work

Tesco
Farms Range

To fight the threat of European discounters, we adopted a politically-inspired targeting strategy to win back the hearts and minds of the UK’s most fickle grocery shoppers.

Understanding

Discounters coming over here, taking Tesco’s shoppers.

Over the last decade Aldi & Lidl have challenged the supremacy of the supermarket “Big Four” through their commitment to quality fresh meat, fruit and veg at extraordinarily low prices. In contrast, Tesco’s equivalent range, “Everyday Low Value”, had long passed its sell by date. As a result, many of their shoppers had opted to take their custom to Aldi and Lidl instead.

In 2016, Tesco decided enough was enough. They developed a new “Farms Range”, to cultivate trust and demonstrating to colleagues, suppliers, and, most importantly, customers that Tesco cared about good quality food at affordable prices. Tesco create 83 ‘Farms Range’ product lines that matched or bettered the discounters in terms of quality, whilst at the same time undercutting them in price by 10%. Shopping on a shoestring shouldn’t mean sacrificing taste.

Solution

We politicised our media to win over floating shoppers With this new range, the battle lines were drawn. We developed a new targeting strategy inspired by Downing Street to identify the key “swing voters” in the most critical “marginal seats”. Three data points were pivotal to informing this political strategy:

1. First party transactional data to identify shoppers whose fresh produce basket penetration had diminished in the past six months.

2. Geofencing competitor stores and tracking mobile device IDs to identify shoppers who were walking out of our stores and through the front doors of the competition.

3. Individual Tesco store sales data allowed us to identify specific shops and postcodes being impacted by Aldi and Lidl the hardest.

 

Through this data we built a rich picture of the individual parties and regions culpable for driving the greatest share of lapsed fresh purchasing and commercial loss.

Execution

Media focused on ‘swing shoppers’ and ‘marginal seats’.

Our data points were plugged into the media buy so that our campaigning was directed with extra vigour at the voters and constituencies that mattered most for this fresher, better, less costly range:

We used 1st party transactional data to canvas over half a million “swing voters” with an email that set out the manifesto for the range. This same data was plugged into our Facebook strategy to ensure we were influencing the most sceptical shoppers.

An alliance with Blis Media allowed us to reach shoppers defecting to competitors, both at home when planning shops and on mobile at the shop door.

Using store data we identified 26 “marginal stores” where shoppers were deserting Tesco at an alarming rate. We used geotargeted Facebook and programmatic display overlaid with 3rd party data to target low income households in these areas and change their shopping preference.

Results

A landslide success with over two thirds of all Tesco shoppers buying into the range.

The verdict? 12 weeks after launch basket penetration was four times greater than pre-launch and volume sales of fresh meat and produce are outperforming the opposition by 5%. The electorate has spoken and with shopper quality and value perceptions at their highest point for two years Tesco are delivering on their promises of helping its customers a little bit better every day.

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