[guide.chat] tesco ditches value range

From: vanessa <qwerty1234567a@xxxxxxxxx>
To: "GUIDE CHAT" <guide.chat@xxxxxxxxxxxxx>
Date: Wed, 4 Apr 2012 18:33:02 +0100
Tesco ditches £1bn Value range
By Harry Wallop | Telegraph ? 6 hours ago
Tesco (LSE: TSCO.L - news) has abandoned its famous Value range of goods, in 
favour of an updated line of products, as it continues its fightback against 
rivals.
The range of goods will be called Everyday Value and will abandon the stark 
blue and white stripes in favour of more upmarket, colourful packaging which 
features 1950s-style line drawings of kitchen equipment and food. It looks 
quite similar to Waitrose's Essentials range of goods.
The company insists that the change is more than a rebranding exercise and many 
of the 550 lines are being substantially improved, either in content or in 
packaging. The apple sauce, for instance, contains 33pc more apples; the fish 
fingers now contain 100pc fillets of fish and the cheddar comes in a resealable 
bag. It also says its mince contains less fat.
Will Tesco's new Everyday Value range persuade you to shop at the supermarket
Abandoning the Value band, however, is a brave move by Tesco. Value, launched 
twenty years ago, came about in response to the early 1990s recession, the 
aggressive expansion of Kwik Save and the arrival of European cost-cutters, 
Netto and Aldi.
At the time the selling of basic, purposefully cheap-looking products was 
dismissed as a potentially brand-damaging move. But Value went on to set the 
trend across the industry and it allowed Tesco to increase its market share 
from 15pc to 25pc in the space of a decade. In doing so it stole the prized 
number one crown from Sainsbury?s and it never looked back.
Value is one of just four supermarket sub-brands that has more than £1bn in 
sales, and it is understood to be the biggest of all of them. The others are 
Tesco Finest, Asda Chosen by You and Waitrose Essentials, according to Kantar 
Worldpanel.
However, over the last 18 months Tesco in the UK has been struggling, with 
underlying sales falling. It has lost market share to Iceland, Asda (NYSE: WMT 
- news) , Sainsbury (LSE: SBRY.L - news) 's and many others. It admits its 
Value range looks tired compared with Waitrose Essentials and Morrisons' M 
Savers range, which replaced its own cheap-looking Morrisons Value range.
According to Kantar, own-label budget ranges have grown 9.3pc over the last 
year, but it is understood Tesco's Value range has significantly underperformed 
this level.
David Wood, Tesco UK Marketing Director said: ?Tesco was the first supermarket 
to launch a Value range back in 1993, the blue-and-white striped brand giving 
customers a down-to-earth option. Almost 20 years on and an affordable quality 
range is more relevant than ever, but customer needs have changed.
?We have listened closely to what our customers want and Everyday Value will 
provide products that taste better, look better and are healthier still at the 
same great price.?
Most analysts were impressed with the look of the new brand and how it proved 
Tesco was starting to look at the quality of its goods, not just prices. Neil 
Saunders at Conlumino said: "There is a large segment of the shopper population 
who want keenly priced everyday products without having to sacrifice too much 
on quality; in other words they want great value for money, which is much more 
than about just price.
"Tesco is a company with many challenges. However, if this sort of thinking is 
a sign of things to come it bodes well for the future."


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Vanessa The Google Girl.
my skype name is rainbowstar123
[guide.chat] tesco ditches value range

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