“hit’em where they ain’t” david sampson aaron swanson pearl sotelo http://...
TRANSCRIPT
“Hit’em where they ain’t”
David Sampson
Aaron Swanson
Pearl Sotelohttp://youtube.com/results?search_query=costco+comedy
The history of Costco Wholesale
1983 first Costco was opened in Seattle
Price Club 1976 Merged in 1993 as PriceCostco Became Costco in 1997
The history of Costco Wholesale
First Company to ever grow from zero to 3 Billion in sales in less then 6 years
Worldwide company with over 50 Billion in sales in recent years
Philosophy, keep costs down and pass the savings on to our members
Retailing
Presentation Bare Bones
Concrete floors, shipping pallets, & orange steel Wide isles for forklift operation Continuous product moves Costco.com
Products Higher quality or larger quantity than competition
Avoid carrying same items as discount retailers Continuous rotation of inventory
Seasonal & roadshows About 4000 SKU
Members Only
Pricing Less than 14% margin on everything Annual membership fee $50
Executive membership $100 Promotion
Minimalist approach to advertising Coupons, magazine mailed to members Rebates
Location
NW based company in Issaquah WA 509 worldwide locations
375 USA 9 regions (NW, NC, BA, LA, SD, NE, SE, MW, TX)
71 Canada (Eastern & Western) 30 Mexico 19 UK 5 Korea 5 Japan 4 Taiwan
Oregon Trail
12 warehouses in Oregon Primarily located along I-5 Near other retailers
Albany Aloha Bend Clackamas Eugene Hillsboro (Extended Warehouse) Medford Portland Salem Tigard Warrenton Wilsonville
SWOT Analysis
Strengths – to build on Value- Prices & Products- “sell high quality, nationally branded and
selective private label merchandise at low prices” Service strategy- Gas, pharmacies, 1-hour photos,
bakery, optical dispensing centers, copy centers… Customer Service Differentiation- “hit’em where they ain’t”
focused on small business owners “Treasure Hunt”- constantly moving products
around. Limited assortment of merchandise- allows
Costco to achieve high sales volume and rapid turnover
SWOT Analysis
Weaknesses- to cover No marketing/advertising No large brand variety- Limited number of SKUs Finding help in store Long lines, checking receipts NEW return policy- as of February 2007
Low profit on GAS in Oregon- because must pay employees to pump gas
SWOT Analysis
Opportunities- to capture Continued growth- locally and internationally
Potomac Hills, VA May 2007 Tustin, CA - June Kawasaki, Japan – July West Valley, UT – AugustGreenville, SC – August NE San Jose, CA – AugustToledo, OH – AugustGrafton, WI – AugustSelma, TX - September
Online shopping “Costco Home”
SWOT Analysis
Threats- to defend against Competition- for members, employees, warehouse sites,
products and services with local and national retailers. Economic Factors- Higher interest rates, higher energy
costs, inflation, levels of unemployment, and consumer debt levels
Resources
www.costco.comwww.wikipedia.com