Palmers Limited Case Study
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PALMER LIMITED
When you ask an average American about a wholesale dealer, one name stands out, Costco Wholessale Corp. They are one of the biggest wholesale corporation in US. That is very impressive considering they have only been in the industry for about 30 years. They are member based and provide quality goods and services to member only. Their members not just every day people but people who run small business so not only customers buy their product but sell them to others in their own stores as well. While their competitor, Wal-Mart, looks to provide lowest price but inlike Costco’s they overlook the quality. While BJ tries to look pretty to their customer, Costco pay less attention to their look and more to provide the lowest prices for their members. From 1997 to 2001, Wal-Mart store numbers were increased by 53, BJ 's stores went up by 50, but Costco went up by 91.
Costo 's business strategy is very simple, “To generate high sales volumes and rapid inventory turnover by offering members very low prices on a limited selection of nationally branded and select private-label products in a wide range of merchandise categories” (Thompson, 2008) . They have able to implement this strategy very successfully. They have also been very successful in making their customer believe that product is a better quality than their competitors, interestingly their competitors in most cases don 't carry the same kind of product.
Costco 's marketing strategy is simple yet effective, the idea of providing the lowest price and good quality product is a strategy to be reckon with. Plus there marketing idea of "Treasure Hunt" has allowed them to saved tons of money from broad advertisement. After a membership base is established in an area, most new memberships came from word of mouth. This simple marketing and advertisement strategy has allowed Costco to keep its marketing expenses low relative to those at typical
PALMER LIMITED
When you ask an average American about a wholesale dealer, one name stands out, Costco Wholessale Corp. They are one of the biggest wholesale corporation in US. That is very impressive considering they have only been in the industry for about 30 years. They are member based and provide quality goods and services to member only. Their members not just every day people but people who run small business so not only customers buy their product but sell them to others in their own stores as well. While their competitor, Wal-Mart, looks to provide lowest price but inlike Costco’s they overlook the quality. While BJ tries to look pretty to their customer, Costco pay less attention to their look and more to provide the lowest prices for their members. From 1997 to 2001, Wal-Mart store numbers were increased by 53, BJ 's stores went up by 50, but Costco went up by 91.
Costo 's business strategy is very simple, “To generate high sales volumes and rapid inventory turnover by offering members very low prices on a limited selection of nationally branded and select private-label products in a wide range of merchandise categories” (Thompson, 2008) . They have able to implement this strategy very successfully. They have also been very successful in making their customer believe that product is a better quality than their competitors, interestingly their competitors in most cases don 't carry the same kind of product.
Costco 's marketing strategy is simple yet effective, the idea of providing the lowest price and good quality product is a strategy to be reckon with. Plus there marketing idea of "Treasure Hunt" has allowed them to saved tons of money from broad advertisement. After a membership base is established in an area, most new memberships came from word of mouth. This simple marketing and advertisement strategy has allowed Costco to keep its marketing expenses low relative to those at typical