COSTCO'S STRATEGY

MISSION & bUSINESS MODEL

• Also add Costco's strategy can be split into internal and external strategy

TREASURE-HUNT MERCHANDISING

• Products are constantly changing (1/4 of the line constantly changes)  can be found on the shop floor the others are treasure-hunt items that's always changing
• Costco make one-time purchases of items that would appeal to the company and sell quickly (high-end or name brand products with big price tags)
• "It's the type of item a customer knows they better buy because it will not be there next time"

MARKETING & ADVERTISING

• Treasures hunt merchandising - unnecessary to exchange in extensive advertising or sales campaign
• Limited marketing and promotion to special campaigns for:
• Warehouse openings. occasional direct mail marketing to prospective new members, regular direct mail promoting merchandise to existing customers
• This direct mail strategy keeps costs low relative to warehouse retailers and supermarkets (competitions)

WEBSITE SALES

• Costco's websites add another functioning way for members to shop
• Mainly to purchase products of services that might not be available at their local shop
• E-commerce totalled $1.2 billion in 2007