MGMT345 UDC Costco Expansion & Lottery Value Pricing Case Study Discussion

Costco Expansion and the Lottery Value Pricing Paradigm – Gregg Edgar, Arizona Lottery

  • Very early on In the video (1:30) Gregg on defines the problem the Arizona lottery has. What is that problem? In your answer, mention which of the 4P’s of marketing the case involves.
  • This is case is about the lottery trying to get a major retailer to sell lottery products (Costco had not sold lottery products before this test). Gregg mentions several entry barriers (3:00) the lottery had to overcome. List those entry barriers. Which do you think represents the biggest challenge to overcome for the Costco and for the lottery?
  • Gregg says (2:00) that there is a lot of affinity between lottery players and the Costco member. In other words, the demographic profiles of lottery players and the demographic profiles Costco members are similar. As a marketer, how do you think have similar demographics would make the project more likely to succeed? What concern of Costco does this help address? (6:09)

Richard Gotlieb

Blackhawk Networks Presentation – Richard Gotlieb

  • What is the primary thing that Blackhawk Networks does (you might have to look it up)?
  • What were their revenues for 2017?
  • Richard Gotlieb says that Blackhawk has 60,000 intergrated p.o.s. across the nation. What does that mean? What p.o.s?
  • What does friction to purchase mean and why is it important for a product that is only occasionally purchased.
  • Super bonus question: Which of the P’s of marketing does a gift card purchased at retail represent (you guys get this right and I will be very impressed. Think outside the box.)
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