THE WALL STREET JOURNAL: WAL-MART TO TURN TO DATA-DRIVEN MARKETING FOR GREATER AD ACCOUNTABILITY? HIRES DRAFT TO TAILOR PITCHES. Wal-Mart

Wal-Mart is expected to name Interpublic Group's Draft FCB to overhaul its advertising and woo low-price loyalists and higher-income customers simultaneously. The world's largest retailer, plagued by anemic sales growth in recent months, has signaled it will trade its mass-marketing approach for customized appeals to suburbanites, ethnic groups, and city dwellers. The decision to pick a new agency reportedly highlights Wal-Mart's interest in tapping its vast storehouse of customer data to develop targeted ads whose results can be measured more easily. Draft FCB would enable Wal-Mart to quickly adopt a more targeted sales approach using direct marketing, in-store ads, and customer-relationship marketing, a technique that employs data mining to learn about customers. People close to the company said Wal-Mart hopes to launch a new campaign next year initially targeting three distinct groups of customers: its price-sensitive loyalists, picky higher-income suburbanites whom it calls "selective shoppers," and fashionable city dwellers who are willing to spend $300 on a jacket that they will pair with a $3 T-shirt. In addition, at meetings with Wall Street analysts this week, the retailer's executives said rising costs and slowing sales gains are prompting Wal-Mart to apply more rigorous financial measurements to new spending. [See also The New York Times above.]

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