Reports out this week have revealed that Tesco has launched a new marketing campaign as part of Philip Clarke’s plans to reinvigorate its fresh food offer.

Reports out this week have revealed that Tesco has launched a new marketing campaign as part of Philip Clarke’s plans to reinvigorate its fresh food offer after the horsemeat scandal damaged the retailer’s reputation - and sales - earlier this year.

There’s no denying the fact that Tesco has fallen out of favour recently, and a large-scale refresh seems like a very good idea. But the real question is: where did it all go wrong? Is Tesco really suffering from a case of consumer backlash? Or has the retailer simply failed to stay relevant in the current market?

To be fair, at least part of the problem is probably a bit of ‘Tall Poppy Syndrome’; it’s easy to take potshots at a company that is so far ahead of the pack. So before we shed too many tears for Tesco, we need to remember that it is still the largest grocer in the UK by some margin.

However, even market leaders need to re-invent or refresh themselves to keep up with the times. It seems that Tesco may have allowed store numbers and location to take precedence over all else in recent years, neglecting how the stores actually look and feel to customers - at a time when Sainsbury’s, Morrisons and Asda have invested heavily in getting this right.

So, we now have a situation where Tesco appears in some ways to be a follower rather than a leader. But that’s not necessarily a bad thing; there is nothing wrong with taking a lead from where others have succeeded. In fact, it’s a credit to management that they’ve spotted that fact and are taking steps to do something about it. After all, a good idea doesn’t mind who has it.

Tesco has always been very skilled behind the scenes, with the best technology, the most strategic expansion plans, the greatest buying power - but the customer isn’t able to see all of these things. It could be that the company spent so much time running best of breed operations that it forgot about looking at the business from the customer’s point of view.

In order to address this issue, Tesco will need to focus on front-of-house as much as it has done behind the scenes.

Tesco can have the newest IT systems, the best supply chains and even the lowest prices, but if customers don’t actually enjoy the experience and trust the brand, none of that will matter.

Tesco needs to understand that today’s savvy consumers demand all-round value, not just cheap prices - and trust in the brand plays a large part in that equation. If consumers aren’t presented with a combination of care, quality and in-store ambiance at the point of purchase, how can a retailer expect them to trust the unseen parts? New marketing campaigns are all well and good, but all retailers - Tesco included - need to understand that building trust actually needs to start on the shop floor.

  • Dan Coen, director, Zolfo Cooper