calls or other annoyances. They sign model releases to protect Wal-Mart, but don't receive any significant compensation beyond the gratification of appearing in the ads.

But the earlier circulars, like the September 1991 promotion celebrating Wal-Mart's 29th anniversary, identified the employees by their full name and, in that flyer, noted that "to celebrate our anniversary, we returned to Bentonville, Ark., where the Wal-Mart story began 29 years ago. We're proud of our fine Bentonville area Associates."

The individuals in all the circulars are mainly shown modeling apparel--professional models are used only for intimate apparel--but are occasionally used in selected settings for hard lines such as using a car seat or playing with toys.

The hometown feeling in the circulars includes a block of informational copy on the inside front cover that identifies the group of stores where the employees work. Employees are also quoted on their attitudes, hobbies, responsibilities and why consumers should shop Wal-Mart.

The copy in the September circular stated: "Jamine Covington [who is also used as a model] began as a Wal-Mart Associate while she was still in high school. She remembers shopping at the first Wal-Mart store when she was a young girl. Back then, she always enjoyed the friendly smiles she got from Associates. She says that a warm, friendly attitude is one reason she became an Associate. |It's easy for Associates to be friendly,' Jamie says, |because our customers are so friendly to us. It's like a circle'."

The January circular featuring employees from some Nebraska stores noted: "Kriss, a Test Scanner, works hard in the store to insure items scan at the correct price. Her fellow associates were excited that she was appearing in this month's pages. |It was a great opportunity for me because I represent my whole store.'"

Wal-Mart is able to use the more flexible circular format to emphasize its hometown approach through a number of elements. These include letters from shoppers (the full name and hometown is used), community public service activities (the name, position and hometown of individuals are included) and features on the discounter's own programs, like promoting American-made goods and citing specific manufacturers. It also highlights at least one Sam's American Choice private-label product in a circular and notes that "when you purchase select products we will donate a percentage of the cost to the Competitive Edge Scholarship Fund" set up with vendors to support technical education.