According to Max Joseph, a digital marketer currently working for PUMA, many marketers are afraid of using technology. When the word digital marketing is mentioned in a meeting; people pause in fear of what is coming next. Digital marketing is becoming more important as consumer online purchase behavior continues to mature.
Tesco; a large grocery retailer from the United Kingdom wanted to expand further into Asia, this time it ventured into South Korea under the name Home Plus. They were trying to evolve and adjust to the local market while competing with the market leader “Emart”; who has out stored them by a large margin.
In order to compete with Emart, Home Plus had to come up with a different strategy because they could not compete head to head with Emart in traditional grocery shopping. Home Plus started studying the South Korean consumer and through their psychological traits came the solution to their challenge. Koreans are the second hardest working people in the world and time is of the essence, thus grocery shopping once a week is a dreaded task. Moreover, Koreans are very quick to adapt to new technology products.
Using a Marketing Development Strategy, Home Plus introduced the concept of “let the store come to the people”, they achieved that literally by developing virtual stores in subway stations where a lot people waste time waiting for the trains. The virtual stores were actually flat billboards with the same display of products in a grocery store, each item had a QR code that would be scanned with a smart phone and then automatically added to your online cart, once the purchase was complete; it will be delivered right away to your home.
Even though different people from different segments practice grocery shopping, Home Plus had to target a specific segment. On one hand, one may argue that everyone does not own smart phones, or older generations do not adapt to technology as younger ones do. On the other hand, although not mentioned in the case study, Home Plus could have measured their segment’s attractiveness in terms of its potential for profitability and strategic fit. Moreover, a study of the market size and potential for growth could have been done during the research.
This campaign increased the number of registered members by 76% and online sales by 130%, that puts Home Plus at first place in the Korean online grocery shopping market and a very close second offline.
In order for this incredible marketing strategy to be complete, I have a few recommendations for Home Plus. First, they should only add specific product lines into this new distribution channel, products that do not face much hesitation if any at the moment of choice, many people have already reached the maturity stage of the grocery shopping experience, they already know what brand they want in many categories, for example a person who prefers Coca Cola over Pepsi does not waste much time at the fizzy drink aisle. Yet, this same person may spend 10 minutes only choosing his tomatoes to check each one’s quality and freshness.
The second idea actually completes the first, Home Plus should avoid adding products such as produce and meats to their virtual store, this will minimize the percentage of customers who are unsatisfied with this new service due to the quality of the produce chosen by the Home Plus employee for example.
Third, virtual store users may have never been to a Home Plus grocery store and may have no customer loyalty whatsoever, to avoid losing these customers to competitors when purchasing sensitive products like produce and meats, Home Plus can have promotions on these products in-store only for customers of the virtual store.
According to Max Joseph, a digital marketer currently working for PUMA, many marketers are afraid of using technology. When the word digital marketing is mentioned in a meeting; people pause in fear of what is coming next. Digital marketing is becoming more important as consumer online purchase behavior continues to mature.Tesco; a large grocery retailer from the United Kingdom wanted to expand further into Asia, this time it ventured into South Korea under the name Home Plus. They were trying to evolve and adjust to the local market while competing with the market leader “Emart”; who has out stored them by a large margin.In order to compete with Emart, Home Plus had to come up with a different strategy because they could not compete head to head with Emart in traditional grocery shopping. Home Plus started studying the South Korean consumer and through their psychological traits came the solution to their challenge. Koreans are the second hardest working people in the world and time is of the essence, thus grocery shopping once a week is a dreaded task. Moreover, Koreans are very quick to adapt to new technology products.Using a Marketing Development Strategy, Home Plus introduced the concept of “let the store come to the people”, they achieved that literally by developing virtual stores in subway stations where a lot people waste time waiting for the trains. The virtual stores were actually flat billboards with the same display of products in a grocery store, each item had a QR code that would be scanned with a smart phone and then automatically added to your online cart, once the purchase was complete; it will be delivered right away to your home.Even though different people from different segments practice grocery shopping, Home Plus had to target a specific segment. On one hand, one may argue that everyone does not own smart phones, or older generations do not adapt to technology as younger ones do. On the other hand, although not mentioned in the case study, Home Plus could have measured their segment’s attractiveness in terms of its potential for profitability and strategic fit. Moreover, a study of the market size and potential for growth could have been done during the research.This campaign increased the number of registered members by 76% and online sales by 130%, that puts Home Plus at first place in the Korean online grocery shopping market and a very close second offline.In order for this incredible marketing strategy to be complete, I have a few recommendations for Home Plus. First, they should only add specific product lines into this new distribution channel, products that do not face much hesitation if any at the moment of choice, many people have already reached the maturity stage of the grocery shopping experience, they already know what brand they want in many categories, for example a person who prefers Coca Cola over Pepsi does not waste much time at the fizzy drink aisle. Yet, this same person may spend 10 minutes only choosing his tomatoes to check each one’s quality and freshness.The second idea actually completes the first, Home Plus should avoid adding products such as produce and meats to their virtual store, this will minimize the percentage of customers who are unsatisfied with this new service due to the quality of the produce chosen by the Home Plus employee for example.Third, virtual store users may have never been to a Home Plus grocery store and may have no customer loyalty whatsoever, to avoid losing these customers to competitors when purchasing sensitive products like produce and meats, Home Plus can have promotions on these products in-store only for customers of the virtual store.
正在翻譯中..
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Menurut Max Yusuf, pemasar digital kini bekerja untuk PUMA, banyak pemasar takut menggunakan teknologi. Apabila perkataan pemasaran digital yang disebut dalam mesyuarat; orang jeda dalam takut apa yang berada di depan. Pemasaran digital menjadi lebih penting kerana tingkah laku pembelian dalam talian pengguna terus matang. Tesco; peruncit runcit besar dari United Kingdom mahu mengembangkan lagi ke Asia, kali ini ia berkelana ke Korea Selatan di bawah nama Home Plus. Mereka telah cuba untuk berubah dan menyesuaikan diri dengan pasaran tempatan manakala bersaing dengan pemimpin pasaran "Emart"; yang disimpan daripada mereka dengan margin yang besar. Dalam usaha untuk bersaing dengan Emart, Rumah Plus terpaksa datang dengan strategi yang berbeza kerana mereka tidak dapat bersaing kepala ke kepala dengan Emart dalam membeli-belah runcit tradisional. Home Plus mula mempelajari pengguna Korea Selatan dan melalui sifat-sifat psikologi mereka datang penyelesaian untuk cabaran mereka. Korea adalah kedua orang yang paling sukar bekerja di dunia dan masa adalah amat penting, oleh itu membeli-belah runcit seminggu sekali merupakan satu tugas yang amat ditakuti. Selain itu, Korea adalah sangat cepat menyesuaikan diri dengan produk teknologi baru. Menggunakan Strategi Pembangunan Pemasaran, Home Plus memperkenalkan konsep "mari kedai pergi kepada suatu kaum", mereka yang benar-benar dicapai dengan membangunkan kedai-kedai maya di stesen kereta api bawah tanah di mana banyak orang buang masa menunggu kereta api. Kedai-kedai maya sebenarnya papan iklan rata dengan paparan yang sama produk di kedai runcit, setiap item mempunyai kod QR yang akan diimbas dengan telefon pintar dan kemudian secara automatik ditambah ke keranjang dalam talian anda, sekali pembelian adalah lengkap; ia akan dihantar segera ke rumah anda. Walaupun orang yang berbeza daripada segmen mengamalkan membeli-belah runcit, Rumah Plus terpaksa menyasarkan segmen tertentu. Dari satu segi, satu boleh berhujah bahawa semua orang tidak memiliki telefon pintar, atau generasi yang lebih tua tidak menyesuaikan diri dengan teknologi yang lebih muda lakukan. Sebaliknya, walaupun tidak disebut dalam kajian kes, Rumah Plus boleh diukur daya tarikan segmen mereka dari segi potensinya untuk keuntungan dan patut strategik. Selain itu, kajian saiz pasaran dan potensi untuk pertumbuhan boleh dilakukan dalam penyelidikan itu. Kempen ini meningkatkan bilangan ahli yang berdaftar sebanyak 76% dan jualan dalam talian dengan 130%, yang meletakkan Home Plus di tempat pertama dalam runcit dalam talian Korea membeli-belah pasaran dan luar talian kedua sangat dekat. Dalam usaha untuk strategi pemasaran yang luar biasa untuk menjadi sempurna, saya mempunyai beberapa cadangan untuk Home Plus. Pertama, mereka hanya perlu menambah barisan produk tertentu ke dalam saluran pengagihan baru ini, produk-produk yang tidak menghadapi banyak teragak-agak jika ada pada saat pilihan, ramai orang telah mencapai tahap kematangan pengalaman membeli-belah runcit, mereka sudah tahu apa jenama mereka mahu dalam banyak kategori, sebagai contoh orang yang lebih suka Coca Cola ke Pepsi tidak membuang banyak masa di lorong minuman bergas. Namun, orang yang sama boleh menghabiskan 10 minit sahaja memilih tomato untuk memeriksa kualiti dan kesegaran setiap seseorang. Idea kedua sebenarnya melengkapkan pertama, Rumah Plus harus mengelak daripada menambah produk seperti hasil dan daging ke kedai maya mereka, ini akan mengurangkan peratusan pelanggan yang tidak berpuas hati dengan perkhidmatan baru ini kerana kualiti hasil yang dipilih oleh pekerja Home Plus sebagai contoh. Ketiga, pengguna kedai maya mungkin tidak pernah ke kedai runcit Home Plus dan mungkin tidak mempunyai kesetiaan pelanggan sekalipun, untuk mengelakkan kehilangan pelanggan-pelanggan ini kepada pesaing apabila membeli produk sensitif seperti hasil dan daging, Rumah Plus boleh mempunyai promosi mengenai produk-produk di dalam kedai hanya untuk pelanggan dari kedai maya.
正在翻譯中..
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