Costco Assignment - essay PDF

Preview

Summary

essay...

Description

PRINCIPLE OF MARKETING Assignment #2 “Transcription of video regarding Costco Corporation” Name: Namra Zaid Reg no. 2019422

Key marketing terms Brand Anything that brings about awareness of a specific product, service or business while separating it from other establishments. House brand A product, usually offered at a lower price than a comparable name-brand product. Customer Loyalty When a consumer is a repeat buyer of a product, service or brand. Friction Any aspect of your website that is hard to understand, distracting or causes visitors to move on from your page. Target Marketing A group of customers toward which a business has decided to aim its marketing efforts and merchandise. A person or organization that Supplier provides something needed such as a product or service. Merchandise Goods to be bought and sold. Customer service It is the direct one-on-one interaction between a consumer making a purchase and a representative of the company that is selling it.

Introduction Costco, is an American multinational corporation which operates a chain of membership only warehouse clubs As of 2015, Costco was the second largest retailer in the world after Walmart and as of 2016, Costco was the world's largest retailer of choice and prime beef, organic foods, rotisserie chicken , and wines. In Costco bulk quantities of merchandise are sold at deeply discounted prices to club members who pay an annual membership fee. It is one of the largest retailers in the world.

Transcribing the video Welcome to Costco … where everything is sell in bulk quantity and in deeply discounted price. Costco stores are reportedly designed in a way that encourages shoppers to wander around. The stock is stacked high in a “warehouse” enclosing more than 140,000 square feet (13,000 square metres) of floor space. It carries supermarket items and ever changing selection of other merchandise including some luxury items .It provides loyal membership to its customer in this way those customer would have an access to crazy discounts and deals. It`s reported that 90% of their members renew their membership According to survey people spend $250 or $300

easily at Costco. Its global revenue for fiscal year 2018 was $141.6 billion. Moving through Costco is pretty seamless there are minimal signage and wide aisle moreover, there are free food samples and occasionally free massage demonstration. Snack bar is also a source of refreshment for customer. Basically, Costco is well known for its house brands for example KIRKLAND SIGNATURE which includes paper goods, water bottle and olive oil that`s most beloved product . Costco also carries luxury items like diamond ring and provides discounts on it too. It helps you save money when buying in bulk. Members love Costco because of its best deals and cheap high quality product. Fig 1.0 shows the deal that Costco is offering you .

Fig 1.0 Let’s not forget about wines that`s Costco favored product. It`s known to be largest seller of wines and expensive spirits in North America. Costco making a profit by selling wholesale goods, people repeatedly coming to Costco because of VALUE, CONSISTENY and QUALITY they offer to their customers.

Fig 1.1 Costco plays by a golden rule, you treat your supplier well they treat the customer well and then you makes a tons of money.

Fig 1.1 Conventional retail wisdom states that you`ll save big if you buy in bulk. This kind of thinking has made Costco a prominent retail success story even as many brick and mortar competitors have flattered in the face of stiff online competition. Some of their customer is base is absolutely addicted to the experience and the brands and thrill of going to Costco. Future of Costco

The future of Costco that I see is the sales that will grow to nearly twice the size of level achieved in previous years if it continue to serve the customer with the same quality, offer deals

and discounted price. Management continue to focus its efforts on expanding selection across apparel and organic and fresh food as well introduced new services. Management continue to maintain a steadfast commitment to value and integrity in everything it does, from selling goods at the lowest price to how it treats customer and most importantly how company treats its customer.

Learning from the video The video is basically about Costco Wholesale Corporation. We learned marketing strategies from it. Its basic strategy is to source quality merchandise and sell it in lowest price possible. Since Costco sells its product in bulk in this way you can save big. Video compares the prices of products at Amazon and at Costco. If you have to shop a grocery in enormous quantity then Costco is right place for you....