In their words, ‘Great value is more than just price. We believe in quality food & how it makes you feel’.
Their commitment to value beyond price is the driving force behind their Fit For Growth strategy and impending range reset.
One month on from their IGD Business Update, our Head of Planning Kim Upton reflects on what brands can do to keep delivering the goods:
Grocery now contributes 20% of the total effect of household inflation. Whilst it’s expected to level off as production costs stabilise, prices will lag behind other sectors.
The dangerous new hazard we face on the way out of inflation is slipping brand trust.
It won’t take much to tip shoppers over from grudging acceptance to real suspicion and hostility.
Many households have already cut back as far as they possibly can. They’ve worked hard to establish what’s necessary to them. They’re already starting to set habits about what to buy and what not – so converting them NOW, before habits become ingrained, is crucial.
It makes sense therefore that the strategic priorities for Tesco are:
Magnetic Value
Executing the basics brilliantly is a hygiene factor.
Elevating the grocery proposition with a broad & balanced portfolio is crucial.
Easily the Most Convenient
Emotional loyalty doesn’t exist. Grocery plays in the functional loyalty space – being easy to access & offering great value.
Growth will come from putting yourself in the frame for every single shopper mission.
More retail experiences within larger stores to make it a more desirable destination and a stickier experience.
Make it Personal
Shoppers are bored of advertising. They want meaningful interactions that are well-timed and relevant to them.
You need to time your marketing to perfection, with mission (needs and service) at the heart.
Fit For Growth aims to revolutionise the way that Tesco meet shopper demands & satisfy the need for growth.
If you’re looking to reset your relationship with Tesco before the range reset looms, we’d love to help.
