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Starbucks And L’Oréal Use O2 To Trial Geofencing In UK

October 14, 2010: 12:49 AM EST

U.K.-based mobile phone network O2, using a global positioning technology developed by U.S. company Placecast, has launched location-based mobile phone marketing campaigns for Starbucks and L’Oréal. The campaigns use a “geofencing” system that brings targeted text messages to consumers when they are near retail outlets. It’s an “auto-check-in” service, but consumers have to opt-in by registering online. Starbucks plans to use the campaign at its U.K. outlets and in grocery stores, with the system sending numerical codes with corresponding 50 pence discounts to consumers purchasing its Via instant coffee. L’Oréal, meanwhile, has set up the system around branches of health and beauty retailer Superdrug to promote the Elvive brand of hair products. Other brands are expected to join the system, as Placecast sets up some 1,500 geofences across the U.K.

Christopher Heine, "Starbucks, L'Oreal Will Test Geo-Fencing for Six Months", ClickZ, October 14, 2010, © Incisive Interactive Marketing LLC
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