A friend sent me this interesting video about Tesco (now Homeplus) in the Korean grocery market space. This is an excellent example of all pieces of the marketing mix (product, price, place and promotion) coming together to create an effective campaign that resonates with the appropriate target market.
In this case, Tesco has taken the grocery store into non-traditional grocery store environments to help busy people purchase food items in a more efficient way. This is a brilliant use of place. The promotion aspect is key because Tesco has chosen to use traditional out-of-home advertising space to put up a grocery store in a subway. People waiting for the next available train can shop using their smart phones and QR codes and receive a grocery delivery at home shortly after. In this case, the promotional strategy reaches the targeted market and merges place and promotion into one seamless creative message. This is a totally new way to do point of purchase advertising.
As far as price, while I don't have any information on price, I am willing to guess that premium prices are charged due to the convenience factor as well as product shipping costs to the final destination. Because Tesco isn't directly competing with any other grocery stores in this type of campaign there aren't really any similar alternatives on a subway platform to drive down prices through price competition. The results of the campaign lead me to believe that the products are prices appropriately as Tesco/Homeplus has gained a lot of market share.
The products are probably very carefully chosen as ad space costs money and you would need to present people with the correct assortment of grocery products based on the space available. Seems that the successful results convey that Tesco picked the correct mix of products.
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