This element of the marketing mix shows that Costco Wholesale Corporation has expanded its product mix to a considerable degree of diversification. This element of the marketing mix refers to the venues through which the firm distributes or sells its products to customers.
But unlike their competitors they pay well to their employees. One of the key uniqueness and strength is that they sell membership to their customers that not only generate the fixed revenue every year but also increase the brand loyalty and awareness of the customers towards Costco.
They advertise very less thereby reducing the cost by two percent each year. One of the crucial factors of Costco is their pricing strategy.
They have unique way or mechanism that helps them keep the price lower than that of competitors and they can still afford to pay 48 percent higher salaries to their employees than their major competitors mainly Wal-Mart.
Their membership base is growing and they are able to retain their customers. Virtually, they do everything to retain their customers. Most importantly they have very incredible return policies in hand to attract and retain customers.
Furthermore, they try to find the best value pack for almost every product they sell in their location store. For example, they have thousand packet box of Splenda sugar free sweetener.
They generally engage in bigger packages because they believe that bigger package provides better value and cost savings to their customers. Costco applies several other strategies to achieve corporate wide price leadership strategies.
The mission statement of the Costco is well understood throughout the organization by the management and employees. Costco offers their customers with low prices on selected private and a limited selection of nationally branded products in a wide range of merchandise categories.
Businesses and families can rely on Costco to offer high quality goods and services at everyday low prices. Rapid inventory turnover, high sales volume per warehouse, leveraging an efficient operating structure, reduced handling of merchandise, and making themselves the low cost operator in retail are all key elements that make the company so successful Annual Report Fig: Showing strategic group map of the Costco along with its rivals.
The circle represents the sales revenue. This group map shows that Costco Wholesale Corporation has strong competition in the market. Based on market capitalizations and revenue, Wal-Mart is the leader of the discount variety store industry in the US. However, Costco has second highest position based on sales revenue in wholesale store industry of the US market.
The market capitalization of Costco Wholesale Corporation is The trend of the market share price is increasing in the last few months because of the slow economic recovery. As per April 28, at 1: In the competitive discount variety store industry, Wal-Mart is the top Wholesale Company based on the revenue as well as Market capitalization.
In Sales was increased by 1.
At the same time, Target Corporation is the second highest company in the industry based on market capitalization. The sales revenue of Target was increased by 0. BJs Wholesale club Corporation has the last position in the industry compared to its competitors as per its sales revenue and market capitalization.Apr 11, · Costco Wholesale Corporation (Costco), one among the few largest wholesaler giant differentiates itself applying unique strategies relating to production and operations, and marketing which make it stand out from the rest of the retailers who are also said to be competitive in the retailing and wholesaling business globally.
Nov 23, · Costco is an awesome place to stock up on groceries, taste samples, fight for parking, line up for Costco gas and shop in the Costco Liquor Sales store. I usually go to the Cedar Park location, but wanted to spice it up by going to another location this Saturday.4/ Yelp reviews.
Case: Costco Wholesale Club Brittany Irwin, Jake Mosley, Victoria Binder & Sara Michael Costco is a warehouse club wholesale retailer that intends to bring large quantities of quality products to consumers in mainly bulk sizes.
Published: Mon, 5 Dec Costco Wholesale Corporation is the largest membership warehouse club chain in the United States with an aim to offer low prices on the selective and specialty brands in the wide range of products.
Asset turnover ratio of Sam’s club and BJ’s wholesale is better in as compared to Costco’s club because of low prices offered by Costco’s club. Costco’s has low profit margin as compared to its competitors but its sales volume and membership base in strong.
Jan 31, · Price Club was born as the world’s first wholesale warehouse club. With Price Club, Sol Price single-handedly grew a new industry and with it, a perpetual harvest of good fortune.