Costco marketing strategy term paper

Investors and analysts looking to Costco look at a company that doesn’t make a lot of profit but sells products like wildfire. How many retailers make the majority of their profit by selling the right to shop? How many retailers cap their margins to a bit over 10%, in addition to consistent loss leaders that drive customers into the store? How many retailers pay their staff, on average, over $40 000 per year, plus benefits? Costco has found it in its best interest to do all of this and, with the stock price and the number of stores worldwide continuing to increase, it’s clear that investors and consumers love Costco and its unique business model.

Costco has good deals on perishable items, such as Cabot cheese, Kerrygold butter, avocado oil, Fage Greek yogurt and Starbucks SBUX, +%  whole bean coffee, said Kendal Perez, a savings expert at . An XBOX One S “Battlefield 1 Special Edition Bundle” is $ at Costco and $ on Amazon . You can also find good deals on beauty items — a ounce bottle of English Laundry Notting Hill perfume and matching rollerball is $ at Costco , while the same sized bottle on Amazon is $90 alone.

Costco's millennial strategy
Does Costco even have a millennial strategy in the first place? Probably not one to write home about. Costco's social media presence speaks volumes about what young people think of the warehouse king. Consider that Retail Wire reported in March of this year that Costco's Facebook page only had million likes, versus million for Wal-Mart , and million for Target . Amazingly, Costco's Twitter page was inactive with no followers, while Target boasted million followers, and Wal-Mart had 465,000 followers.

I would apply a simple rule of thumb to Membership (or Executive membership) at Costco: It makes sense if you have a middle class or higher income. This realization comes from personal experience:
When I was still a student, and my wife’s modest income supported us both, we were given a free one year membership. The verdict at the end of that year was a thumbs down. When your cash flow is a limiting factor, you cannot effectively take advantage of what Costco offers. Now we have a much higher income, a family, and spend much more on the types of things Costco offers. Membership with the Executive cash back option turns out to be a big fiscal advantage now.

Costco marketing strategy term paper

costco marketing strategy term paper

I would apply a simple rule of thumb to Membership (or Executive membership) at Costco: It makes sense if you have a middle class or higher income. This realization comes from personal experience:
When I was still a student, and my wife’s modest income supported us both, we were given a free one year membership. The verdict at the end of that year was a thumbs down. When your cash flow is a limiting factor, you cannot effectively take advantage of what Costco offers. Now we have a much higher income, a family, and spend much more on the types of things Costco offers. Membership with the Executive cash back option turns out to be a big fiscal advantage now.

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