Value proposition: one that I see more often than my best friend

UntitledDid you know that Amazon’s signature box takes a partial from the company’s marketing budget? The box with the Amazon logo is shipped to customers. While it is in the shipping process, everybody who sees the box can tell, “it is Amazon.” It is so brilliant and unique that Amazon utilizes its own shipping box for advertisement and leaves a huge impression on consumers. This is an exemplar case of value proposition.

What is value proposition?

Value proposition starts from providing value to the consumer. Consumers would expect from one particular brand that it would give more value than other alternative brands. Now, in business’ perspective, you would start thinking how you can provide a better offer to your consumers. How can you make your consumers actually feel that you are better than your competitors? This question leads the brand to a solution, branded utility. Branded utility is the concept that the brand goes beyond its assigned and perceived value and become useful daily. When the brand becomes a part of consumer’s daily life in a useful way, the brand can expect increased loyalty toward the brand and outstanding brand existence among thousands of advertisings.

Tesco Homeplus Virtual Subway Store in South Korea


Lets look at one example from South Korea. In 2011, Tesco Homeplus, one of the largest supermarket chains, launched billboard advertising/store in the subway. When consumers take a picture of item on the wall with their smartphones, the item goes in the shopping cart and can be paid on Smartphone. The process is simple and easy. It’s available until the public transportation finishes till 1-2 am. Tesco Homeplus understands South Koreans’ busy life.

I actually have seen people using this virtual store in Seoul. I don’t know if they were motivated from curiosity or really wanted to have grocery shopping. Anyway, this stores are located in subway stations and bus stops in several main districts in Seoul. I saw this advertising twice a day and 5 days a week, which is more often than I saw my best friend-once a two weeks. The virtual store increased Tesco Homeplus’ sales by 4 times in August, 2011. It seems that the virtual store steps into consumers’ daily life closer, and the company succeeded to provide additional value to consumers.

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