Lidl, the German discount supermarket chain, has appointed South Yorkshire agency Paradigm to its above-the-line advertising account, believed to be worth up to &£5m.
The retailer, which is in the firing line of a fierce battle between the major supermarkets on price, refuses to comment on the appointment. However, it is understood the agency was awarded the account this week after a month-long pitch.
It is also thought Paradigm pitched against a number of well-known agencies after Lidl decided to launch a corporate branding campaign for the first time. Until now the chain, which operates 200 discount stores in the UK, has used only price-led local ad campaigns to encourage shoppers into its stores. Its last main roster agency was Yellow M, which was moved off the account in 1998.
New work is now expected for next year and is expected to contain corporate branding elements aimed at increasing awareness of the Lidl brand as the big four players slash prices.
Foreign discount supermarket chains such as Lidl, Aldi and Netto have been seen as likely losers in the price war, which has seen even quality-led players such as Sainsbury’s pledge lowest price guarantees on core items. No one at Paradigm was available for comment.