BUS 400 Milestone Two Guidelines and Rubric

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Kirkland Fresh Connect as a Strategic Subscription-Based Meal Kit Service to Drive Costco’s Growth, Profitability, and Member Value

Rosa Ortiz

01/23/2026

Kirkland Fresh Connect is a suggested high-end bulk meal-kit service that would be available only to Costco members. The service prepares family-sized pre-portioned meal packages using high-quality and fresh ingredients, which are delivered to the homes of the members. This product is a reaction to the increasing demand for healthy and convenient meal solutions in busy households. Regarding the large families, unlike the traditional meal kits that appeal to small family homes, Kirkland Fresh Connect is aimed at large households that appreciate affordability and bulk purchases. The service is a high-growth convenience market extension of the trusted Kirkland brand of Costco.

Kirkland Fresh Connect will be more aligned with the strategic mission of Costco to offer the highest quality products at the minimum possible cost. The viability of this service can be supported by the existing strengths of Costco: its developed supply chain, relations with vendors, and its own developed brand, Costco. The company already has effective logistical and electronic systems that can be used to deliver subscriptions. The introduction of this service will improve the Omni channel approach of Costco without altering its business model. Due to this, the product has been fitting into the operational abilities and the long-term plan of the company (Kaushik Kishore Phukon,2025).

Kirkland Fresh Connect has excellent revenue potential in terms of finances. The subscription model creates recurring and predictable revenues, which would supplement Costco's already established membership fee revenue model. Should the percentage of the members in Costco to take up a weekly subscriber meal-kit subscription be the smallest percent of the total Costco membership, the firm may bring in considerable incremental revenue (Barbiero,2022). With the help of bundles and economies of scale, higher margins can be obtained. The above factors imply a good payoff on the investment that would be attracted by the investors and the senior management.

Kirkland Fresh Connect improves the mission of Costco by adding value to the members and long-term loyalty. The service will make members depend on Costco to provide their daily meal solutions and not only pay periodic visits to the warehouse. It helps to facilitate profitability because it raises the average household expenditure, but not the value-cantered image of Costco. Moreover, eco-friendly packaging and the use of local products are in line with Costco's long-term operational objectives. In general, this product will enhance the competitive position of Costco and ensure sustainability.

References

Barbiero, G. (2022). Food e-commerce and the subscription box model: an exploratory survey on a sample of Italian consumers.

Kaushik Kishore Phukon, D. R. S. (2025).  E-COMMERCE:(FOR B. COM AND BBA COURSES OF GAUHATI AND OTHER UNIVERSITIES). Crown publishing.