Comparison of Marketing Strategy of Wellcome and City’super in Hong Kong
December 23, 2008
Royal Brisbane International College
5/F Yue Hwa International Building
1 Kowloon Park Drive, Tsim Sha Tsui, Hong Kong
Contact No.: XXXXXXXX
Table of Content
City’Super established in 1996, under FENIX GROUP which is established in 1972 by Masaaki Ogino (jap), their operation mainly in garment industry, like OZOC, Anteprima, Indivi and A/T etc… City’Super mainly selling imported foods (mainly in Japan), fresh foods, specialty, is a “one stop shopping” Mega lifestyle specialty store target to busy urban professionals, their core components include the Food Market, Life Division and CookedDeli. They have 4 supermarket in HK and 2 in Taiwan.
Wellcome Supermarket is under Dairy Farm by Jardine Group in 1964, opened by Mr. 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.
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.
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.
1 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...
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