‘Questionable marketing hurting Tesco’

Damage to Tesco’s brand equity through a “questionable” marketing strategy is the most serious issue management faces.

Tesco Price Drop

The warning from financial analysts Shore Capital comes ahead of the expected strategic announcement next week, likely to include service, product, and brand overhauls.

The supermarket has over-focused on value and its brand has become “nothing to a whole lot of people” in Tesco’s quest to be everything to everyone, according to Clive Black director at Shore Capital, which advises shareholders and investors on the businesses performance.

The news comes just as Tesco revealed a major shake-up of its brand communications by calling a review of its advertising account.

The recent relaunch of the value brand is seen as a welcome move but the firm believes that Tesco must do more in terms of brand innovation across its grocery, household, frozen and bakery ranges.

Tesco’s premium Finest range was also highlighted as a problem area that must be addressed. Tesco has already hinted that the relaunched Everyday Value range will not be the only on brand range to get attention as part of wider programme of improvement across the business.

Clive Black, director of Shore Capital, says that Tesco is likely to start using Clubcard more heavily in its marketing and business planning after a period of underutilising the data.

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