Costco Marketing Plan Executive Summary: Costco is the largest membership warehouse club chains in the United States. As of July 2013, it is the fifth largest retailer in the United States and the ninth largest in the world. Costco is headquartered in Issaquah, Washington, and was founded in Seattle, Washington. Costco has locations in the United Kingdom, Canada, Australia, Mexico, Taiwan, South Korea, Japan, and the United States. Costco offers their customers with low prices on selected local
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Organizing: Costco Salena Jolley MGT/330 October 14, 2013 Angela Guest Organizing: Costco Grocery shopping can often times be a time consuming, tedious, and expensive trip. Most grocery stores offer a large variety of items for consumers to choose from. If a consumer needs a bottle of peanut butter, he or she will go to the grocery store where he or she is faced with a large variety of choices. Sometimes choosing which peanut butter to buy requires large amounts of time just looking at the
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inventory turnover. These goods are bulk-packaged and marketed primarily to large families and businesses. Costco does not carry multiple brands or varieties where the item is essentially the same. It provides members with a selection of only about 4000 items, this results in a high volume of sales from a single vendor, allowing further reductions in price, and reducing marketing costs. Costco also saves money by not stocking extra bags or packing materials; to carry out their goods, customers must
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Capable because he is well prepared to be the president of Costco and because of his experience in the company it’s the right person for that position. Also cheerful, like I said before he knows that the employees are the key to the primarily success of Costco and he makes decisions to keep them satisfied so they can perform well. How would you describe Costco’s organizational culture? Although it’s very similar to Wal-Mart and Target, Costco has something that they don’t, quality and happy workers
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Do all three warehouse club rivals-Costco, Sam’s and BJ’s wholesale – have highly similar strategies? No; What differences intheir strategies are apparent? Costco is providing items in bulk and at low prices; consumers gravitate toward discounting hoping to get the most out of their money. Sam’s is decreasing product costs by buying from low cost labor countries like China and Mexico. BJ’s is focusing on retail shoppers offering more grocery items and smaller quantities of packaged goods. Does
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Company Overview “Costco Wholesale Corporation operates an international chain of membership warehouses, under the "Costco Wholesale" name, that carry quality, brand name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources”. Incorporated in 1983 it now have more than 76.4 million cardholders (as of 31/08/2014) about 671 warehouses worldwide with 112.3 billion in Annual Revenues (where approximately 4.2 billion from memberships), being
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Costco Case Study The chief elements of Costco’s strategy are low pricing, limited product selection, and a treasure hunt shopping environment. • Pricing: a key element of their pricing strategy is to cap its markup on brand-name merchandise at 14% and markups on their private label items can be no higher than 15%. This strategy keeps customers coming in to shop by enticing them with low prices. • Product Selection: this portion of the strategy only provides members with a selection of about
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Costco Inc. 2012: A Wholesale Membership Industry Analysis Using the Porter’s Five Forces Model Costco’s Company Background Costco is the third largest retailer in the U.S. as well as the seventh largest retailer in the world. It is leading the discount warehouse and wholesale club segment of the North American retailing industry. As of 2012, Costco had a total of 598 warehouses internationally. Costco’s fiscal 2011 total revenue was $88.9 billion and net income was $1.46 billion. Additionally
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consists of 4000... Costco goes out of its way to surprise and excite its visitors with limited availability designer items. This solves two major challenges faced by warehouse stores – with products sold in such huge quantities, why visit regularly and why buy now. While Costco strives to beat the competition’s pricing, it also delivers exceptional value in its high-end offerings and customer service, giving consumers more for their money. This strategy works well for Costco, given its customers
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Costco Wholesale Corporation Costco is open to the public and also features privately owned brands like Kirkland signature. Costco Wholesale Corporation is a membership-only warehouse club and is the second largest retailer in the United States, the seventh largest retailer in the world and the largest membership warehouse club chain in the United States. Costco employs 126,929 full and part-time workers in the United States, and 185,207 full and part-time employees worldwide. Costco offers lower
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