Tesco has pledged to make its marketing “better, clearer and more relevant” as part of a turnaround strategy to reverse recent fortunes, but in the absence of any details all that the supermarket has proved is that over the past year its marketing has been unclear, irrelevant and not very successful.
Brand and marketing have been highlighted as one of six areas of focus for Group CEO Philip Clarke and his senior management team to right whatever has been going wrong for Tesco over the past 18 months.
With Tesco’s first review of its advertising account in more than 15 years and a new marketing director, David Wood, talking the helm in the UK, it’s clear that Philip Clarke wants something radical to change in terms of how Tesco talks to its consumers. What still isn’t clear is exactly how it will go about it.
At a press conference to announce the changes yesterday, Clarke was cagey on the future of the Big Price Drop, introduced in September, refusing to be drawn on whether it would continue to play a part in Tesco’s marketing and promotional strategy or whether it would be abandoned. There will be little surprise, however, if it is jettisoned in favour of a more holistic, brand led approach designed to engender more trust in the brand’s overall values.
Sainsbury’s has done well in recent months to promote both its values and a price message within the framework of its ‘Live Well for Less’ brand proposition. Tesco would do well to develop a strategy that combines the values it stands for, but that consumers have forgotten, at the same time as maintaining a strong price message.
Another of Clarke’s pledges is to return Clubcard developer Dunnhumby to the heart of the business. This is a worrying admission that Tesco ever relegated the insight and data gleaned from its Clubcard programme from the core of its marketing and decision making.
There are marketers that would kill for the kind of insight Tesco has access to thanks to Clubcard, so for Tesco to have sidelined such a wealth of data is senseless.
The fact that Tesco has been under using its Clubcard data, not just in terms of the loyalty programme, but in terms of decision making and strategic planning, goes some way to explain why its marketing became unclear, irrelevant and unappealing to shoppers.
Clarke outlined plans to better use the insights to create a more personal and localised business, more closely aligned to the kind of shoppers in the local area.
By better tailoring products and promotions in stores to the local shoppers, Tesco will go some way to shifting the perception that it is a giant faceless corporation.
The same can be said for the investment in more staff, “warmer” stores and better service that will go a long way to giving Tesco back some of the soul and human connection that it has lost in its relentless quest for growth and more stores.
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Readers' comments (8)
Could their recent fall from grace simply be down to the great British tradition of ‘building something up, only top knock it down again’ perhaps they are just being put back in their place. Their marketing tends to confuse low prices with value, which is not one in the same. I for one am very tired of the “Every little helps” strap line as I have always associated it with their profits rather than savings for their customers i.e. Every little penny spent with us helps our profits.
Too many meetings and not enough decisions? Same problem across most of the UK.
When did Tesco actually listen to what their customers want? Too little engagement with customers, too late. I think Tesco needs to go back to basics and think about how they treat their customers rather than counting their customers' pennies.....
It is important that the value is felt throughout the customer experience. I think Tesco has lost this point and so thinks however horrendous the experience as long as it is cheap enough - customers will be happy. I think their recent performance illustrates they are out of touch with the customer, and whilst this can work in some instances (Ryanair and air travel for example often infrequently used) it is not necessarily true for the frequency of supermarket shopping.
Where has the love gone, if it was ever there in the first place... Tesco need to seriously revisit their brand strategy and learn from the likes of Sainsbury's and John Lewis who are reaping the benefits of understanding their customers and engaging with them in a way that is far removed from an image of growth and profits. Get this right and growth and profit falls naturally into place.. There is nothing surprising about Tesco's recent turn in fate,
My only comment on all these fairly argued comments is why do the commentators want to remain anonymous? What are they afraid of...? You know who you are but if you are in some way 'related' to Tesco (professionally!) does this mean you're afraid to tell them what you think? Small wonder that Tesco has lost its way!!!
Tesco is the best in term of promotional activity
Every company rise and falls to it's knee's! Tesco has had it's prime for the last 15 years. time for someone else to take the crown.