Mass market marketing – Tesco South Korea

Under the name of Homeplus and in the shape of a virtual supermarket, Tesco arrives in this Asian country, positioning itself above it strongest competitor.

There is no-one to rival the popular British food chain, not even E-MART, leading hypermarket in terms of sales in South Korea.

An ingenious proposition of value

How to become nº1 without opening new establishments?, asked itself Tesco with the idea of beginning its expansion into the Asian market. It was not easy, bearing in mind that E-MART had more shops in South Korea.

After studying the behaviour of the Korean consumer, Tesco understood that, for the stressful rhythm of life of a population that spends its entire day working, the simple fact of shopping could be a real nightmare.  It was then that the idea came to them.  The solution lay in investing in the shopping process itself, bringing the product to the consumer, instead of the consumer to the product.  How? Through virtual Home Plus supermarkets set up in metro stations.

QR codes on food

Home Plus has the same appearance as traditional supermarkets; the innovative element lies in that the shopping is one by Mobile.  That’s right.  Although it may seem futuristic, it is simpler than it seems :

Smartphones permit the download of an application which reads the quick response or QR codes included in each of the products in the virtual supermarket.  Once you have the application, you need simply scan or photograph with your Mobile the code of the desired product and it is immediately added to your virtual shopping cart.  After paying for your shopping, it is delivered to your door.

The revolution has arrived !

The innovative marketing strategy that Tesco has pursued has not only ousted the giant E.Mart from its top position, but it has managed to increase by some 76% the number of registered clients and online sales by some 130%.  On the basis of this overwhelming success, we can now get an idea of how South Koreans fill their time while waiting for the train!




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