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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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Paul G. Moulton - EVP and CIO, Costco Wholesale Corporation The article that I choose to read this week was related to the live of Paul Moulton, and it also refers to the Costco's Marketing Strategy. Moulton serves as CIO at Costco, and He has served as Executive VP and CIO since March 2010 but was Executive VP, Real Estate Development from 2001 to 2010. He earns a salary of about $3 million. According to this article Moulton is in charge for the direction of all technology and info systems of Costco Wholesale worldwide. Also, Moulton has watched the Company raise to more than 700 warehouse places, generally in the United States, Canada, Asia, Australia, Mexico and the United Kingdom.

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Their current market situation and competitive strategy highlights aspects that Costco has implemented in the organization to increase sales and

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PRICE CLUB and COSTCO more than the current market for the merger of the two stores. PRICE CLUB for the world's first member of the wholesale and retail stores, was founded in 1976 in San Diego, California, initially to serve small businesses, and later to serve the wider consumer masses, they are open for a group of each purchase , And the first COSTCO stores in 1983, was established in Seattle, Washington, in its business just six years, the annual turnover from 0 to grow to 3 billion US dollars. The two companies merged in 1993 to become PRICECOSTCO and in 1998 they changed their name from Pleasant to Costco Company

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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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In addition, Costco does a great job in their internal growth process with hiring (Loeb, 2015). Costco’s purchasers do well as they know their store locations and the local demographic’s desires. For instance, in Australia, the Costco there like Vegemite, so they have that there and not in U.S. locations (Loeb, 2015). Costco is smart with their distribution chains as they usually use 65% of local bought and specific products (Loeb, 2015). Globally, Costco has built trust within their brand as customers go to them for quality service, freshness, and a great selection of products.

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And achieve as a result, the growth for its brand, market share, and sales

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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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Key Trends – Globalisation One of the main opportunities Costco has is more global expansion to specific targeted countries. Although operating in many countries, Costco is heavily dependent on the U.S. and Canadian markets. It still has the opportunity to expand into the Asian and Australian markets where it has a limited presence. Costco has the capability to operate about 100 stores in Taiwan, Korea and Japan combined and about 20 stores in Australia. It currently has 41 stores in Taiwan, Korea and Japan combined and 6 stores in Australia.

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Starbucks In 1971, the well- known company Starbucks opened its doors in Seattle’s historic Pike Place Market with the purpose to share great coffee with their costumers and help make the world a better place, which, to this day, remains two of their main goals. The company was, back then, a single store consisting of a simple store front, offering some of the world’s greatest fresh-roasted coffee as well as coffee beans which remain the case today. (Starbucks, 2015, Company Information)

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Specifically, Ralph’s (similar stores are Vons and Albertson’s) and Whole Foods (similar stores are Gelson’s and Trader Joes) are two firms that utilize cost leadership and differentiation. On one hand, we have Ralph’s using cost differentiation by providing a broad range of merchandise at a decent price. On the other hand, we have Whole Foods that has implemented a differentiation strategy by marketing their merchandise as healthier (organic). The trade of for both companies is that they are attracting less consumers by just marketing to a specific crowed. For instance, if Whole Foods had lowered their price and still sold premium merchandise, soon Ralph’s would be in trouble.

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Market Segmentation: To be of value market segments must be measurable, substantial, accessible, differentiable, and actionable (Kotler & Keller, 2012). Segmentation of demographics for Costco is vast as the current product offerings include all genders, ethnicities, incomes. age groups, and social classes. When considering demographics, it is important to consider the average or typical characteristics of the target market. As mentioned earlier the target market or focus for this company is supplying the small- to medium-sized business and targets the middle- to high-end consumer with its private label brand Kirkland Signature.

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Costco is high aggressiveness retail firms due it sells

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Coca-Cola Company is one of the premier global consumer brands. The company has been around for a century and has been growing constantly. Today Coca-Cola manufactures more than 500 sparkling and still brands that are sold in more than 200 countries around the world. Coca-Cola’s main competitor is Pepsi. Therefore,

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