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Smartphone Superstores

The Tesco Subway Virtual Store Brings Shopping to Cyberspace

— June 24, 2011 — Marketing
The Tesco Subway Virtual Store is a brilliant idea by Cheil Worldwide advertising agency. In order to gain a monopoly as the number one grocery store in Korea, the firm decided to do an in depth analysis on Korean lifestyle, and the result is a 130 percent increased success rate.

After studying how Koreans interact and go about their day-to-day life, Cheil Worldwide decided to put grocery stores in subway stations. However, these stores consisted of paper outlines that looked identical to a real grocery shelf, but to buy the items users simply had to scan the code with their smartphone. After doing so, the products were delivered straight to the recipients home. Because of the Tesco Subway Virtual Store, the company is now number one in Korea. Now that's clever marketing.

Implications - Businesses should never underestimate the significance of consumer lifestyle. After recognizing the hardships these customers face, a company can then design a product that fits these needs. The psychology behind the purchaser is just as important as the commodity businesses are trying to sell.
Trend Themes
1. Virtual Grocery Stores - Virtual grocery stores that allow customers to scan items with their smartphone are becoming more popular, offering convenience and time-saving options for busy consumers.
2. Smartphone-based Purchasing - More businesses are looking for ways to enable smartphone-based purchasing, allowing customers to buy products quickly and easily while on-the-go or on their daily commute.
3. Lifestyle-centered Marketing - Marketing campaigns that are designed to fit seamlessly into consumers' daily lives and routines are becoming increasingly prevalent and influential.
Industry Implications
1. Retail - Retail businesses are increasingly implementing mobile-based purchasing solutions, such as virtual grocery stores and QR codes, to improve customer convenience and satisfaction.
2. Advertising - Advertising agencies and marketers have a unique opportunity to leverage insights into consumer lifestyle and behavior to design campaigns that resonate with target audiences and drive sales.
3. Logistics - Logistics and delivery services can capitalize on the trend of smartphone-based purchasing by developing streamlined and efficient delivery processes that cater to the needs of busy consumers.
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