British grocer Tesco is launching a new Private Brand of “brightly-packaged and brilliantly-priced food” under the sub-brand: Tesco ‘Everyday Value’. The brand will replace Tesco Value and follows extensive research with customers to understand what they want to see from a value brand. Unfortunately customer’s wants and needs were interpreted in yet another generic Great/Basic/ Essential/Everyday/Value brand name.
The new brand designed by the London based integrated communications agency Rocket will abandon the stark blue and white stripes in favors of more upscale, colorful packaging, which features retro line drawings of kitchen equipment and food. It looks remarkably similar to Waitrose‘s Essentials range of goods.
At the time the selling of basic, purposefully cheap-looking products was dismissed as a potentially brand-damaging move. But Tesco Value was the beginning of a worldwide trend and it allowed Tesco to increase its market share from 15% to 25% in a decade. In doing so it stole the prized number one crown from Sainsbury’s and it never looked back.
Tesco Value is the biggest of just four-supermarket sub (Private) Brands in the UK that have more than £1bn in sales. 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, Sainsbury’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.
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.”
Tesco is focusing on three areas with the launch of Everyday Value:
Quality – improving the quality of its Everyday Value products, at no extra cost for the customer. Tesco Everyday Value products will contain no MSG, no hydrogenated fats, no artificial flavors or colors, and no genetically modified ingredients. Other quality improvements include 100 percent fish fillet in Everyday Value fish sticks, tea bags and instant coffee re-blended to improve the flavor and orange and lemon squash with 10 per cent more fruit juice.
Healthier options: The new range caters for customers who want healthier options – and also supports British produce. Everyday Value mince will have a lower fat content than the old Value version, Everyday Value tinned fruit will come in fruit juice instead of syrup as the new fruit harvest comes in from June, while tinned peas, beetroot and carrots will be 100 percent British. British flour will be used to make bakery products such as pancakes, crumpets and scones.
Packaging improvements: To help customers spot the new brand on the shelves, Everyday Value packaging is more colorful and softer than the blue-and-white of the old Value label. We have also improved the way it functions, including biscuits in easy-open packets, grated cheese in re-sealable bags and fruit juice in easy-pour cartons.
David Wood continues: “We apply the same standards to our Everyday Value products as we do to all our Tesco food. Customer trials of the Everyday Value range have been very positive. Customers tell us they like the new name and the new packaging.”
Tesco reviewed more than 550 products to create Everyday Value:
Example of product improvements:
- Tesco Everyday Value Orange Squash now contains 10 percent more fruit juice
- Tesco Everyday Value tinned fruit – will be in juice, not syrup when new season available
- Tesco Everyday Value vegetables – three kinds of pea, beetroot and carrots will be 100 percent British.
- Frozen Peas- a better grade of pea
- Yogurt, improved creamy taste in four flavors
- Mince, reduced fat content
- Pizza, improved pizza base and more toppings
- Fish sticks – 100% fillet of fish
- Baby diapers – softer with flexible sides
- Cereals – bran flakes and corn flakes are fortified with vitamins and iron.
- More visibility of products using transparent packaging
- Reseal bags on grated cheese
- Milk chocolate digestive biscuits have more chocolate and chocolate chip biscuits have 33 per cent more chocolate chips.
- Lemon curd is more lemony – still with all-natural flavors
- Tomato, Brown and salad cream sauces come in squeeze bottles
- Chicken stock cubes now made with more chicken
- Apple sauce has 33 percent more apple
- The chocolate swiss roll is 35 percent bigger
- Seasonal vegetable mix contains more carrots, which are now diced
- Cleaning cloths are thicker and more absorbent
- Rubber gloves have longer cuffs
- There is 20 percent more wax in the furniture polish
- Dog food now has prebiotic added
- The 10 liter cat litter bag now comes with a handle