Strong Branding Without a Dime Spent on Advertising

Branding and marketing are often used interchangeably with advertising. While it is true that advertising is an excellent and important tool to help build a strong brand, it is not always 100% necessary! There are companies out there who have built extremely successful brands without a dime spent on advertising, and I happen to work for one of them: Costco Wholesale. So, what's their secret sauce?

Three key words: Word of Mouth


Costco's strategy is consistent, strong, and followed in every warehouse in the United States and its other countries of operation. Their mission statement promises the best possible treatment of employees, vendors, and members and they stay true to that. They follow these core principles by supplying employees with amazing benefit packages, great wages, and time and a half Sundays. Even though their power over several vendors is strong, they do not bully them. As for their members, they offer great prices, the chance to test  their products through sampling, and amazing return policies. They have also created an adventure out of the Costco experience by a brilliant merchandising strategy. People are proud to say they found a great deal at Costco.

By consistently and uniquely bringing this exciting experience to shoppers seeking great deals, Costco has generated a lot of talk! Jim Sinegal, the CEO, refuses to spend anything on advertising, yet Costco has been showcased in several talk shows and even used in the filming of a movie, Employee of the Month. 

Here's a special done by Jimmy Kimmel at Costco that was shown to me during my Corporate Internship. It's pretty hilarious.

The point is, Costco has been able to communicate the essence of their brand in every way possible through its many actions, whether it be the way Jim Sinegal dresses (always simple and never classy), forever promising the $1.50 hot dog/soda combo, or by simply providing an entertaining shopping experience.

My closing points: Remember, marketing requires much more than advertising if you ever want to make it as a successful brand. You have to communicate your brand by every action you take and decision you make.

So, anybody have a crazy Costco experience to share? Can you think of another brand who is successful without advertising?