COSTCO WAREHOUSEBy Caton Hacker

INSIGHT• Member-ship only warehouse club• Originally Price Club in 1976, Changed to Costco in 1983• 2014, 3rd Largest retailer in the United States• 2015, second largest in the world• Largest membership warehouse club chain in the United States• Goal is to provide members with quality goods at the lowest possible

price

3 GOALS

Target Market

Click icon to add picture

More social media involvement

Interact with the members more

SALES PER WAREHOUSE

TARGET MARKET • Start directing towards younger generation• Big college towns, target fraternity's and sorority's• Become more involved in social media to reach a broader target market• Focus on Organic in more healthy lifestyle areas

SOCIAL MEDIA INVOLVEMENT

TwitterPoorly maintainedNever tweeted anything18000 followers, can be doubled with proper maintenance

FacebookMaintained fairly wellEngaging with the membersPost regularly with members commenting on post1.3 million likes

Instagram156 post32000 followers Tries to engage with the public by using pictures taken within Costco

INTERACTING WITH MEMBERS

Facebook• Create pages for each warehouse• Include input on specific products• Post public events Costco is

sponsoring

Mobile App• Being able to save coupons • Incorporate other departments in

the app• Notifications if certain items go on

sale

TIMELINE

Facebook• 1 week for each warehouse to

make page• 1-3 week to invite member base• Continuously updating page

Mobile App• 1 month, SWAT analysis and focus

groups• 3 weeks for updating app• Continuously updating

DIGITAL MARKETING BUDGET

Each Warehouse• 674 warehouses• 1 warehouse= $40,000 a year for

a social media expert• Total $26,960,000

Corporate Level• $300,000 for regional oversea of

warehouses on social media• $150,000 for developers and

maintenance on mobile app• Total $450,000

Total spent= $27,410,000

WHAT'S NEXT• Every 3 months, conduct digital media analysis of each warehouse• After development of one social network doesn’t need as much updating,

switch to others.• Keep engaging with the members