The UK’s largest retailer, Tesco, has re-launched its ‘Finest’ range in a bid to compete with Waitrose’s recent sales growth, attract more affluent shoppers and increase its sales.
While many in the UK have been cutting back on grocery spending in difficult economic times, fuelling a surge in sales at discounters such as Aldi and Lidl, others have made a move towards more up-market supermarkets including Waitrose.
Brand View has looked to understand more about how Tesco has changed its own-label range over the last six weeks to increase its premium offering.
Tesco ‘Finest’ has seen a five per cent increase in average price over the last six weeks, helping to drive a more premium product range overall.
Products stocked throughout the last six weeks have actually increased by one per cent, however the key driver of the category change is driven by the new listings which are on average 18 per cent more expensive than the previous listed ‘Finest’ lines.
Brand View has seen 289 new listings which now account for 23 per cent of the ‘Finest’ grocery range. In the Grocery sector we have seen around 100 lines de-listed over the last six weeks which were actually cheaper than the category average, also helping to increase the average price of the ‘Finest’ range.
Has Tesco Changed its Promotional Mix with the Re-launch?
Whilst we haven’t seen a noticeable change in the promotions used in the very recent re-launch, we have seen a change in Tesco’s ‘Finest’ promotional strategy earlier this year.
Tesco has reduced the number of price reduction promotions taking place on its ‘Finest’ range, mainly driven by Save Amount activity.
Whilst increasing Multibuy promotions, particularly since January this year, Tesco has placed an increased focus on Buy 2 For promotions (all of which are round pound offers, e.g. 2 for £5, 2 for £3) and ‘Any 3 For 2, Cheapest Product Free’ communication in-store.
This move away from Price Reduction promotions continues to help drive the more premium positioning of its ‘Finest’ offering in its communication.
The re-launch is being supported by television sponsorship of Downton Abbey and by an advertising campaign starting later this month.
Download this document to see more detail on the new products Brand View has detected in recent weeks.
This analysis is conducted on Grocery items. To review trends on other categories such as BWS, Household or Health & Beauty, please contact the Brand View team.
If you would like to set up an alert on your category to see any further new Tesco ‘Finest’ listings and de-listings, contact your account manager today.