The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c...
List of product's characteristics/attributes:
Design, Performance, Quality
Look and feel of the product
Price
Image in market & Brand popularity
Benefits to the customer from the Product attributes:
Design, Performance & Quality: These attributes benefit the customer by meeting the purpose the product is bought
for. For example good reliable performance, ease of use or convenience in use (example small sleek product could
be easier to use compared to large & heavy etc.), high performance with less maintenance for a long period of time,
would benefit the customer the best.
Product look and feel: This benefits the customer in not only giving solution, but also a value add in getting better
product experience. For example a winter jacket bought might not just the serve the purpose of providing protection
from cold weather, but also give a good feel and look, so that the customer will feel enhanced satisfaction.
Price:
If a product is priced optimal/reasonable for the performance delivered by the product, it benefits the customer in
getting a good solution, at a good price.
Image in Market & Brand popularity:
These give value add to increase customer's image with in the reference group. For example if the product carries
high image in the market, that increases the customer respect among the reference group as a user of a reputable or
high image or popular brand product. These might matter specifically for some types of products like Automobiles,
Cell phones etc.
How would an advertisement reflect this information?
Promotion aimed at comparing the more benefits offered by the product being promoted with the fewer benefits
available from competing products. The advertisement would also bring out the potential Image for the product.
Which benefit or benefits do you think are most likely to differentiate it from the competition (think back to the value
proposition in Unit):
The performance and quality of the product, service availability would definitely be the top differentiators for a
product.
Price could be the differentiator too, but also depends on the product's performance and quality depending on the
nature of the product and the intended purpose.
If the product is just intended for a simple use (where quality doesn't matter much), price could be the major
differentiator. (For example a tool kit used in regular maintenance of lawns).
But incase of products, where the performance and quality is a major factor to judge, customers will be willing
to pay premium for high performance and quality. (For example Cell phones, Televisions, Automobiles, Alcoholic
beverages etc.).
Depending on the nature of the product and intended use, the Brand image of the product in the market could be a
major differentiator for the product in a market a segment.
For example a customer buying a high end automobile would definitely look for the Brand image it carries, on top
of the performance and quality of the product. The Brand image could a major differentiator in that case.
References:
(n.d.). Retrieved February 12, 2018, from http://www.lexus.com/
Comments