2. Sydney Williams
Mountain Range High School
12500 Huron Street
Denver, CO 80234
December 14, 2014
Business Services Operations Research
Event
MRHS DECA Table of Contents
II. Introduction.......
..............................................................................................................1
A. Description of the business or organization...................................................................1
B. Description of the community.........................................................................................1
C. D
e
s
c
r
i
ption of the business’s
target
market..........................
.....................................
....3
III. Research Methods
Used in
Study.................................................................................4
A. Description and rationale of
research methodologies selected to
conduct the research study.....4

3. B. Process of conducting the selected research methods..................................................6
IV. Findings and Conclusions of the study.......................................................................6
A. Findings of the research study.........................................................................................6
B. Conclusions based on the findings...................................................................................7
V. Proposed Strategic Plan....................................................................................................8
A. Objectives and rationale of the proposed plan.................................................................8
B. Proposed activities and
timelines......................................................................................10
C. Proposed metrics or key performance indicators to measure plan effectiveness...........13
VI. Proposed
Budget.............................................................................................................14
Bibliography.....................................................................................................................16

4. VII.
II. Introduction
A. Description of Costco
Costco is a large retail store that provides products in bulk that range from household
items to clothing types. To be able to use this store, customers must pay an annual fee
of fifty five dollars (one card per household). Costco was originally developed under the
Price Club name in 1976 and only serving small businesses, it was then decided that a
selected audience of non-business members would bring in more revenue. Costco
eventually developed another site in Seattle in 1973. Once merging with Price Club in
1993 under the name, “PriceCostco,” 206 franchises had developed, generating over
$16 billion in annual sales. Costco resumed their individual name back in 1997, and has
grown worldwide obtaining total sales of over $64 billion dollars while developing more
retail locations in multiple areas. Due to the variety of consumers that require the certain
products from this retail establishment, Costco has been able to flourish in multiple areas
and has received continuous support from surrounding communities. Today, the familiar
retail store creates a large traffic flow in and out, providing people with products needed
with little technology and mostly staff assistance. Due to this factor, Costco occasionally
needs more staff to help customers. Costco stores could save more money and time by
implementing more technology use. In addition, they would create more convenience
and ease for customers.
B. Description of the Community
Economic Data:

5. Thornton, Colorado is one of the many urban areas near the capital of the state that
holds a large population of about 26,367 people. Many different services are available for use,
such as large retail, business, or entertainment variations.
Thornton is a hub for a multitude of retail services, such as outdoor shopping centers,
and unique stores. Different services for the variety of people are apparent in most divisions of
the Thornton area. When most people have an income of 50,000 to 74,000 dollars, funds for
spending are definitely available in this city.
The middle aged population (25-60) is more than half the population of this area, being
60.8% of all ages in Thornton. This size of older people creates a diverse and ideal environment
for multiple stores and services, while still being ideal for all age groups.
Geographic Data:
Colorado is located on the central-western area of the United States. The Denver airport
is also a large hub for most flights that connect other areas to their destinations, so a plethora of
people pass in and out of the state. Costco establishments are placed in suburban areas near
cities for maximum access. Since most of Colorado’s population live in those suburban areas,
the placement of these Costcos correspond directly with the market they are trying to reach.
There are 12 Costco sites clustered in the suburban areas around Colorado with a few
outlier exceptions. Many retail developments that are a spin-off of Costco have developed in
other areas of the state, however Costcos stores mostly reside around the suburban area near
the capital of Denver.
Demographic Data:
Colorado has a population of around 5.628 million as of 2013. Thornton, Colorado
specifically has a population of 127,359 people as of 2013 as well. There is about 9,148 housing
units in Thornton. The median income for the typical household is around $50,000. Also, going
in hand with this statistic, only about 4.4% of the Thornton population is employed. About 23.7%
of people have a Bachelors degree, which explains the lack of unemployed people and the fairly

6. Costco revolvesaround
suburban areas,
targeting those who
typically have families
and a decent income
Map of general Thornton
Area around Costco
high median income. The racial background is 13.3% Hispanic/Latino, 80.6% White/Caucasian,
1.1% African American, and 2.9% Asian.
Socioeconomic Data:
The Thornton, Colorado suburban area is
plentiful in the amount of leisure activities, wide-spread
business, and multiple entertainment options. Those
who live in this area are mostly above the age of 25,
and have typical working jobs to receive income.
People who have graduated high school are above
U.S. average, and the unemployed/poverty statistic is below the U.S. average. Therefore,
income is readily available in Thornton by middle-aged adults.
C. Description of Business’s Target Market
Costco’s target market consists of many middle aged adults that are often accompanied
by larger families and a decent income. Costco serves a variety of people during their work
hours. To maintain and even create better customer relations and efficiency, the technology that
has been thought of is considering it’s benefits in Costco. This new service should improve
convenience for customers and create
larger positive relations with the
business.
Affluent
Market:
III. Research Methods Used In Study

7. A. Description and rationale of research methodologies selected to conduct the research
study
In order to determine if developing technologic devices that would ease customer
shopping experiences, different types of research were needed. Both primary and secondary
data were obtained by both going out into the field and making use of the internet. The data
obtained revealed information that was necessary to determine if creating new types of
technology for Costco would be beneficial and increase their customer flow.
Research Goals:
● To gain background information on Costco’s technology use in relation to customer flow
● To learn more about middle age group (25-60 years of age) shopping habits
● To learn how to increase the flow of middle aged customers through a Costco in
Thornton, CO through new technological advancements that overall result in improved
shopping speed and increased ease for the customers
● To learn about other retail businesses and their use of technology to determine if the
volume of customers is increased due to that technologic service
Secondary Research & Rationale:
To conduct this study, both primary and secondary research were used when obtaining
information. The secondary research was reviewing Costco’s official website for the company’s
history. Other websites, such as Zipskinny, provided the needed demographics, economic
information, and socioeconomic information for the Thornton, CO area. With this internet data, it
was easy to determine who was really using the Costco in that area/what age group section
dominated that particular area and that is very important since it may determine why people
use/ don’t use that Costco.
Primary Research & Rationale:

8. Primary research was conducted to gain information and to further understand customer
flow through Costco and to see if technology affected customer flow throughout the retail
establishment.
Business Observations:
In order to be able to witness the customer flow through Costco and Flatirons, it was
decided to set up in a place outside the store where people could be observed and then record
the amount of middle aged customers that came out of the store in an hour. It was decided that
this study would be conducted at both Costco and Flatirons to see if technology affects the
customer flow through the store. Costco doesn’t use that much technology in their
establishment, and rely on customer service representatives and a minimal amount of
cashiers/employees to serve customers in the store. Flatirons mall isn’t exactly one selling
establishment, however they are a good example of a large technology user when shopping,
whether it be their usage escalators, colorful ads, or large electronic marketing displays. So that
leaves the question, “Does technology change the way middle aged Coloradans shop?”
Research Conducted:
To be able to determine if the service that is wanting to be implemented into large retail
businesses is available and affordable in America, research on current technology readily
available had to be conducted. After reading through some websites that contained information
about technology needed for this service, apparently touch screens and interactive software is
available for use. This is just one piece needed in order to create the large maps that display
where products are in a store. More complicated technology such as advanced touch screen
and product scanning are available. When all of these pieces are put together, they could be
constructed into a large device that would be able to scan and almost “GPS pinpoint” items in a
store that customers can use easily with their finger. This device then increases customer
service, with the possible downfall of retail jobs, however sales will increase due to an increased
flow of customers coming throughout the store.

9. B. Process of conducting the selected research methods
Selected Market Observation: In order to gain information on the amount of customers
going throughout each of these retail stores, it was required that keeping an eye on the amount
that do actually pass through. The number that was gained after keeping watch on each store
for an hour was the recorded. Using this data then allowed for the ability to answer the question,
“Does technology affect the way that middle aged shoppers in the Thornton area shop?” If yes,
then the implementation of the large, interactive touch-screens takes its place. These devices
would increase convenience and time for customers and allow for them to enjoy their shopping
experience more. However, technology isn’t the only factor that contributes to increased
customers. It is taken into consideration that placement of the establishment may also affect the
data collected. What each store sells could also change the data, since Costco sells practical
items while Flat Irons sells more leisure items. Flat Irons also consists of multiple retail stores
since it is a shopping mall division, meanwhile Costco is it’s own retail establishment that sells
the products it gains from distributors for profit. It is known that this research has many different
variables and can be swayed to one side, however this research will still be able to indicate if
technology affects the way middle aged adults in Thornton, Colorado shop.
IV. Findings and Conclusions of the study
A. Findings of Research Study
The study that was conducted involved the observing of both Costco and Flat Irons Mall
and recording how many customers passed through their front doors in an hour. It was
observed that Costco had 275 customers, including children, pass through its doors from the
time period of 6:15 at night until 7:15 on December 10th. These customers that passed through
Costco were mostly of the middle age demographic, or ages from 25 to 60. These customers
also had families or small children with them as they walked into the store, indicating that

10. As indicated by gray, Flat Irons had
more customers go through its one
entrance (322 people).Costco,in
blue, had 275 people pass through its
main doors in an hour.
Costco tries to reach the families of the area. Flat Irons Mall however was recorded to have 322
customers, counting children, pass through one of its entrances on December 11th from 6:15 at
night until 7:15. Other entrances weren’t recorded, so this number is probably a lot larger than
what has been recorded. But these customers that visited Flat Irons seemed to be in a younger
age group, or otherwise known as the Millennial Generation. These customers did not have
children or were the elderly. Flat Irons Mall tries to target this younger generation by having
more “mainstream” retail stores available to shop at.
B. Conclusions Based on the Findings
The use of technology is indeed a contributor
to increased customer traffic. If Costco were to
implement the technologic service previously
mentioned, the amount of people that pass through their store would actually increase. Although
technology isn’t the only factor of increased customer flow, factors like location, dominating age
group, and income effect however many people pass throughout an establishment. Flat Irons,
an actual user of technology, has multiple age groups pass through its doors. Costco would be

11. able to not only widen the age groups that it serves by adding this technology, but it would
increase the convenience for the age demographic they already serve. This service would be
very effective and should be added into the wholesale establishment of Costco to better its
customer service, customer convenience, and ultimately increase their profits.
V. Objectives and rationale of the proposed plan
A. Objectives and rationale of the proposed plan
The research that has been conducted has proved the idea that technology does increase
customer traffic within a retail establishment. This section highlights the objectives of the
proposed strategic plan. In order to show each section of the plan, charts plan lists for each
objectives, planned activity, and rationale. Both short-term and long-term benefits for Costco
have been suggested with what is suggested Costco fixes and what hopes to be helped by
implementing the plan with the following goals.
● Goal 1: Increase customer traffic throughout the Thornton Costco retail establishment
and eventually other retail establishments by implementing new technologic services
● Goal 2: Increase customer convenience for middle aged consumers inside the Costco
establishment through the use of technology
● Goal 3: Increase profits and sales
Goal 1. Increase customer traffic throughout
the Costco by implementing new technologic
services
Develop and place new interactive touch
screen maps that display where products are
in the store
Short Termbenefit:
● Increased customer flow throughout
Rationale:
- Observation of Costco customer flow
- Observation of Flat Irons Mall
customer flow
- Comparison of the two
● Based on the comparison of each
retail store, it was determined that Flat
Irons Mall had more customer traffic

12. Costco
Long Termbenefit:
● Increase in sales and profit
when compared to Costco due to
different factors
Goal 2. Increase customer convenience
inside Costco for the middle aged
demographic
Make easily-usable electronic maps so there
is no confusion and independant reliance
when finding a product
Short Termbenefit:
● Increased customer satisfaction
Long Termbenefit:
● Increase profits
● Less reliance on employees
Rationale:
- Observation of Flat Irons Mall and
determining whether their use of
technology really does increase
customer flow
- Interview with a middle aged
consumer and their take on an
interactive map system in a retail store
● Based on personal observations, it
was determined that multiple people
seemed lost when in a store, so
adding technology to help them find
what product they need would
increase convenience and save time
Goal 3. Increase profits and sales
Allow for technology to increase customer
numbers and make it easier for them to shop
therefore making people buy more products
more frequently
Short Termbenefit:
● Increased customer numbers
● Increased product sales
Long Termbenefit:
● Increase in profits
Rationale:
- Success of Flat Irons versus success
lf Costco
- Customer numbers in Flat Irons
versus customer numbers in Costco
● Based on the difference between a
retail service that uses a lot of
technology in comparison to one that
doesn’t, research has determined that
technology does indeed improve
service, and if it is implemented into
Costco products will be sold more
often and increase sales and increase
profits

13. B. Proposed activities and timelines
This section provides activities and timelines in order to implement new technological
services into Costco that will increase customer flow over a long period of time after usage.
1. Develop and Implement Technology
Level 1 ● Find available technology needed
for the wanted device
● Create actual interactive store
maps
● Develop price for the final product
Level 2 ● Implement devices into starting
experiment store (Costco)
● Observe if number of customers
that pass through the store
increases due to this small change
Level 3 ● Determine if the technological
devices create additional customer
flow
● Possibly expand and add more of
these devices in other stores
beside Costco
In order to create a better shopping experience at Costco for the middle age group of
Americans in Thornton, CO, innovative technology that could increase their accessibility and
convenience. Although these newly developed pieces of technology are geared towards adults
of the ages 25 through 60, these devices could also attract the attention of younger consumers
and Costco could widen its customer range. Through observation of the customers that had
gone through Costco in an hour, many were middle aged or of the elderly. However, it wouldn’t
harm Costco for their wholesale establishment to gain more customers especially of the

14. younger age group. Further description of the proposed timeline developed for Costco after the
technology has been developed and implemented is below.
Step 1: After secondary research using internet sites it was determined that technology
needed for the desired interactive maps is available in America and is accessible by developers.
The type of screen technology that is useable by one's finger in accessible, and electronic maps
are available as well. Not only are regular touch screens available, but advanced types are
available as well, and product scanning is also useable in America. The total cost of all of these
products and the final cost of the device after all these products are put together will be
described in further detail in Section C below. It is inferred that these devices won’t be
inexpensive, however a store really only needs one device in order to increase customer
convenience.
Step 2: Once the devices necessary are developed, they will be placed into the Costco
in Thornton, CO first. This location was determined due to its main market of middle aged
adults since that was the demographic that was being targeted. Hypothetically, after this
deviced is placed inside of Costco, a follow up observation after a month will take place. Costco
will be observed for an hour at the same time period again. This data will then be compared to
the data gained the first time Costco was observed. If the amount of customers increased
substantially when compared to the first time the number of customers was recorded, then it is
safe to infer that these devices have been able to increase the amount of customers that go
through Costco. Although technology isn’t the only factor that contributes to the number of
customers that pass through Costco, it is definitely a contributing factor.
Step 3: Once observing and comparing the data gained after putting this device into
Costco, a conclusion needs to be formed. Hypothetically, the addition of technology that creates

15. an easier and better shopping experience should increase the number of customers that use
and visit Costco. That indicates that this addition of technology does assist in increasing
customer numbers. The next step after Costco would be other stores statewide and possibly
even nationally. If these interactive maps did increase customer flow after observation and
research then it is clear to see that many other stores would probably want to use these for
themselves. This type of technology is already used in other places across the globe, such as
China, However, here in America, this technology isn’t used that much due to a sort of
inconvenience. If used in stores, many would benefit and over a long period of time have more
customers and gradual increase in profits.
ProposedCalendar:
Calendar (2015) January March June July September
Finding supplies
needed to build
maps
Find technology
needed to create
the interactive
maps
Actually
develop
the
product
... ... ...
Implement maps ... ... Implement
electronic
map into
Costco
... ...
Observe if maps
do increase
customer flow
... ... ... After having the
maps inside
Costco for one
month, observe
the amounts of
customers that
pass through
Costco
...
Expand usage of
maps to other
establishments
... ... ... ... Allow for
expansion to
other stores
after
determining

16. the
effectiveness
of the
developed
product
C. Proposed metrics or key performance indicators to measure plan effectiveness
The way in which this will all be observed and maintained to see if it’s working is quite
simple. As mentioned before, data has been collected for Costco as it is now, without the
technology that wants to be developed. After “implementing” this technology in Costco, the
study will wait a month. After a month, Costco will be observed just as the first time at around
the same time period. The number of customers that pass through the store in the time period of
an hour after placing this technology in the store will be recorded. This new number gained will
be compared to not only to the previous number of customers that passed through, but will also
be compared to the numbers that passed through Flat Irons Mall. It is predicted that the number
of customers that pass through Costco the second time not only increase, but also get closer to
the number of customers that pass through Flat Irons so the question, “Does technology affect
the number of customers in a store?” This process of going to Costco and observing the number
of customers that enter will be a monthly process over a year. It is required that periodic record
of the amount of customers that pass through is maintained for a year because it is desired that
a constant increase is apparent over the course of twelve months, then it can be determined of
technology added to this Costco establishment actually does increase its customer flow.
VI. Proposed budget
Expenses
Estimated

17. Total Expenses $4,176.09
Estimated
Screen/Advanced ScreenTechnology
Large Touch Screens $2,899.00
Advanced Screens " "
Glass Screen $157.99
Totals $3,056.99
Electronic Map Technology
Electronic Map $157.99
Display $150.00
Totals $307.99
Product Scanning Technology
Product Scanning $445.30
Memory Card $66.80
Totals $512.10
Transportation
Delivery costestimate $300.00
Totals $300.00
As indicated by the table above, the cost to make one of these large interactive maps
with the additional cost of transportation costs around $4,176.09. This cost is quite high for one
unit. However, only one unit is really needed per retail establishment. Also, one unit works for
quite a while seeing how much quality technology is going into the product being made. A long

18. term benefit of this product would be the increased profit due to the new flow of customers due
to the device. This product would basically pay for itself in a couple months to a year. Less
employees would also have to be hired and paid due to the multiple functions this product does.
This type of technology would ultimately save and create more profits for the establishment, so
it’s a good investment for Costco and eventually other retail establishments. Not only is this
product cutting edge, it saves customers time, increases customer convenience, and creates
more profits than it does losses.
VI. Bibliography
Internet Sites:
● http://zipskinny.com/index.php?zip=80241&x=0&y=0
● http://www.costco.com/about.html
● http://tabler.tv/store/touchscreen/multi-touch-monitor-84-for-lg-84ws70ms-b-tv
● http://www.bestbuy.com/site/car-audio-gps/gps-
navigation/abcat0301000.c?id=abcat0301000
● http://www.everbriteonline.com/inventory.jsp?number=LB0008
● http://www.barcodesinc.com/cats/barcode-scanners/handheld.htm
● https://www.google.com/maps