2013
Sam’s Club Marketing Plan
By: Sarah Silke, Taylor McCord, Kaitlyn Law,
Katelyn Carnahan, Danny Langlais
BUSN311 Hettche
12/6/2013
Table of Contents
I.
Executive Summary ............................................................................................................................... 3
II.
Situation Analysis .................................................................................................................................. 4
i.
Company/Brand Overview ................................................................................................................ 4
a.
ii.
History ........................................................................................................................................... 4
Macro analysis .................................................................................................................................. 6
a.
Demographic Factors: ................................................................................................................... 6
b.
Economic Factors: ......................................................................................................................... 7
c.
Natural Factors:............................................................................................................................. 7
d.
Technological Factors: .................................................................................................................. 7
e.
Political Factors: ............................................................................................................................ 7
iii.
Customer Analysis ............................................................................................................................. 7

Target Market ............................................................................................................................... 7

2 Customer Groups ....................................................................................................................... 8
iv.
Competitor Analysis .......................................................................................................................... 9
i.
Direct & Indirect Competitors ....................................................................................................... 9
ii.
Grocery Store Competitors ......................................................................................................... 10
v.
SWOT............................................................................................................................................... 11
vi.
Goals ............................................................................................................................................... 13
III.
Goal 1: New Acquisitions ............................................................................................................... 13
i.
Strategy ........................................................................................................................................... 13
ii.
Tactic ............................................................................................................................................... 14
iii.
Implementation .............................................................................................................................. 14
iv.
Control ............................................................................................................................................ 14
IV.
Goal 2: Retaining Membership Base ............................................................................................... 15
i.
Strategy ........................................................................................................................................... 15
ii.
Tactic ............................................................................................................................................... 15
iii.
Implementation .............................................................................................................................. 15
iv.
Control ............................................................................................................................................ 16
V.
Goal 3: Living Social............................................................................................................................. 16
i.
Strategy: .......................................................................................................................................... 16
ii.
Tactic: .............................................................................................................................................. 16
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iii.
Implementation: ............................................................................................................................. 17
iv.
Control ............................................................................................................................................ 17
VI.
Conclusion ....................................................................................................................................... 17
i.
Club model ...................................................................................................................................... 17
v.
Growth ............................................................................................................................................ 17
vi.
Improvements ............................................................................................................................. 17
References .................................................................................................................................................. 19
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I.
Executive Summary
Sam’s Club warehouse wholesaler has been selling low priced, bulk items, under their parent
corporation of Walmart, since 1983. Sam Walton had the vision of a place where small business
owners could go shopping for the items that they need in order to run their company with a low
price mark-up and dependable membership service quality. Currently, “nearly 600 locations are
not only terrific places to save money, but also destinations for solutions that can help ease a
busy schedule. Whether stocking a pantry or a business, selecting new electronics or getting
ready for a party, our Members count on Sam’s Club as their source for the products and services
they need to keep things running smoothly” (Sam’s Club Inc., 2010). Sam’s Club’s corporation
is founded on their 3 values of respect for the individual, service to our members, and striving for
excellence, which is incorporated into the operation and services that each club provides creating
a unique, membership shopping experience. Due to Sam’s Club’s ties with its’ parent company
Walmart, its brand equity is backed by Walmart’s image in which Sam’s Club is able to piggy
back many of its’ marketing and public relation actions through Walmart.
Sam’s Club realizes that their “members pay to belong and pay for the privilege of
shopping in our club. It behooves us to understand their needs and be proactive in delivering
against those needs and creating a streamlined, positive shopping experience” (Customer
Experience Matters, 2012). Sam’s Club is focused on the “customer experience in a way that was
consistent with its DNA: embedding it into its ongoing operations” (Customer Experience
Matters, 2012). Additionally, Sam’s Club’s operating philosophy has remained the same as they
continue to, “work hard to be the buying agent for our Members and deliver upon this agreement
by eliminating unnecessary costs and maintaining a simple shopping environment” (Sam’s Club
Inc., 2010). Sam’s Club plans to continue these company values and maintaining their company
operations through three goals; new acquisitions, retaining membership base, and establishing
new form of advertisements.
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Store Layout
Hardlines, Electronics, Tire
Department
Fresh, Produce, Bakery, Frozen
Seasonal
Grocery
Pharmacy,
Optical,
Hearing
II.
Situation Analysis
i.
Company/Brand Overview
Front
End,
Cafe
a. History
 1983 first Sam’s Club is established
The company’s line of business includes the wholesale distribution of non-durable goods.
Sam’s Club is owned and operated by Wal-Mart Stores and named after their founder Sam
Walton (Sam’s Club Inc., 2012).
 1988 Sam’s Club memberships top 7 million
Sam’s Club’s Rapid Growth captured 2 million members within one year of operating and
provides for over 47 million today.
Sam’s Club is NOT a publicly traded equity like Target or Dollar Tree, it is a subsidiary of Wal-Mart.
This means any events that cause stockholder confidence or uneasiness will be reflected in Walmart’s
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stock price. It is impossible to decipher how responsible Sam’s Club’s is for Walmart’s stock price. This
is especially true because Walmart is so incredibly massive and practically a monopoly on its own.
 1991 Sam’s Club goes international
Currently Puerto Rico, Brazil, China, and Mexico all have Sam’s Club locations.
 1997-98 Sam’s Club broadens range of services
The first Sam’s Club gas station, and the first pharmacy, respectively, bring in more
consumers and increase market share.
Walmart is deceptively secretive about the individual financial data for Sam’s Club. The hidden
information could be a secret to the great success of Walmart. Sam’s Club reported an 8.4% sales increase
in 2012, Walmart on the other hand, has not spurred a higher than 0.3% growth since 2009.
 2003 Marks Sam’s Club’s 20th anniversary with 522 Clubs.
Sam’s Club ranks second in sales volume behind Costco, despite having more retail
locations. There are Sam’s Clubs in 47 states and nearly 600 warehouses.
 2010 Sam’s Club’s focus on sustainability is rewarded.
Sam’s was the first retailer to use significant wind power, offsetting 20% of energy use.
Sam’s Club opened up a new store on October 30 th, 2013 in Raymore, Missouri. The event marks 30 years of
service to the region. The new building is claimed to be “environmentally-friendly”, with many modern features
including a full-service pharmacy, large areas for fresh merchandise and “several other exciting amenities”.





Walmart reported a total of $116,216 (all numbers in millions) in three months of sales
in 2013.
Sam’s Club takes responsibility for $14,532 of those sales.
12.5%
We could assume Sam’s Club provides 12.5% of the Walmart
company’s sales. While only providing for 8% of Walmart’s
operating income.
The Sam’s Club segments include warehouse membership and
samsclub.com. This lets Sam’s Club operate with a lower gross
profit rate and lower operating expenses than the rest of the
company.
The Walmart brand’s trademark competitive advantage is based around “EDLP”,
everyday low prices.
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The brand promise and focus for Sam’s Club is to “provide exceptional value on brand name
and private label merchandise at “members only” prices for both business and personal use”
(Sam’s Club Inc., 2012).
The image below shows the percentage of Walmart’s sales revenue by each of its
suppliers. Kraft Foods Group (25%), General Mills (21%), Tyson Foods (13.8%), Procter &
Gamble (14%), and Pepsico Inc (11%). Just these five major suppliers are accountable for
about 85% of Walmart’s sales revenue. There are eight more Walmart suppliers that contribute
to a significant percentage of Walmart’s revenue enough to be represented on the graph.
Walmart is currently supported by 589 different suppliers. Procter & Gamble produces pet
foods, cleaning agents, and personal care products. And the other four major supplier’s products
include foods and beverages. This most likely means Sam’s Club’s top major suppliers are the
same five and probably don’t carry as much of the smaller name suppliers goods as Wal-Mart’s
mega stores do. Buying in bulk has its advantages. Being able to operate a store with a fewer
number of required products means Sam’s Club has to place less orders less often, as well as
saving money on shipping and freight costs.
ii.
Macro analysis
a. Demographic Factors:
Sam’s Club attracts a variety of customers, such as the baby boomer generation, business
representatives, and families with children. Sam’s Club has a large customer base because they
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attract so many different kinds of people. However, this large customer base means they must
appeal to a diverse set of wants and needs.
b. Economic Factors:
The economy has recently come out of a recession, which means that people are currently
more interested in saving their money than spending it. Sam’s Club must reach out during these
times to remind its customers of all the great savings they get from the store, as well as offer a
few extra discounts to provide more incentive. On the other hand, the desire to save benefits
Sam’s Club anyways because they offer low cost items in bulk.
c. Natural Factors:
Sam’s Club must be connected to what is occurring in the natural environment, especially
since they try to maintain the reputation of having high quality produce. If produce or meat
provided by Sam’s Club’s suppliers is not meeting requirements, there will be issues in
providing that product to its customers because Sam’s Club only accepts the freshest products.
d. Technological Factors:
When new electronic products are produced Sam’s Club provides additional asset
protection to those products to discourage theft. Examples of these practices include stationing
additional employees around the new product display and attaching security devices to the
product.
e. Political Factors:
Events such as the recent government shutdown can affect Sam’s Club through its
customers. Sam’s Club offered free temporary store passes to families of military personnel and
retirees for the duration of the government shutdown. This encouraged the customers affected by
the shutdown to continue visiting the store, instead of shopping less.
iii.
Customer Analysis
 What does Sam’s Club stand for?
“Whether you are stocking a pantry or a business, selecting new electronics or getting ready
for a party, members count on Sam’s Club as their source of the products and services they need
to keep things running smoothly” (Sam’s Club Inc., 2012).
 Target Market Customers:
Special Shopping
hours
Business Class
7am before regular
store hours
Large Families
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Deal Shoppers
Different varies to
please many
Varieties for events
More for Less
Shopping for events
without breaking
the bank
different things at
reasonable price for
peaky eaters,
clothing
Saving money
able to get more
necessities for a
lower price, saving
money
*Each and every one of these classes has reasons to love Sam’s Club membership offerings
 Prime Market: Sam Walton’s reason for the Club




Sam’s Club prime market is business men and women
serve about 600,000 small business owners every day
majority of whom are microenterprises with fewer than seven
employees
Aisles labeled really helps people navigate to get in and out
Memberships:
Benefits:
Savings
Instant savings
Business
Early shopping hours
start at 7am
Plus
+ receive an extra
coverage with the
purchase of a service
or warranty plan
 2 Customer Groups:
o
Business Class Men and Women
Being a working individual can bring about a lot of added stress. Not only does one work
but must take care of a family as well. Sam Walton understood the obstacles the business class
faces every day. The creation of Sam’s Club was intended to give them a break. The Club is a
one-stop-shop; where customers have everything they need in an arm’s reach. Finding shoes for
your child, picking out a movie for movie night, and having dinner already prepared; what more
can you ask for? Sam’s has everything a business class member needs. Members keep coming
back; the benefits of the Business and Plus Membership give customers the sense of belonging.
With those cards they are able to come in at 7am before regular store hours at 10am. This allows
them to get everything they need without having to deal with the usual in store traffic and still be
able to get to their morning shift at work.
o
Large Families
The bulk items Sam’s Club offers allows customers with large families to get everything
they need without burning a hole in their pocket. Having to buy a pack of four tubes of
toothpaste instead of just one may seem like a hassle, but it is actually savings in the long-run.
The club is always looking out for the best of its’ families, supplying them more purchases for
less costs. Sam’s Club never wants anyone to feel overwhelmed by making ends meet while
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taking care of a family, which is why low prices are guaranteed. Mothers and fathers are not only
able to get the food necessities they need for their large families, but they are able to shop for
clothes to put on their children’s back. Sam’s Club has it all and their store is as big as their heart
is for their customers.
iv.
Competitor Analysis
i. Direct & Indirect Competitors
The following Brand Attribute Matrix provides a comparison between Sam’s Club and its
competitors based on some important topics as seen below.
Brand
Attribute
Matrix
Cost of
Membership
Diversity of
Product
Diversity of
Services
Customer
Service
Produce
Quality
Moderate
Diversity
High Diversity
Great
Customer
Service
Great
Quality
Moderate
Diversity
Moderate
Diversity
Good
Customer
Service
Good Quality
Low Diversity
Moderate
Diversity
Moderate
Customer
Service
Good Quality
Low Diversity
Poor
Customer
Service
Low Quality
Low Diversity
Great
Customer
Service
Moderate
Quality
Low Diversity
Moderate
Customer
Service
Great
Quality
Savings: $45
Sam’s Club
Business: $45
Plus: $100
Gold Star: $55
Costco
Wholesale
Business: $55
Executive: $110
BJ’s
Wholesale
Club
Inner Circle: $50
Business: $50
Rewards: $100
Wal-Mart
Supercenter
Discover/credit
card available
Target
Debit/credit card
available
High Diversity
None
Very Low
Diversity
Farm Fresh
High Diversity
Color Key (best to worst): Green= 4, Yellow= 3, Orange= 2, Red= 1
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

As we see under the “Cost of Membership” category, Wal-Mart, Target, and Farm Fresh
are all ranked highest because there is no cost to shop in these stores. However, if you
focus only on primary wholesale club competitors, Sam’s Club has the lowest price for
their memberships.
The diversity of products in Sam’s Club is about average for a wholesale store. They do
not have as much variety as Wal-Mart or Target, but their smaller selection makes it
simpler and not as overwhelming for their customers.
When you enter supermarkets such as Wal-Mart or Target they usually have the same
services, such as a Pharmacy, Optical, and Photo studios. Wholesale clubs like Sam’s
Club has these services, plus a few others. However, the amount of additional services
offered at Sam’s Club seems to be slightly above Costco and BJ’s.
Focusing on the quality of customer service, Sam’s Club and Target came out on top.
They both had friendly faces and offered assistance to their customers. To stay
competitive in customer service, Sam’s Club will have to continue to compete with
Target’s frequently asked question of “Can I help you find something?”
When it comes to produce quality, Sam’s Club is the front runner; however, Fresh Market
is a close competitor. Sam’s Club has specifications for the quality of produce and meats
it accepts. For example, if the strawberries being purchased are not at least three inches,
they will not be accepted.
Overall, the Brand Attribute Matrix shows that Sam’s Club attempts to have a good
standing in various categories, while other competitors will excel in some and fail in
others.
ii. Grocery Store Competitors
As shown below in Figure 1, Sam’s Club has the highest upfront cost
 Bulk items = more for your money
 New Slogan = “Save Money, Live Larger”
 Plays off of Wal-Mart’s “Save Money, Live Better”
Total Price of all the Items
Walmart
$149.25
Food Lion
$156.45
Kroger
$173.97
Harris Teeter
$178.99
Farm Fresh
Fresh Market
$227.61
Sam's Club
$0.00
Total Price
$210.74
$357.34
$50.00
$100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00
This horizontal bar graph displays the total costs that each of the grocery stores came up
with. As we can see, Sam’s Club does have a higher upfront cost. This is due to the fact that
10
every item is sold in bulk and influencing the consumers thoughts that they are getting more for
their money.
However, as shown below in Figure 2, Sam’s Club has the lowest price per unit cost in
comparison to the other grocery stores
 Analyzed 3 items from different categories (bananas, toothpaste, and frozen pizza).
Price Comparisons of Items in the
Grocery Stores
$20.00
Digiorno Traditional
Pepperoni Pizza
$15.00
$10.00
$5.00
1 Tube of Crest
Whitening Toothpaste
with Scope or Their
Equivalent Brand
$0.00
In the stacked bar graph, we see the grocery stores compared to each other based on their
price per unit. I choose one item from each category to illustrate how Sam’s Club has the lowest
price per unit. Sam’s Club focuses on the same idea as its parent company Wal-Mart in that they
stand for everyday low prices (EDLP). You can definitely see the idea of EDLP in this graph,
especially when compared to other grocery stores and competitors.
v.
SWOT
Internal
Positive
Negative
Strengths:
-EDLP
-membership differences
-variety of services
-quality of merchandise (ex: fresh produce grade)
Weaknesses:
-under Walmart – horn affect
-limits by membership
-size of store (quality and volume)
-47/50 states – distribution of retail centers
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External
Opportunities:
-international expansion/growth
-internally marketing using new technologies to
reach members
-represent variety of products online




Threats:
-Direct Competitors: Cost Co & BJ’s
-Indirect Competitors: Amazon
-Union
Strengths – As an offspring from our parent company Walmart, one of our biggest strengths,
and the core to our customer value, is our ability to provide everyday low pricing (EDLP).
Through providing EDLP as a basis for customer value, this strengthens our other assets and
strengths of being able to provide a variety of membership’s types and services available to our
customers. Through offering exclusive membership, it creates a sense of loyalty and belonging
within our customers, enhancing the customer’s shopping experience; making this another one
of our bigger strengths. Even beyond low prices, one of our biggest strengths is our high fresh
produce grade, from strawberries to meats; we aim to only sell our customers the best.
Weaknesses – Although being an offspring to Walmart does have its perks, Walmart’s image
also hinders Sam’s Club’s company image as it can be seen as the cheaper, low grade end of the
warehouse competitors. Also unlike our parent, where anyone can walk in, one of our biggest
internal weaknesses is that by making customers pay for a membership, this automatically
narrows down our ability to market to all consumers. The size of the store can also seem
overwhelming to some shoppers as well as many consumers not having the need to buy in bulk,
thus again limiting our potential customers. Lastly, we are not fully represented in all of the 50
states, so through continuing to do so over the next few years we can continue to hope to make
this into a strength.
Opportunities – With new technologies developing and advancing every day we have a lot of
room to improve, not only within our own online web site as we expand the awareness of this
and the number of products available on it, but also to use other technologies to communicate
with our customers. Through our new advancements into using social media sites such as
Groupon and Living Social, we can hope to continue meeting new market needs and expand our
accessibility to future potential members.
Threats – As with any company, our continual threats are mostly held by our competitors, both
direct and indirect, who continue to fight for a share of the market. Through maintaining our
three company goals, we hope to overtime eliminate these threats through our continuation of
using our strengths and eliminating our weaknesses to become the dominate wholesale
company nationally as well as internationally. Finally our continuous threat, much like that of
Walmart’s, is the threat of unions and their continuing fight to intervene in the operations of
our associates. Through continuing to prove that our associates are welcome to communicate
openly to all branches of the company, we can hope to one day prove to unions that they are
not useful within our company and shut their continuous moves to infiltrate us once and for all.
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vi.
Goals
During an interview with the Club Manger of the local Newport News Sam’s Club he
described 3 company goals:
1) New Acquisitions - new business membership, new tactics how to reach B2B, selling
perks & strengths, financing incentives , and how communicate to potential members that
membership is worth it
2) Retaining Membership Base (Quantity and Quality) – how to they keep members and
ensure customers renew memberships, what systems do they use to ensure membership is
“wroth while”
3) New forms of Advertisement – such as expanding and building upon the new Living
Social marketing drive the company has dived into this past year.
New Acquisition
III.
Retaining
Membership Base
New forms of
Advertisement
Goal 1: New Acquisitions
The ultimate goal is to raise the number of Sam’s Club members. And to increase the number
of additional consumers who sign up for membership each quarter. Without new members Sam’s
Club’s growth would become stagnant. And they would not be able to fund all the new projects
and developments designed to benefit existing and new members.
i.
Strategy
Social Media has become the forefront of modern
campaigning. The costs are lower than traditional advertisements.
And it can be reached by an overwhelming amount of people. For
this past quarter over 157 thousands memberships were purchased.
This can be partially attributed to ~25,500 Facebook shares and
~2,100 Twitter shares just in the past three months. All of these
reasons proving why the social media field would be beneficial to
Sam’s Club’s outreach to potential new members.
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ii.
Tactic
Sam’s Club’s tactics for driving member acquisition and not forgetting about the importance
of retention revolve around a few key aspects.
 Simplified structure - By only offering a limited number of goods. The Club reduces the
level of anxiety felt by consumers. They are relieved of making a decision. Sam’s Club’s
success proves members would rather pay extra than to have to decide which products to
buy. Eliminated the need to differentiate and select the best option for every purchase
makes the casual shopping experience less stressful and more enjoyable.
 Traditional price investments – Customer’s do not worry if they are getting the best price
when they come into Sam’s Club. They are reassured that the costs of their everyday
staples will not increase. If the cost of a good was to rise unreasonably, instead of
upsetting the consumer, Sam’s Club would just refuse to carry the product. This is the
power of retail centered Big Box style wholesaling. Where the retailer makes the rules
and if the manufacturer does not abide, they suffer the most.
 Instant Savings Books & Cash Rewards for Plus members – These are just some of the
ways Sam’s Club goes above just low prices. They find alternative methods of putting the
member’s money back in their pocket. Noting that it will hopefully end up back in Sam’s
club on the next visit.
iii.
Implementation
Creating member value is the best way to transform new offerings into concrete and expected
benefits. Using the merchandise to create value through differentiation is a unique way to make
potential members feel like Sam’s Club is the wholesaler for them. Sam’s tries to differentiate
itself from other competitors, and even sometimes from Walmart itself. Noting the Horn Effect,
sometimes people may be too turned off one brand name to go with one it is related to.
Having a strong holiday plan is also an important
way for Sam’s Club to force its hand. Every marketer
knows the holiday season is the best time to pick up
new customers. By strengthening the holiday output
Sam’s Club is sure it won’t lose out on any deserving
nice list members this season. Also, festive
decorations bring out the seasonal appeal. By bringing
the merchandise to life with monthly exhibits,
members spend more time in the warehouse, more
time contemplating a purchase.
iv.
Control
Sam’s Club monitors its performance through memberships. If members decline, they are
failing. To combat this Sam’s takes advantage of the environment around them. They strive to
create an exciting experience whenever you shop. Sam’s has made it a focal point to stress the
excitement of a grand opening. This is the birth of a major part of the family. Sam’s wants the
entire neighborhood to come out and enjoy a new club in their local area. New clubs have
exceeded sales expectations. This is due to the integration of physical and digital advances for
every new opening. Each new store is equipped with the most valuable and statistics capturing
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technology that promise a positive return on investment. Warehouses work together to decide
what needs to be built in advanced and which regions sell the most of certain products. When
they are working together smoothly members are enticed to be a Sam’s Club member for life, not
just when they happen to live nearby one.
IV.
Goal 2: Retaining Membership Base
Membership is one of Sam’s Club’s main goals, and getting members to renew is just as
important. Without members, Sam’s Club would not be able to operate. To get members to find
more value in renewing, incentives must be provided.
i.
Strategy
Other than Sam’s Club’s normal benefits, the customers must have
something to look forward to that motivates them to continue renewing
their memberships. The customers must feel that they are receiving
something special that they would not normally receive. Therefore, Sam’s
Club will begin to provide various rewards for retaining membership for
a certain number of years, similar to how companies acknowledge their
employees’ seniority and commitment to their organizations.
ii.
Tactic
For every three continuous years a customer renews
their membership they will receive a reward for their
loyalty to Sam’s Club. These gifts may start out as
receiving annual coupon books, and then steadily
increase in value to additional membership cards, free
items, and gift cards to use in the store.
iii.
Implementation
To spread the word about this new membership
rewards program, advertising will be placed in stores to
notify the members as they enter, as well as while they
are shopping throughout the store. They will also be
placed at the information desks for purchasing and
renewing memberships so customers know that there
are new benefits to having a Sam’s Club membership.
Employees will inform the members when they are
close to reaching their new reward mark so they are
aware and look forward to the upcoming reward. They
15
will also notify the members through emails and the rewards will be sent through mail so the
members do not have to go out of their way to receive them.
iv.
Control
Ever since the addition of the rewards program, members have become more enthused about
reaching new marks and getting various rewards. This program has been a motivating factor to
keep customers renewing their memberships and remaining positive and pleased about being a
member of Sam’s Club.
V.
Goal 3: Living Social
Sam’s overall strategy is to promote the club as
much as possible without having to break the bank.
Over the past few years the best way to get the word
out and promote the club is to get on the customers
level. Due to the growing trend in social media,
Sam’s found it to be an opportunity in the making.
Grabbing customers attention through social media
has made customers find the best deals on products
and buy things they did not even know they needed.
With Sam’s sending members updated e-mails on
current deals on products, keeps the customer feeling a
sense of belonging. Living Social has sky rocketed sales and has
been the most effective way to brining in profit, and reducing unions.
i.
Strategy:
In using sites like Groupon, Sam’s Club could improve their Living Social system through
offering no expiration date on the coupons. Since Sam’s Club’s target market is small business
owners and large families, they don’t have time to keep track of coupon time constraints. This
change would relieve some of the members stress and allow longer lasting coupons, ultimately in
the hope of reaping longer sales benefits. Sam’s Club should also take advantage of the
opportunity to cross-sales other product and services. For example, if Sam’s does a Groupon
coupon on flat screen T.V then that should add an extra percentage off of a T.V stand. By adding
additional offers, this will entice the customer to come in and buy more than expected. Resulting
in an increase in overall sales and help promote the needs of your target marketing buying in
bulk.
ii.
Tactic:
By knowing the native language and really connecting with the customers, Sam’s Club can
see the usefulness of coupons with no expiration date through their eyes as a major
convenience factor and benefit for them. Sam’s Club could also benefit from the tactic of
“birds of a feather flock together,” allowing customer to purchase and receive coupon offers on
other product or services that relate to one another.
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iii.
Implementation:
Sam’s Club can take action to advance the awareness of this new marketing move through
sending out update notifications through their web site along with handing flyers out within in
each club to being awareness to the fact that there are no more expiration dates on Living Social
coupons. In doing this, Sam’s Club can also send Groupon members additional suggested
product and services through which they can save from buying at Sam’s Club, hoping to build
their potential members interests.
iv.
Control
Sam’s Club can track how the Groupon sales have improved, and ensure company operations
maintain all of the coupons for validity. In regards to suggesting coupons based on pervious
purchases, the company can examine if the added products are doing just as well as the original
product on coupon. The management staff will also want to focus on products in which
customer’s usually do buy together to ensure they are truly benefiting the customer through
picking paired products that the customer would desire to buy.
VI.
Conclusion
“As a membership club, we listen to our members to give them what they want: quality,
name-brand merchandise at exceptional price. It sounds simple enough, but at Sam’s Club, it’s a
concept we take to a higher level” (Sam’s Club Corporate Fact Sheet, 2010).
i. Club model
Sam’s Club focuses on consistent growth, as they measure their growth based on the number
memberships. Unlike their competitors who are more concerned with sales, Sam’s Club has the
ability to build off of Walmart’s EDLP plan and sell their goods for less than their competitors.
However, the everyday low prices guarantee is difficult to sustain. That is why the real secret to
their success began with the competitive advantage and decision to operate under EDLP. With
the everyday low costs mindset Sam’s Club can keep their overhead costs low, operating for less
to ensure they can sell it for less.
v. Growth
Sam’s Club has set high goals for themselves as they intend to continue to grow. This is
reflected by their vision statement that they wish to “become the most valued membership
organization in the world” (Sam’s Club Inc., 2010). They recognize they have their competition
cut out for them, not everybody would consider Sam’s Club the top wholesaler, and this gives
the Club a goal to reach for.
vi. Improvements
 Apparel is a way Sam’s Club looks to connect with its members. They want to give the
consumer the most current and trendy getup available. All while at an affordable price.
 Produce is one of the departments Sam’s is always mentioning. They take great pride in
the quality and freshness of their produce and stressing this fact will turn around
America’s unhealthy eating habits.
 Health & Family Care is in the mind of every American consumer. Especially those
providing for their families. Sam’s Club sees this being their chance to capitalize on
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
today’s health care fad by offering hearing aid centers, optical solutions, prevention
plans, and pharmacies at many of their locations.
Refocusing their advertising and utilizing social media sites in order to gain a new
audience of members as well as interactive an rewarding programs in order to maintain
the current membership base.
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References
Customer Experience Matters (2012). Wordpress.com. Report: Net Promoter Score Benchmark
Study, 2012. Retrieved from
<http://experiencematters.wordpress.com/tag/sam%E2%80%99s-club/>
Harvard Business Review (2006). The High Cost of Low Wages. Retrieved from
<http://hbr.org/2006/12/the-high-cost-of-low-wages/ar/1>
Sam’s Club Inc. (2010). History: About Sam’s Club. Retrieved from
<http://www3.samsclub.com/NewsRoom/AboutUs/History>
Sam’s Club Inc. (2010). Sam’s Club Corporate Fact Sheet. Retrieved from
<http://samsglobalmedia.akcdn.rockfishhosting.com/globalmedia/newsroom/files/smartfacts
_corporatefacts01_060513.pdf>
Sam’s Club Inc. (2013). Sam’s Club Mobile. Retrieved from <http://m.samsclub.com>
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