Monday, August 21, 2006

ASDA vs the price cutters

When you position yourself as cheap, the cheapest and always lowering prices, what do you do when you're not the cheapest anymore?

This is what ASDA faces and it looks as though they're trying the tried and tested route of sticking their collective heads in the sand over at HQ. At least that's what I gleamed from a Radio 4 programme, who interviewed those from the price cutter brigade: Allders and Liddle and those at ASDA.

What's happened? Well Liddle, Allders and others have increased in size to account for something like 10% of all supermarket sales. They've done it by self-selecting a range of goods, and then offering them at a very low price. So rather than having a choice of 15 olive oils like at ASDA you get the choice of 1, but it's bloody cheap and it seems that we price sensitive creatures that we are, are shopping at the price-cutters in ever increasing numbers.

Meanwhile...ASDA bleat on about range and value, but what does value mean in ASDA terms? If you've educated the public that value means price, then that's what the public will think.

And if you're not the cheapest anymore? You go to somewhere that is. The amazing thing is neither Liddle nor Allders have done any form of brand advertising. It's all been word of mouth; they're just slowly growing and growing.

Personally I hate the concept of cheap, cheap food, it can't be good for you, it must be full of crap, but plenty of people do, so expect a Liddle on your doorstep soon...

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