Showing posts with label wal-mart. Show all posts
Showing posts with label wal-mart. Show all posts

Thursday, January 28, 2021

15293: Walmart Spot For Shot…?

 

Is Walmart is taking advantage of a global pandemic to lure customers back? Seems like healthcare organizations should announce where vaccines can be administered to the public—versus a big-box retailer airing a promotional commercial. Will Sam’s Club only provide shots to card-carrying members? 

 

Thursday, February 14, 2019

Saturday, August 26, 2017

13804: Hypocrisy On Sale At Walmart.

Advertising Age reported Walmart is the latest advertiser to jump on the Kumbaya bandwagon, promoting racial, ethnic and disabled harmony via a patronizing video. Of course, the responsible White advertising agency—mono—features a staff that is pretty, well, mono-cultural. If Walmart thinks everyone deserves a seat at the table, the retailer should ask its agency partners to play musical chairs with their hiring.

Walmart Gingerly Weighs in on Racial Controversy With ‘Many Chairs’

By Jack Neff

Walmart wants to give everyone a seat at the table in a new ad that arrives amid racial controversy stemming from violence in Charlottesville and President Donald Trump’s reaction to it.

Walmart’s updated take on Coke’s iconic “Hilltop” ad from 1971 is the 60-second “Many Chairs. One Table” ad from Mono, Minneapolis. The timing is apparently coincidental: The ad was already in the works as a follow-up to Walmart’s holiday “Come Together” ad from last year, according to people familiar with the matter. Given the production values, it clearly wasn’t slapped together in the week between the “Unite the Right” rally in Charlottesville and when it first aired Sunday. Then again, August is a little early to start Thanksgiving ads, even for a retailer.

The ad shows an ethnically and geographically diverse crowd wheeling and carrying chairs to a giant dinner table in a field, all to tune of The Youngbloods’ “Get Together.” You know: “Come on people now, smile on your brother. Everybody get together, try to love one another right now.”

“We’re a place where 140 million people gather every week, and our stores are part of the fabric of communities around America,” Walmart says in a statement. “Inspired by what we are hearing from many of our customers and associates right now, this ad celebrates the importance of coming together.”

But Walmart, which over-indexes in Trump country with relatively few of its stores in major coastal cities, hasn’t gone out of its way to publicize the ad in social or conventional media. As of early Thursday, it’s gotten a modest 10,000 views on YouTube and 30,000 on Facebook.

Walmart CEO Doug McMillion didn’t join other CEOs quitting Trump’s advisory councils last week before they were disbanded, but took the president to task in a note to employees. “As we watched the events and the response from President Trump over the weekend, we too felt that he missed a critical opportunity to help bring our country together by unequivocally rejecting the appalling actions of white supremacists,” McMillon said.

Mono, backed by MDC Partners, is a former Target agency that landed on Walmart’s roster last year and has kept its place despite consolidation of most work under Publicis Groupe’s Department W. Prior work from Mono also had a decidedly multicultural cast.

Friday, December 23, 2016

13476: Hypnotic Hypocrisy.

Saatchi & Saatchi is responsible for this Walmart holiday commercial featuring hypnotist chrisjones. Gee, a Black hypnotist and lots of Black cast members makes for quite a Christmas surprise from a White advertising agency like Saatchi & Saatchi. Or maybe not, given the shop’s penchant for total market strategy—which essentially translates to stealing all the crumbs from minority shops. Maybe chrisjones can hypnotize Saatchi & Saatchi executives and compel them to hire a few minorities.

Saturday, August 20, 2016

13306: Globalhue Black & Blue.

AgencySpy posted on the latest financial woes of Globalhue, revealing that ten employees filed a class-action lawsuit for wages owed by the dying agency. The shop has reportedly failed to pay its workers for many months. Not even a few crumbs. The real estate company that owns the agency’s New York headquarters is also pursuing legal action, along with a personal driver who chauffeured CEO Don Coleman and his daughter, Kelli Coleman. Guess the Colemans will have to catch a cab to the courthouse.

But the most outrageous part of the exposé—besides the fact that only a lame blog like AgencySpy is bothering to cover the news—is the following excerpt:

In addition to the suit, we also hear that GlobalHue will soon close its New York office after losing its last client, Walmart. That company recently consolidated its accounts with Publicis, and multiple sources have told us that the multicultural portion of the business was part of that move.

Great. The client that once boasted boosting its budget for multicultural marketing is apparently consolidating with White advertising agencies in a White holding company. Hell, the minority business will probably be awarded to a shop run by White women.

Sunday, December 07, 2014

12290: Walmart Takes A Deep Breath.

Advertising Age reported Walmart and The Martin Agency are re-editing a commercial featuring a Black man saying, “I can’t breathe” while his daughter hugs him, as the phrase has become the rallying cry of Eric Garner protesters. Wonder if another protest would erupt if the public learned Walmart ads targeting Black consumers are being handled by White advertising agencies where diversity is a dream deferred and denied.

‘I Can’t Breathe’: Walmart Edits Ad in Wake of Protests

Phrase Uttered by Eric Garner Before Death Became Protest Rallying Cry

By Jack Neff

In the wake of nationwide protests over the lack of an indictment for the death of Eric Garner, Walmart is editing a commercial showing a black man saying “I can’t breathe” as he’s hugged by his daughter.

The same phrase was adopted by protesters nationwide after a grand jury on Dec. 3 declined to indict police officer Daniel Pantaleo for the death of Eric Garner, who uttered the phrase in a video aired in news reports following his July arrest. That video has gotten round-the-clock national news play since the grand jury decision.

In response to tweets yesterday, the @WalmartNewsroom account announced: “We’re re-editing as we speak based on feedback we’ve received.”

The Walmart Mobile Family Plan ad first aired this summer during back-to-school season, said Walmart spokeswoman Deisha Barnett in an e-mail.

“We can see how the ad might be viewed differently today than when it first aired earlier this year,” she said. She didn’t yet know when the revised ad would air.

Interpublic’s Martin Agency, Richmond, Va., created the ad, “which began running earlier this summer before any of this started,” said a spokeswoman for the agency. Publicis Groupe’s Mediavest handles media for Walmart.

The TV ad tracking service iSpot.tv only picked up airings of the ad starting Dec. 1, two days before the Staten Island grand jury decision was announced. Walmart spent an estimated $1 million on the spot this week, according to iSpot.tv, which indicated it aired up to nearly 4 a.m. this morning on such networks as A&E and BET.

Saturday, November 01, 2014

12180: Walmart Is Scary Ignorant.

The New York Post reported Walmart pulled more offensive Halloween costumes from its website. Of course, the retailer profusely apologized for its alleged unintentional insensitivity. Yet given that Halloween is an annual opportunity for people to openly display cultural cluelessness, one would think companies like Walmart would take extra precautions to prevent such mishaps. How difficult is it to assign a culturally competent employee to review the Halloween costumes? Then again, perhaps there are no culturally competent employees at Walmart. Now that’s a scary thought.

Walmart pulls offensive Halloween costume from shelves

By James Covert

Halloween was another diplomatic disaster for Walmart.

The retail giant got blasted Friday for selling a costume called the “Pashtun Papa” (right) — a mock-up of traditional Afghan robes and turban, coupled with a big, fake silver beard.

“Whether you’re making a serious political statement or staging a polical [sic] parody, this authentic-looking outfit is sure to fit the bill!” the outfit’s description on the store’s Web site read.

“Nothing is sacred this Halloween,” the blurb continued. “Shock your friends with this Islamic costume.”

Walmart removed the offensive outfit later in the day after it sparked an uproar online. The retailer said it was sold by a third-party vendor.

“We are deeply sorry that this costume is on our Web site, and we are pulling it down as soon as possible,” a Walmart spokeswoman said. “We are calling on all of the other retailers to pull it down as well.”

Earlier this week, Walmart sparked an outcry when Halloween merchandise on its site included a section of “Fat Girl Costumes.”

Monday, February 17, 2014

11754: BHM 2014—Walmart.

Walmart covers Black History Month and Supplier Diversity with one lame ad.

Thursday, February 14, 2013

10994: BHM 2013—Walmart.



Walmart is proud to celebrate Black History Month—so proud that it looks like the retailer spent about five minutes creating its tribute advertisement.

Wednesday, January 16, 2013

10913: Walmart Recruits Veterans.

From The New York Daily News…

Walmart pledges a job to every honorably discharged veteran

The plan was met with approval by First Lady Michelle Obama and recruiters who place vets in jobs. But former Walmart employees think the minimum wage, part-time work won't help vets get on their feet.

By Victoria Cavaliere / NEW YORK DAILY NEWS

Retail giant Walmart pledged Tuesday to hire any returning military veteran that wants a job with the company.

Walmart U.S. CEO Bill Simon told a retail conference in New York City the company expects to hire 100,000 veterans over the next five years, one of the largest-ever hiring commitments of former military personnel.

“We believe Walmart is already the largest private employer of veterans in the country, and we want to hire more,” Simon said. “Hiring a veteran can be one of the best decisions any of us can make…Veterans have a record of performance under pressure. They’re quick leaders and they're team players.”

Starting Memorial Day, Walmart will offer a position to any honorably discharged veteran in his or her first 12 months off of active duty. Most of these jobs will be in Walmart stores and Sam’s Clubs, and some will be in distribution centers or the home office.

The announcement was met enthusiastically by employment agencies that place veterans in jobs.

“We’re ecstatic,” said Ron Rutherford, business development manager at the career site TAonline. “The commitment is like an open hand willing to assist any veteran who wants to work.”

The plan has also gotten a warm reception in Washington, where first lady Michelle Obama said it “a groundbreaking example for the private sector to follow.”

But Walmart’s deep roster of critics say the jobs will do little to help returning military members get on their feet financially. “The jobs will be part time, 28 hours a week” said Bronx resident and Army veteran Edgar Lucas.

Lucas, who worked for a Walmart in Kentucky, called the plan a “scheme.”

“Anything that’s not 40 hours, I don’t know how it’s going to help these veterans,” he said.

A group of protesters lined up outside the Javits Center in Manhattan Tuesday as Simon gave his speech, accusing the nation’s largest private employer of unfair work practices and of keeping employees short of 40 hour work weeks to avoid paying benefits.

“Walmart is the driving force that fuels underemployment in the county,” said Yana Walton, a spokeswoman for the advocacy group the Retail Action Project. “These aren’t the kinds of jobs for folks returning home, or for Americans,” she said.

The hiring push could generate millions in tax breaks for Walmart — employers can get tax credits of as much as $9,600 for hiring a veteran, depending on certain criteria, under a U.S. tax provision extended through 2013.

Walmart’s announcement Tuesday also included a pledge to spend an additional $50 billion on U.S.-made products over the next 10 years.

“I know according to urban legend Walmart’s shelves are filled with foreign products,” Simon said. "But the truth may surprise you.”

Sunday, November 25, 2012

10786: Walmmart Is Commmitted.

Walmart literally and graphically highlights helping Hispanics—which kinda looks discriminatory. Plus, the retailer’s “commmitment” doesn’t include hiring a proofreader.

Thursday, November 01, 2012

10683: Delayed WTF 21—Why Walmart Sucks.

MultiCultClassics is often occupied with real work. As a result, a handful of events occur without the expected blog commentary. This limited series—Delayed WTF—seeks to make belated amends for the absence of malice.

Wanted to revisit the Walmart post featuring the happenings at the ANA Multicultural Marketing and Diversity Conference—specifically, the words and deeds of Walmart Senior VP-Brand Marketing and Advertising Tony Rogers.

Rogers boldly announced, “One hundred percent of the growth [in sales] is going to come from multicultural customers. … Our spending against multicultural customers will grow by at least 100%.” Forget the fact that doubling the budget is still painfully inadequate. There’s actually quite a bit of bullshit behind Rogers’ proclamations.

For starters, if 100% of the sales growth will come from minority customers, why aren’t the minority agencies handling 100% of the account? Rogers and Walmart VP Creative Marketing Greg Warren claimed they’ve given the minority partners “a seat at the table”—yet the sales figures indicate they deserve the whole table and dinette set.

In 2011, Rogers boomed about blowing up multicultural marketing budgets and deconstructing silos. Now he has the opportunity to detonate the entire budgetary scheme and decimate the segregated, separate-but-unequal hierarchy present with his advertising agencies. And he can do it for legitimate, revenue-based reasons.

Rogers and Warren clearly recognize the face of America is changing; however, the two are content to conspire with a “general market” agency whose complexion does not reflect the new mainstream. A bump in the underfunding is not revolutionary—it’s simply rational. If you want to measure progress and performance review objectives, do something original.

It’s time to completely overturn and overhaul the Walmart advertising org chart. You’ll probably save money—and live better.

Wednesday, October 31, 2012

10679: Walmart Promises 100% More Crumbs.

Advertising Age reported Walmart Senior VP-Brand Marketing and Advertising Tony Rogers attended the latest ANA Multicultural Marketing and Diversity Conference and declared, “One hundred percent of the growth [in sales] is going to come from multicultural customers. … Our spending against multicultural customers will grow by at least 100%.” Last year, Rogers proclaimed Walmart would blow up its multicultural marketing budget, distributing the loot into individual business units versus segregated silos. Walmart appears to be making progress in recognizing minority audiences and agencies; however, there is still no public disclosure on the actual amounts invested. It’s common knowledge that minority targets are grossly underfunded, so doubling the amount of crumbs is still a pile of crumbs—in short, it would require much more than a 100% increase to make the totals sufficient.

Also worth noting is a comment from Walmart VP Creative Marketing Greg Warren, who spoke on supplier diversity. At most shoots, Warren noted 75% of the crew may be White. “There is still very little diversity at the ground level,” said Warren. Um, has this guy taken a close look at his White advertising agency?

Walmart’s Tony Rogers: 100% of Growth Is Multicultural

Plans to Double Its Ad Spending in Area

By Laurel Wentz

Walmart plans to double its multicultural ad spending as part of a sweeping initiative to move the company from a silo-like approach to making sure everyone takes responsibility for multicultural marketing.

“One hundred percent of the growth [in sales] is going to come from multicultural customers,” Tony Rogers, Walmart’s senior VP-brand marketing and advertising, told the audience at the ANA’s Multicultural Marketing and Diversity conference on Tuesday in Miami. “Our spending against multicultural customers will grow by at least 100%.” At last year’s ANA conference, Mr. Rogers created a stir by saying Walmart was going to “blow up the multicultural budget” and move it out of silos and into the business units to signal how serious the company is about improving its multicultural efforts. He was invited again this year, along with Greg Warren, Walmart’s VP-creative marketing, to report back on how it’s going.

Mr. Rogers outlined four key learnings: 1) Make multicultural part of everything you do, rather than projects in silos. 2) Train people. 3) Set goals and keep score. 4) Build partnerships and leverage people outside your company.

Walmart’s “aha” moment was a disconnect over the company’s layaway program, reintroduced last year in a huge initiative. But the Hispanic ad that ran on the popular Latin Grammy Awards show on Univision featured giggling girls buying Latin music CDs from Walmart.

“The ad we ran on the Latin Grammys didn’t mention layaway,” Mr. Warren said. “Our [Hispanic] agency Lopez Negrete did a great job doing what we asked them to do. We just weren’t asking them to do the right thing.”

“Layaway was the straw that broke the camel’s back,” Mr. Rogers said. “The layaway team was working hard on layaway. The multicultural team was working hard on the Latin Grammys and not going to the layaway meetings. That was a real eye opener for me.”

There’s still a Latin Grammys effort, but now it’s a platform to talk about layaway, he said. This year, the Lopez Negrete spot features two soccer fans in jerseys from rival teams buying big screen TV sets at Walmart—on layaway.

Seat at the table


Warren said it’s also key to give multicultural agencies “a seat at the table” from the beginning. Previously, multicultural efforts would lag by several weeks or a month because the general market work was done first. This year, the Hispanic wireless-contract campaign took the lead in Walmart’s back-to-school wireless effort, and the general market followed.

Walmart ranked as the 16th biggest advertiser in Hispanic media with 2011 spending of about $60 million, according to Ad Age’s Hispanic Fact Pack.

“There’s an education process and a score-keeping process,” Mr. Rogers said. This year, an intensive tracking of multicultural efforts has been added to Walmart’s weekly Monday morning meetings to measure progress and look at numbers. “You know every Monday morning, you’re going to have a conversation about multicultural. [And] it’s on your performance review objectives, and it’s on mine. People may have three or four objectives, and multicultural is one of those things.”

In another initiative in the last year, Walmart set up a monthly multicultural advisory council that includes senior Walmart execs and the heads of Walmart’s multicultural agencies, including Alex Lopez Negrete, president-CEO of Lopez Negrete Communications; Don Coleman, chairman-CEO of African-American agency GlobalHue; and Nita Song, president-chief operating officer of IW Group. The group has already gone from quarterly to monthly meetings, in marathon four-hour sessions attended by Walmart CMO Stephen Quinn.

Supplier diversity


Walmart is also looking at driving diversity in its suppliers. At a shoot, for instance, Mr. Warren said 75% of the people he sees may be Caucasian. “There is still very little diversity at the ground level,” he said. So Walmart is doing a pilot program in Chicago in the production space, taking junior-level people “under our wing.”

Mr. Rogers said Walmart’s increased focus on multicultural can also help make its suppliers smarter in that area. “We had a supplier who was convinced their audience was Caucasian women,” he said. “We were able to show them that 40% of their business came from multicultural consumers.”

Mr. Rogers drew a round of applause from the ANA audience when he quoted one of his marketing managers, Javier Delgado, as saying that in some companies you have to ask permission to do a multicultural program, but at Walmart you’d now have to ask permission not to do one.

How successful is Walmart’s intense focus on multicultural marketing?

Mr. Rogers said, “I don’t think we would have volunteered to come back [to speak at the ANA] if it wasn’t working well.”

Sunday, March 18, 2012

9903: Blowing Up Multicultural Silos.


Advertising Age reported how retailers are rethinking multicultural silos, adopting a “Total Market” approach that apparently covers all consumers. Wonder what Pepper Miller would have to say about the alleged shopper marketing innovations.

Retailers Break Out of Multicultural Silo

Walmart, Kmart, Target and Kohl’s Focus Programs and Advertising to Appeal to Developing ‘Total Market’

By Laurel Wentz

No one lives the “total market”—the term used to describe the blending of the general and multicultural markets—like Walmart.

Last month Gisel Ruiz was elevated to exec VP-chief operating officer at Walmart, and Rosalind G. “Roz” Brewer was named president-CEO of Sam’s Club, becoming the first woman and the first African-American to hold the CEO title at a Walmart unit. Ms. Brewer’s successor as president of one of Walmart’s three U.S. regions is Hispanic.

Walmart is also serious about diversity in its agencies, according to Steven Wolfe Pereira, who has a dual role as exec VP of MediaVest and managing director of MV42, MediaVest’s multicultural unit on the retailer’s account. “Ten percent of all Walmarts are in Texas, 6% in Florida, 4% in Illinois and 5% in California,” said Mr. Pereira, emphasizing that one-quarter of the stores are in heavily Hispanic states.

Walmart still works with the first U.S. Hispanic agency it hired 17 years ago, Lopez Negrete Communications. The independent survived Walmart’s review, started in 2005, in which it fired all its general-market agencies.

Lopez Negrete gets not just a seat at the table, but a good one. Tony Rogers, Walmart’s senior VP-brand marketing and advertising, said at the Association of National Advertisers’ multicultural marketing conference in November that the company planned to “blow up” its multicultural marketing budget, moving the money out of that silo and into the individual business units.

About 80 of Lopez Negrete’s 200 staffers are involved with the Walmart business, and one works out of its Bentonville, Ark., headquarters. The agency now deals more with individual category leads. Walmart’s Hispanic Center of Excellence functions primarily as a consultant, which shifts more of the responsibility for growing Walmart’s multicultural business to Lopez Negrete.

The agency, for example, plunged into the humorous “Every Cart Tells a Story” TV campaign developed by the Martin Agency, Walmart’s general-market shop. Spots always start with items at the checkout counter, then cuts to how they’re used at home. One item is always incongruous. Lopez Negrete’s “Tea Time” includes a teapot, a princess dress, cookies—and mouthwash. At home, a little girl entertains her father with a tea party, until he realizes that she has filled the teapot with water from the toilet (hence the mouthwash).

There are subtly different general-market and Spanish-language spots. The dad in the former version is goofier; in the latter he has more interaction with the daughter. The mouthwash brand is Listerine in the English version, Scope for Hispanics.

Walmart is the biggest-spending retailer in the Hispanic market, and No. 15 among all advertisers in Spanish-language media, at $66.6 million in 2010, according to Ad Age’s Hispanic Fact Pack. Sears Holding Co., which includes Kmart and Sears, is No. 19 with $53.9 million spent in 2010, followed by Target Corp. at No. 27 with $40.3 million. Kohl’s spent $14.8 million.

Some of the discounters focus their efforts on collections with Latino celebrities. Kohl’s rolled out clothing lines with Jennifer Lopez and Marc Anthony last year. It also sponsors their TV show, “Q’Viva! The Chosen,” which airs on both Spanish-language Univision and Fox.

Kmart is linking with Colombian-born Sofia Vergara of hit comedy “Modern Family.” Kmart launched Sofia Vergara lines of apparel, footwear, accessories and jewelry last fall, with TV and print ads in English and Spanish by PMH. A campaign featuring Ms. Vergara is expected midyear. “The general market and the multicultural market have merged,” said Mr. Stein. “She’s relevant to both.”

The four retailers aren’t big on Spanish-language websites or Facebook pages, although Kmart does have a Spanish-language web presence.

Kmart is continuing last year’s Kmart Latina Smart platform, built around a group of blogueras that has brought in more than 26,000 Facebook fans. And Sears Holding, which includes both Kmart and Sears, is a founding sponsor along with General Mills, General Motors’ Chevy brand and Procter & Gamble of Mamas Latinas, a site for Hispanic moms started by CaféMom in late January and run by Lucia Ballas-Traynor, the former publisher of People en Español magazine. Kmart has built out a style and fashion area, and is running ads throughout the site for the Sofia Vergara collection and Kmart’s layaway program.

Monday, February 06, 2012

9760: BHM 2012—Walmart.


Walmart flies through Black History Month with Red Tails. But why only salute the Tuskegee Airmen for their contribution to Black History? What about American History?

Saturday, January 21, 2012

9701: Sam’s Club No Longer White Boy’s Club.


From USA TODAY…

Wal-Mart makes executive changes; woman to head Sam’s Club

BENTONVILLE, Ark. (AP) – Wal-Mart Stores (WMT), the world’s biggest retailer, said Friday that it has named Rosalind Brewer CEO of Sam’s Club— the first woman and the first African-American to hold a CEO position at one of the company’s business units.

Brewer, 49, is replacing Brian Cornell, 52, who is leaving the company so he can return to the Northeast for family reasons.

Brewer, who will also be president of Sam’s Club, was previously president of the retailer’s U.S. East business unit. She will report to Wal-Mart CEO Mike Duke. The moves are effective Feb. 1.

Wal-Mart has in recent years has been battered by a combination of the slow-growing economy and its own decisions that caused U.S. customers to flee to competitors. But it has refocused on offering the lowest prices and shoppers’ favorite goods and that strategy has been paying off.

In its third fiscal quarter ended Oct. 28, its net income fell 2.9% but it reversed a slump in U.S. namesake business.

Its Sam’s Club warehouse club business has outperformed its namesake stores. Revenue in stores open at least one year rose 5.7% at Sam’s Club and 1.3% at Walmart U.S. stores in its third quarter.

Before joining Wal-Mart, Brewer held a number of executive positions at Kimberly-Clark.

Wal-Mart also said Friday that it is promoting Gisel Ruiz, 41, to executive vice president and chief operating officer for its U.S. operations. Ruiz has been an executive vice president working on human relations and store innovation issues.

Wal-Mart is also promoting Rollin Ford, 49, to chief administrative officer. Ford was chief information officer. He will be replaced as CIO by Karenann Terrell, 50.

Thursday, November 10, 2011

9496: The Hypocrisy Of Advertisers.


Wanted to chip in an additional two cents regarding the allegedly revolutionary Walmart multicultural marketing scheme. The Advertising Age story reported that marketers like Walmart and Procter & Gamble tie executives’ compensation and bonuses to multicultural performance. Really? Are CMOs and marketing directors also financially penalized for partnering with advertising agencies whose hiring practices are minority-unfriendly? And why don’t advertisers tie their White agencies’ billings to multicultural performance in terms of the shops’ diversity?

Tuesday, November 08, 2011

9491: Blowing Multicultural Budgets.


At the ANA’s Multicultural Marketing & Diversity Conference, Advertising Age reported Walmart SVP-Brand Marketing and Advertising Tony Rogers declared the retailer plans to “blow up” its multicultural budget. Given the typical tininess of multicultural budgets, it shouldn’t require more than a single firecracker to detonate the explosion. Besides, the ANA already knows the majority of advertisers don’t even partner with multicultural agencies. So the entire discussion is just blowing a bunch of hot air.

Walmart’s Tony Rogers: ‘Blow Up’ Your Multicultural Budget

Retailer to Funnel Funds Into Individual Business Units

By Laurel Wentz

Walmart Stores is going to “blow up” its multicultural marketing budget and move the money into the company’s individual business units, said Tony Rogers, senior VP-brand marketing and advertising, at the ANA’s Multicultural Marketing & Diversity Conference today in Miami. “I’ve come to the conclusion that if you really want to be serious about multicultural, one way to do it is just blow up the multicultural budget,” Mr. Rogers said. “Take the multicultural budget out of a silo and push it out into the business units. [And] you’ve got to protect the budget and make sure it doesn’t just dissolve away.”

At Walmart, for instance, if a marketer works in a category group like food, “I’m now handing you a budget that includes a very strong multicultural component,” he said. “That makes it more difficult for that marketer to ignore any part of it. If those budgets are sitting in a silo, there’s an assumption that someone else [is taking care of it].”

Mr. Rogers said this change is happening “in real time.” The new system will include linking compensation to multicultural performance, he implied. “You’ve got to make sure this marketer has four or five objectives for the year,” he said. “One of those objectives has to be how did you do against multicultural.” Walmart’s main multicultural agencies are Lopez Negrete Communications, one of the biggest independent Hispanic agencies, GlobalHue for African American work, and Interpublic Group of Co.’s Asian agency IW Group.

Procter & Gamble, the biggest multicultural marketer, made a similar move about a year ago to push multicultural budgets into individual product categories and brands from a more centralized multicultural unit and tie managers’ bonuses to multicultural performance. Ethnic agency assignments were also realigned. And as a precaution, P&G guaranteed its multicultural agencies’ revenue for three years to help smooth the transition.

Mr. Rogers spoke today to a record 700-person crowd at the ANA’s annual multicultural gathering. In a fireside chat with Jacqueline Hernandez, chief operating officer of Telemundo Communications Group, Mr. Rogers said he had just come from running the New York marathon on Sunday and drew applause for delivering Walmart’s slogan in Spanish: “Ahorra mas, viva mejor.” (“Save more, live better”).

He described his own journey as a marketer over the last decade and said there are three levels of “getting” multicultural marketing. The first level of “getting it,” he said, “is not doing anything.” The second level is recognizing its importance, but keeping efforts pretty siloed, like spending some money during Black History Month and Hispanic Heritage Month and considering the multicultural box to be ticked off. “The next step is where we are—making multicultural part of everything we do,” he said.

He cited Walmart’s recently rolled out layaway program, saying it’s incredibly popular among multicultural customers and that “not leading with a multicultural message, that’d be crazy.” He also said Walmart found that the interaction with recent digital ad for the layaway program, done in both Spanish and English, was three times higher for the Spanish-language version.

For Walmart’s current Christmas price-guarantee program, each multicultural ad is based on a relevant insight, Mr. Rogers said. The humorous African-American spot revolves around food and extended family. The camera zeroes in on individual food items like pie, and adds a price tag to show how affordable it is. One missing pie is tracked down to an errant uncle sneakily devouring it in another room, so he’s relegated to the kids’ table at the feast.

The Hispanic spot is based on abundance, with a huge stack of gifts at the store, which Mr. Rogers said has prompted store managers to ask if they can build a similar stack in their own premises. A third TV ad, in Chinese, reflects a Chinese saying about comparing prices three times before buying.