#193 HTE - "Unlock Growth: DTC x Costco" 🤝

May 27, 2023 • Estimated Reading Time: 23 minutes

Good Morning, readers!

🎉 Welcome to HTE's newsletter - where we sprinkle magic onto your weekend for a supremely successful day ahead! ✨

Hold onto your hats because we're about to drop a mind-blowing fun fact that will make you go, "Seriously? No way!" 🤯

💡 Did You Know? Costco Wholesale isn't just an everyday retailer. They are a retail powerhouse that spans the globe with warehouse club operations in not one, not two, but a whopping eight countries! 🌍🌟

They are superheroes of quality, ethics, and mind-blowing business practices. 💪💼 Despite their multi-billion dollar empire, you might expect them to lose their human touch, right? Well, guess again! Their secret sauce lies in creating a family-like atmosphere where their employees thrive and succeed. 👨‍👩‍👧‍👦💼

It's no wonder they have claimed a top spot as one of the most coveted companies to work for in Washington state, recognized by the prestigious Washington CEO Magazine! 🏆

Prepare to be amazed by the wonders of Costco Wholesale and its unrivaled commitment to excellence. ✨🌟

Get ready for an incredible journey through the DTC world and much more. Let's make this weekend extraordinary! 🎉💪

So, buckle up and prepare for an exhilarating journey through the captivating world of Ecommerce DTC. HTE’s newsletter is your ultimate guide to all things DTC brands and then some.

Alright, fellow adventurers, it's time to dive headfirst into the delightful pool of awesomeness that awaits! Let's rock this weekend with a surge of knowledge, inspiration, and a generous sprinkle of fun. The stage is set, and the spotlight is on—let the adventure begin!

This newsletter is going to dive into:

👩🏻‍💻 TikTok's Data Sharing Slip-Up Might Make Marketers Shuffle Towards Shorts and Reels!

📈 Embark on a Marketing Adventure: Learn How to Conduct a Powerful Marketing Audit

🥇Brand Of The Week - Vega Coffee: Brewing a Revolution One Cup at a Time! 

🛍 Costco Wholesale: A Global Retail Powerhouse Revolutionizing Shopping with Quality, Value, & Exceptional Employee Culture

📢 Google Takes Advertising to the Next Level with AI-Powered Conversational Generative Ads

🎁 Brand Deals Of The Week

📕 Top Reads Of The Week

⚙️ Plenty Of Jobs Await You!

So, scroll down to THE VERY END & read up on what’s yet to come your way!

TikTok's Data Sharing Slip-Up Might Make Marketers Shuffle Towards Shorts and Reels!

Hold onto your dancing shoes, folks! It seems like there's trouble brewing within the TikTok empire. According to The New York Times, those sneaky ByteDance employees have been caught red-handed 🤫 sharing user data on their internal communication platform, Lark. It's like a TikTok-themed version of Slack, but with a major data oopsie attached! 🙈

What's the tea, you ask? Well, it turns out that personal info, including full names, addresses, and even potentially sketchy content, has been making the rounds on Lark. They spilled the beans on a British user who had some beef with another TikToker. And get this—US user data, like driver's licenses, also ended up on display for ByteDance employees worldwide! 😱

Now, this whole debacle is causing quite a stir for TikTok. Remember all those worries about data security and connections to China? 🇨🇳 Looks like those concerns are being fueled even more. TikTok has already faced bans by different entities, from Montana to universities and even government agencies. Ouch! 🔒

Just when you thought things couldn't get wilder, Surgeon General Vivek Murthy steps in with concerns about social media's impact on our mental health. While his focus wasn't solely on TikTok, it doesn't help their case. TikTok's been grabbing headlines left and right, leaving the other trendy apps slightly left out. 📱

So why should we care about all this drama? TikTok has been trying to separate itself from ByteDance and play the "We're secure, we promise!" card. But this latest revelation throws a wrench in their plans. The data exposed on Lark was hanging out on Chinese servers until recently.

Now, how will agencies respond to this mess?

Good question!

This security breach has got everyone thinking twice. It might just give competitors like YouTube Shorts and Instagram Reels a golden opportunity to steal the spotlight. If TikTok were to face a ban or a departure due to security concerns, it could mean challenges for agencies relying heavily on the app.

Sure, Meta and YouTube would benefit from such a situation, but it could mean tighter budgets and reduced reach for agencies. However, fear not! Reels and YouTube Shorts are here to save the day. They offer similar features to TikTok, making a switch smooth as butter 🧈 in case TikTok gets the boot. Brands are all about reaching their target demographics, after all! 💪

Now, let's talk about agency strategies. Movers+Shakers, known for targeting Gen Z and millennials, could easily transition to Reels without missing a beat. And they're not the only ones playing it smart! Fenton, a purpose-driven communications firm, urges NGOs and foundations to hop on the YouTube Shorts and Reels train. 🚂

But wait, there's more! TikTok-focused agency Gassed has transformed into a user-generated content powerhouse, supporting multiple platforms. Talk about adapting to the times! 👏

When it comes down to it, exposing sensitive user info is a way bigger deal than potential spying shenanigans. We're talking credit card deets and driver's license numbers out in the wild! 😨 These repeated breaches seriously question TikTok's commitment to user privacy and security.

In all fairness, TikTok is vowing to improve data security, crossing their fingers

Embark on a Marketing Adventure: Learn How to Conduct a Powerful Marketing Audit

Nailing the perfect game plan can feel like solving a mind-bending puzzle. 🧩💡 But fear not! We've got a secret weapon for you: the mighty marketing audit! 🕵️‍♂️✨

So, what's this marketing audit all about? Well, it's like putting on your detective hat and taking a closer look at your marketing efforts. You'll investigate what's working like a charm, what could use a little sprucing up, and where exciting new opportunities are hiding. It's time to unleash your inner Sherlock Holmes of marketing! 🔎🔬

Ready to dive in? Let's uncover the truth behind marketing audits, when to conduct one, and a few fabulous best practices to make it a success. Let's crack the case, shall we? 👨‍💼🔦

What's the buzz about marketing audits, you ask? A marketing audit gives you the ultimate panoramic view of your marketing activities, strategies, and overall performance. It's all about evaluating how effective your marketing efforts are and spotting those golden opportunities for improvement. It's like having a magic magnifying glass to uncover the hidden gems in your strategy. 💎💪

But that's not all! A marketing audit helps you identify the strengths and weaknesses of your current game plan. It highlights what's rocking the marketing world and what might need a little boost. Plus, it lays the groundwork for future decision-making by revealing those sweet spots for improvement and innovation. It's like a map guiding you towards marketing greatness! 🗺️✨

To crack this case wide open, your marketing audit should be objective, systematic, and recurring. Objective? Absolutely! We want it free of any bias or preconceived notions. Systematic? You bet! We need structure, organization, and measurable results. And recurring? Yes, please! Regular check-ins ensure you catch and tackle any problems before they become major headaches. It's like having your very own marketing detective on retainer! 🕵️‍♀️🔐

Now, hold your magnifying glass, because a marketing audit can cover your entire marketing operation or focus on specific campaigns, processes, or areas, like the thrilling world of social media marketing. The choice is yours, dear detective! 📊🔍

Let's unravel the elements of a marketing audit, shall we? Our investigation might include some juicy clues, such as:

  1. A SWOT analysis uncovers your strengths, weaknesses, opportunities, and threats. You'll take inventory of your marketing assets and any pesky roadblocks standing in your way. It's time to flex those marketing muscles! 💪💥

  2. A competitive analysis reveals their secrets, strengths, and weaknesses. You'll get up close and personal with their products, prices, marketing strategies, campaigns, and target audience. It's like infiltrating the competition with style! 🕵️‍♀️💥

  3. Market research goes beyond what you already know and delves into their deepest needs, preferences, motivations, and behaviors. You'll uncover emerging trends and exciting opportunities, giving you the edge to stay ahead of the game. It's like having a crystal ball for marketing success! 🔮✨

Alright, fellow marketing maestros, let's dive into the thrilling world of conducting a marketing audit like true detectives! 🔍🎩

  1. Choose what you want to audit. 🕵️‍♂️

Decide where you want to focus your investigative skills. Whether it's your entire marketing operation or a specific area like social media or content, you've got the power to choose your target.

  1. Identify your goals and objectives. 🎯

Every detective needs a mission, right? Set your objectives and break them down into measurable goals. Whether you're aiming for more TikTok followers or assessing your branding strategy, keep your objectives in sight.

  1. Collect the right information. 📚

Time to gather the clues! Dive into your campaign metrics, website traffic, social media analytics, and marketing spend. You can even explore external sources like industry benchmarks and competitor analysis. Just make sure your data is trustworthy and reliable.

  1. Surface any findings or insights from the data. 🔎

Here's where the detective work pays off! Analyze the data and uncover those golden nuggets of insights. Evaluate your pricing strategy, compare your performance to competitors, and document your discoveries.

  1. Make recommendations (and track them). 🚀

It's time to put your detective skills to good use and make recommendations for optimizing your marketing strategy. Adjust your messaging, channels, or spend based on your findings. Then, track the results and fine-tune your approach along the way.

Remember, no marketing plan is flawless, but with a little detective work, you can fine-tune your strategy and drive outstanding results! 🎉

So, grab your magnifying glass and get ready to unravel the mysteries of marketing. By conducting regular audits, you'll stay one step ahead of the game and ensure your marketing efforts are always on point. Happy sleuthing, my marketing detectives! 🕵️‍♀️✨

Brand Of The Week - Vega Coffee: Brewing a Revolution One Cup at a Time!

Get ready to sip on the finest coffee that ignites your taste buds and fuels a powerful movement. Vega Coffee has reinvented the coffee supply chain to bring you an extraordinary experience, connecting you directly to the incredible women who grow, roast, and hand-package your beloved cup of joe. It's more than just a morning routine—it's a coffee revolution!

Coffee may be your daily pick-me-up, but the coffee industry itself is in crisis. While the demand for high-quality coffee is skyrocketing, the hardworking coffee growers around the world are struggling to make ends meet. These farmers, who have dedicated their lives to cultivating coffee for generations, find themselves forced to leave their farms in search of better income opportunities, simply to ensure their families won't go hungry.

It's time for change. With an astonishing 20 million small family farmers living at or below the poverty line, Vega Coffee believes in forging a better future together.

Here's what makes Vega Coffee truly special:

  1. 75% Women: Bridging the Gender Gap in Coffee

Vega Coffee is on a mission to empower women in the coffee industry. By actively promoting female participation, they aim to close the gender gap that exists within the coffee sector. These incredible women contribute up to 70% of the labor in coffee production, yet they often face limited access to decision-making processes, land ownership, and leadership roles. Vega Coffee is changing the game by providing opportunities for women coffee growers to showcase their skills and expertise, ensuring they have a voice and are recognized as industry leaders.

  1. 151% Higher Wages: Fueling Economic Growth

Vega Coffee believes in paying fair wages that go above and beyond Fair Trade requirements. By ensuring that the women coffee growers receive wages that are 151% higher, Vega Coffee stimulates economic growth within their communities. This empowers the farmers to reinvest in their farms, families, and local economies, creating a ripple effect of positive change.

  1. 83% Certified Organic: Protecting Our Fragile Planet

At Vega Coffee, sustainability is a top priority. That's why a staggering 83% of their coffee is certified organic. By embracing organic farming practices, they protect our delicate planet from harmful chemicals and promote biodiversity. So with every sip, you can enjoy the rich flavors of their coffee while knowing you're supporting a greener future.

  1. 381% More Value Kept at Origin: Building an Equitable Future

Unlike the conventional coffee supply chain that siphons off most of the value from the origin, Vega Coffee ensures that 381% more value stays with the farmers themselves. By roasting and packaging the coffee at the source, they eliminate unnecessary middlemen and give the farmers the recognition and compensation they truly deserve. This approach paves the way for a more equitable future in the coffee industry.

Vega Coffee's remarkable journey began when founder Rob Terenzi experienced the magic of farmer-roasted coffee firsthand. Inspired by the passion and dedication of coffee farmers Marlon and Mayra in Nicaragua, Rob recognized the immense potential for positive change. Together with the pioneering cooperative Nuevo Amanecer, consisting of 23 women farmers, they embarked on a mission to roast their own coffee and sell it throughout Nicaragua. This marked the birth of the roasted-at-origin movement, which now lies at the heart of Vega Coffee.

By connecting coffee lovers like you with these inspiring women coffee growers, Vega Coffee creates a direct line of support that transforms lives. Every sip of Vega Coffee represents a choice to be part of something bigger—a movement that celebrates the hard work, talent, and resilience of these incredible women.

So, let's raise our mugs to Vega Coffee, the brand

Costco Wholesale: A Global Retail Powerhouse Revolutionizing Shopping with Quality, Value, & Exceptional Employee Culture

Did you know? 

Costco Wholesale is not just any retailer—it's a multi-billion dollar global powerhouse that has revolutionized the way people shop! With warehouse club operations in eight countries, Costco is a recognized leader in its field, known for its commitment to quality and outstanding business ethics. 🌍

💼 Costco provides a family-like atmosphere where employees thrive and succeed, making it one of the top companies to work for in the state of Washington. 

🏪 So, what exactly is Costco? 

Well, it's a membership warehouse club that brings its members the best possible prices on quality brand-name merchandise. With hundreds of locations worldwide, Costco offers a wide selection of products and convenient specialty departments. Plus, it provides exclusive member services to enhance your shopping experience. 

Let's dive into the fascinating history of Costco! 🚀

It all started in 1976 when the company, Price Club, opened its first location in a converted airplane hangar in San Diego. Originally catering to small businesses, Price Club realized its potential by serving non-business members as well, catapulting the growth of the warehouse club industry. 

In 1983, Costco emerged as the first company to achieve a staggering $3 billion in sales in under six years. The merger of Costco and Price Club in 1993 resulted in a retail powerhouse with 206 locations generating $16 billion in annual sales. 📈

Costco's operating philosophy is simple yet effective: keep costs down and pass the savings on to its members. By leveraging its large membership base and immense buying power, combined with a relentless pursuit of efficiency, Costco offers the best possible prices to its members. Since rebranding as Costco in 1997, the company has experienced exponential growth, with total sales exceeding $64 billion in recent fiscal years. 🌟

✨ Costco has transformed the retail landscape thanks to visionary entrepreneurs like Sol Price and Jim Sinegal. Sol Price introduced the world's first membership warehouse club, Price Club, in San Diego, while Jim Sinegal co-founded Costco Wholesale with Jeff Brotman, opening the first warehouse in Seattle in 1983. The merger of Price Club and Costco created an exceptional leadership team that propelled Costco to become the most successful warehouse club worldwide. 

🔑 Today, as Costco continues to evolve, it stays true to its core values that have garnered millions of loyal members worldwide. 

In the ever-evolving landscape of retail, Direct-to-Consumer (DTC) brands have emerged as a force to be reckoned with. These brands bypass traditional distribution channels and connect directly with consumers, offering unique products and personalized shopping experiences. 💪🛍️

While DTC brands have found success through e-commerce and online platforms, breaking into physical retail can be a significant challenge. That's where partnering with a retail giant like Costco can make a world of difference. 🤝

Costco's massive customer base, brand reputation, and commitment to quality make it an attractive destination for DTC brands looking to expand their reach. By leveraging Costco's extensive network of warehouse club locations, DTC brands can gain exposure to millions of loyal members who are actively seeking value and high-quality products. 🌟

The potential benefits of partnering with Costco are manifold:

🎯 Access to a Ready-Made Customer Base: Costco's membership model ensures a consistent flow of shoppers, providing DTC brands with a built-in customer base. These members are already inclined to trust Costco's product selection, making it easier for DTC brands to establish credibility and generate sales.

👀 Increased Visibility and Brand Recognition: Placing products in Costco's physical stores gives DTC brands unparalleled visibility. Costco's spacious aisles and eye-catching displays draw the attention of shoppers, allowing DTC brands to showcase their products in a high-traffic retail environment. This exposure can lead to increased brand recognition and word-of-mouth referrals.

💰 Leveraging Costco's Buying Power: Costco's immense buying power allows them to negotiate favorable terms with suppliers, resulting in competitive pricing for their members. For DTC brands, this means the opportunity to align with Costco's cost-saving philosophy, offering their products at attractive prices while still maintaining profitability.

🔒 Credibility and Trust: Costco's reputation for quality and value translates into trust among its members. By association, DTC brands featured in Costco gain instant credibility, benefiting from the trust and confidence that Costco has cultivated over the years. This can be particularly advantageous for newer or lesser-known DTC brands trying to establish themselves in the market.

🚀 Enhanced Distribution and Scaling Opportunities: Partnering with Costco opens up larger-scale distribution and growth. Costco's vast network of warehouses allows DTC brands to scale their operations and meet the increased demand with widespread retail availability. This expansion can be pivotal in solidifying a DTC brand's presence and paving the way for further retail partnerships.

Costco's large customer base, brand reputation, and commitment to quality can provide DTC brands with increased visibility, credibility, and growth opportunities.

By tapping into the power of both e-commerce and physical retail, DTC brands can leverage the strengths of both channels and reach a broader audience of consumers who appreciate Costco's convenience, value, and exceptional offerings. 💼

Google Takes Advertising to the Next Level with AI-Powered Conversational Generative Ads

Google is taking its advertising game to a whole new level! Get ready for ads that can chat because the search giant is integrating Search and Shopping ads directly into its Search Generative Experience (SGE), a.k.a. its fancy conversational AI chat interface. 🤖💬

Picture this: as you engage in a friendly chat with Google's AI, you might just stumble upon sponsored ads cleverly mixed in with your search results. Don't worry, Google is keeping things transparent with a bold "Sponsored" label, so you know what's what. Talk about blending advertising seamlessly into the conversation! 🌟

Google isn't stopping there. They're planning to test new ad formats within this space, promising a personalized experience tailored to your user journey, all thanks to their trusty generative AI. Fancy, huh? 🎩

Now, before you panic, there's currently no opt-out option for these ads. But hey, who knows? Maybe you'll find them surprisingly helpful and engaging. Time will tell! 😄⏳

Why should you care about this nifty integration? Well, it's a game-changer for how Google displays ads. Instead of the usual top and bottom placements, they're popping those ads right into the heart of the conversation. It's like having a friendly chat with your AI buddy while discovering products and services along the way. 🗣️💡

While Google hasn't shared any juicy metrics about early tests yet, this new placement could potentially boost click-through rates (CTR) and make ads more enticing to users. It's a win-win situation for advertisers and Google's ad revenue. After all, those bills won't pay themselves! 💸💼

But hold up, there's a flip side to this conversational coin. The inclusion of ads within the AI chat experience might raise some eyebrows. Picture this: you're deep in conversation, and suddenly an ad pops up. Is it the AI talking or an actual ad? It might cause a bit of confusion among users. 🤔

This shift could also spark concerns among marketers who heavily rely on organic search traffic. They might worry that the ads could overshadow the organic search results, stealing the limelight from their carefully crafted content. It's a delicate balancing act for Google, making sure they keep everyone happy and their AI chats enjoyable. 🎭

But here's a fun fact: Google isn't the only tech giant exploring the monetization potential of AI chatbots. Microsoft and others are hopping on the bandwagon too. It's a trend that's catching on, but whether it's a jackpot or a bumpy ride remains to be seen. The effectiveness of this strategy, both in terms of user experience and monetization, is still being put to the test. 🎢💡

As the integration of ads into AI chat experiences is still in its experimental stage, it's crucial for Google and other tech giants to find that perfect balance. They want to monetize their platforms without sacrificing the seamless, enjoyable experience we've come to love. It's like creating the perfect blend of coffee and conversation—tricky, but oh-so-worth-it when they get it right! 🗣️

With Google's reliance on search revenues, they can't afford to fumble this opportunity. So, let's sit back, relax, and see how this chatty advertising adventure unfolds. Who knows? It might just revolutionize the way we chat, shop, and explore the digital realm. 🚀

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CHOOSE SUCCESS below and have a great weekend! Get that D2C business runnin’.