Tesco operates Homeplus supermarkets in South Korea through an 81% stake in a joint venture. To grow without increasing physical stores, Homeplus launched virtual subway stores that allow customers to shop using QR codes in the subway. This innovative strategy led to increased online membership by 76% and online sales by 130%, making Homeplus the top online retailer and competitive in offline markets.

1. (Home plus virtual store)
Raj Rakholiya
Yusuf Kawoya
Will Mayers

2. Home plus (Company overview)
 Tesco has an 81% stake in the Samsung-Tesco venture,
which operates Homeplus supermarkets.
 Tesco stared its operation in London UK in 1919s as a retail
store.
 It is operating in 14 different country.
 Tesco invested $ 3.2 billion in south Korea as a part of their
expansion plan.

3. Continue..
 The company retail store business increased the number of
superstores from 7 to 13 within 4 years.
 Tesco also started 24 stores in Thailand and 1 in Taiwan
and looked to starting operations in Japan, China and
Malaysia.

4. Alternative business strategy
 How can company grow with out increasing the
number of retail store?
 Homeplus has the answer- virtual subway stores.
 What is virtual subway store?
 http://www.youtube.com/watch?v=nJVoYs
Bym88&feature=player_embedded

5. Why company adopted such strategy
 S.Koreans are the second most hard working people in the
world.
 After the week of hard work and due to limited time it
would be difficult for people to spare time after grocery
shopping.
 To tackle this problem Homeplus came up with idea of
opening virtual store.

6. Result of the new strategy..
 Homeplus’ online membership increased by 76%
 Online sales increased by 130%
 Homeplus became number one in the online market
 It is even became a very close second, in offline
market

7. Strengths..
 Succeed to attract pool of tech and time savvy
people.
 Established brand name
 Successful history of operation
 Experienced staff
 Innovative Technology

8. Weakness..
 If the range of the product is changing, it would be
costly to create virtual store all over again with IQ
code technology.

9. Threats..
 Threats from hackers
 Power failure
 Technological break down
 Competitors

10. Opportunity..
 Company can introduce this successful
business model with the same technology in
developed country.
 They can diversify to attract new customers.
 Can establish it self as value brand through
offering competitive prize.

11. Indirect Competitors..
 E-BAY
 Amazon
 Home plus's strategy is competently
different from these online retailers.
 E bay provides platform to both buyers and
sellers.

12. Summary..
 Homeplus has used alternative marketing
strategy by delivering to the door steps of
customers rather brining customers to
stores door steps.
Thank you..

13. Sources
 http://www.tescoplc.com/
 https://twitter.com/#!/uktescooffers
 http://www.facebook.com/tesco
 http://en.wikipedia.org/wiki/Tesco