Wal-Mart just got a little bit cooler. For the moment anyway. And it did it by hanging out with that cool kid called Coke.

Wal-Mart and Coke have teamed up for a holiday campaign which is screening in American cinemas and online. It includes a Sesame Street-esque ditty and more white teeth than a cage dive in South Africa:

An American survey was undertaken in October 2007 to explore the recent decline in sales and consumer perceptions towards the Wal-Mart. It found:  

28% of all consumers developed a more negative opinion of the company over the past year. In 6 months, the percentage of people who are likely to shop at Wal-Mart over the next 6 months has fallen from 69% to 60%.

Resistance to shopping at Wal-Mart is increasingly tied to concerns about the retail giant’s business and labor practices. The number one factor in consumers’ resistance to shopping at Wal-Mart is the company’s policies (41%). Other considerations, like store proximity (21%) and economic constraints (8%), are considered to be much less relevant.

If you are a successful brand with a strong, loyal consumer base you wouldn’t want to go near Wal-Mart would you? Well then, why would Coke team up with Wal-Mart?

The answer: Coke is Wal-Mart’s bitch.

Wal-Mart is America’s largest retailer. In 2007, Coke sales in North America equated to $7.8b. Wal-Mart was responsible for approximately $1.25b of Coke’s sales in the one year.

This allows Wal-Mart to exert huge influence over Coke. In 2005 Coke wanted to launch Coke Zero. However, it was made with aspartame sweetener, not the Splenda sweetener that was proving popular with Wal-Mart’s customers. So, Coke went back to the happiness factory and produced Diet Coke with Splenda to put in Wal-Mart stores before launching Coke Zero a month later.

It’s fair to draw the conclusion that Wal-Mart used this power to convince Coke to ‘partner’ with them to create this dual branded campaign. Coke’s positive consumer perceptions and proven creative expertise would have been seen as an ideal free hit at reversing the negative associations levelled with Wal-Mart. Sure, it still has a retail message but it is executed with the Coke charm which makes you believe in Santa Claus and fair labour practises.

All-in-all, this a sure thing for Wal-Mart and a big risk for Coke.

Nevertheless, the campaign seems to be a success for both brands. The commercial has had over 31,000 views on YouTube with a 5-star rating and predominantly glowing comments such as:

“I love this ad!!! Thanks so much for putting it up! I was going to take a video camera to the theater and record it this weekend.” 

“i have to listen to this at least 10 times a day sometimes more”

“After hearing this at Quantum Of Solace this was the thing I remembered most from that night. It’s so catchy and feel good:p”

“Am I the only one who cried?”

I’m not even going to start on the Twitter excitement from the song mention. Let’s just say it could used as a line in the second version of ‘Jizz in my Pants‘.

Overall, in regards to consumer sentiment (I’m not sure about sales), it seems the campaign was a holiday success for both brands. However, I doubt this is something that Coke wants to make a habit of. Neither would other suppliers who are at the mercy of larger retailers.

Do you really want to jeopardise your loved brand for a despised retailer? Do you want to play spend hours beautifying yourself for a night out and end up sleeping with sweaty, incoherent and newly divorced guy? That’s the risk you take when you play the bitch.

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