Marketing Strategic Alliance: Select Comfort Company and Costco
Select Comfort Company and Costco are both successful companies, so that a marketing strategic alliance between the two companies could provide significant benefits for both of them.
"Select Comfort Corporation is leading the industry in setting a new standard in sleep by offering consumers high-quality, innovative and individualized sleep solutions, which includes a complete line of SLEEP NUMBER® beds and bedding. The company is the exclusive manufacturer, seller and servicer of the revolutionary Sleep Number bed, which allows individuals to adjust the firmness and support of each side at the touch of a button. The company offers further personalization through its solutions-focused line of Sleep Number pillows, sheets and other bedding products" (Select Comfort, 2011). "Costco Wholesale is one of the largest retailer stores in the market" (Adam, 2010). It has differentiated itself from its other big-box competitors through its exemplary customer service and through its true commitment to treating its staff well; Costco employees earn far more and have better benefits than employees at its rivals (Chan, 2009). In addition, Costco, though it is a wholesale warehouse, is known for its marketing of upscale items, from luxury furniture to makeup to gourmet food. The combination of these two leading companies would seem to provide an excellent opportunity for both companies; Costco would be able to market one of the premier mattresses in the industry and Select Comfort would have the opportunity to expand to a much greater audience through Costco.
The primary strength of this alliance would be that Costco provides a huge market for Select Comfort products. Moreover, it provides walk-in business. Consumers can be introduced to Select Comfort products...
This means that they might purchase Select Comfort without having previously planned to do so. Moreover, understanding Costco's return policy and knowing that Costco has staked its reputation on the quality of the product, they might be more likely to make a large purchase without really knowing the company or the product. For Costco, an alliance with Select Comfort allows them to bring in another luxury mattress brand for their customers. Costco already markets several different major brands of mattress, but does not have a product that compares to the Sleep Number bed that is Select Comfort's primary product.
The primary weakness in this alliance is that Costco does not have the same potential benefits as Select Comfort. The products are only marketed directly through Select Comfort and its stores. This means that the overhead is manageable by the company, and it can cut prices without having to consider down-market expenditures. Costco will not be able to offer its customers the type of big box store savings that they are accustomed to receiving on name brand items. A secondary weakness is that Select Comfort appears to have a surplus of inventory, which could make Costco vulnerable to a price decrease in the Select Comfort stores. However, "A company ramping up for increased demand may increase raw materials and work-in-progress inventory at a faster rate when it expects robust future growth. As such, we might consider oversized growth in those categories to offer a clue to a brighter future, and a clue that most other investors will miss. We call it 'positive inventory divergence'" (Seth, 2011). Therefore, this perceived weakness may actually be a strength.
One of the opportunities that presents itself is a creation of a Kirkland brand Select Comfort product. Rather than marketing the Sleep Number bed through Costco, Select Comfort and Costco could offer a "generic" product with similar features, but a smaller price. That would allow Select Comfort to retain the exclusivity of its direct marketing through its factory and stores, while also allowing Costco to market a similar, strong product.
The biggest threat to the alliance is that Costco already has a huge market. It might reach a sufficient audience to make Select Comfort's more traditional marketing venues obsolete. This could threaten the brand's perceived integrity. The other threat is that Costco, while a successful big box retailer, is not experiencing the same market growth as other big box stores. Target has seen 70% growth in the same time period…
This is a business system for organizing and managing production development, operations, suppliers, and customer relations which needs less human endeavors, less capital and less time to manufacture products with lesser flaws to accurate customer wants as opposed to the earlier system of mass production. Lean production was groundbreaking approach by Toyota after Second World War and till 1990, characteristically needed 50% of the effort, 50% of the production
Marketing Research According to Green and Tool (1993) "Marketing research is the systematic and objective search for, and analysis of, information relevant to the identification and solution of any problem in the field of marketing." The main aim of marketing research is to enable the beneficiary to take some steps, some that may be risky, though with confidence hence the need for observing absolute objectivity. It is due to this need
Dallas Detail Inc. Marketing Plan Dallas Detail is a private company with two detailing shops based in the Dallas/Ft. Worth metroplex. Dallas Detail decided to enter the car care industry because we believe there is a need for a well-managed national car care retailer that can deliver an excellent customer experience. Dallas Detail's strength as a company is rooted in its unique history and operating philosophy that can be summarized as
Marketing (Water Fans, India) Industry outlook The market in India for water fans or misting fans as they are also called is problematical at best. Without doubt, the climate (except in the northern mountains) is hot; the problem is, it is also quite humid. Still, the Indian people have been looking for ways to stay cool for centuries. It was India that gave the world the slatted shutter; when air comes in
Services Marketing Strategy Report The airline business is among the most competitive sectors in the economy. The business requires the investors to invest huge amounts of capital to sustain the operations of the business. The difference in the capital available has resulted into emergence of superior airline companies that have dominated the global market. The airline companies are mainly a service delivery oriented offering transport for passengers and language. The airline company
Swarovski & Luxury Fashion Experiential Marketing Use of 360 Degree Marketing by Swarovski Merits of Experiential Marketing Three Ds of Experiential Marketing Strategic Experience Swarovski: A Transition from Traditional Marketing to Experiential Marketing Emotional Brand Attachment Brand Identity Self-concept Brand Luxury Brand Attachment Brand experience Brand Prestige Importance of Social Media for Luxury Brand Translation of Unique Brand Elements to Social Platforms Adapt Business Practices to the Online Business Model Swarovski is a leading name when it comes to global luxury brands. It has managed to rise