Costco Case Analysis

Furthermore, the opposition may say that middle class consumers will stop shopping at Costco because Costco charges people to shop at its store and that method decreases the amount of people that are willing to shop, but that is also false because requiring a membership increases brand loyalty. Moreover, the people that Costco loses because of the requirement for memberships weren 't part of Costco’s target market anyways. For example, if a customer cannot afford Costco’s membership then that customer is not considered to be part of Costco 's target market and is not considered to be a lost customer for Costco. Thus, the opposition is mistaken and the unorthodox business practices that Costco practices, actually, get middle class consumers …show more content…
Costco only sells items in bulk, but that is perfect for Costco 's target market because it is middle class families which means that they need bulk quantities. Furthermore, Costco attracts middle class consumers because it treats it employees right and pays them above average salaries which makes middle class consumers feel great about getting low prices. In addition, another business practice that makes consumes chose Costco over other stores is that Costco makes its products suitable for its target market. For example, Costco carries a lot of products that cater to everyday life, but Costco also carries products that allow people to spoil themselves once in awhile. Moreover, Costco’s store layout is another reason that more people are attracted to the store because consumers are creative and that makes them explore the store and buy more products unlike other stores where consumers know where everything is. In addition, Costco’s cheap and brilliant marketing strategy allows for Costco to attract middle class consumers because Costco’s strategies tie into middle class consumers lives which makes them like everything that Costco does. Finally, Costco has one of the highest brand loyalty rates and that is one of the main reasons that consumers chose to shop at Costco over other stores. Thus, everyday people are shopping at Costco and switching over to Costco because Costco does a phenomenal job of keeping everyone from employees to consumers happy. Moreover, consumers are shopping at Costco and saving a lot of money which is making other business contemplate on adopting some of the methods that Costco is using because Costco is a new breed of business that puts employees and customers first and lets everything else fall into place. So the next time you decide to shop somewhere decide if you feel that it 's right that employees need to suffer in order for