Costco-Market Segmentation Overview: Every company and/or organization starts and operates to achieve a single major goal, which is normally included in the company’s mission statement. Setting a goal, however, does not translate into success on its own; it is only the fist step. Understanding market segmentation is the second most important aspect of doing business. “Sellers and advertisers want to be able to determine what the potential market is for their product or service, as well as the best ways to reach potential consumers” (Terrell, 2013). Once a goal is set, an organization first must decide if it wants to operate locally, regionally, nationally, and/or internationally, as the size of the geographic coverage has a large influence on demographic coverage. It is crucial for a business to understand what it is meant by demographic coverage; it is to understand people’s age, gender, culture, social norms and beliefs, and income in a given geographical size (Grewal & Levy, 2010). Let’s take a high class and luxury bar as an example to explain the importance of these key factors. If the bar is located in an area where the average age is 60, it will be safe to assume that the business will have difficulties finding many customers. Similarly, the business will not be able to survive if it is located in an area that has a lot of Mormon or Muslim residents as drinking alcoholic beverages is prohibited by these religious practices. On the other hand, if the said bar is located in an area such as San Francisco where the average age is around 38 years old, the median income is ~$70,000, and the culture is a melting pot of many races with many beliefs and behaviors, it will most likely thrive to its full potential (city-data.com, 201... ... middle of paper ... ...195 Ingram, J. (2013, March 6). Costco CEO - Panderer or economic illiterate?. Examiner.com. Retrieved April 6, 2014, from http://www.examiner.com/article/costco-ceo-panderer-or-economic-illiterate Nguyen, A. (2013, April 12). Costco: From Concept to $1 Billion in Three Years. Costco Wholesales Corp. . Retrieved April 6, 2014, from http://lindaperry.us/aec3033/AdNguyen2.pdf San Francisco County, California (CA). (n.d.). San Francisco County, California detailed profile. Retrieved April 6, 2014, from http://www.city-data.com/county/San_Francisco_County-CA.html Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/ Wal-Mart Stores Inc.. (n.d.). WMT Annual Income Statement. Retrieved April 5, 2014, from http://www.marketwatch.com/investing/stock/wmt/financials
Costco company previously named Price Club has seen the first opening in 1976 in California with very challenging prices and bulks packaging. During the first 10 years they expend all around the country with huge warehouses in most of the principal destinations, located in premium location and a large economy of scale, and as well an expension in Canada with the first warehouse in British Colombia. 1992 will represent a big turn for the company with the first international opening to the first Price Club in Mexico, one year later they open the first warehouse in Europe precisely in Essex, England. The technique that Costco for the international management can be described as agressive, with a large general growth
Another really good strategy is an excellent wage pay and health insurance for its employees this motive and energize individuals and groups to work together to archive organizational goals. “I just think people need to make a living wage with health benefits,” says Jelinek. As CEO, he is following the globalization his biggest move is increasing Costco’s international presence. Over the next two years, Costco will open its first locations in France and Spain. Another good part in this article is that Costco does not hire business school graduates, they preserve its distinct company culture. It cultivates employees who work the floor on its warehouses and sponsor them through graduating school. They also mentioned that Sol Price’s virtuous cycle continues to work for the company happy employees are more productive, and effective workers. Jelinek is content to focus on the future of Costco, vowing to keep prices low, volumes high, and his employees happy. “As long as you continue to take care of the customer, take care of the employees, and keep your expenses in line, good things are going to happen to you” he
Costco was founded on September 15th, 1983 by Jeffery Brotman and James Sinegal (Chesley). It became renowned for its warehouse club retail model, pioneered by former competitor Price Club. After a major merger in 1993 with Price Club, Costco expanded to 206 locations, doubling the size of the company (“Costco Wholesale Historical Highlights”). The decision was based on the fact Costco and Price Club shared similar business philosophies, operations, and the looming threat of being taken over by Sam’s Club. Operating as PriceCostco, international expansion began with development of stores in Mexico, the opening of two stores in England, and the licensing of a Price Club in South Korea ("Costco Wholesale Corporation").
In this letter, the top officials are very optimistic about the year 2010, having been disappointed by the past two years. Though the year 2010 was characterized by fragile economic conditions in most of their markets, the year produced a record in terms of sales and earnings. This record sale is seen by Costco’s achievement of $7.63 billion sales in 2010 up from $69.9 billion sales in 2009, a net earning of $1.3 billion, and an eighteen percent increase in earning per share.
The purpose of this study is to look deeper at three variables that have a relationship with employee service performance at the Carson City Costco warehouse. The study will allow management to implement methods to promote better employee service performance.
Every small or large business requires a structure to grow successfully and in return be profitable. This structure is what defines the way a company and its employees work together to support their common vision. There are different types of organizational structures depending on the type of business (Burke & Litwin, 2002). The main ones that are related to this study are hierarchy, cross-functional and matrix. Costco Wholesale Corporation is the main focus of this research paper. It was founded in Seattle, WA in 1983 but has the headquarters in Issaquah, WA. It was founded by James Sinegal and Jeffery Brotman. Costco operates 698 warehouses in ten countries, Puerto Rico been the recent one. The company also operates an online website as well as receiving revenue from the membership fees. It earns about 3% of its revenue from the e-commerce website, about 2% through membership fees and generates approximately 95% from their in-store sales. It employees about 200,000 full time and part-time staff worldwide. The recent figure of annual revenues $116.2 billion
Let start with Costco. Costco is Wholesale, Retail Corporation which operates an international chain of membership distribution centers that provides quality, brand name merchandise at noticeably more affordable rates than a conventional wholesale or retail sources. Costco 's warehouses display the largest and great product categories such as groceries, candy, appliances, television and media, automotive supplies, tires, toys, hardware, sporting goods, jewelry, watches, cameras, books, house wares, apparel, health and beauty aids, tobacco, furniture, office supplies and office Their ability to distribute the cut rate from their operating proficiencies in supply chain management and cash flow, permits them to offers items at discounted rate and a lower price than their competitors. For Costco the meaning of being the low-cost provider while also differentiating from the competitors is ambiguous at best. Costco’s CEO, Jim Sinegal, is certain that low priced, and the high value merchandises are exactly what is needed maintain and achieve a staying power in the industry.
Costco’s mission is simple; to continually provide members with quality goods and services at the lowest possible prices. In order to do this Costco conducts their business with the followin...
Costco is a global markdown retailer with over four hundred and fifteen stores in six nations and thirty seven
With its low cost model and better range of private-label goods, ALDI takes a large of customers from the 1st, 2nd and 3rd quintiles from Woolworths. There also has been increasing positivity in consumer sentiment on private-labelled goods. This only add to the increasing the threat of ALDI to Woolworths.
Being a stocker for Costco Wholesale is a straightforward job. The stocker comes in each morning and presented with the day 's’ tasks. The stocker is monitored throughout the day by the department manager to make sure all tasks are being met in a timely manner. Costco Wholesale works less like a business and more like a well tuned machine. If one cog in a machine is faulty or rusty then the whole system will run inefficiently. Managers need to work with subordinates to further improve productivity. To avoid ineffective managers, managerial candidates should be democratically elected by future subordinates.
The success of a company all falls on the shoulders of good management. If you have great management the company will run very smoothly. There are so many things that take place when you have good management. It encourages initiative, encourages innovation, helps with growth and expansion, improves the life of workers, motivates employees and much more. Without good management there would be no success.
Segmentation is a marketing strategy that involves separating a wide target market into small groups of customers who share the common need of using or purchasing the product that needs to be marketed. Market segmentation strategies are utilized to identify these groups of consumers and strategies are designed and implemented to make the product or service appeal to them. Support and also the product will be strategically placed in order to successfully achieve the ultimate marketing goal. Businesses and organizations may come up with different type of strategies involving different products and catchy phrases depending on the product or the target segment.
Costco Wholesale is a multi-billion dollar overall retailer with dispersion focus club operations in eight countries. They are the apparent pioneer in wholesale field, dedicated to quality in every zone of their business and respected for their unprecedented business ethics. Despite their immeasurable size and extension in overall improvement, they have continued giving an agreeable domain which their laborers thrive and succeed.
Aho, Karen. "The price of Wal-Mart coming to town." MSN Money Central (2009): 3. Web. 8 Aug 2011. .