Report on International Marketing Plan of Costco

INTERNATIONAL
MARKETING

Table of Contents
1. EXECUTIVE SUMMARY.........................................................................................................1
INTRODUCTION...........................................................................................................................1
2. BACKGROUND.........................................................................................................................2
The key international factors shaping the competitive environment..........................................2
The competitive rivalry in the industry of new market...............................................................3
3. INTERNATIONAL MARKETING STRATEGY......................................................................4
Marketing mix ............................................................................................................................4
Market entry strategies................................................................................................................4
SWOT analysis............................................................................................................................6
RECOMMENDATION...................................................................................................................7
CONCLUSION ...............................................................................................................................7

1. EXECUTIVE SUMMARY
The report evaluated the factors' organisation which helps the company in entering into
international boundaries. It analysed that the new market strategies of leading wholesaler of
United states when entering into foreign market. Researching international factors of competitive
environment when entering into new market act as tonic of the retailers as it assist the company
in determining various changes according international environment. It evaluated 4 factors of
international competitive environment of Africa that is, Products and services, strong Consumer
base, strict Government regulations and Market strategy of existing retailers. Further, it
discovered that in order to expand market Costco focuses some necessary factors of investigation
in foreign marketing research that are, Segmenting market, analysing trends of foreign market,
Effectiveness of marketing, evaluation of available information. The report revealed the two
major competitors of Costco in Africa which are Shopwrite and Woolworth dealing under same
industry and have strong consumer base. Moreover, there are various marketing strategies
implemented by 4 p's of marketing mix which assisted the company in determining the
availability and value of its products and services in its existing market which will be beneficial
for growth and development in foreign market. Apart from this it discovered the major strength
of Costco which lies in its 600 locations because of which it holds the largest membership of
warehouse in US. In addition, this the report stated that the company has an advantage over
expanding its market as it posses all the qualities of fulfilling consumers needs and wants
Hence, the report suggested that the firm need to follow and comply with employee agreement
and employment rights because non compliance with regulation is a punishable offense which
can interrupt the growth and development of company in new market.
INTRODUCTION
International marketing act as the tonic for business growth and development as it assit
the enterprise in promoting its organisational functions across the national boundaries. It
comprises making marketing mix decision regarding expansion of firm (Kraus, Meier and
Schuessler 2016). The report will analyse the international marketing for Costco the leading
Wholesale retailers of United States. Further, the report identify the marketing strategies
followed by the entity to stabilise and expand its market in international boundaries. Beside the
report will outline the competitive rivalry of new market like Africa for Costco. Thus, it will
determine the strategies implemented by the Wholesaler before entering into foreign market.
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Costco is the largest America membership only warehouse club. In the world after walmart its is
the second largest retailer in the world. It is one of world's largest retailer of choice and prime
beef , organic food .This organization is been selected as it is well-known and largest retailer in
the world. In the world it has about 741 warehouses and in UK it have about 28 warehouse. At
low prices this company sells its product .These goods are basically bulk-packages and to large
families and businesses they are marketed . The range of products and varies is been expanded
gradually by this company .Many product such as hot tubs, home appliances , fine wine ,solar
panels and many others are been sold by this company. Costco provide cultural sensitive
products as they know that all the people are not same and also that their lifestyle and culture
also different from each other.
Pestle analysis of Costco
political factors – On the politician influences in its remote or macro environment the
performance of Costco's stores is partly dependent. This company can be faced due to more
complex polices of environment and also the animal right polices. In major markets this
company has the opportunity to grow with minimal disturbance .
Economic factors- With economic situation this company need to align its business. Even though
the economic growth remains low in UK but this company can improve its growth and stability
in UK.
Social factors – Costco wholesaler has the opportunity to enhance its corporate social
responsibility programs .This will also strengthen the image of brad and also the perception of
customers. By implementing polices and strategies for animal rights and environment
performance this company can improve satisfaction among customers.
Technical factors – A large market share can be attracted by costco through e-commerce. In
order to enhance its business efficiency the company can also implement new automation
technology.
Environmental factors – This company is faced by climatic conditions as it is hugely dependent
on optimal climatic conditions. In order to satisfy the changing lifestyle of customers this
company mus adapt its product mix.
Legal factors- This company can enchain its employment laws in order to exceed the
requirements of employment laws. To be more accurate GMO labelling in its food products the
company can also impose new polices.
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