Question: Amazon recently announced that it will offer a discounted Prime membership to that segment of the US population (estimated at 20% of the total population)
Amazon recently announced that it will offer a discounted Prime membership to that segment of the US population (estimated at 20% of the total population) that receives government assistance in the form of food stamps.
The market segment has also be addressed by Walmart with their Supplemental Nutrition Assistance Program (SNAP)
Both retail giants regard this segment as a fast-growing core market with significant future potential.
Moreover, looking at the broader market, shoppers using food assistance programs currently represent 10% of Dollar Generals sales, 9% of Aldis sales, and 6% of Krogers sales. And 3% of Costcos sales.
Place yourself in the role of CMO at Costco. In viewing these developments at Walmart and Amazon, what strategy would you use to create awareness and increase revenues with this segment?
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