Costco swot presentation final
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Transcript of Costco swot presentation final
“Simplifying Home and Life”
Who is Costco?Leading wholesale membership retailer112,000 employees$112 Billion in revenue (Aug. 31, 2014)Business to Business, Business to Consumer,
Business to Consumer to Consumer
"To continually provide our members with quality goods and services at the lowest possible prices”
Future of Costco
Where are we now?
Current Target Audience(s): Families Middle and Upper Class One-stop shoppers
Where are we going?
Future Target Audience(s): Students Young Adults (age 20-25)
WeaknessesLimited warehouses
Not in the millennial market
Minimal on social media
Limited store hours
Limited number of products to offer
Required memberships
OpportunitiesAdvertisement / promotions
Expand payment methodAmerican Express
Expand store hours
Nonmembers purchasing of alcohol
Public Relations team
Threats Limited selection
Financial record falls short of standards
Economy
Amazon: delivering groceries
Varying gas prices & stations
Sam’s Club, BJ’s, Walmart, Target, etc.
Memberships
Number of memberships: 72 million One third are Executive
members
$2.29 Billion in revenue from memberships alone (2013)
Business Member = $55
Gold Star Member= $55
Executive Member = $110
Membership fees allow Costco to maintain low margins
Propose: Student Membership at 30-40 percent discount from Gold Star Membership
Current Media Practices: Owned
Owned Media Facebook
1,211,921 Likes760,175 Visits
Website Intranet Propose: Twitter & Blog
Current Media Practices: Earned
Earned Media Promote CSR
Education ChildrenHospitalsNonprofits
Propose: Marketing to Millennials & College Students
Current Media Practices: Paid
Paid Media In store:
CouponsMemberships
Propose: Continue current techniques with coupons & memberships
Proposal Increase Owned Media
Usage Implement Twitter and
Blog account
Expand Membership Outreach Add new membership
option (30-40 percent from Gold Star)
Millennials College Students
Budget What is the cost of
this proposal?
Employees: 2 employees: $51,520** 1 employee: $25,760** 40 hours/wk. $11.50/hr.
**price based on 40 hours/week for 56 weeks
Duties: $ Varies Blog, Twitter & Facebook Millennial Research
($500) Guerilla Marketing ($500) Equipment ($500)
TOTAL COST (Year) 1 employee: $27,260 2 employees: $53,020
Financials Based on 2014
Top Line $112.64 Billion
Bottom Line $14.18 Billion
Bottom Line Less Proposed Budget Will still remain above
$14.1 Billion based on previous statement
Projection: Increase in Revenue(s) due to the addition of the fourth membership option will pay for the employee(s)