NewsBusiness

B&T magazine reported yesterday that Costco – the US retailer looking to break the Coles/Woolworths duopoly in the Australian market – is planning to use mainly PR and word-of-mouth to promote its new megastore, due to open soon in Melbourne. It has appointed a PR agency, but will not be appointing an advertising agency at all. The US parent company will run a direct mail campaign and some print advertising in the Herald Sun and The Age, but that is the extent of the advertising planned. The PR campaign will include a launch event and a press conference.

MD of Costco Australia Patrick Noone was quoted as saying

“Costco’s worldwide strategy is to promote its business through word of mouth activity and below the line activities such as PR – an approach that has been remarkably successful and led the company to become the eighth largest retailer worldwide. Rather than investing in expensive advertising campaigns, Costco directs the money saved into providing great value and price savings to their customers.”

Costco have already done a great job of publicising their imminent arrival in Australia, with multiple stories in print and on TV over the past six months or so ahead of their launch next month. Woolies and Coles had better watch out!