Costco

• cycles in new products

  treasure hunt retail, product will not always be there

  explore: always something new

  sense of urgency to shop and comeback

  lower prices

  Costco membership, they make money off of it, less money charged for products, saves costs on labour, customers -> create loyalty +spread the brand
• Target audience: family, college educated, middle income, mid 40s
• Why are they so successful

  1. treasure hunt system
  2. stuff runs out -> FOMO
  3. cheap prices, low margins
  4. choose where you are going
  5. membership -> where they make their money - 92%
  6. Sunk cost fallacy: use this membership, buying more so you can use it's value / make money off it
  7. good return policies -> need customer to renew membership
  8. private brands: Kirkland
  9. uses data analytics
  10. expanding to other sectors, customer come to Costco more often, less stocking fees -> warehouse
• Marketing strategies

  1. sunk cost fallacy
  2. sampling - people feel bad when you eat it, end up buyign the product
  3. volume profit
• Threats

  1. competitors with amazon
  2. millennials, younger people don't shop at Costco
• Solutions

  1. better online presence
  2. international markets -> research culture +market
  3. sustainable practices
  4. cater to younger market
  5. social media
  6. introduce niche produce that younger people want