Every Lidl helps!
Supermarkets in the UK are usually narrowed down to the big four. You know the ones … jeez their brands are now identified by a colour!
But there is a re-jig happening in the industry and price is everything!
The marketing from the big four is pretty much all the same: ‘our service is great’, ‘compare me to so-and-so’, ‘I’m cheaper I promise!’
The latest in the on-going battle: Sainsburys brutally dumped Tesco from their Brand Match coupon scheme and started comparing themselves to Asda instead. Ouch. This break up has left Tesco bruised and has highlighted that Asda is now Sainsburys biggest price competitor.
I guess all’s fair in love and (price) war.
The big four, however are missing a trick; Aldi and Lidl are actually cheaper than any of them and consumers have started to notice:
Together they hold about 8% of the market, whilst Tesco holds about 29%. The difference is the big four are suffering and crumbling, whilst their foreign competitors are growing. Tesco lost 4.5% of sales last quarter and Aldi’s UK turnover has increased by nearly £1.5 billion in the past year … wow.
Aldi and Lidl have crept up on the big four because they were trapped in their bubble, so focused on beating each other, they forgot about the rest of the market.
A general (and obvious) rule for businesses is to know your market, know your competitors and keep an eye on them!
Aldi and Lidl identified that consumers needed genuine value for money and provided just that, right under the four noses that should have been watching.