The Co-operative Group has insisted its epic advert trumpeting its ethical credentials is not out of touch with shoppers.
Despite the big four pushing low prices in their advertising as the recession worsens, The Co-op Group's two-and-a-half minute ad, which debuted this week, focuses on the society's work on climate change, young people and international development.
The ad was not "out of touch" insisted CEO Peter Marks. "People don't discard their views on life for a few pence off a tin of beans," he said. "We work very hard on both value and values and have had significant sales success. In month one of our new financial year like-for-like sales were up 6%, so people like what we're doing on price and promotion."
Marketing director Patrick Allen added: "What lies behind the ad is what a difference we can make, and now is the right time. We are big enough and bold enough. We are leading the way, and others will follow." He added that the campaign cost just £10m from a total budget of £70m, and the remaining money would be invested in price and promotion.
Marks also maintained that The Co-op Group's £1.57bn acquisition of Somerfield last July was a "good deal" and that he was confident the Somerfield business could be integrated into The Co-op Group successfully.
Somerfield would operate as a separate business for at least two years, and advertising for Somerfield would continue until it came to the stage when the number of Somerfield stores was "considerably less" than now. He said Somerfield's Bristol HQ would eventually close and staff would be helped to relocate to The Co-op Group's Manchester HQ or to find employment elsewhere.
"Integrating two big businesses is always a challenge," Marks added. "But we are pretty good at integrating businesses and have a very robust plan."
The society was also on course to report "record-breaking" full-year results in April with significant profit growth.
Despite the big four pushing low prices in their advertising as the recession worsens, The Co-op Group's two-and-a-half minute ad, which debuted this week, focuses on the society's work on climate change, young people and international development.
The ad was not "out of touch" insisted CEO Peter Marks. "People don't discard their views on life for a few pence off a tin of beans," he said. "We work very hard on both value and values and have had significant sales success. In month one of our new financial year like-for-like sales were up 6%, so people like what we're doing on price and promotion."
Marketing director Patrick Allen added: "What lies behind the ad is what a difference we can make, and now is the right time. We are big enough and bold enough. We are leading the way, and others will follow." He added that the campaign cost just £10m from a total budget of £70m, and the remaining money would be invested in price and promotion.
Marks also maintained that The Co-op Group's £1.57bn acquisition of Somerfield last July was a "good deal" and that he was confident the Somerfield business could be integrated into The Co-op Group successfully.
Somerfield would operate as a separate business for at least two years, and advertising for Somerfield would continue until it came to the stage when the number of Somerfield stores was "considerably less" than now. He said Somerfield's Bristol HQ would eventually close and staff would be helped to relocate to The Co-op Group's Manchester HQ or to find employment elsewhere.
"Integrating two big businesses is always a challenge," Marks added. "But we are pretty good at integrating businesses and have a very robust plan."
The society was also on course to report "record-breaking" full-year results in April with significant profit growth.
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