Marketing Shift Exposes Wal-Mart’s Sustainability Flaws

How does Wal-Mart keep getting away with convincing reporters and environmentalists that it is serious about sustainability? It took Jack Neff, who writes for Advertising Age, to point out the hypocrisy of Wal-Mart¹s environmental policy. Of course, he did it quite subtly but the point is clear.

Neff pointed out in an October 12 piece that a Cincinnati-based executive search firm is circulating a job notice for a “Director - Portfolio Strategy, Private Brands, for Wal-Mart.” Ostensibly, it appears Wal-Mart is ramping up its marketing of its own brands. The position will report to Andy Ruben, who many will remember as the former head of Wal-Mart’s sustainability program.  This is where it gets interesting.

There has been much written about how Wal-Mart is encouraging other companies to make their products more sustainable and promises to promote those that do just that. Much of that was initiated under Ruben’s watch. One might think that if Wal-Mart is serious about such initiatives it would make this a key part of any private label development. Not so. As Neff points out:

the new director position appears more squarely focused on growing sales, market share, cash flow and brand awareness—all of them included in the performance metrics of the job description, while sustainability metrics aren’t.

Once again, Wal-Mart says one thing and does another.  Of course, no one is suggesting that Wal-Mart should not be focused on making money, just that its executives should not lie about their motives.

In Shift, Wal-Mart Puts Focus Back on Private-Label Growth [Advertising Age]

Posted by David Nassar, Executive Director on Wednesday, October 15, 2008

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