Dunnhumby Thailand shifts advertising from mass to in-store media

“In-store media is playing an important role as a marketing communication tool to help cus?tomers end their purchase journey with a product right at the point of sale,” James Merritt, head of dunnhumby Thailand, said last week.
The economy is slowing down and consumer purchasing power is weakening. Some brands have cut their ad spending via mainstream media like television and print and are now spending more on cost-effective channels.
Besides the growth of Tesco Lotus Express branches in Thailand from 1,250 now to 2,000 by 2015, this trend opens up more business opportunities for the com?pany.
According to its latest customer research into shopping behaviour at all retail formats of Tesco Lotus, 52 per cent visit Express, followed by Extra with 31 per cent and Talad with 13 per cent. The rest go to the hypermarket.
Express welcomes seven million visitors each week. About 54 per cent of them stick to the same route in the store. This group is described as the larger basket-sized group, which has high purchasing power but wants to shop with conven?ience.
“With consumer behaviour research, the company can create the right retail media for vendors and manufacturers to help trigger, navigate and educate their customers to make purchase decisions effectively right at the point of sale,” said Teeradet Dumrongbhalasitr, head of retail media.
Tesco Lotus believes that with this approach, its retail media could lift sales by 26 per cent without any price cutting while promoting brand awareness of new products.
Retail media campaigns were among the cost-effective channels to reach customers. Retail media can offer 3.3 times more cost performance than TV and 10.3 times more than print.
Through the management of more than 10 million Tesco Lotus Clubcards, the company can communicate directly with members and create loyalty programmes for them.
The overall in-store media busi?ness was expected to see double-digit growth this year, he added.
dunnhumby has been working for Tesco since 1993 in the UK and has formed many joint ventures with retail chains in many coun?tries. The company also acquired some retailers in Brazil and Columbia.
Wholly owned by UK-based Tesco, this leading customer sci?ence agency also works closely with many brands – including Coca-Cola (Thailand), Attack, Nescaf?, Pantene and Breeze – to analyse customer and retail marketing data and improve customers’ retail and brand experience to earn their life time loyalty.