Tesco returns to vouchers after sales drop

Tesco is running a press ad campaign promoting a loyalty voucher initiative in an attempt to win back customers after reporting “disappointing” Christmas trading last week.

/q/o/y/tescofiver160.jpg

The promotion is a move away from its recent price lead marketing under the Big Price Drop banner and uses the strapline “A Helping Hand from Tesco.”

Tesco is offering customers a £5 voucher for every £40 shop that can be redeemed against their next £40 shop. The ads appear in all national newspapers today (18 January).

Tesco’s move comes after the supermarket’s recent marketing strategy attracted heavy criticism from analysts and group CEO Philip Clarke admitted that the chain’s strategy before Christmas had failed.

Clarke said in last week’s trading update that Tesco had wrongly cut back on voucher activity before Christmas at the time when rivals were ramping it up.

The loyalty initiative mirrors a promotion run by Asda last year which also gave shoppers £5 off ever £40 spend in addition to its 10% cheaper price guarantee as a “Christmas bonus”.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

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

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest 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 will be 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.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

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