Saturday, May 20, 2017

From Horsemeat to Home...the Reinvention of Tesco

Having a wealth of positive stories about your product not only elevates your brand, but also provides a moat or buffer against the risk of negative headlines. This effect is evident in the airline sector, where negative customer press is more common for some airlines vs others (think UAL vs Jet Blue). Some firms attempt to “rebrand” or trigger positive social media/earned advertising by changing the focus and dialogue with customers after a negative episode. A great example is Tesco. Between the recent ‘horsemeat scandal’ (not cool), to large corporate fines, to growth of competitors Aldi and Lidl, the firm needed something more engaging that jut the usual BOGO advertising. To this end, Tesco sought to engage consumers using “Tesco Food Love Stories”. As described by the article “They show how Tesco products can solve any family problem, which brings Tesco right into the heart of the home. They break the fourth wall, which many marketing campaigns fail to do.” The idea, with this honest and direct dialogue, is to increase trust and thus restore loyalty to the brand. It’s a first step and unclear if successful, but shows the strides and flexibility required of incumbent players in a world with increased digital marketing.


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