A sudden flurry of activity from food retailers with big plans for their online businesses is a good reminder that Tesco's rivals have not given up the fight just yet.
And leading the charge this week is Iceland.co.uk with an interesting plan to use the web to offer shoppers a plethora of the freshest and finest foods. It is a neat idea, and one that does provide some differentiation, particularly for a chain not well known for its fresh offering.
But, nonetheless, I feel it is doomed to fail because the harsh reality is that Iceland's core shoppers are not the types who would normally be interested in buying fresh tuna steaks sourced from Billingsgate. Try as I might, I find it hard to believe that Iceland will be able to persuade snooty ABC1s who might, at least, have heard of the world famous fish market to buy their fancy foods through its web site.
The reason is simple: it all comes down to what consumers expect from the Iceland brand.
The chain's core consumers trust it to deliver a cheeky, cheerful and cheap grocery proposition on the high street. Whenever Iceland has tried to deviate from that simple proposition, its punters have tended to punish it just think EDLP and organic veg for proof of that.
Not surprisingly, it's this core brand proposition that also turns off many higher income consumers. Just because this group of consumers has access to the internet, and a much greater inclination to shop online, does not mean they will suddenly decide to buy posh grub from Iceland. After all, they hardly rushed out to buy Malcolm Walker's organic veg, did they?
Although the web offers an opportunity to target different consumer groups, the past couple of years have shown time and again that while retailers can use the internet to stretch their brands into new areas, the medium does not allow them to stretch beyond their core brand proposition.
Sorry, Iceland. It really is a great idea, but this is probably a step too far. Again.
{{OPINION }}
No comments yet