Tesco/Boots price war flares after ASA ruling

The price war between Boots and Tesco intensified this week after the Advertising Standards Authority (ASA) ruled that Boots was right to claim consumers could save £51 a year by buying toiletries at its stores rather than at Tesco.

Tesco objected to a Boots press campaign in regional newspapers that claimed consumers could save money if they took advantage of Boots’ special offers, rather than Tesco’s Everyday Low Price products. The ad was created by J Walter Thompson. Tesco argued the comparison was “unfair and unclear”, but the argument was dismissed by the ASA, which said the comparison system Boots used on 18 products was clearly stated. Boots used market research company Taylor Nelson Sofres to help it make the calculations for its ad. The £51 figure was based on a household of two adults and two teenagers.

The decision comes days after Tesco announced £70m in price cuts on more than 1,500 food and non-food lines.

Tesco has also been forced to defend its pricing strategy this week after it emerged the company has been raising the cost of hundreds of products, apparently contradicting its low-price strategy. Tesco says the increases have taken place where discount offers were coming to an end.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here