Tesco is removing branded point-of-sale material at shelf as it seeks to position its stores as media vehicles. But convincing brand manufacturers to view it as a media channel is not easy.
Philip Rooke, media director of Tesco.com, who is charged with helping to sell media space, said: “We are going to cut back on branded PoS but demonstrate what other opportunities we can provide.” These include lorry-side advertisements, 48-sheet posters, instore television, trolley advertising and a new customer publication, The Magazine.
But, despite trials with McVitie’s Jaffa Cake and Flora that found Tesco media increased awareness and sales, suppliers have failed to embrace it. “On the whole it is not catching on,” admitted Rooke. This is partly because PoP funding is traditionally part of buying relationships rather than coming from budgets allocated to media such as TV and press.
“There needs to be a change of attitude inside the retailer, supplier and agencies,” he said.
Meanwhile, convenience retailer Spar is to extend its instore TV trial.