• Financial Information: Costco shoppers usually spend more than they expected. They typically spend over a $100 when they shop at Costco. The company had sales of $93 billion a year. Costco biggest seller is there meat market. They sell $4 half billion of year in meat, and they sell $55 million chickens. Costco also sells $4 billion in produce, $2 billion in TV’s, $35 million in prescriptions, and $3 million in glasses. • Company Vision/Mission/Values: Costco overall mission is to offer members quality goods at a low price. Also, Costco values their employees. Costco has a low employee turnover rate. They start there employees at $12 hour, and they offer their employees great health care coverage. • Target Market: According to the …show more content…
The type of products that Costco sell are groceries, apparel, electronics, auto and tires, computers and printers, office products, TV’s, toys, appliances, handbags, furniture, outdoor furniture, jewelry, electronics, health products, floral, and household and lawn items. They also offer different services, which includes, Photo Center, Pharmacy, Optical, Gasoline, and Home and Life services • Place: Costco warehouse stores is typically where they sell their products at. Also, Costco distributes its products on their online website, and on their mobile app, as well • Promotion: Costco warehouse is a membership only club, so it offers instant savings on some of their products on-line, and in-store. Also, Costco offers its customer free samples, it has caused an increase of sales within their company. • Price: Costco wants to be able to save shoppers money, by offering them low prices. Costco is 30% than any other supermarket retailers. Also, 15% of Costco products are under there, “Kirkland brand” which save shoppers money. • Competition: Costco top competitors are Sam’s Club, Walmart, and BJ’s Wholesale Club. They have several warehouses that offers similar merchandise, selections and prices, which includes Sam’s Club, and BJ’s Wholesale
Do you like shopping? Both Costco and Sam’s Club are very popular stores. They are both in the top ten biggest retailers in the world. They bring in a ton of money to the people that own them. They are both Warehouse Clubs, which means they are massive stores that require a membership to enter.
In fact suppliers want to be part of Costco, as a result, members get lower prices and higher quality products while spending less time shopping among fewer options.” (Will 1). In addition, most of the products that Costco buys are purchased directly from manufacturers, so that Costco avoid the high cost arises through distributors. I believe that it is always good to have competition in a market because one business can improve and learn from its competitors. Also according to this article Costco like Wal-Mart offer low prices, if may be true that Walmart Offer prices lower than Costco, but there is no doubt that Costco offers quality at a reasonable price.
Walmart does have their focus on low prices but lately Walmart has been bringing in some specialty products such as Paula Deen cookware, Rachael Ray cookware and Calphalon cookware. Target already had these brands so Walmart is changing their inventory to reflect what the consumers are looking for hoping to increase their sales. Also in return Target is cutting their everyday prices on their inventory also so both are taking cues from each other this will increase the choices that consumers have at both stores. As far as Costco and Sam’s Club of Walmart I personally have been to both and as for me I like Sam’s better than Costco due to Sam’s has a better selection than
The the type of company that Target is a manufacturing number of employees, products/brands What we consider the most
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
The mission of Costco is “to continually provide all of its members with quality goods and services at the lowest possible prices.” This mission statement is directly correlated to Costco’s business model and its strategy. Costco’s mission statement shows that business really pays attention to quality as a huge selling point. The foundation of Costco’s business model is centered around a membership-only warehouse business model, in which there are high sales volume, rapid inventory turnover due to their fee-paying members. Due to this type of business model, Costco wholesale remains profitable even by having significantly lower gross margins than other wholesalers.
Costco operates on a membership only basis, therefore customers and businesses must purchase a membership to shop at the retailer. Costco currently has two memberships available, which are their individual membership, also known as Gold Star, and their Business membership, both of which cost $55 annually (10-K, 2015). For $110, a customer can upgrade to an executive membership, where they can enjoy a 2% discount (SWOT, 2015). They currently have around 75 million members, and due to their no-frills approach, low prices, and high quality products they have a high member retention rate of 91% in the U.S. and Canada, and an international rate of 87% (Forbes, 2016). Costco has been steadily growing and their net sales increased from $75,255 million in 2010 to $110,212 million in 2014 (SWOT, 2015).
Once it take place on one location, Costco could analyze the new store volume and how many memberships purchased. By comparing the operating costs and logistics, Costco will determine if it is good to start in major cities and in urban areas. For this kind of small convenience stores it is critical to generate fast inventory turnover just as regular warehouses do. Starting these types of stores also making a rival competition from Walmart and target that they have opened in urban areas. Costco is to continue to grow more and more.
By the way Costco is where I do 85% of my grocery shopping, because when I go grocery shopping its for 2-3 weeks at a time, so buying in bulk is great for my household. Dinner: I will be honest and I have not eaten dinner yet tonight. I am so undecided of what I want to have. I have had a banana tonight so far. I am thinking that I will have a turkey burger tonight.
Monica Sud v. Costco Wholesale Corporation The large company of Costco has seen numerous amounts of lawsuits the one that brought the most uproar was when Costco was purchasing shrimp from Charoen Pokphand Foods. CPF Company purchases fish food from other companies that have slaves. The intention of the lawsuit was to have the company label the product as a product of slavery or stop selling the product completely. This case started at the federal court in San Francisco, California, Costco has been indeed selling and buying products of the slave trade.
People love going to Costco and getting the ultimate shoppers experience plus free samples. All three can have Target chasing after their customers. But this graph above shows that the growth in Costco is slowing as of 2014. At first it would seem Costco is doing the best but Costco only, "has 649 stores; when you compare that to Wal-Mart's 11,000 locations, it seems tiny" (Tahiri 2014). There is also the fact of how well Costco pay its employees.
Costco uses bulk/wholesale discounts, and guaranteed low prices for these products. 2.Direct marketing- Costco emails their customers in order to promote products available at their warehouse. 3.Personal Selling- Costco personnel in the warehouse persuades cosumers to buy certain products which can be services or products through the use of free samples.
Costco’s goal is to try and sell first-class merchandize at the lowest price possible to the customers. Costco has many big competitors including Wal-Mart Stores that own Sam’s Club, The Target Corporation and The Kroger Co. who owns Ralphs and FoodsCo. Costco figures out the customers buying habits and needs so they can buy and sell the right product that match’s what people want and need. They need to have a productive supply chain, that allows Costco to measure and identify through their ads and marketing efforts what kinds of products are successful or not.
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.
It has had a steady growth in sales and just last year reached over $110 Billion. Costco also prides itself on treating its employees really well with good benefits and higher wages. Compared to Wal-Mart’s Sam’s Club, Costco’s main competitor, Costco has nearly twice as many members. It also offers its members a great 90 day warranty where a member can replace any item no questions asked. It is able to do this because of its great relationships with its