Co-operative signs up O2 to offer location-based marketing

The Co-operative Group has signed a deal with O2 Media to become the first major UK supermarket chain to utilise location-based marketing services.

Between 4 May and 11 June, O2 customers within half a mile of a Co-operative food store will receive a text message offering them a free 500ml bottle of Dr Pepper.

All O2 customers are signed up to the mobile proximity marketing, unless they have decided to opt out.

According to the mobile network, more than two million customers are part of the scheme.

O2's service allows all customers to be targeted, and does not require a specific handset or application to receive offers.

The service works by creating a "geo-fence" around a particular location, in this case the food stores, and as soon as a target customer enters this perimeter they will receive a message with the offer.

"The Co-operative is keen to make use of cutting-edge technologies, and mobile proximity marketing means we can target customers with specific offers and engage with them directly," said Sean Toal, commercial director for Co-operative Food.