MEDIA ANALYSIS: Brand Spend Analysis - Mum’s logged on to Iceland: how the UK supermarket is pushing its online service

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.

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

South East).



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

inserts.



Iceland’s press advertising targets women, particularly young

mothers.



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

September.



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

www.mediamonitoring.com.



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