Discussion Topic: Costco is a very innovative and aggressive store when it comes

Question

Discussion Topic:

Costco is a very innovative and aggressive store when it comes to private label (often called "Store Brand"), Co-Branded Products (Kirkland/Campbell's Soup!), aggressive attacks on industry leaders (Tide detergent from Proctor and Gamble), and category disruption (Private Label alcohol).

In today's digital world we have access to information to see who manufactures the store brand product. I was able to find out that Costco's baby formula was manufactured by Abbot Labs who make the national brand Similac for nearly twice the price!

I am posting links to three short articles on Costco and their use of Kirkland Store Branding.

Please share your opinion on how Costco is pushing their Kirkland brand products and if this marketing technique helps differentiate their business. Do the publication "Costco Connection" help with how their educated, and wealthy customers view quality and define quality?

Any and all thoughts and comments are appreciated!

http://www.costcoconnection.com/connection/201209?pg=63&search_term=private%20label%20vs%20national&doc_id=-1&search_term=private%20label%20vs%20national#pg63

http://www.costcoconnection.com/connection/201104?pg=94#pg94

http://www.costcoconnection.com/connection/201009?pg=70&search_term=kirkland%20beer&doc_id=-1&search_term=kirkland%20beer#pg70

Explanation / Answer

How Costco is pushing their Kirkland brand products and if this marketing technique helps differentiate their business. Do the publication "Costco Connection" help with how their educated, and wealthy customers view quality and define quality.

Calories less then 180 is a good thing to tell as people are becoming health conscious now days. Limited advertisements is working for Costco. A simple mail to potential new customers and maintaining good customers relations is an essential part of Costco’s business. Advertising mostly done through word-of-mouth after developing a membership base which has been established. Mouth publicity from existing customers is where Costco obtains most of their customers. Company allows their customers to sample many of their products as they walk through their warehouse. It gives customers the ability to try a product risk-fee.

Initiating Costco Connection is a wise step by which consumers can be involved in discussion and can get regular update by the company on what new is coming.

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