By using a Big Picture framework (Exhibit 9), we can analyze the facts and strategies of the company and how the company is executing their strategies. We can also gain knowledge of overall corporate and marketing strategy of Costco. Let’s take a look at each module.
Business Objective: We are already aware that our Fundamental Entity will be Costco and Costco’s current goal is expanding the business simultaneously by providing high quality products and goods to the members at low potential prices or wholesale as a core competence. In addition to providing low prices on good quality products, Costco struggles to be a value advantage to all societies where they do business.
Marketing Objective: Costco is also known as one of the largest wholesale club in the market and Costco has a very good customer base. However, younger generation is not part of the customer base so currently, Costco performing acquisition activities dedicated to acquiring new younger consumers and steal consumers from the industry.
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By recognizing the group of customers it will make them more responsive for company’s marketing strategies. Currently, Costco’s main variable under segmentation is demographic variable (age, education, gender, income, household, marital status). As discussed above, Costco’s concentration to the steal younger generation of the industry.
Product: Costco provides their members low prices on specific private and a limited category of branded products in the high range of merchandising segments. Costco’s private brand which is Kirkland Signature is well known for its value and quality. Costco makes a good percentage of their sales from private labels. Main products are books, electronic gadgets, furniture, outdoor living, apparel, jewellery, and food and