Comment: Could Tesco’s tablet breed a new kind of loyalty?
Tesco today launches its new own brand tablet Hudl which has implications for both the retailer itself and the wider grocery sector.
The grocers have long expanded into new and seemingly leftfield categories but today’s launch represents a step change. As Tesco attempts to compete with technology giants such as Amazon and Apple, what does this mean for the future of fast moving consumer goods? Where is it headed next? FMCG certainly stands for more than just bread and milk now, but what next? Will you be buying your next house in Waitrose, book into Asda for a minor private operation or go shopping for holidays in Tesco?
With very detailed, high value data of millions of customers, a large percentage of which are signed up to points schemes, it is little wonder that supermarkets are branching out. Do you buy the same album from iTunes or Tesco; well if you consider that if you buy from Tesco, there is the advantage of getting extra bonus points and money off future shops, the choice is made slightly easier, isn’t it?
Customer loyalty is of utmost importance. For example, will those who have previously stuck by Samsung, venture to the other side when they are confronted with the realisation that you could get everything you need from one place, plus receive incentives and money saving opportunities at the same time? Or is the growth of retailing threatening competition in the market place, and will there be fewer retailers to choose from in the future due to consolidation?
Tesco has announced, just ahead of the tablet launch funnily enough, that it will be investing millions in a marketing drive for the digital download service which the supermarket backs, Blinkbox. A campaign spanning TV, radio, digital, print and in-store activity will reinforce the message that the service has ten times more blockbuster films than Netflix and LoveFilm Instant and the new Hudl tablet will be linked to this service.
It has been previously stated that tablet owners are loyal to their device – will Tesco be able to compete and retain their loyal customers in the same way Apple and Amazon have? Do supermarket customers want to purchase everything from under one reliable roof?
So, the next time you are looking to buy a new car or house, will the supermarket be your first port of call?