Strategic Marketing Essay Example | Topics and Well Written Essays - 1000 words - 3

Strategic Marketing - Essay Example This paper will look at Costco’s foray into the bridal market and its attempt to cater to the readymade wedding gowns segment for brides to be, albeit using the services of Los Angeles designer Kirstie Kelley. Discussion It seems that Costco has been deliberating its move into the market for bridal gowns for some time now. It had already been offering engagement rings, invitation cards and even honeymoon packages for the bride and groom- but the move into designer inspired wedding dresses leaves no doubt that Costco sees a future in this segment of the population that visits its store. Marriages and divorces are increasingly a part of our lives, whether in the media, on film or in real life. The marriage rate has declined since the 1970s, with the median age for first marriage increasing to as much as 28 years for males and 26 years for females- since couples either now wait till they can afford it, or live together and marry later in life. The highest rate for marriages and d ivorces was recorded in Virginia, being 21 per 1000 and 19 per 1000 male residents respectively in 2011 (Morello, 2011). The store will unveil its offerings via in-store trunk shows, which will allow the prospective customers not only to inspect the dresses but also try them on for size and look. The first state to have a show will be California, with arrangements for Oregon, Arizona, Colorado and Washington to follow. Costco has been giving tough competition to target and Wal-mart in the USA and both its sales and profits registered an increase over the last quarter, revenues rising from $312 billion to $320 billion over the period ending November 20 (Daniel, 2011). With the cost of the bride’s dress being a big part of the wedding expenses, Costco’s move will help many to tie the knot in style without being an added burden on their pocket. The average wedding costs $27,000. The business has been growing over the website, where couples can also select invitations and flowers. The initiative has also been highlighted in Costco’s local membership magazine. The six designs being offered range in price from $699 to $1399, compared to the $2000 to $7000 Kelley usually charges for a designer creation. Typically a bride will spend $1099 on a wedding dress, as noted by media company the Knot. The same research also found that there is a wide difference between wedding expenses across the USA, with the high average being around $70,000 in New York and the low being around $12,000 in Utah. All the same, 12 percent of brides surveyed spent over $40,000 on their wedding day. Taking all this into account, we can see how Costco is really making a change in the social phenomena by reducing the cost of wedding gown, ring, invitation and honeymoon package- which is almost everything connected with the event from the bride’s perspective at least- to a manageable level. Its coverage of the entire deal will help many tie the knot earlier and with much less of a financial burden. It is a good way to help local communities as well (Anonymous, ‘Pricing’, 2011). Being the work of a designer, Costco can afford to position its line against other designers of repute- showing how to save and yet look like a million bucks on your wedding day. As the tours go on and the trend gets popular, it can become a major