Blog #3 – The marketing strategy of Winco supermarket

Winco Foods supermarket, an American company has addressed lots of attention of people from Vancouver recently. As a matter of fact, more and more people from Vancouver are driving to shopping in State due to the high price of grocery and taxes in B.C. With 100 KM round trip driving from Vancouver to Bellingham, a family of 4 people could save at least $400 dollars on daily grocery and gas each month. Even there are American supermarket like Costco and Walmart in Vancouver, some people are willing to go Costco and Walmart in State to purchase grocery, since the average price differences and taxes between two countries are still somewhat large. If you have a family with more than 3 people, it is wise to buy whole packs of grocery from Costco. But, you are required to join their membership with $50 dollars per year. Some people think that the membership cost worth the benefits they will receive.

In  July 2013, a new branch of Winco was opened in Bellingham. Obviously, the targeted market is not the local market in State, but the market from Vancouver. People started to transfer their shopping place from Costco to Winco. The main reason is th at Winco does not require any membership. Anyone can go and buy their lowest price grocery. Also, the new store opens 24 hours, 7 days a week. With those advantages, Winco was able to establish a competitive position in the market.

If you have been to Winco once, you could notice that they do not only place their selling price of products. They also show the price of same products at  Costco, Walmart, and other local supermarket. This action provides the customers a picture of guaranteed lowest price in the market. Another advantage over Costco is that you can buy products like water, pop, chips in any quantities you want rather than you have to buy a whole pack of drinks in Costco.

As my point of view, Winco targets itself as a developed supermarket of Costco, and is trying too snatch the market from Costco. At the customers’ point of view, as long as the qualities of products are same, they will pursue the lowest price and most convenience supermarket with no doubt.

 

 

 

 

Peng Zhang

15 thoughts on “Blog #3 – The marketing strategy of Winco supermarket

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