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Marketing strategy from yu chi hsu
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Marketing strategy from yu chi hsu

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  • Hi, Hsu, it is an interesting analysis; I think the information of this kind of hypermarket is essential to us, because we usually strictly compare the price and service in hypermarkets. As your presentation, I can understand the former days of these two companies and catch the points of your analysis. In my opinion, cooperating with Kirkland has been the key decision of Costco, because it not only can attract the Kirkland’s consumers, but also increase its products’ qualities.
    Second, I think the biggest difference between Costco and Sam’s Club is the global market decision; an international brand can give consumers a reliable sense and confidence to conduct the consumption, but marketers should hold the high responsibilities and risk of failing to operate the overseas stores. On the other hand, concentrating in domestic markets may miss the opportunities to expand its businesses, but is easier to conduct the marketing management and decrease the potential crisis rate.
    Commented by Yu-Chi, Chu.
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  • + interesting comparison
    - elaborate on promotion strategies, include references and metrics, formatting
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  • 1. Costco Hsu Yu-Chi
  • 2. Executive Summary  Costco Wholesale Corporation and Sam's Club, these two companies are largest major warehouse store in United States. These two companies were opened in the same year, and both of them are successful retailing stores in nowadays. However, compare these two companies total revenue in last year, the revenue exhibited a big difference between Costco and Sam's Club. Thus, the purpose of this presentation is to illustrate the current conditions of these two companies and find out the marketing strategies what they are using right now in order to analyze why their total revenue has a really big difference.
  • 3. Costco  Opened in Seattle, Washington in 1983  566 warehouses  Total revenue : 74.285billion  On-line shopping, Travel agent, Pharmacies  Kirkland Signature ( Private Label Brand)  Target Market : Small Business and Upscale Families
  • 4. Sam’s Club  Founded by Wale-Mart in 1983  602 warehouses  Total revenue : 48.5 billion  On-line shopping, Pharmacies, Business Center  Target Market : Small Business
  • 5. Analysis  How Costco defeat Sam’s Club? 1. Product– Higher Quality, High-End Products 2. Price– Private Label 3. Target Market– Upscale Families 4. Store Atmosphere and Staff 5. Global Market Decision
  • 6. Product  Costco Costco provides high- end goods with pretty low price such as Ralph Lauren, and Calvin Klein  Sam’s Club Sam's Club focuses on the typical goods such as non-brand clothes, Coca Cola and office furniture what are small business owners usually buy.
  • 7. Price – Private Label  Costco Kirkland has developed numerous kinds of merchandise to compete with other goods with high quality and lower price. For example, its alkaline battery has been ranked battery as the best value for money for AA batteries by Consumer report  Sam’s Club There is no private label, but it has Wal-Mart to support lower price goods.
  • 8. Target Market– Upscale Families  Costco Costco sets their target market in attracting small business owners and upscale consumers.  Sam’s Club Sam’s Club does only target in small business group.
  • 9. Store Atmosphere and Staff  Costco  the employees in Costco, 85 percent of them have health insurance, which is also much higher than Sam's Club which only has 42 percent. Furthermore, Costco also pays more rewards to its workers to encourage them to improve their performance
  • 10. Global Market Decision  Costco Keep opening stores in oversea market.  Sam’s Club It has decided that it will just focus on the United State.
  • 11. Conclusion  Even though Costco cannot surpass the competition of price, it still offers substitute products, Kirkland, to attract customers. In addition, Costco also improves the quality of Kirkland products in order to let customers know that except typical products, it sells better quality and lower price products. Furthermore, from the source, Costco pays more attention in product strategy to defeat its competitors such as better quality and high-end products to attract customers and its target market. Beside, Costco also has higher quality employees to help them attract its customers. Combine those factors, Costco completely defeat Sam's Club.

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