Costco
Name
Professor
Corse
Date
Retailer: Costco
Introduction
Costco Wholesale Corporation began operations in Seattle, Washington in September of 1983. The firm operates an international chain of membership warehouse that carry quality, brand name merchandise at considerably lower prices compared to conventional wholesale or retail stores (Costco Wholesale 2013). James Sinegal, current CEO and President of the firm, and Jeffrey Brotman, Chairman of the Board of Directors founded the company. The company merged with a Delaware company called The Price Company in 1993 to form Price/Costco, Inc. The Price Company established the first concept of a membership warehouse. The firm changed its name in 1999 to Costco Wholesale Corporation and moved its headquarters to Washington. Costco is currently the largest retail store in the industry.
The external environment of marketing (Trends) There has been increase in popularity of warehouse clubs and supercenters over the last few decades. A key trend in the industry is selling products over the internet since more people continue to make most of their purchases through the web. Costco managed to increase their sales by 59% over the internet after realizing most customers bought products on the web. In addition, many retailers compete to find efficient ways of lowering operating costs. Costco continues to devise ways that can help it reduce its operation cost. To that end, Costco can easily sell its goods and services to customers and lower prices and provide and high value by building stores with little frills compared to conventional wholesalers and retailers (Costco Wholesale 2013).
Ch4: Social factors that affect marketing Customer profiling Costco segments its customers into different groups. It derives majority of its customers from business owners. Startup businesses come to Costco to purchase supplies, office furniture, and other products useful in running a business. Additionally, the firm stocks a variety of goods and
Professor
Corse
Date
Retailer: Costco
Introduction
Costco Wholesale Corporation began operations in Seattle, Washington in September of 1983. The firm operates an international chain of membership warehouse that carry quality, brand name merchandise at considerably lower prices compared to conventional wholesale or retail stores (Costco Wholesale 2013). James Sinegal, current CEO and President of the firm, and Jeffrey Brotman, Chairman of the Board of Directors founded the company. The company merged with a Delaware company called The Price Company in 1993 to form Price/Costco, Inc. The Price Company established the first concept of a membership warehouse. The firm changed its name in 1999 to Costco Wholesale Corporation and moved its headquarters to Washington. Costco is currently the largest retail store in the industry.
The external environment of marketing (Trends) There has been increase in popularity of warehouse clubs and supercenters over the last few decades. A key trend in the industry is selling products over the internet since more people continue to make most of their purchases through the web. Costco managed to increase their sales by 59% over the internet after realizing most customers bought products on the web. In addition, many retailers compete to find efficient ways of lowering operating costs. Costco continues to devise ways that can help it reduce its operation cost. To that end, Costco can easily sell its goods and services to customers and lower prices and provide and high value by building stores with little frills compared to conventional wholesalers and retailers (Costco Wholesale 2013).
Ch4: Social factors that affect marketing Customer profiling Costco segments its customers into different groups. It derives majority of its customers from business owners. Startup businesses come to Costco to purchase supplies, office furniture, and other products useful in running a business. Additionally, the firm stocks a variety of goods and