Operational and Marketing Strategies at Costco Wholesale Free Essay Example, 750 words

The main strategy applied involves the sale of the highest quality brands at the lowest prices that are below other retail outlets and wholesale stores. The customer s satisfaction is considered first with the products easily affordable for purchase given first priority in their stocking. Generally, the growth entity revolved around keeping a relatively low price range to lure more customers experiencing high sales that boost growth (Thompson et al, 2012). The markups applied by Costco are carefully selected to maintain the prizes at relatively low maintaining it at a record 20% below most retail prizes. The philosophy involves taking the lowest prize offered for a good and further making a lower offer on the same products to induce an increased sale margin. Marketing strategyMost customers and membership acquisition by Costco arise from word of mouth and merger with local businesses. Most advertising campaigns are restricted to a minimal entity as the services Costco offers are sel f-marketing. The low price index attributes positive feedback from the customers promoting referrals that sell the brand identity. However, amongst the three top Wholesale clubs in America, BJ offers the most competition. We will write a custom essay sample on Operational and Marketing Strategies at Costco Wholesale or any topic specifically for you Only $17.96 $11.86/page By expanding the outlets and stocking a more flexible product range, more profits will be realized as the company moves towards total market share acquisition. Advertising campaigns on newly stocked products and extension of working hours may also reduce the competition level.