Sir: Tesco unveiled its new ‘Tesco Price Promise’ last week (‘Has Tesco opened a pricing can of worms?’, The Grocer, 16 March). The question is, will it turn consumers on?
If asked, shoppers generally choose taste or flavour over value, but value for money is still important. Tesco’s Price Promise brings its value proposition to the forefront of consumer minds. This message is reinforced at a key time in the interaction between shopper and the supermarket: at the till.
But is there a significant difference between Tesco’s offer and the other supermarkets’ in the eyes of the consumer? This is where I agree with Adam Leyland’s assessment in his Leader that the devil will be in the detail.
Adding own label attempts to create a point of difference but also makes things complicated, especially when retailers working with private label manufacturers look for and insist on a tangible point of difference in a range.
With consumers being savvy at the moment and also wanting simplicity, I tend to agree the promise won’t drive further sales but I don’t think it will have a significant impact on customer loyalty either as consumers are being bombarded with value messages at the moment.
That said, I do think it will help reinforce Tesco’s credentials with its core shoppers, which is the first step in addressing its recent woes.
David Marston, MD, Category Wins