Marketing analysis: the UK supermarket battleground
Once again the BBC have posted up a clip that clearly and concisely (in two and a half minutes) neatly sums up the marketing challenges faced by the main UK supermarket chains: store locations, types of store, products, promotions, target markets … and prices.
On that point, there’s also more detailed news published recently about Waitrose matching Tesco prices, getting marketing mileage out of the John Lewis ‘never knowingly undersold’ pledge.
The grocer (part of the John Lewis Partnership) has been outperforming its larger rivals for several years, but in recent months have seen profits fall even faster than Tesco. Now the managing director has said that it was investing “tens of millions of pounds” to extend its existing “price match” guarantee. “This is our equivalent of John Lewis’s ‘never knowingly undersold’ pledge,” he said. The move is probably prompted by the squeeze on living standards in ‘double dip’ recession-hit Britain, which has made shoppers increasingly keen to hunt down the lowest prices and money-off vouchers. Higher food and fuel prices also mean industry sales volumes are falling, forcing the big supermarket chains to fight tooth and nail to hang on to their customers.
- Morrisons has recently lost market share, suggesting it was being outgunned in a voucher war at the checkout
- Tesco, which last month announced a £1bn investment in its UK chain after falling sales and profits, is offering £10 off a £80 groceries shop.
- Sainsbury’s is running “Brand Match”, which generates coupons at the till if branded goods can be bought cheaper elsewhere.
Waitrose is tiny compared to Tesco (with a market share of 4.5% compared with Tesco’s 30.7%) and has sought to shake off its reputation for being expensive by running more promotions and introducing its budget range, Essentials.
These moves aren’t perhaps surprising in the current climate, even though Waitrose tend to target an affluent market segment.
Our AQA A Level Business Grade Booster workshops are designed to provide essential revision support to AQA Business students as they complete their preparation for Paper 1, Paper 2 and Paper 3.
Designed to support all Year 12 students in the first year of taking A Level Business, our Flying Start Student Workshops focus on the core Year 1 teaching content and assessment skills.
Superb series of worksheets specifically designed to help students practice the quantitative skills element of the Year 2 teaching content for Edexcel A Level Business.
- More premium resources ›
Pearson, Nationwide (Home working)
International School of Milan, Milan, Italy
Peter Symonds College, Winchester, HampshireNew
Reading Blue Coat School, Sonning-on-ThamesNew
- Browse all jobs ›
Much cheaper & more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences.