Home plus (Tesco) Virtual Subway Store in South Korea
by Mike Brown
This video on the creative thinking-based strategy TESCO employed to penetrate the South Korean grocery market was shared on Google+ recently by James Fraser. With TESCO using an alternative name, Home plus, it was able to become the number two player in the South Korean grocery market even though it suffered a deficit in the number of retail locations.
If you jump to framing the business objective as “we have to get more stores,” the answer is easy, self-evident, and all too routine: build or acquire more stores.
Instead, the grocery chain remained focused on the real business objective (grow sales) and based on consumer insights (South Koreans are incredibly busy and the in-store grocery experience is a nightmare), Home plus used (or approximated the results of) creative thinking exercises to look at the opportunity in reverse: take the in store buying experience to where shoppers already are with a virtual subway store!
Home plus created the virtual subway store with displays identical to those in actual stores, QR codes for online ordering by phone, and home delivery. Putting the virtual stores where potential grocery shoppers already are in subways increases personal productivity and maximizes their free time. The virtual store campaign led to online sales gains highlighted in the video.
All this success by sticking to the fundamental business objective, but re-framing the business issue in a very different way.
That’s creative thinking for business success at its best!
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Mike Brown is an award-winning innovator in strategy, communications, and experience marketing. He authors the BrainzoomingTM blog, and serves as the company’s chief Catalyst. He wrote the ebook “Taking the NO Out of InNOvation” and is a frequent keynote presenter.
I want to start a grocery but i am afraid how mach money do you think can start a grocery? Thnx. am in Uganda.
We expertly service a range of grocery clients, from upscale and specialty stores to high volume warehouse grocers. We understand that each type of store has a unique target market and different opportunities and challenges when it comes to attracting customers. Our programs for higher-end locations focus on creating exemplary service experiences and ensuring highly knowledgeable staff members are available when needed. We help larger stores prevent shoppers from feeling lost, while still offering a large, diverse selection and competitive prices.