Food, tobacco firms accelerate shift to digital marketing

Promotional image of BAT Korea's BAT Innovation Day event / Courtesy of BAT Korea

By Nam Hyun-woo

As the COVID-19 pandemic continues, retail firms are expediting their shift to digital marketing, as consumers increasingly look toward online malls when purchasing food and even tobacco products, which have long been thought to be the domain of offline shopping.

Chicken franchise KFC launched an online customer event recently on YouTube. During the live stream, KFC showcased upcoming menu items and solicited customer feedback, as well as holding quiz events related to the brand's menu and history.

Food manufacturer Ottogi is also turning to online avenues to promote its products. The company's O'Kitchen website offers various recipes using its pre-cooked products and other ingredients.

Similar efforts are also noticeable among tobacco makers, which have been far removed from online marketing as they were banned from selling cigarettes on the internet.

Their online efforts started after e-cigarettes, for which the heating device is marketable online here, became a mainstream product in the market. Since last summer, tobacco firms here have been expanding their sales pitches to e-commerce platforms.

In September, BAT Korea began selling its glo tobacco heating devices through 12 e-commerce platforms such as Gmarket, Auction and Coupang. For the mobile market, the company also began offering glo devices for Kakao Talk Store, as well as running promotions every month.

To further enhance its online marketing, BAT Korea will hold its BAT Innovation Day event online, in which the company will introduce its new tobacco product KENT Double Fresh and this year's business plans, as well as giving a virtual tour of its plant in Sacheon, South Gyeongsang Province.

Many food and retail companies have been holding online media events in the wake of the pandemic, but this is the first time in Korea that a company has presented a new product, business strategy and virtual tour of its production facility all online, BAT Korea said. The event will take place on Feb. 16.

“Since the start of the pandemic, food and tobacco companies have been making aggressive shifts in their marketing strategies to meet consumers' growing preference for a contactless and digitized marketing,” an industry official said. “The ongoing social distancing efforts will push companies to go online for marketing, but they are making efforts to turn this into an opportunity to open new marketing channels.”