1. Costco “Nature”
Situational Analysis
Costco "Nature"promises to provide natural and organic foods that not only promote
health while implementing technology
Costco “Nature”is going to be the future daughter of Costco that will target the specific
group health oriented group that will be in a select few locations. We willManagement will be
easily filled but specific positions will need to be filled. CEO, Marketing specialist, buyers,
legal, nutritionist.
Costco “Nature” offers a safe and healthy alternative than the questionable products sold
at a regular grocer. With that being said, the prices tend to be higher than that of regular
supermarkets. Costco “Nature” promotes and markets to consumers in affluent communities of
dense population. Other than the promotion in local magazines or papers, the advertising tends
to be based in the local community near the store.
Costco “Nature” will not only have a wide selection of produce there will be open
kitchen/cafe where food and recipies will be prepared for customers using the ingrediences found
right in the kitchen/café. When a customer does go shoping it isnt just to get food. There will be
an artistic element to their shopping experience. Ipads will be set up at the end of hard isle that
illustrate items on sale. These Ipads will not only allow shopers to look up nutritional value of
selected products but recipie ideas that will assist the customer not waste the food they have just
shoped with.
Market Analysis
2. Consumers fuel the market growth for natural and organic foods but they “defy”
easy categorization. “Nearly all studies find that consumers with higher levels of education
were the most willing or most likely to purchase organic products (Dettmann and Dimitri,
2010; Zepeda and Li, 2007; Krystallis et al., 2006; O’Donovan and McCarthy, 2002; Cicia
et al., 2002; Fotopoulos and Krystallis, 2002; Magnusson et al., 2001).” Costco “Nature”
can lean on the trends of educated people buying more organically since an expotential rise
in Americans persueing the education. From 2001 to 2014 the increase in enrollment has
risen 32% and it is saafe to say that enrollment will continue to rise due to the demand of
specialized professions (U.S Department of Education).
“Organic products are now available in nearly 20,000 natural food stores and nearly
3 out of 4 conventional grocery stores. Organic sales account for over 4 percent of total U.S.
food sales, according to recent industry statistics” (Greene). Costco “Nature” has an
opportunity to jump into this market and feel fairly confident that their entrance will be met
with profit. “OTA reported in 2007 that organic foods accounted for roughly 2.8% of food
sales in 2006, reaching $16.7 billion and making up over 95% of all organic product sales”
(Hartman).
3. Technology is also driving the market of food. When Googling “organic health”
you find over 408,000,000 search results on organic diets, reciepies, farmers, goods, and
basic health information about said products. Costco “Nature” will utilize this techonology
by having Ipads set up at the end of hard isles when nutritional facts will be provided,
various recipies, and even sources of the foods themselves. Since most organic and natural
food consumers are educated the use of these Ipads will be welcomed and utilized. The
tough screen technology will be simplified and the layout user friendly. Costco “Nature”
Will be jumping ahead of the trend that other food related businesses are slowly
incorporating. Fast food chain McDonalds in incorporating self serving cashiers that allow
patrons to cutomize a burger and give control of their health in their hands. By taking this
consept and putting it towards a grocer store the customers will be given information on
how to utilize their produce than just following one or two recipies that they have
memorized.
Hartman Group Research on Motives of Buyers (2000)
Nutrition Availability Taste Enviroment
4. Direct Cometition
Whole Foods that offer FDA grade organic food and natural selection will be the largest
competitor. They have had a steady increase in revenue since 1999 to 2013 with only one hit in
the negative in 2009 during the financial crisis. Whole foods has a strong market growth and
stability. Their image of the brand is strong except that it is considered a "whole paycheck"
grocery store. Their target market are health concious individuals as well trendy young adults
that are now incharge of their health. Their biggist attribute would be location placement.
Ensuring that they are reaching their target market.
Inderect Competition
Local providers haveing agreements with competitors
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5. Government regulations on what can be labled as all natural and organic indirect
competition is any grocer or food service place that sells similar food products.
Other supermarkets that may only offer a small quantity of natural foods compete for consumer
business, especially in today’s struggling economy. Many families might choose a less expensive
product from a more accessible store. Another indirect competitor would be fast food chains and
restaurants
Walmart is expanding their product line to more natural brands and locally grown
produce. Walmart has an expanded product line and are known for their low prices as well as
convienence. Their target is consumers that want natural produce but also need the convienence
of other options that are not soly health related. Their market strategy is advertising their
partnership with local producers. Though they try to enhance their focus on healthy foods but do
not focus all of their attention on it and their for it intregues health oriented people but they do
not have the level of commitment that we want.
Kroger has offered and will continue to offer produce at a renasble price. Kroger has a
small market to command but their image is with saving money on food by utilizing your kroger
card and earning points to save on gas. The problem is that not all krogers have gas stations.
Their image is related to cost efficiency with variety. The offer a section dedicated to specalty
brands. The membership does bring loyalty even if there is not a convienent gas station
available.
SWOT Analysis
Strength
Strong Brand Image
6. Quality product at low prices with constant change in products offered
Sucessful international expansion
Efficient productivity from employees due to decreased turnover by adding benifits
Outsourcing IT problems to save money
Buzz marketing saves money
Profitability due to volume not prices
Reduced distribution
Proven stability through economic and turmoil
Weakness
Bulk packaging leads to overconsumption with a higher footprint and pollution this goes
against the trending green marketing trends
By offering a higher wage to employees decreases revenue significantly in the long term
The lose of co-founder Jim Jinegal has created a whole in innovation and insight
Large space is required as well as a good location that can be difficult to come by as well
as expensive
Lack of advertisment
Limited service and no "frill" merchandising difers impulse buy
Opportunity
The ability to target a growing consumer base that are conserned with health and health
of their foods
The commitment to high quality natural, organic, and specialty foods
7. Quality vs. Quantity
Target clients by offering membership that will garantee saving 2.5% on every fresh
produce
Large a wide variety from food to other green quality products
Utilaze empty building that add to the cuture of to the community while holding on to
their history and landmarks
Threats
The compitition in existing suypermarkets that are rebranding and specialty stores like
whole foods and specialty stores
Economic instability will create financial instability
Any changes in government regulations on organic foods would impact consumer
spending even further
The number of farmers and suppliers that are organic asnd natural foods
The risk of becoming a "whole paycheck" store
SWOT Summary
The challenges faced when entering a new market of consumers will be difficult but with
the strength of Costco's establishment and stability gives them an upper hand in targeting a
growing consumer based. The biggest hurtle is adapting to the USDA Organic Certification for
brands. Though Costco “Nature” does not have to go after the certification themselves they do
know and keep the supliers accountable for the products entering the store.
Issues to be Addressed
8. The key issues to be addressed are as follows:
Government regulations
Suppliers
Implementing Technology
Marketing to consumers
Implementing loyalty through loyalty program
Upfront costs
Identifying location based of demograph
Finding the right design and logo
Strategic positioning
Researchobjectives
The research objectives will need to focus on two aspects of potential customers. First
we need to identify the needs of consumers and out of their needs, identify those who will shop
at Costco “Nature”. The needs of the consumers will be analyzed and identified with the
motives behind their selection. The research team will analyze and interpret the key markers on
the consumers on the vast field of motives from the devoted consumers to the indifferent
“disbelievers.”
Customer Needs Who will shop at Costco “Nature”
Health concerns
Brand that they can trust
Eco friendly
The people that will shop at whole foods
The people that are health conscious and lazy
People that are uneducated
9. Technology driven information
Being able to grab a quick meal before,
during, and after shopping that demonstrate
recipes for foods that go bad quickly
Advice on what and how to eat foods and
recipes
Easy access to basic foods
Ease of access
People who are on the fence
People who are loyal
People who enjoy interactive service
People that need to see how the food should
be prepared
Upper middle class to upper class
Basic demographic markers
ResearchMethods
The research methods used will provide adequate information that will take raw concepts
and intuitions into measurable data. The qualitative data will require more interpretation and
analysis as well as cross reference the date with the quantitative questions. This will create a
clearer picture. To begin the qualitative data will need to be asked first.
The qualitative date will provide details about the inner acting’s and motives behind the
actions of consumers. The needs and the wants of the customers is more complex to the point
where even they cannot truly comprehend the vast grey of necessity and desire. Health concerns,
the desire to grab a quick meal, convenience in information, organization, the necessity to feel
mutual trust, the level of interest, etc. This information will illustrate the consumers that will
want to shop and what triggers they need to upsell the products.
The quantitative data will provide information that is more grounded in answers that are
well organized and numerical in nature. Costco “Nature” research team will identify the
10. characteristic markers that are typical with specific behaviors. With knowing these identifying
markers, Costco “Nature” will target these specific behaviors where they are densely populated.
The researchers will know the basic demographic information of each customer as well as their
interest/ devotion to the products and even their comfort levels with technology.
Secondary Data
Literature review and analysis will be provide a bulk of the answers required before
choosing and preforming the sampling method. There are a vast array of information about the
stores that have gone into the organic specialty stores as well as general grocery stores that have
added specialty products. Motivation of these consumers has been gathered and analyzed yearly
so the companies understand the opportunities and strengths with their plan as well as the
weaknesses with their targets.
A large source of information about consumers who purchase organic foods will come
from the Economic Research Service and the work with the United State Department of
Agriculture. Carolyn Dimitri and Lydia Oberholtzer analyze the rapid growth in demand of
organic foods. They broaden the range of consumers that purchase organic foods.
IRI and Spins create Spins NaturaLink Segmentation that generate new perspective on
consumer’s attitudes, use, and adoption of organic and natural products. They separate the
consumers into five categories that illustrate a larger picture of how the consumers can be
defined. SPINS NaturaLink segmentation is strapped seekers, healthy realists, indifferent
traditionalists, struggling switchers, and lastly resistant non-believers. The two organizations
broadened their survey respondents that way the information represents the total U.S. population
not just consumers that already use organic and natural products.
11. The University of California Cooperative Extension analyzed the motives towards foods.
Desmond Jolly illustrates the importance to consumers about residues, artificial color,
preservatives, and irradiation within the produce that they purchase. In addition the levels of
consumers concerns about nutritional risk factors. The information shows the level of concern in
relation to their actual purchase. The research also identified the demographic factors to the
buyers of organic produces versus non buyers. The psychographic motive are organized into
factors and compared to buyers versus non buyers (Jolly).
Sampling Method
Though there is a lot of previous research conducted, there will still need to be an
extensive sampling questionnaire so the information is up to date. Cluster sampling will be the
best for to extension of the research. What cluster sampling will do is take a population intro
groups and everyone within the chosen cluster will be sampled. This form of sampling will give
researchers a reasonable geographic are to perform the research. The dimensional sampling will
take into account several characteristics in comparison to the motives and habits.
ResearchDesign
The primary instrument used to conduct the analysis will be through questionnaires and
surveys. Questionnaires and surveys are flexible in nature and fairly inexpensive. This method
does require extensive development and analysis. The secondary instrument that will be used by
Costco “Nature” is the qualitative method. This information will give a more in-depth
investigation of the complexity and sensitivity with consumer behaviors and analysis. Though
this method would require more analysis and interpretation than the traditional questionnaires
12. and surveys. The information from the qualitative method will create a three dimensional
illustration of consumer behavior that the questionnaires and surveys provide.
ResearchBudget
Costco “Nature” research team will request a budget of $180,000 to understate the study
described above. The majority of the expenses will from the personnel expenses for the essential
but time consuming activities and analyzing the information from the interviews. The
compensation will be for subcontractors that conduct interviews, a principle investigator will
lead the team with the help of a graduate student assistant. The principal investigator will be
responsible for the successful execution of the project. The subcontractors, principal
investigator, and graduate student will code and analyze the data generated from these interviews
and work on the publication that this information will generate. The total personal estimated
personal costs are estimated to be $140,000. The estimated direct expenses for the project are to
be $15,000. This includes the costs of interview transcription and supplies. The travel expenses
are estimated to be $10,000 which will enable the researchers to conduct direct interviews from
the appropriate domestic locations. The remaining $15,000 will be used in regards to the
incentives and rewards for customers participating in the research.
Budget Item Amount Subtotal
A Personnel
Sub-Contracted personnel to conduct interviews (6
people to conduct the inter per location with a budget
of $5,000 per week for 4 weeks)
$40,000
13. Course release for PI. For project administration/
coordination and data analysis for duration of the
project.
20,000
Website Designer to upload statistical data and
questionnaire
20,000
Graduate Student analysis support 20,000
Project Manger 40,000
Total Personnel Expenses $140,000
B Direct Expenses
Programed website and Domain 10,000
Transcribed survey and questionnaire 5,000
Total Personnel Expenses $15,000
C Travel
Domestic Travel (Transportation, accommodation,
meals) 4 domestic trips requiring travel 5 night stay
within each region with a 3 subcontractors. ($350
airfare x 3 persons) + ($700 lodging $750 Food and
Misc.) x 4 weeks
$10,000
Total Travel Expenses $10,000
Total Expenses $165,000
Overhead at 8.3% $15,000
Total Request $180,000
14. Marketing Objectives of the Business
Marketing objectives of Costco Nature business will cover market penetration,
development, diversification, and product and service development. Market penetration will be
the first priority of creating and executing the business. The key words with market penetration
is targeting the right consumers. Realizing market opportunities and meeting those needs in the
right location.
Moving Costco Nature into the organic store market is part of market development.
Creating leverage against competitors and creating a “link bait – share bait” to hook potential
consumers in. Product and service development will need to be refined. The Development of the
reward system will need to elaborated and defined to give the consumers incentives on making
Costco Nature their destination for grocery shopping. Technological development of the iPad
throughout Costco Nature will need to be programmed to meet specific the consumers’ needs
and wants. The content of the IPad optimize the consumer’s connection with shopping and
upsell in their products.
Diversification of the content of product while remaining within the parameters of Costco
Natures commitment to health and unique produce needs that still follow the trends. Costco
Nature marketing team will be proactive with merchandising and the brands that purchase.
Marketing alternatives
Costco Nature will rely on Niche marketing with their unique and superior product for
consumers. By making a direct connection with consumers by meeting their wants and needs.
Direct marketing will be utilized but will not underprice the products serviced. Costco Nature
will not try to satisfy all customers’ wants but focus on specific needs of diet and health and cater
15. through technology and reliable options. Direct marketing will take advantage in consumer
education, product quality, customer loyalty, and lifestyle while balancing the consumer/
producer loyalty.
Establishing business
Indirect marketing will focus on creating profiles on as many social networks and social
and social book marketing sites for Costco Nature. By utilizing links or information on the
profiles that can be seen by all potential users. The good content on the profiles will establish
the business as professional grocery. The more content on the sites will illustrate the
establishment as a technology driven company. Interaction through the social networks through
blogs, recipes, quizzes, and information that will draw attention to the profiles.
Marketing Strategy
The strategy of marketing to consumers through varies ways will establish the
development of Costco Nature into an established destination for grocery items. The following
are part of the strategy that Costco Nature will take:
Technological development of educational/upselling tools (iPad) for consumers to use at
easy through the design and programs.
Website development that offers company overview, goal, commitment, recipes, general
information, produce information, and rewards/coupons.
Penetrate social media to grow awareness of store, mission, services, and share recipes
daily.
Investing in local search engine optimization to gain visibility online at the local level.
16. Invest in online PR, article writing, blog marketing, establish local profiles, influence the
building process, video marketing, and image sharing.
Weekly e-letters and monthly letters to reinforce the presence of the grocery store.
Four square marketing implications to communicate to the right people through their
mobile application.
Utilizing the mobile application and website of Yelp that will assist consumers within a 5
mile radius.
In store strategy will rely on the 4 P’s of marketing product variety placement, pricing,
promotions, and programs.
The development of incentive programs through the rewards membership as well as
online and in store couponing.
Produce Sampling.
Establish marketing procedures to suppliers.
Target Markets
Costco Nature must follow trends of the niche consumers and adjust regularly but remain
loyal to the main focus group. Those that are more inclined to purchasing natural and organic
produce will have specific markers such as education, age, location, and act. Costco Nature will
focus on college educate locations where technology, science, research, development, and
innovations are the key focus of the city/suburban areas. The ideal location will be where the
general philosophy is on internal advancement not just as a whole but within the community.
Silicon Valley locations are ideal due to their collaboration of economic development of
professionals who bring public and private resources to establish business that promote the
valleys economy.
17. The Silicon Valley locations will be the optimal strategic place for development. The
demographic markers are diverse in America’s technological heartland. This will be the best
place to market, develop, and establish the first location. By locating Costco Nature in a Silicon
Valley location all basic markers of organic and nature foods consumers. Silicon Valley has a
large amount of younger, established, and educated consumers that are aware of their health and
the environmental impact of produce.
The educated niche market will need to have a reliable grocery store that provides them
with all certified organic and naturally made products that will be free of modern day chemical
enhancements of mass production.
The tech generations will benefit from Costco Natures innovation and incorporations of
technology through iPad and social media. This investment in programming that offers a fun
way and an artistic side to shopping will attract loyal customers. In addition the consumers that
have little time to get groceries and eat so Costco Nature will provide convenience in the deli
café. In addition to having the ability to gain a profit on produce that is about to expire, the
customers can experiences the featured recipes and watch the food being made.
Positioning Objectives
Competitive positioning on price in general will be based on the products and services
provided to the core market must still be at a reasonable price. The positioning the services and
products while remaining committed to the mission statement will attract loyalty. The healthy
natural and organic specialty foods while implementing technology will position Costco Nature
as a leading grocery store for all health needs. In addition, the company can have a key
community presence with educating the public on a healthy diet and be involved in their
18. community. With the artistic layout and design of the store and online will also separate Costco
Nature from other grocery stores by creating an experience.
Product Development and Selection
The produce and products that are featured in Costco Nature must have the government
approved GMO and FDA for being organic and natural. Produce suppliers will vary between
seasons but the preserved foods will be more reliable and easier to market. Brand names that are
recognizable to the target group will be key in establishing key clientele. Brands such as
Amy’s Kitchen, Bob’s Red mill, and Mary’s Free Range are just a few approved and established
brands that will be key suppliers for Costco Nature.
Implications
The first milestones are completing the marketing plan and web and iPad development
that the entire staff will collaborate on. The main focus on goals and development will keep the
main focus on the mission of Costco Nature. The Milestones pertaining to PR and direct
marketing will reflect the goals of expanding the awareness of Costco Nature and their
development in the community.
The marketing plan milestones will need a plan of attack with details on the milestones
needed. Within the first month the marketing team will design and print ads. The print ads will
give an artistic design that elaborates Costco Natures commitment to natural foods and organic
produce as well as the implication of technology. The brochures will have a similar design but
elaborate more on the rewards and membership incentives. The brochures will be divided into
10 segments that are identical in all aspects except the featured recipe.
19. Costco nature will also begin collaboration with various website listings that draw
attention to Costco Nature in their community. The Four Square and Yelp profiles will be
enhanced by paying for the executive design. Features and general information about Costco
Nature will be added to these sites as well as photos added regularly to create the right
personality of Costco Nature.
Costco Nature will complete the interior design of the store that captures the modernly
artistic nature of Costco Nature as well as key strategic places of IPad throughout the building.
The customers should be able to enter Costco Nature and feel the flow and Feng shui of the
building. The four P’s of merchandising will be implemented into the design in a tactful manner.
Costco Natures key milestone that will become a large incentive is the special schedules
and logistics of events and promotions will need to be elaborated. The details of schedules and
logistics of promotions will be clarified by the cooperation of ventures and partnership with
suppliers. In addition, the special offers for consumers will be surrounded by the schedules of
events and promotions. All details will be finalized so that the advertisement plans can go to
press in direct marketing.
Overall the advertisement budget is within the reason for the first grand opening of
Costco Nature in the fall. The following year’s advertisement budget will be modified and
simplified once the first year is over. Many of the key elements that go into the advertising plan
of the first year will not need to replicate such as the interior design and the lengthy involvement
in website listings. In addition, there will not be the repeated expense of the grand opening
event.
20. The PR plan will be detailed out and the focus will be in the grand opening picnic of
Costco Nature. The objectives and details of what goes into the grand opening will vary.
Marketing and business managers will need to convince the suppliers to invest in the company’s
first week on the prospect of repeated business and awareness expansion.
The direct marketing will be a key opportunity to bring in customers not only to try the
new grocery store but create loyalty. Direct mailers will be sent to the local community inviting
them to grand opening of Costco Nature as well create curiosity about the difference of Costco
nature and other grocers. Customers respond to incentives and mailers are an easy way to spread
the word to consumers quickly without additional man efforts. The Mailers will include a
significant amount of couponing as well as an offer to become a loyalty member. The additional
direct marketing effort will be in store. The marketing effort will focus on creating incentives on
becoming a Costco Nature member. These details will be played out and established for general
membership but an additional incentive will be in place for the first month’s signups.
The web development of Costco Nature will be a critical part of establishing the business.
The personal websites will not put the business on the map but also create awareness of the
Company. Their will need to be a detailed plan on what goes in on the website as well establish
assignments on reaching the goals. These assignments will need to have sight specifications that
will be subject to modification for improvement. There will be two phases for the development
of the websites. The first will cover the general lay out as well as specific features that will be
easily converted to all formats of viewing. The second phase will inserting the blogs, recipes,
information, and act. The last face will be the fine tuning and last minute refreshments of the
page before launching to the general public. This will need to be done two months in advance
before the Grand Opening.
21. The cherry on top of Costco Natures efforts towards establishing a technologically
advanced natural and organic grocery store is the IPad program. The plan for the IPad will need
to be specific to the needs and overall goal. This crucial piece that will set Costco Nature apart
from other competitors is going to be in the specifications of the applications programming.
There will be two major phases of development. The first phase is the basic design and
programing of the IPad that make them user friendly. The second phase of the IPad development
will consist of filling in the details information. This phase will create a story and personality
towards Costco Natures products as well as provide quick recipe options. This phase can be
assisted by partnering up with suppliers and having them provide various ways to use their
produce and products. The last phase will be the fine tuning and refreshments of the
applications.
Weekly and monthly trackers will be in place to ensure that Costco Natures implication
of marketing will be in place. The quarterly evaluations will allow adjustments in schedule as
well as make enhancements to ensure completion of scheduled grand opening. The focus of
quarterly reviews will ensure that there are not distractions against the opportunities of Costco
Nature.
The milestone chart below outlines the key dates that the marketing team must meet. The
milestone table includes both budget goals and deadlines for major projects that impact the
programs outlined in the Marketing Expense Budget. Each Milestone is assigned a manager and
that manager has ownership of the task and is responsible for its success. We will track the
successes and setbacks by reviewing the planned – vs – actual results. The successes and
setbacks will be reviewed and addressed on a weekly, monthly, and quarterly basis as to
establish a base line of progress and reasonable goals.
22. Mile Stones
Advertising Start Date End Date Budget Manager Department
Marketing Plan Completion 1/1/2015 2/1/2015 -$ Chelsea Marketing
Print Ad 1/1/2015 1/16/2015 5,000.00$ Chelsea Marketing
Brochures 1/1/2015 1/15/2015 5,000.00$ Chelsea Marketing
Complete Interior Décor 8/1/2015 9/1/2015 2,000.00$ Chelsea Marketing
Special Offers 9/1/2015 9/15/2015 500.00$ Chelsea Marketing
Devise Special Schedule and Logisstics 5/1/2015 6/1/2015 9,000.00$ Chelsea Marketing
Print and Distribute Grand opening mailers 9/1/2015 9/15/2015 600.00$ Chelsea Marketing
Website listings 2/1/2015 2/15/2015 500.00$ Chelsea Marketing
Total Advertising Budget 22,600.00$
PR Start Date End Date Budget Manager Department
Plan Established 11/1/2014 11/30/2014 -$ Chelsea Marketing
First Objective Review 12/1/2014 12/15/2014 -$ Chelsea Marketing
Second Objective Review 12/2/2014 12/16/2014 -$ Chelsea Marketing
Event: Grand Opening Picknic 10/1/2015 10/1/2015 1,000.00$ Chelsea Marketing
Total PR Budget 1,000.00$
Direct Marketing Start Date End Date Budget Manager Department
New Loyalty Incentives 10/1/2015 12/31/2015 -$ Chelsea Marketing
Direct Mail list couponing 9/1/2015 12/31/2015 500.00$ Chelsea Marketing
Other - - -$ Chelsea Marketing
Total Direct Marketing Budget 500.00$
Web Development Start Date End Date Budget Manager Department
Detailed plan 2/1/2015 2/15/2015 -$ Chelsea Marketing
Site Specifications 2/15/2015 4/1/2015 1,000.00$ Chelsea Marketing
Phase 1 Devlopent 4/1/2015 5/15/2015 3,000.00$ Chelsea Marketing
Phase 2 Development 5/15/2015 7/1/2015 3,000.00$ Chelsea Marketing
Fine tuning and refreshment 7/1/2015 8/1/2015 1,000.00$ Chelsea Marketing
Other 2/1/2015 9/1/2015 10,000.00$ Chelsea Marketing
Total Web Development Budget 18,000.00$
Other Start Date End Date Budget Manager Department
Ipad Program plan 2/1/2015 2/15/2015 -$ Chelsea Marketing
Ipad Specifications 2/15/2015 4/1/2015 1,000.00$ Chelsea Marketing
Ipad Phase 1 Development 4/1/2015 5/15/2015 3,000.00$ Chelsea Marketing
Ipad Phase 2 Development 5/15/2015 7/1/2015 3,000.00$ Chelsea Marketing
Ipad Fine tuning and refreshment 7/1/2015 8/1/2015 1,000.00$ Chelsea Marketing
Ipad Misc. 2/1/2015 9/1/2015 17,000.00$ Chelsea Marketing
Total Other 25,000.00$
Totals 67,100.00$
23. Contingency Plan
Contingency planning is an important part of the marketing organization, as noted in the
previous topic.
The biggest potential problem in Costco Nature, is the limit in our abilities to create
programs in a financial manner. The budget has no guarantee of future sales figures that are
reliable and not enough research can be provided. In addition, the normal sales fluctuations of
weather, political, and most importantly economic difficulties can be forecasted. The plan is to
go in relying heavily on the right location that has the most potential for economic growth and
stability. Costco Nature is also attempting to follow a specific niche and marketing to the
consumers in a way they will respond the heaviest.
Costco Nature is subject to fluctuations in weather not just in the community but also the
fresh produce suppliers. Costco Nature will have to remain flexible and react quickly if they
need to switch suppliers on a short notice. This is unavoidable but Costco Nature can rely on the
mother company for support and connections.
Political influence can affect the business of Costco Nature. If a supplier is from a
foreign nation, not only the laws of the supplying nation and America will need to be honored
and obeyed. If there is any strife with the supplying country Costco Nature must be able to go to
another source for a similar product.
The last and the most influential effect on Costco Nature is the state of the economy.
Like any business, Costco Nature can be easily effected by a recession in the economy. Natural
and organic foods averagely cost more than the other super markets chemically enhanced foods.
24. Consumers can easily switch locations where they purchase groceries; Costco Nature needs to be
able to respond to this
25. Work cited
U.S. Department of Education, National Center for Education Statistics. (2013). Digest of
Education Statistics, 2012 (NCES 2014-015), Chapter 3.
Organics: Let the good times roll. (n.d.). Retrieved January 5, 2015, from
http://www.factsfiguresfuture.com/issues/june-2014/organics-let-the-good-times-
roll.html
Robots will replace fast-food workers. (n.d.). Retrieved January 5, 2015, from
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