Marketing Week suggests that Tesco pursue a bold branding approach, which is a good idea.
But Nielsen, which tracks shopper purchasing and store sales, also says the Big Price Drop has started to show results in recent weeks. Yet Nielsen notes that price-sensitive customers must become loyal customers for this strategy to have long-term success:
'Shopper promiscuity continues, with nearly all retailers seeing a small growth in their shopper numbers, but the challenge now is for them to convert this footfall into increased sales.'Meanwhile, Tesco's price-cutting was in the headlines a few days ago, when the new Apple iPad was briefly offered for £49.99 on the store's site (see below). The offer was quickly withdrawn, with Tesco citing IT error, and nobody was able to buy at this obviously low price. One expert wonders: 'Was this a convenient error or a fantastic strategy from an online genius?'