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Costco Product Line
In a simple definition, a product line comprises of a closely related group or groups of products, which may be of the same function, have the same outlet marketing, have similar customers or are under the same price range. A business can offer either one or more product lines depending on the business’ goals and capability. Like many other businesses, Costco deals with a number of diverse products. Due to its diversity, it had different product lines. It deals with electrical appliances, automotive, health and beauty products, sports and fitness facilities, pharmaceutical products and services, home appliances and décor, jewelry, floral and grocery, hardware, office products, electronics, outdoor facilities, baby and children products, funeral facilities and services and entertainment products (Costco, 2011). Costco’s diverse product lines as a marketing strategy play a major role in its vast growth.
United States’ largest membership warehouse club is Costco Wholesale Corporation. Due to its diverse members, the wholesale deals with such diverse product lines in order to satisfy and serve its members competently. Most companies are known to deal with either one or less than five product lines. Although it puts its concentration on identified products, it limits the diversity of customers, clients or members. For example, restaurants deal with food products. There are restaurants which only deal with fast food restaurants while others only dwell on fine dining. Although these restaurants specialize on these food products, they limit their customers to those who are interested in their specialty. On the other hand, Costco attracts all sorts of members. It attracts those with families, women who are interested in beauty products, people who are interested in keeping fit, people interested in hardware products, people willing to build or upgrade their homes, amongst many other people. They are at a greater advantage.
Product lines allow the customers to have a ‘one-stop shop’ when it comes to dealing with a particular product line. For example, if a consumer is shopping for children’s wear. He/she will not go from one shop to another searching for different kinds of children’s wear. They only need to walk in one store and come out with everything they need. It is at a greater advantage if the store deals with children’s and women’s wear. Costco product lines enable the consumers to have a ‘one-stop shop’ for their needs.
It is significant to note that different product lines place chain businesses at an advantage over businesses that only a few branches in a particular area. For example, if a business deals with funeral products, it would be limited as it would not penetrate into such as the Muslim dominated countries. The diversity in product lines enables a business to increase it market. This is why Costco has been able to increase its market globally. It deals with product lines that will be needed anywhere in the globe even if not all.
The more the product lines, the more the diversity in the consumers the business attracts. Costco has been able to grow into the large corporation it is today partly due to the diversity of its product lines. Although specialization is significant in relation to a business’ capacity, diversification is as important as a form of marketing strategy. With this day and age where consumers are willing to spend as much little time as possible in activities that consume money so that they can spend more time in activities that generate income, ‘one-stop shops’ are greatly required.
Work Cited
Costco Warehouse Corporation. Product Index. Web, Costco.com, 2011. Web. 6 December, 2011. < http://www.costco.com/Browse/MainShop.aspx?cat=24091&eCat=BC|24091&lang=en-US&whse=BC&topnav= >
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