Why EDLP won’t last

The Grocers seem to have decided that Every Day Low Pricing is the way forward.  The logic being that having been bombarded with BOGOFs, 2-for-1s and the like, the modern shopper has got savvy and is looking for good old fashioned low prices.

Which makes a lot of sense.  Except that it ignores the age old truth of retailing – people find the idea of a bargain irresistible.  It doesn’t matter whether you get free floormats with your Mercedes, a complimentary hotel room upgrade or 50% extra free in the shampoo bottle, its all about the feeling of having got something for nothing and somehow beaten the system.

Asda promise they are Saving you money everyday but cunningly use their Asda price guarantee to show you how much you’ve saved – if you had shopped elsewhere.  But that rather relies on shoppers logging on to check their receipt – and early reports suggest they aren’t doing this in droves.

In contrast Sainsbury’s seem to have simply repackged their offering as Value where it matters, with everyday value messaging in comms but BOGOFs and better-than-half-price offers galore instore.

Give it six months and I predict we’ll be back to overt offers again.

3 thoughts on “Why EDLP won’t last

  1. It’s an interesting dilemma. It probably hopes that the thrill of the end bargain (lower bill) is bigger than the individual thrills of offers.

    I’ve heard Asda’s strategy criticised for being one dimensional too.

  2. We should applaud simplicity, transparency and if it’s the case. conviction.

    We’re just pulling out of the 20th century marketing and pampered consumption model. I don’t deride the scepticism here but as I was reading through the post it occurred to me that the basis for something profoundly honest could take place.

    Imagine if the communications objective was ‘prove we’re lowest price’ by surprising, entertaining and winning customers to a deeper level.

    I’m not even going to open up the segmentation can of worms as I don’t know enough. But I’d be curious to know if they are serious.

  3. Indeed. It’s interesting to know if the open and transparant culture of the online world is starting to infiltrate the way most people act in real life too…

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