Saturday, 27 September 2014

Selling Cheap is a risky business low everyday value #Morrisons proposition predicament #Tesco #ASDA #LIDL

Well however we in Selling like to dress  it all up, the challenges of  low price selling remain the same.

Four months ago Morrisons launched their ‘I’m cheaper’ strap.  “It’s the new cheaper Morrisons” in May to promote its “biggest ever” round of price cuts, which saw it lower the cost of more than 1,200 products. 

“I’m Cheaper” campaign played a key role in communicating the price cuts. Now the supermarket is looking to reassure on base prices and communicate to customers that those price cuts are not promotional but permanent.

 Now Morrisons has changed its point-of-sale to show the low price of its products with an arrow with a pound symbol inside pointing down and the words “everyday low prices” (EDLP).

Everyday low prices is “industry-standard language” in supermarkets
 for example :-
Asda also uses an “everyday low price” message
Tesco is currently using a “Prices down and staying down” message
Sainsbury’s continues to focus on values in its marketing
Morrisons new pricing strategy is integrated with
  • improving ease of shop,
  • reducing clutter and
  • making Morrisons’ communication really clear and consistent.

Ad placed in Sunday Times supplement
  50 years of Business
1964 -2014
The supermarket is also hoping to improve its value offering  by making promotions
 clearer and more relevant and boost brand affinity by making more use of the Morrisons yellow.

Morrison plans for local marketing to communicate  new opening hourshours, mostly in-store. 

Morrisons will also launch 'geotargeted' campaigns on mobile.

The 'EDLP’ and ‘Everyday value’ are  generic terms in retail.

 ‘Everyday Low Prices’ is pretty uncreative and  unlikely to stand out in supermarket sector. 

It is the real prices on show that will do the talking !

The extract of the quote from which the congratulatory advertisement to the Sunday Times omits the word 'balance' . The quote comes from one by John Ruskin (1819-1900).

" It is unwise to pay too much, but it's worse to pay too little.
When you pay too much you lose a little money - that is all.
When you pay too little , you sometimes lose everything because the thing you bought is incapable of doing the thing it was bought to do.

The law of Business balance prohibits paying a little and getting
a lot - it can't be done.

If you deal with the lowest bidder , it is as well to add
something for the risk you run and if you do that you will have enough for
something better " 

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