Costco Brand Analysis

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National brands as well as store brands Costco provides a mix of national brands and store brands for their customers. National brands, also known as manufacturers brands, are goods that are designed and produced by the vendor and sold to many different retailers. The vendor is then tasked with maintaining the product’s quality and developing the product’s brand image through various marketing activities. Store brands, however, are designed and produced by the retailer. The retailers is responsible for designing, developing, producing the products they place in their stores. The retailer must ensure that a consistent quality of the products makes it to their stores. The retailer is also responsible for marketing the product and building…show more content…
The prevailing thought within the company is that happy employees are more helpful to customers. Helpful employees help create more loyal customers. This is one of the notions that Costco is built on. Because of this, they provide a very generous compensation and benefits package to their employees. For starters, the average wage Costco’s hourly employees average is more than $20/hour. They also offer generous health insurance, dental plans, vision plans, and pharmacy plans to eligible employee. They have voluntary short term disability and long term disability plans as well. Costco even provides life insurance with death and dismemberment plans to their eligible employees at no cost. 401(k) plans and Employee stock purchase plans are also available. Better compensation packages like this stress the extrinsic and intrinsic benefits employees need to perform. The generous compensation addresses the extrinsic benefits and lets the employees know that their work and efforts will be rewarded. However, Costco tries to create a “team first” atmosphere and employees can see and feel the appreciation of going the extra mile while doing seemingly thankless jobs. Their efforts directly relate to customer satisfaction. When the customers remain satisfied, they remain loyal as well. That benefit is felt by everyone on the Costco team of…show more content…
They have done so by consistently outperforming other “industry giants” like Walmart and Target by providing high-quality products to customers at lower prices. They maximized the return on a number of factors such as pricing, store layout and design, store locations, advertising and marketing philosophies and more. According to Jim Sinegal, in the end, it boils down to just treating people right and providing a consistently good quality product at an affordable price. Because of their ability to make the best use of these key factors, they have built themselves into a successful company with a global
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