Tesco, Heineken, Morrisons: 5 things that mattered this week and why

Tesco brings Jack’s in store for the first time

Last September, Tesco opened the first stores of its new discount chain, Jack’s, named after Tesco founder Jack Cohen.

It was a move to rival the growing popularity of those German discounters, Aldi and Lidl, which have been encroaching on other supermarkets’s market share consistently over the last few years.

This week, Tesco started selling Jack’s products in its main stores for the first time as part of its centenary celebrations, which also saw the launch of its second anniversary campaign featuring Morph and Mr Motivator.

It is promoting “100 years of great value”, so the introduction of Jack’s fits in neatly, given all Jack’s products are cheaper than their cheapest Tesco counterparts.

But it feels bigger than this, like Tesco is testing the waters to see whether there is scope to introduce Jack’s items into its main stores in the longer term.

How do they sell in main stores? Do they cannibalise the sales of other Tesco products? Is this going to lure loyal Aldi and Lidl shoppers through Tesco’s doors?

Or perhaps it is just the simple fact that Jack’s products aren’t selling well in their own stores and Tesco needs to get rid of stock. Or maybe that Tesco has seasonal space to use in the awkward period between Easter and summer.

Tesco has been relatively coy and quiet about how Jack’s is doing so far. But, while others in the grocery market struggle, it is doing a good job with its business turnaround and no doubt has a plan to make sure it stays on track.

In the meantime we’ll be asking only the biggest and hardest questions, starting with: which characters will it dig out of the TV archive next? EH

READ MORE: Tesco to sell Jack’s products in its supermarkets for first time

Heineken pushes no- and low-alcohol with new campaign

Heineken has launched its first cross-brand campaign as it looks to push its no- and low-alcohol products. The beer giant is launching the campaign across out-of-home, social and the on- and off-trade in the hopes that it can grow the category as a whole.

Heineken is not the first to do this, with Budweiser Brewing Group (formerly AB InBev) and Brewdog also keen to capitalise on the alcohol-free trend. But this is arguably the biggest investment the industry has seen to date in the no- and low-alcohol category.

Changing consumer trends mean a growing number of people are now choosing to abstain from drinking for reasons other than religion or being the designated driver.

The industry is aware that this is set to be a booming market and it’s a smart move from Heineken to drive the category and its brands.

Not only does it allow Heineken to lead the low-alcohol charge and set a standard for the rest of the industry, it opens up a number of new opportunities for for alcohol brands and retailers alike.

One day you might even be able to have a beer (albeit alcohol-free) included in your Sainsbury’s meal deal. MF

READ MORE: Heineken launches first cross-brand zero-alcohol campaign to help ‘explode the category’

Morrisons eyes up ultra-fast delivery space

For a retailer that usually likes to play its cards close to its chest, Morrisons made some big announcements this week.

It has opened up its exclusive relationship with digital partner Ocado, which means it can have a closer relationship with Amazon.

But perhaps most interesting of all, Morrisons has been looking at opportunities in the ultra-fast delivery space.

In true Morrisons style, boss Dave Potts wouldn’t disclose any information about the commercial discussions the business has been having. But he hinted that Morrisons has been talking to businesses in the same realm as Just Eat, Uber and Deliveroo.

“As both a food maker and shopkeeper, and not in every location in the country with bricks and mortar, I do think there are special opportunities ahead for Morrisons to be involved in that consumer change around next meal and last mile and how those things can be fulfilled,” Potts said.

“There are a number of companies entering the market to be part of that last mile of fulfillment, very short time-scales between an order from the consumer to the receipt of the goods, who believe their know-how and their wheels can add value to both retailers and consumers.”

While Amazon is better suited to large grocery orders, any tie-ups with these smaller delivery businesses means Morrisons would be able to fulfil much smaller grocery orders and in cities and towns where it doesn’t have a physical presence.

This could also extend to meal deliveries, which would give Morrisons a unique competitive advantage in a challenged grocery sector. EH

READ MORE: Morrisons eyes opportunities with Amazon, Just Eat and Uber as it relaxes Ocado deal

Just Eat launches first global campaign

Just Eat has launched its first global campaign since it consolidated its marketing. It’s the first time the company has developed creative centrally to be adapted across multiple countries, which interim CEO Peter Duffy told Marketing Week helped it “invest in the quality of creative work”.

Just Eat argues that consumers shouldn’t be grouped by geography and instead it is better for creative to target age demographics and other markers.

It’s an interesting strategy and one that might backfire if not played right. After all, Just Eat is more advanced in some markets than others so marketing will play different roles.

The takeaway market is overcrowded and Just Eat needs to ensure it stands out as its main competitors Deliveroo and UberEats vie for the top spot.

The latest ad is a new song sung by TV characters, including Stevie from Family Guy. It is not far off Deliveroo’s oddball campaign in January, which featured a series of off-the-wall scenes including a young man repeatedly eating the same takeaway until he becomes a futuristic old man.

Both have a wacky take but neither are particularly memorable.

However, Deliveroo’s strategy is what will make it stand out. The brand is branching out beyond the core millennial city dweller to older generations and the suburbs, while Just Eat is concentrating its outdoor ads to big city commuter spots. MF

READ MORE: Just Eat launches first global brand campaign as it consolidates marketing

O2 believes enhancing paternity leave is a key way to retain talent

Retaining – and attracting – the best talent in today’s competitive job market means standing out as an employer with a difference. Alongside ramping up their flexible working offerings, a growing number of brands are enhancing their maternity and paternity leave policies to show employees they can be parents and still have a fulfilling career.

O2 believes it has taken the next step to becoming a truly inclusive employer by enhancing its paternity leave provision from two to 14 weeks at full pay. Introduced on 1 April, the policy is open to employees at head office and across its retail stores, regardless of whether they are heterosexual, same-sex or adoptive partners, or become pregnant via surrogacy.

CMO Nina Bibby, who describes the policy as a “natural extension” to the wider flexible working culture at O2, says she is “delighted” that a father of newborn twins working in the marketing department is currently out on his 14-week paternity leave.

O2 is not the only company to take on the issue of parental leave. In April drinks giant Diageo began offering all parents across its 4,500-strong workforce equal parental leave, including the first 26 weeks at full pay. The scheme is open to all parents regardless of gender, sexual orientation or length of service.

Likewise, at Spotify all employees are eligible for six months of fully paid parental leave, which it is possible to split and take at any point in the first three years of the child’s life.

Since equalising parental leave in November 2017, Aviva has seen 67% of new dads in the business take six months off at full pay and a further 95% take more than the statutory two weeks paid paternity leave.

These brands show a wider acknowledgement of the role parental leave has to play, not only in attracting and retaining talent, but also in closing the gender pay gap and creating more inclusive workforces. CR

READ MORE: O2 hopes to ‘attract and retain the best talent’ by offering enhanced paternity leave