Tesco price dispute sends Unilever brand perceptions tumbling

Unilever brands including Marmite, PG Tips and Colman’s have all been impacted.

Unilever’s price dispute with Tesco has led to a number of its brands experiencing a steep decline in consumer perceptions over the past few days.

The pricing row between Tesco and Unilever made headlines around the country. It was caused after Unilever reportedly raised the price of its products by 10% in a bid, it said, to offset the higher cost of importing caused by the weak pound following the Brexit vote. In response, Tesco decided to pull dozens of Unilever’s brands from its shelves.

The dispute was sorted less than 24 hours after it became public knowledge. Unilever said in a statement last week that the “supply situation has now been successfully resolved”.

But figures by YouGov BrandIndex show that the short-lived spat has had a negative impact on consumer perceptions of Unilever’s brands.

READ MORE: Tesco versus Unilever: Who won the Marmite price row?

Marmite is undoubtedly the biggest loser after last week’s row. It has seen a “statistically significant” decline when it comes to buzz, which measures whether people have heard anything positive or negative about a brand, dropping 32.4 points to -23.7. It is now placed last on a list of 29 ‘dried ambient food’ brands, which includes competitors such as Nescafé, Heinz and Yorkshire Tea.

But that’s not all. Marmite’s reputation has also declined by 11.6 points, causing it to fall 16 places in the rankings. The brand’s value perception also suffered a severe blow, falling down to 19th place. Purchase intent among consumers has also dropped -3.9 points.

Other Unilever brands suffered a similar fate. PG Tips fell 24 places down to 28 when it comes to brand buzz, while Colman’s fell 17 places from seventh to 24th. The tea brand also saw “statistically significant” declines when it comes to customer satisfaction, recommendation and impression, which looks at whether customers have a general positive or negative feeling about the brand.

Tesco, however, has not escaped impact either. Its buzz score has dropped 12.8 points to -3.2, causing it to become the lowest scoring grocer in a list of 26 supermarkets. However, its value perception has increased by 5.2 points, thereby becoming the third most popular grocer.

BrandIndex_TescoMarmite

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