In: Business and Management

Submitted By zhaoyue
Words 630
Pages 3
Comprehensive Case----What’s Ahead for Costco? 1. 1) Costco is the largest U.S. membership warehouse club player with nearly one-half of total U.S. warehouse club sales. The firm’s no-frills, self- service, members-only clubs are positioned well to attract both business seeking to buy in bulk and individual consumers hoping to discover a great deal while stocking up for home.
2) Because the firm has a treasure-hunt environment A multi-channel retailer, Costco operates warehouse clubs; Costco Business Centers, which carry only merchandise catering to small businesses; and Costco Home, which is a furnishings-and-furniture outlet. Costco gains additional sales through its E-commerce Web sites and catalogs. 2. TNS Retail Forward’s market positioning model provides a good framework for understanding Costco’s strategy. Identifying the company’s market strategy objectives: target customers, core goods and services, core competition, and key appeals. Successful market positioning depends on the execution of the six keys: merchandising; pricing; promotion; customer service; location and physical facilities; and organization, systems, and processes. 3. 1) Because Costco offers a limited number of sku’s, inventory is brought through payment terms rather than through working capital.
2) Costco offers a selection of quality name brands at lower prices than traditional competitors. An important element of the company’s merchandising strategy is to carry only those products on which it can provide its members with significant cost savings. 4. Manufacturers that refuse to accommodate Costco’s demands for lower prices may find themselves displaced by a similar Costco private-brand product, which may sell just as well or better than the manufacturer’s brand. 5. It relies on creating “buzz” or word-of-month recommendations. 6. With regard to its…...

Similar Documents


...or FIN303 BFSZ332 FIN309 or FIN303 BFSZ332 FIN309 or FIN303 BFSZ333 FIN309 or FIN303 FIN363 FIN309 or FIN303 COR167e or COR156, and FIN371, FIN373, FIN375 Nil NONLAB MKT356 Marketing for Financial Services 5 N Y N Y TUESDAY WEEK 1 TERM 2 Last Presentation Time Table 2016/07 2016/07 2016/01 MONDAY WEEK 1 TERM 2 MONDAY WEEK 1 TERM 1 THURSDAY WEEK 1 TERM 2 NONLAB Excluded Combination BSZ352 BSZ352 OR BZS3002 MINOR ELECTIVE - Minimum 0 & Maximum 10 Credit Units Code BUS351e BUS353e BUS363 Name Operations Management Project Management Total Quality Management Credit Jul Units 12 5 5 5 Y Y N Jan 13 N N Y Jul 13 Y Y N Jan 14 N N Y Pre-requisite Grouping Remarks Lab* NONLAB NONLAB NONLAB Page 3 of 9 Code BUS381 HRM201 MKT351 MKT353e MKT355 Name Selected Topics on Business 1 Human Resource Management Consumer Behaviour Retail Management Multivariate Analysis Credit Jul Units 12 5 5 5 5 5 N Y Y Y N Jan 13 N Y N N Y Jul 13 N Y Y Y N Jan 14 N Y N N Y Last Presentation Time Table 2013/01 2014/07 2015/07 2015/07 2015/01 FRIDAY WEEK 1 TERM 1 WEDNESDAY WEEK 2 TERM 1 THURSDAY WEEK 1 TERM 1 THURSDAY WEEK 1 TERM 2 MONDAY WEEK 1 TERM 2 Pre-requisite Excluded Combination Grouping Remarks Available in Jan 08 Lab* NONLAB NONLAB NONLAB NONLAB BSZ351, BUS206 BMSZ320 BMSZ321 Students are NONadvised to take LAB BUS105e before enrolling in this course NONLAB MKT358 Integrated Marketing Communications 5 Y N Y N MONDAY WEEK 1 TERM 2 Nil MKT357 & MKT359, BMSZ323,......

Words: 2306 - Pages: 10

Marketikng 201

...9c68ed0744f1ed0e29ff internet password Denver Cress Tiffin University MKT355 Marketing Management February 6th, 2015 Chapter 12 Test Your Knowledge 3: List the elements of the promotion mix and describe how they are used to deliver personal and mass appeals. Advertising is a non-personal communication from an identified sponsor using the mass media. Sales promotion are programs such as contests, coupons or other incentives that marketers design to build interest in or encourage purchase of a product during a specified period. Public relations describes a variety of communications activities that seek to create and maintain a positive image of an organization and its products among various publics. Personal selling is the direct contact with the customer and gives the salesperson the opportunity to be flexible and modify the sales message to concide with the customer’s needs. Direct marketing targets specific groups of potential customers with different offers. Also it provides extensive product information and multiple offers within a single appeal. 5: What is buzz? Buzz is the word-of –mouth communication that customers view as authentic. How does marketers practice buzz building? Marketers us techniques to encourage consumers to spread information about companies and their products come under a variety of names such as word-of-mouth marketing 6: What are some ethical problems in buzz marketing? Activities designed to deceive consumers......

Words: 445 - Pages: 2