Objectives

Financial Objectives

It is important for Costo to fulfill certain financial objectives in order to ensure the survival of its North American expansion. At the very least the company has to ensure that its newly formed New York operations are breaking even. It can be expected that Costo’s New York operations will not make any money at first. While Costo builds up its brand across the city, the company’s first objective should be to break even within two years. This does not mean, however, that it should weather heavy losses in order to sustain its activities in New York City. One possible way to sustain the operations in this risky market is to use the home office’s resources to absorb the losses. At least temporarily until the new subsidiary is ready to make some sales.

After surviving its arrival to New York City, Costo’s second financial objective should be to map key objectives in milestones. The first of those could be to make 10% of overall global sales in New York. This would translate to selling for approximately €25 000 across the city, and should be fulfilled within the first three years of operation. Within 5 years the company should continue aiming for ever-stronger sales. Continuing its aggressive push, Costo’s sales should reach €50 000. The last financial objective that Costo can draw out is a long-term, 10 year goal. As part of its long-term strategy Costo should continue to aim its growth at approximately 20% per year, which will take its American sales to nearly €200 000.

At that rate, Costo will make its American market the most important one it is operating in, since nearly half the annual sales will originate from the USA.

Nonfinancial objectives

Customer satisfaction. Costo aims to high customer satisfaction level. This is achieved through high quality products and excellent customer experience. One of Costo's competitive advantages is the quality of design and fabrics which shows in the way the products last long in everyday use. Thus any possible complaints on product quality have to be taken seriously and handled well. Customer satisfaction level can be measured through interviews or questionnaires.

Building customer loyalty. One of Costo's main objectives is to create a strong connection or bonds to customers. Costo aims to create a group of customers who will thing highly of the brand, purchase the products again and recommend it to their friends. Strong customer loyalty is beneficial for example in bringing “word-of-mouth” support and through active customer participation in the company's social media channels. High customer loyalty level is important to Costo also because its products are a possible target for trendy mass chains making cheap copies. Customer loyalty can be measured by conducting periodic surveys.

Launching Costo in New York Fashion week. Costo aims to create buzz and awareness during the fashion week by having a pop-up store and cooperating with already well-known Finnish brands.

Selling through small retailers. After the pop-up store, Costo's obejctive is that the products will be sold by small retailers already attractive to Costo's target group in New York's Garment District.

Selling in department stores nationwide. After Costo's breakthrough in New York, during the next years Costo aims to start selling its products through selected department stores that suit its brand and offer nationwide distribution channels as well as online.

Socially responsible marketing. Costo aims to maintain the eco-friendly thinking behind the brand also in all marketing activities. Marketing activities are mostly social media campaigns and other guerilla marketing not producing extra waste.

Continuous evaluation. Evaluating the new market before launch is not the end of evaluation. Setting up a structured regular marketing analysis to measure sales, marketing, communications, economic context. Contributes to marketing on shorter and longer time basis. This can be done for example by surveys or generating data from social media, e.g. Twitter mentions.