Watching TV here in the UK last night, I was struck by an ad for Tesco.com (the online ordering and delivery grocery shopping division of the wildly successful Tesco).
The ad, which shows a branded bread loaf, tells that when you shop on Tesco.com that you will be offered a lower priced alternative when you make a selection. It then shows a Tesco branded loaf showing how much you can save.
As someone who has grown up in a branded manufacturing environment, the approach gave me a shudder. On the surface, while it looks like a consumer serving approach that offers to save them money, it also makes a possible comment on the role of brand from this massive retailer.
After making me shudder, it did though also make me wonder what consumers would do if they selected the brand I work on and were offered a cheaper alternative. If the value of my brand is not giving them what they want, then I probably deserve to lose them. Value, of course is more than just price - it includes performance (perceived and real), aspirations, trust etc, and at a price that the consumer feels is worth it.
So while on the surface the Tesco approach is disturbing, as a brand you have to be sure that what you offer your consumer offers great value - and if your bundle is no better than Tesco brand (as I assume most of their recommendations will be for own brand) then you deserve to lose them.
What do you think? Email me or post a comment on the blog post now
1 comment:
Brands rely on a 'support structure'. That 'support structure' endorses a brand environment, that people should spend more on a brand name; the support structure encourages snobbery. When customers then are 'allowed' to question this, the wheels will come off. Branding is linked to snobbery and if customers are allowed to put away their snobbery in times of financial harshness, brands will suffer. Further, in a rational world, the cost-benefits of a brand simply don't stack up. Aspirational marketing is purely a mirage. A skin cream or washing powder won't give you perfect kids or a fantastic new bloke. 'Allow' customers to rebel, and get off the brand rollercoaster and they might do so; and if one gets off, they might all do so....
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