Nestle Combines Retail Channels with Tesco

Also should give new kinds of data.

Nestlé connects in-store and online media in retailwire, with expert comments.  by Dale Buss

Through a special arrangement, presented here for discussion is a summary of a current article from the bi-monthly e-zine, CPGmatters.

Nestlé partnered with Tesco to help launch the dunnhumby media platform that promises to bring continual, consistent and contextual communications with shoppers within and outside the store.

Nestlé worked with dunnhumby media in the U.K. to promote the launch of a new on-pack promotion to Tesco customers across owned and paid channels, including in-store, mobile, online and out-of-home. The insights-driven media plan reached 5.8 million customers and drove an 11 percent increase in sales.   ... "

Putting Digital in Perspective

 In CustomerThink: 

" ... This year, the number of smartphones, tablets and connected devices is expected to cross 7 billion – that will mean more connected devices than there are human beings on earth. With more and more people owning smart gadgets, these devices are going to have an increasingly bigger influence on our communication patterns, online habits and of course, our buying habits, and globally, organisations are trying hard to keep up with this shift by leveraging Digital Business Technology themselves. ... 

Consider what Tesco did in Korea around four years ago. In 2011, Tesco’s affiliate, Homeplus in South Korea, had to deal with a strange situation in order to meet its aspiration of market leadership: While it was a problem that Homeplus did not have enough stores as its main competitor did, the real problem though seemed to be the very lifestyle of their potential customers – given that Koreans were extremely hardworking, they just didn’t have enough time to go shopping. So even if Homeplus was to set up enough stores, it was going to be a challenge to get people to visit the store. ... 

The killer plan Homeplus came up with was to set up virtual grocery stores in strategic locations like subways and metro stations – they erected posters of products and groceries just like they were displayed at their stores – each item displayed in the poster came with a QR Code that provided product details such as pricing, etc, and could be scanned from an app on a smartphone into a virtual shopping cart. What’s more, the delivery of their checked-out items could be timed conveniently. Customers could now use their smartphones to buy grocery as they waited for their trains or whenever they found time as they commuted."

Putting Digital in Perspective

 In CustomerThink: 

" ... This year, the number of smartphones, tablets and connected devices is expected to cross 7 billion – that will mean more connected devices than there are human beings on earth. With more and more people owning smart gadgets, these devices are going to have an increasingly bigger influence on our communication patterns, online habits and of course, our buying habits, and globally, organisations are trying hard to keep up with this shift by leveraging Digital Business Technology themselves. ... 

Consider what Tesco did in Korea around four years ago. In 2011, Tesco’s affiliate, Homeplus in South Korea, had to deal with a strange situation in order to meet its aspiration of market leadership: While it was a problem that Homeplus did not have enough stores as its main competitor did, the real problem though seemed to be the very lifestyle of their potential customers – given that Koreans were extremely hardworking, they just didn’t have enough time to go shopping. So even if Homeplus was to set up enough stores, it was going to be a challenge to get people to visit the store. ... 

The killer plan Homeplus came up with was to set up virtual grocery stores in strategic locations like subways and metro stations – they erected posters of products and groceries just like they were displayed at their stores – each item displayed in the poster came with a QR Code that provided product details such as pricing, etc, and could be scanned from an app on a smartphone into a virtual shopping cart. What’s more, the delivery of their checked-out items could be timed conveniently. Customers could now use their smartphones to buy grocery as they waited for their trains or whenever they found time as they commuted."

Tesco fails to sell DunnHumby

Considerable local presence, with their US HQ, they hire many entry level data analysts.  We used many of DunnHumby's services for targeted coupons.

Tesco’s Prophecy Proves Costly as Sale of Dunnhumby Falls Flat
Tesco's Dunnhumby specialises in predicting buying habits. Unfortunately for Britain’s largest retailer, it couldn’t foresee that nobody would stump up the cash it wanted for the data-analytics unit.

Since Tesco put the company on the block nine months ago, Dunnhumby has become a less attractive asset. The April dissolution of a joint venture with American supermarket chain Kroger Co. meant Dunnhumby’s US arm could pitch other grocers for new business, but at the same time it cut off a steady income stream from a high profile client. .... " 

Tesco Tries in Aisle Rolling Robotics

In CWorld: Six foot tall robots, not really human-like android, more like large vacuum cleaners.  Possibly scaring the Tesco shoppers?  At least this could open shoppers to the expectation of having roving robotics in the aisles.    Vendor is RFSpot.

" ... As Tesco clothing shoppers rifle through the chain's apparel assortment, they'll be sharing the aisles with six-foot-tall RFID robots, rolling up and down scanning clothing tags for inventory.  

F&F, which is the name of the apparel unit of Tesco, the world's second-largest retailer by revenue, is running the robots as part of a five-store trial. Officially called RFspot Pro and nicknamed Robbie by the F&F team, the robots roam the floor, continually scanning tens of thousands of passive UHF EPC Gen2 tags, strolling up the aisles at about one meter/second on three sets of wheels, reading tags from as many as 30 feet away. ... " 

Tesco and Big Data Loyalty Plays

Using personalization with loyalty data to better engage the consumer. Tesco and Big Data for Loyalty  Similarities to P&G's 1 Consumer Place?  Relationship to programmatic Ads?

" ... The deal, carried out by Tesco subsidiary Dunnhumby, will see Sociomantic combine its data on 700 million online shoppers with Dunnhumby’s insights into 400 million customers to create an “unprecedented” database of more than a billion people. Sociomantic runs a programmatic digital advertising service, buying and selling online ads via an automated process. Details of the deal have not been disclosed.

Simon Hay, Dunnhumby’s chief executive, says the acquisition will allow Tesco to improve its online marketing to offer a better experience for consumers and advertisers. ... " 

Tesco Clubcard and Twitter

Like to see new ideas for using the loyalty engagement. A somewhat novel one here.

" ... Tesco Clubcard has partnered with We Are Social to create holiday gift guides of affordable items based on Twitter accounts of users' friends and family. The Secret Scan-ta campaign lets shoppers input the Twitter handles of gift recipients so the software can generate a list of potential gifts based on who the recipients follow ... " 

SEO at Tesco

An example of a technologically advanced retailer:

" ... Search engine optimization has helped Tesco grow to occupy 50% of the U.K. online grocery market, and among 2,500 online search terms, Tesco is the most visible supermarket by a significant margin, according to data from Pi Datametrics. Tesco's competitors, which include ASDA, Waitrose and Sainsbury's, have made strides in the past year to boost their SEO, but their average positions, while visible in a search, are poor and correspond to a small number of search terms, Intelligent Positioning Director Sam Silverwood-Cope writes. ... " 

Tesco CEO on E-Commerce

Been looking at how retailers address e-commerce futures.  Here a piece by the Tesco CEO on e-commerce.  Not too unexpected.

" ... Tesco group chief executive Philip Clarke discusses the opportunities that exist at the intersection of media, ecommerce and big data. As the second largest retailer in the world, Tesco is moving  in the direction of becoming a media and technology company and the leading multi-channel retailer. The objective of Tesco is to put the customer back in control and enabling the customer to engage and transact with Tesco via his/her preferred channel. The percentage of digital sales is growing and that brings big challenges but also offers huge opportunities. An interesting talk about customer loyalty, delivering personalized experiences and the insights from the data they have that helps Tesco to understand and respond to customers’ lifestyles. ... " 

Tesco Plans a Smartphone

Retail giant Tesco plans to introduce an Android smartphone this year.   In Retailwire.    Most interesting part: " ... Tesco's smartphone, and the Hudl, will include a "T-button" to provide instant access to Tesco's digital services, including online shopping for groceries, banking and Blinkbox, the retailer's on-demand music and movie service. A scan-and-pay option is promised to arrive later this year. ... "  

Tesco Plans for 3D Printing in Supermarkets

Tesco as a center for 3D printing, to compete with office services stores, as opposed to printing some of their own products?  But certainly also small parts to add to products, which may be designed to be more repairable than they are now.

" ... 3D printing could soon be seen in retail stores, allowing shoppers to order certain basic items and have them printed out on-demand, according to the IT chief of Tesco.... 

 “It’s still in its infancy, it’s been around for a few years, but it’s getting cheaper, it’s getting a little bit easier, it’s getting a little more flexible than it has been in the past,” he told V3 during an interview at the show. “I think over the next few years you will see 3D printing in shops, because for the missing hose from the vacuum printer, you can print them in the time that someone enters the store, does a bit of shopping and leaves the store. So I can definitely see that being part of the retail offering in the none too distant future. ... " 

Tesco Does Tablets with the Hudl

Reported in the BBC: A remarkable new step, World class retailer Tesco enters the Tablet market.  They have been a long time leader in retail technology, but this is a new big turn especially since non technology retail companies, like Amazon, have said they are not making money with their tablets.  To me this was like announcing that they decided to make TVs in the 50s, before the technology was completely mature.  I guess they are pushing the envelope again.  I admire that.  Will be watching.  And a UK correspondent suggests:  ' ...  Makes sense in that the web is the modern shop window.  Tesco in UK have also provided self scan and free WiFi for sometime, so no doubt noticing device usage has sought to link both via this device. ... '

From the BBC article:

" ... But what does the arrival of the Hudl - for that is the name of the product the company is launching this morning - mean for the overall market?

What is immediately clear is that Tesco is taking its tablet very seriously. Unlike some cheap Android tablets launched by other unlikely firms - remember Next's attempt? - this looks a competitive and reasonably high-spec offering. It runs the latest version of Android, has a 1.5 GHz processor, an HD screen and expandable storage.

The 7in device looks at first sight like any other small Android tablet - the Tesco content is mostly hidden under a "T" logo at the bottom left. Tapping here takes you to services like online shopping and the Blinkbox on-demand film service, bought by Tesco a couple of years ago. ... " 

Supermarket Dominance

Why does some retail dominate?  A history of the dominance of a company that started in 1919.  " ... "It became such a success story because it was aggressive at adapting to consumer trends, diversifying and innovating," says Gray. "It took a hell of a lot of risks in the 1990s but they paid off." And diversify it did. Tesco is now a bank, it offers insurance, credit cards and loans. You can buy a flat-screen TV, a mobile phone and clothes alongside bread, milk and butter. It runs education programmes for staff and keep fit classes. ... " 

Tesco Supply Chain Big Data

From Tableau Software:   Major global retailer on the use of visualization:  " ... Tesco uses Teradata to warehouse their supply and inventory data. They've got 5 years of data and 100 Terabytes on 100 cores in Teradata. On using Teradata with Tableau: “We connect live and it just works.”  .... " 

Tesco and Giraffe to Create Destination

A UK Correspondent RJ writes:

A new Tesco development, sounds almost like they are planning Tesco malls!

"...Supermarket group Tesco has bought the restaurant chain Giraffe for £48.6m.  The move will see the supermarket open Giraffe branches near to Tesco stores as it seeks to create "retail destinations" for customers..."

The above new re-reminded me of this tongue in cheek UK comedy sketch from 2006.