Time for a bit of Tesco bashing, well it’s been a couple of months. (For those new to the blog see History with Tesco). I’ve seen the slides from a “Tesco Investor and Analyst Seminar”. The presentation doesn’t have a title which is pretty poor in the first place but moving on.
All quite dull really other than there’s a move to match price and quality of more products.
Tesco’s new strategy will increase its benchmarking of 500 product lines to a total of 11,000 lines. Yep 11,000 that wasn’t a typo.
Slide not make much sense? Maybe when someone was presenting it did. But key pointers are that Tesco says that it will match the quality and price (including “farm brands”) of at least 60% of Aldi and Lidl products and aim to ensure that the products are preferred to their Aldi and Lidl equivalents by at least 6 out of 10 customers.
Tesco brand products will be benchmarked against the quality of Sainsbury’s and the price against Asda, and aim to ensure that they are preferred by at least 8 out 10 customers. I feel I should put in a picture of a cat here.
The finest* brand products will benchmark the quality against the market leader by product category (e.g. M&S/Waitrose) and there will be no specific price benchmark, it says to ensure that they can offer the best possible quality products. They aim to ensure that these products are preferred by 10 out of 10 customers. Well if there’s no price match that’s all rather pointless isn’t it?! Oh look it tastes as good as M and S but look pay even more. Great policy Tesco??
So does that mean more fake farms? This story about increasing ranges hasn’t been covered much in the media has it? So it’s not like we are going to be aware to check. Along come some more fake farms. Some people may even be fooled into thinking that Tesco has listened to criticism and brought in some new REAL farms!
When I quizzed Tesco on the point about increasing fake farms a spokesperson said, “Our exclusive fresh food brands have been very popular and we’re really pleased with the feedback we’ve had from our customers. Customers tell us they like the combination of market leading prices and quality right across the range.”
Maybe so, I buy some of the range and part from tomatoes which are frequently rotten the quality is fine, that isn’t what some of us have an issue with. The issue is the marketing.
When I interviewed Dave Lewis, Tesco CEO a couple of months ago I asked about fake farms:
but still play on insinuation?
So despite Fake Farms – A bad country smell that won’t go away… (providing information on just how close those names are to existing farms, what farms, Trading Standards and what customers say, it looks like there will be more fake farms on the way!