Tesco embraces ‘experiential’ marketing

Tesco has not ruled out further experiential wine events, following the launch of its first pop-up wine bar.

This week saw a new approach from the UK’s largest wine retailer, which opened a sleek new bar to showcase its *finest wine brand in a contemporary art gallery in the heart of London’s Soho. The pop-up was designed to showcase the range to customer in a more “experiential” way to encourage them to try different wines, Nick Jackman, head of Tesco *finest brand told db, and has been in planning since December.

The move from such a large wine player marks the increasingly blurred lines between wine retail and the on-trade, which has been growing steadily over the last five years. Starting in the independent sector, there has been a recent boom in ‘hybrid’ wine shops that merge on- and off-trade elements into one site, alongside the increased use of Enomatic machines that boost customer confidence to try different wines or more expensive skus by allowing them to try before they buy. Tesco’s move can be seen as a natural progression from Booth’s installing an Enomatic in its Knutsford store in 2013, Waitrose ‘grazing areas’ and wine bars that were first trialled in 2014, and Aldi’s pop-up wine shop in Shoreditch during London Wine Week.

“It is good for consumers to have an opportunity to experience the wines outside of the wine aisle. It is more personal, immersive and tailored to the individual’s taste profile,” Jackman told db.

Although all of the *finest wines are available to taste for around £3-5.50 a glass, the retailer is highlighting around 48 wines out of it premium own-label range which they feel are representative of the style or region, and are likely to prompt consumers to try something different, These have been highlighted in chalk board installations on the walls, and the retailer is offering a selection of £7 “discovery wine flights” to help visitors discover new varieties, which are themed along different lines of colour, style or country, with a trio of sparkling wines being sold at £9.

It is also offering twice-daily master classes hosted by the wine team, covering areas including lesser know white varieties, alternatives to Rioja and wines with altitude. Jackman said the take-up had been “incredible” following an online, PR and social media campaign.

However many of the visitors so far had come from passing trade, he said, estimating there were around 200 people in the opening night. The site – Unit London – can accommodate around 150 people comfortably, he added.

Although he admitted the premium own label range of 75 *finest wines was relatively small compared to the overall offering, there is a big element of brand recognition, he noted. “People have an affinity with it and we have a platform to build on that.”

“We’d love to do more in terms of experiential [events] as there is a good opportunity for the *finest brand,” he said. “but we want to see how it lands and react accordingly after looking at the feedback and KPIs.”

The pop-up, which is located on 147 Wardour Street in Soho, will run until 13 August.