Understand the difference between integrated marketing communication and the promotion mix
Recognize the advantages and disadvantages of common marketing communication methods
Promotional Strategy
This Apply It continues using the Walmart case study video from earlier in this module. The video is included below in case you want to refresh your memory about specific details, but if you have already watched it, you don’t need to watch it again.
How does the Costco shopping experience itself serve as a promotional tool for Kirkland products?
The Costco shopping experience serves as a powerful promotional tool for Kirkland products. Most notably, Costco’s “limited SKU [stock keeping units] environment” creates a unique promotional advantage by deliberately restricting choice. Costco carries “4,000 items as opposed to 140,000 items” in a typical supermarket, which means every product is meant to catch your attention. This deliberate product scarcity ensures Kirkland items receive prominent visibility rather than being lost among countless alternatives.
The warehouse layout itself promotes Kirkland products through strategic positioning and visual merchandising. Kirkland items are typically placed directly alongside premium national brands, creating immediate price comparisons that highlight their value proposition. This side-by-side placement serves as a powerful implicit endorsement, suggesting Kirkland quality is comparable to recognized brands but at a better price point.
Additionally, Costco’s membership model transforms the shopping experience into a promotional advantage for Kirkland. The member has already shown some loyalty by joining. This creates what retail analysts call a “club channel” psychology where members feel greater trust toward store brands and are more receptive to trying them. The combination of curated selection, strategic positioning, and the membership relationship establishes a shopping environment where Kirkland products naturally receive heightened attention and consideration without requiring traditional advertising expenditures.