In recent years, Iceland has shown itself to be a nimble and
responsive player among UK supermarkets, and the launch of its internet
shopping service is no exception.
It is an attractive area to exploit: 5 per cent of all retail in Europe
is now home-based and a potential market, worth between pounds 5 billion
and pounds 9 billion, is up for grabs.
Iceland has positioned its brand as the first online food shopping
service covering the whole of the UK (Tesco only covers London and the
It offers home delivery of goods bought in-store as well as online, and
will move onto interactive digital TV later this year.
Iceland researched online shopping extensively for six months before the
launch, and claims consumers found its site more user-friendly than
other retail sites.
Since January 1998, Iceland has used direct mail and door-drop
advertising to promote its regular home delivery service.
In keeping with its overall positioning as an ethical, consumer-driven
business, Iceland marketed its service as a means of reducing exhaust
emissions (’every home delivery vehicle eliminates 200 car journeys a
week’), and featured endorsements from Greenpeace.
It is no surprise that Iceland’s advertising strategy for its home
shopping brands will again use extensive direct mail and door-drop
advertising - these media are ideal for reaching specific geographic
areas. Between January and September this year, Iceland spent an
estimated pounds 400,000 on direct mail (not including its many
door-drop campaigns), and pounds 187,652 on press advertising and loose
Iceland’s press advertising targets women, particularly young
The Sunday People’s People magazine picked up the biggest share of
Iceland’s press spend with pounds 28,500 of ads and inserts. Radio Times
landed pounds 18,500, Best got pounds 17,848, and The Mail on Sunday’s
You magazine gained pounds 13,550. Other titles that took a significant
chunk of adspend included Baby, Mother & Baby, Pregnancy, Prima Baby,
Practical Parenting and Our Baby.
Although it is too early to record Iceland’s television spend, it has
launched a campaign through Carat which uses the tagline:’Iceland - by
appointment to Father Christmas.’ This is only the second TV campaign
this year for the retailer. The first broke on Channel 4 in
The core ad theme used to promote the home shopping service is that of
convenience and features the line: ’Why go to the shops, when we’ll
bring your local Iceland store to you?’ It is reinforced by a variety of
marketing ploys ranging from waiving the administration charge for the
first order, to offering a welcome pack.
Iceland’s customers can buy on-line at www.icelandfreeship.com or
www.iceland.co.uk, subject to a minimum spend of pounds 40.
Research by Media Monitoring Services, tel: 01344-627553