TESCO

a tale of redemption

 

“We need to move from running shops to serving customers.”

Former CEO Dave Lewis set BBH a clear mission back in 2015.

And it worked: five years after Tesco recorded the biggest loss of any retailer in UK history, the company reported 20 quarters of consecutive growth, with £4.3 billion of revenue and £863 million profit. It’s one of the great corporate turnarounds in British history, and it’s all driven by brand.

Here’s how we did it.

 

£4.3bn

Incremental revenue.

£2.73

ROI.

£863M

Total Profit.

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Act 1: The Trust Turnaround

In the 90s, Tesco had become Britain’s biggest grocer by putting customers first. But by 2015, customer trust in Tesco hit rock bottom (look up “horsemeat scandal” to see why). Shoppers were leaving Tesco for other supermarkets and the brand’s commitment to customers – ‘Every Little Helps’ – had lost its meaning.

The Solution

We helped Tesco commit to helpfulness again with initiatives in stores (like opening more tills at peak times), a digital and social overhaul and projects that involved Tesco colleagues. All this was communicated through consistent, streamlined communications, including TV ads featuring British celebrities.

6Yr high

Trust, reputation and recommendation hits new high.

 

Act 2: The Quality Quandary

One of the main reasons people choose one supermarket over another is how good they think the food is. After years of price-heavy messaging, Tesco’s food quality scores were their biggest area of underperformance, despite people rating Tesco food highly in blind taste tests. The brand was found guilty.

The Solution

‘Food Love Stories’: a campaign celebrating the food people love to make for the people they love. Ads were rolled out across TV, outdoor and social, complemented with in-store promotions and recipe cards.

9YR

High in 'Quality of Food' perceptions.

+10%

Increase in sales of all 'Featured Ingredients'.

Act 3: The Bang for your Buck Bind

A man goes into Lidl for some bread and comes out with a two-man tent, a chainsaw and an inflatable paddling pool. It sounds like the start of a bad joke – but for Tesco, this was no laughing matter. The German discounters were cheap and hell-bent on a price war.

The Solution

To celebrate Tesco’s 100th birthday year, we treated price-sensitive shoppers to exceptional deals in four month-long Value events with ‘Prices That Take You Back’. But it wasn’t a straightforward trade campaign. We wanted to tug heartstrings. So we brought in help to give Tesco’s price promise the seal of approval, from mods on mopeds and wartime shoppers to British icons including Mr Motivator, Anneka Rice, Morph – and, of course, Mr Blobby.

£19.3m

Incremental Sales per event.

19%

Increase in value perception.