Wal-Mart, brand killer? Maybe not.

BrandChannel.com has an article that discusses the prospect of Wal-Mart as a brand killer.

Some claim that Wal-Mart is a brand killer because of its enormous buying power and ubiquity. Wal-Mart can buy for less because it has such power and therefore sell for less than any competitor. Wal-Mart represents such a wide distribution channel that some brand managers think they cannot afford for their brands to be left off the retailer’s shelves.

So the brand managers think.

If you are a brand manager, you must stop to ask yourself, "Does my brand belong in Wal-Mart?"

Many people realize that Wal-Mart is not always the smartest choice. It is not the trendiest. It is not the most exclusive. It is not where you are likely to find the highest quality. It is not the place to go if you are hoping to find products that deliver a bit more than you expect. It IS the place to go if you are looking for a functional product at a low price.

Think about your brand in those terms. Do you consider your brand a commodity item where you can compete almost exclusively on price? If so, then maybe Wal-Mart is a good channel for your brand.

If your brand, however, is highly differentiated from its competition and promises superior value, then perhaps your brand does not belong in Wal-Mart right next to a generic alternative selling for less money. That might actually hurt your brand.

Just because you can get your brand in front of millions of shoppers per day does not mean it is the right thing to do for your brand.

That being said, there will always be room for other retail outlets to find ways to successfully compete against Wal-Mart with highly differentiated brands.

Certainly, there is room for all and the symbiosis will only be a benefit for all consumers.