Tesco is every bit as keen as Sainsbury's to emphasise its points of difference

At the time of the launch of Asda’s Price Guarantee in October 2010, marketing supremo Rick Bendel argued it would change the face of supermarket retailing. It’s certainly created waves, though perhaps not in ways he imagined. As the pioneer of supermarket price guarantees, APG hasn’t been particularly well-received - a function of its clunky delivery mechanism, but also Asda’s positioning. At least it was more successful than Tesco’s response, Double the Difference, which ended in humiliation.

“Whether it’s City Kitchen, the Euphorium project or the Giraffe restaurants, there’s nothing me-too about Tesco’s approach”

Adam Leyland, editor

That left Sainsbury’s to come from behind and learn from Asda and Tesco’s mistakes. Its Brand Match has neutered the price advantage of rivals, and enabled Sainsbury’s to promote its USPs unencumbered.

That Tesco has subsequently taken the best bits of Brand Match and added to them with its new, improved Price Promise, is evidently not something Sainsbury’s is prepared to take lying down. This week it took its fight to the High Court. But as Beth Brooks argues it’s odd it should do so, because Tesco’s Price Promise isn’t getting the same cut-through.

The irony is that Tesco is every bit as keen as Sainsbury’s to emphasise its points of difference on the own-label side. The recent work it’s done on Tesco Finest, including on the merchandising side, has been fantastic (at least until it comes to compliance) and whether it’s City Kitchen, the Euphorium project, the Giraffe restaurants, or the world food aisles, there is nothing me-too about Tesco’s new approach.

It’s precisely to differentiate its offer, of course, that Tesco developed its so-called ‘venture’ brands in 2011. Now, with its New York Soup Co range axed, it’s clear some initiatives are proving less successful than others. Are its venture brands doomed? Though others disagree, I would argue that Tesco is the brand, and it doesn’t have the resource, the capability or the sustained will, to build true product-based brands. The only exception I can possibly see is Hudl, as the value is higher, and the retailer has hived off its tech development to a hothouse in trendy Farringdon. And even that may need to be spun off to achieve its true value in the future.