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James Kidwell Brad Granger Ashley Kerekanich

James Kidwell Brad Granger Ashley Kerekanich. Company Profile. Jim Sinegal, cofounder and CEO of Costco Wholesale Began in Seattle 1983 Mission Statement: To continually provide our members with the quality goods and services at the lowest possible prices. Business Model.

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James Kidwell Brad Granger Ashley Kerekanich

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  1. James Kidwell Brad Granger Ashley Kerekanich

  2. Company Profile • Jim Sinegal, cofounder and CEO of Costco Wholesale • Began in Seattle 1983 • Mission Statement: To continually provide our members with the quality goods and services at the lowest possible prices

  3. Business Model • Generate high sales volume and rapid inventory turnover by offering members low prices on a limited selection of nationally branded and selected private-label products in a wide range of merchandise categories

  4. Target Market • Consumers who prefer low prices, limited selection and treasure hunt shopping environment • Business Memberships • Urbanites • Nice neighborhoods not far from Costco • Middle Age with above average incomes • Large families and consumers who only go large bulk shopping an average of 23 times a year

  5. Competitors • Super Savers???????? • BJ’s Wholesale Club • Offers wider range of products • Focuses on individual consumer • Clustering club locations • Wal-Mart • Sam’s Club

  6. Advertising • Limited to direct mail programs promoting selected merchandise to existing members • Occasional direct mail to new customers • WOM (Word of Mouth) • existing consumers and acquaintances • Campaigns for new warehouse openings • Teams personally contact qualified consumers

  7. Store Layout • Treasure hunt Merchandising • Warehouse • Clothing @ the center • Electronics in a corner • Bakery and Meat in the back of the store • Alcohol in a corner • Food & Household/Business Supplies on Outside • Furniture in the front and center

  8. SWOT • Strengths • Loyal customer base • Products in bulk for cheaper • Wide variety of inventory • Affluent customers • Employee retention • Good management • Return policy • Low shrinkage • Strong private label • Membership to help small business • Growth in more profitable customers • Opportunities • Membership growth • International opportunity • E-commerce • Advertising opportunities • Increase self checkout • Weaknesses • Lack of advertising • No shopping bags • No self checkout • Less focus on individual customers • Limited small quantity products • Shorter weekend hours then competitors • Hard to find stores in some areas. • Threats • Similar Competitors (BJ’s Sam’s Club) • Cheaper bargain stores (Big Lots, WalMart)

  9. Questions • Do any of you have your own Costco membership? • Do your parents own Costco Memberships • Do you enjoy the free samples • Do you agree with Costco’s limited selection?

  10. References • Essentials of Strategic Management- A quest for the competitive advantage • John E Gamble • Arthur A Thompson Jr

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