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Costco Opened Its First Doors Produced By Price Club

1310 Words6 Pages

Company Background
This Marketing plan focuses on Kirkland Signature Organic Blueberries. Produced by Costco, #16. Costco opened its first doors in 1976 under the name Price Club. Its first location was in a converted airplane hangar in San Diego. The company decided it was best to serve small businesses and a select audience of non-business members. The first location under the Costco name opened in 1983 in Seattle. Growing quickly, Costco became the first company to go from zero to 3 billion in sales in under six years. In 1993 when Costco and Price Club merged as PriceCostco they had 206 locations. After resuming the Costco name in 1997 the company has grown worldwide, providing a wide selection of merchandise, specialty departments, and …show more content…

This is the mission the company was founded on, and the goal it strives to achieve to this day. With a large selection of products to select from, from fresh produce to electronics, and services ranging from bottled water delivery to payroll services to home insurance, it is easy to see why a Costco membership can be appealing.
Costco’s main competitor is Sam’s Club. Costco outperforms them by having stores in more affluent areas and investing in improvements.

Situational Analysis
Strengths
• Costco has hundreds of stores all over the world.
• Costco offers a wide selection of products and services at low prices for its members.
• Costco has locational excellence, maintaining stores in affluent areas.
• Costco has invested heavily in improving and expanding if they keep doing so they will stay ahead of their competition.
Weaknesses
• Costco is lagging behind its competitors in e-commerce. If they invest in catching up and making their products available online in more places it might boost their …show more content…

Market penetration is a strategy that involves getting your current market to like and buy your product more. Costco’s current market is small business owners and a select number of adults who want to buy a lot of product at once for a decent price. With the current trend of buying organic, Costco could use this strategy by advertising their organic products more, while continuing to provide samples of them inside. This would remind their customers that they do in fact have organic products, and make them want to come in to buy them. Offering samples would allow them to try the products you advertised, where they might fall in love with it and decide to buy something even if they were on the fence, or were planning on buying something

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They also opened at around the same time, not really that long ago compared to other stores. They are both very similar to each other, but have a few differences. Costco’s first warehouse opened up in Seattle, 1983. In 1993, Costco actually struck a deal with Price Club to combine stores. They named the stores PriceCostco.

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The main reason it entices me more is because they provide a lot fringe benefits to their employees. Employees can obtain free internet service and home technology support and avail all great products by Comcast. Moreover, employees can buy Comcast stock at 15% discount, and one can get $2500 per year tax free reimbursement of qualifying health expenses or eligible dependent and etc. According to Glassdoor, many employees posted review that the pro of working in Comcast is excellent benefits it provides to its employees. It’s a company which drives innovation since the technology industry is growing and constantly changing in a rapid pace.

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In Costco’s macro-environment, a variety of factors could affect the company’s economic viability. External factors such as inflation, foreign currency exchange rates, levels of unemployment, reduced consumer confidence, and changes in tax policies could unfavorably affect the demand for Costco’s products and services. Prices of some goods and services including food products, are often variant and subject to fluctuations deriving from changes in domestic and foreign supply and demand, competition, taxes, labor costs, or delays in delivery which could significantly affect Costco’s sales. Therefore, the product’s costs and selling could also increase affecting financial results. Other important economic factors include the increasing international

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Costco cares about its employees and its employees care about Costco. As a result, quality becomes the number priority for everyone. They aren’t marking their products up by huge amounts, or having flashy stores or offices. They are exactly what they say they are, a large volume warehouse retailer that sells quality products, with a reasonable markup. By keeping their employees happy, they keep their members happy, which keeps the profits coming in.

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