The financial crisis in 2008 created a new breed of ‘savvy shoppers’ in the UK. This new consumer group came from those middle classes who suddenly had to tighten their belts and keep an eye on the household budget. They needed to break existing habits and create new ones. Defined as being shrewd shoppers who spend time looking around for a good deal but not compromising on quality. Their habitual supermarket was up for grabs and they extended their repertoire of choice based on the need for a savvy shop.
Flash forward to 2014, and despite signs that the economy is on the up, it appears that these savvy shoppers are here to stay. Recognising this trend, it’s the budget supermarkets like Aldi and Lidl that enjoy continued increases in market share while Tesco declines.
What Lidl are doing in the UK is an extraordinarily clever campaign that is designed to keep the ‘Lidl classes’ in their current supermarket habit. If the financial crisis was the cue/trigger to break a Tesco or Sainsbury habit, their latest campaign is designed all around the communication of the reward. The low prices are ingrained and part of the craving so the latest TVC is now about the quality of the produce – think ALDI in Australia and their cheese awards. It captures the surprise factor perfectly – the moment of customer delight that helps drive the brand story – in a very similar way to what our Australian client Best & Less did in their LAB campaign.
Have a look at the advertisement below – a great execution which we think will reinforce the supermarket habit and keep the ‘Lidl classes’ unconsciously choosing Lidl. It also acts as a trigger to new customers that budget supermarkets are no longer about selling cheap, low quality products.
If Tesco are worried in the UK, we’re wondering what Coles and Woolworths are thinking in Australia with the impending arrival of German brand Lidl