‘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.

Latest from Marketing Week

Marketoonist on whack-an-idea

Marketoonist

Tom Fishburne is founder of Marketoon Studios. Follow his work at marketoonist.com or on Twitter @tomfishburne See more of the Marketoonist here

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