Supermarket Aldi may be well-known for its low prices and everyday grocery offering, but in December last year, the retailer launched a pop-up champagne bar in affluent Mayfair in London, showcasing its award winning private label ‘Veuve’ line. “I think that what probably stuck out to customers is that when you think about champagne bars, you tend to think about Selfridges in London, or Lafayette in Paris, or even David Jones here in Australia,” Queensland University of Technology
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Supermarket Aldi may be well-known for its low prices and everyday grocery offering, but in December last year, the retailer launched a pop-up champagne bar in affluent Mayfair in London, showcasing its award winning private label ‘Veuve’ line.“I think that what probably stuck out to customers is that when you think about champagne bars, you tend to think about Selfridges in London, or Lafayette in Paris, or even David Jones here in Australia,” Queensland University of Technology’s Professor Gary Mortimer told Inside Retail. “And, thinking of Aldi [in that way] is completely out of that box and creates tension between the brand and the experience which hopefully would lead to a trial and a purchase.”In an effort to spotlight the quality of Aldi’s affordable wine, customers were invited to take part in blind taste testing. According to campaign agency Clarion, customers guessed the wine cost almost six times as much as its actual price.The grocery giant also partnered with celebrity mixologist Pritesh Mody to create three cocktails using Aldi’s champagne, which customers could enjoy at the pop-up for as little as £1.09 – far cheaper than what is expected in one of London’s most expensive postcodes.Aldi’s latest pop-up is the second effort the business has made to showcase its wine offering, having also launched a ‘futuristic’ wine store in 2016 which saw online wine sales jump 47 per cent according to Gorkana.This latest wine store succeeded in showing off Aldi’s goods – but it was also just good marketing.“It just goes to show that supermarket and grocery retailers are constantly looking for new and innovative ways to promote their products,” said Mortimer. “They could have just put an ad on TV. They could have put it in a catalogue, or put up some social media posts, but they chose to do a pop-up.Creating customersBradley Grinlinton, industry lead for retail and consumer products at digital agency Publicis Sapient, agreed, noting that the real value of pop-up stores such as Aldi’s is the direct interaction with and feedback from customers.As retail increasingly looks to experiential stores as a means of breathing new life into the physical side of retail, it makes sense that advertising would go the same way. “You only need to look at leading retailers like Amazon using the format to test new retail concepts and technology to see the value of having real world interactions with customers,” Grinlinton told Inside Retail.“With the big shift to online in the last couple of years, it’s become increasingly difficult for brands to differentiate themselves – especially in categories with low brand loyalty. “Experiential marketing tactics like pop-up stores create the opportunity for brands to engage with their customers and create brand value in a much more meaningful and genuine way.”A more engaging customer experience is more likely to stick in the customer’s mind – and may get them talking on social media and generating positive word-of-mouth, which can be tough for supermarkets, Grinlinton added.“The last couple of years hasn’t made it any easier [on supermarkets], as customers have associated them with issues regarding product availability, store opening hours and delivery windows.”Private labelIt can be difficult for supermarkets to market their private label products, as they are often seen as a cheaper alternative to brand-name products, which are often sold on the same shelf.Utilising a dedicated pop-up space to showcase the strength of the private-label product is an “excellent” way of getting these items in front of consumers who might now otherwise try them out, said Good to You founder Craig Matthews. “[Pop-ups can create] a personal connection that they can create through showcasing products at consumers’ fingertips rather than behind counters or in store layouts without much foot traffic where visibility isn’t always optimal,” Matthews told Inside Retail.“And, pop ups allow these businesses the opportunity of gathering information on what shoppers need before even stepping foot inside any retail location.”
