http://www.youtube.com/watch?v=38ThH0jkufk

Thanks, Tonya

Denise, as always an interesting angle and a valid point about overloading the promotional, and particularly the advertising, aspect of a brand. But what if this reality is indeed indicative of something noteworthy. Desire, as deep as it may affect us, is still a rather superficial experience. On a very primeval level it is a short-lived attraction, an intermission between moments of gratification. Think of a dog going after a smell only to change direction drawn by a new one. There is no conscious preconceived notion in this movement. Superficiality runs rather “deep” in this sense when it comes to humans and the irony is inescapable. We “like,” both in terms of attraction and to mimic and this is as old as our culture. We communicate this way. Attraction and desire are acting similarly in this sense. Memory as a vehicle of relationships relies on emotion as the glue and this is precisely what the contemporary ads and commercials are delivering. The advertising narratives are evolving from awareness builders into pure entertainment, where “that was a great commercial but I don’t remember the brand” has become the rule. They live as intermissions on the pages of magazines, the Internet and on TV. In this sense they are pure media—relating, filling the gap between the “important” stuff. On a pure primal stimulus/response level we do “like” or dislike and we definitely relate. The relationship, however, is not necessarily to the brand but rather via the brand. Brands could be viewed as intermissions, pure media, and in this sense “the medium is the message” definitely works. So how about building backwards—from promotion to brands? Entertainment is the ultimate experience in the user ecology. Perhaps brands are doing it after all, filling those crevasses, not “in the mind” as an isolated overcrowded place but between minds to weave the texture of our humanity. Apple has built the best integrated gadget experience, hence influence. They have figured out that we all would give up our “independence” the second we are made to believe that we are different. This is why all the logic in the world can’t explain why people are hooked to a product that many claim is not the superior in terms of performance. It doesn’t make sense, but desire never does.

Here is my chain: desire – connecting – difference.

alex — the main point of difference is price, which is a pretty strong one and one they have equity in. — denise lee yohn

Our research at Brick Meets Click finds that shoppers are impressed by the Walmart price comparisons vs. competition like Ralph’s and that the management of the Neighborhood Markets have the autonomy, which allows them to respond to the needs of the local market which is a nice advantage.

The only concern with your positive forecast for Walmart Markets relates to the lower sales per square foot that may not be able to meet Walmart’s return on investment objectives without the support of extensive high margin general merchandise.