Comparison of Marketing Strategy of Wellcome

Wu, Mr.

Lau and Mr. Ko is 1945 as a small grocery shop, the first store is in Central, specialized in imported products including wines, biscuits, canned food and beverage when it’s begin. 60 years later, it is now 250 stores and over 5000 employees with 14 million customer a month. [2] Target Segment Wellcome supermarket is a supermarket chain providing one-stop shopping convenience for all Hong Kong people and consistently delivery value for money through friendly service and lower price.

They create a 4R strategy to find the “Right” product at the “Right” time and the “Right” place for the “Right” customer.

[3] City’super provides quality and lifestyle product to their customer. EPS is their core vision, E = Environment means to create a comfortable, convenience and shopping area to their customer, P = Products all collected by their buyer all over the world to make their product new and unique, and S = service to offer the excellent customer service and after sales service to maintain their customer. [4] Marketing Strategy Product Strategy As long as City’super’s business and Wellcome’s business are both aim at one stop service, but the product line is quite different in between those 2 supermarkets. City’super selling the most lifestyle and quality foods plus unique products. Whereas Wellcome sell the value products which can afford by mass customers. City’super using the differentiate strategy which selling different kinds of foods around the world to attract different customer’s needs — fresh, different taste of different countries to satisfy the customer.

The width and length of product line is bigger than a normal supermarket. City’s super therefore has 3 sections which also provide different needs to customer like “Food Market” to sell dairy food and bakery, “Life Division” selling quality lifestyle products that from personal pampering to home decoration. And “CookedDeli” provides quality meal but affordable price. Wellcome is in the mass strategy which provide wide but short product line. They offer more product choices than those traditional stores in order to get more customers.

However, due to the restriction by the shops size they won’t display too long product line on the shelf, in terms of the management cost and the cost per foot square. Consequently, their product depth and width is comparatively smaller then City’super. 2 Price Strategy Wellcome is working in a low price strategy, the direct competitor is Park’in Shop, they will invite the food whole seller to display and promote their own product with so call on shelf fee or better discount or list price in order to get the best position and get more exposure and awareness to the customer.

Usually the whole seller is willing to provide extra discount to the supermarket because of the bulk order. So the supermarket has a bigger bargain power to create a low price strategy. Using their promise “Lowest Price Guaranteed” in order to get the largest market share so Parkin shop and Wellcome almost dominate the chain supermarket sector in Hong Kong as well as creating their own brands, “First Choice” can provide a much cheaper products and foods in the market.

City’super is focus in a Status quo oriented pricing strategy, which is a non price competition as their buyer chooses their product all around the world and direct deal with their local supplier. The bargaining power compare with the local chain store is not as strong as they are. And the imported goods also increase the price to recover the transportation and delivery. But the customer is willing and happy to buy because of the unique and special foods and products so the pricing strategy is not direct competitive with Wellcome supermarket. 3 Promotion Strategy They both have their frequent buyer program in their promotion strategy.

Wellcome is one of the vendor under Octopus bonus reward scheme which can let customer to earn bonus point in their supermarket as well as the “Hang Seng Credit Card Paywave Program”.

Frequently advertising in different media promote their new sales let Wellcome create an image of delivering value for money. Newspaper coupons and bonus stamp collection to maintain their customer to get cooking machinery or tools. Online promotion with some figures like Snoopy toys free to customer if they bought certain amount of orders, because they are follow low price strategy so they have to keep the customer awareness.