1bn pounds package for revamp of Tesco Value food range | WPN World People News

Struggling UK supermarket giant Tesco has launched a new rebranding campaign for its 1 billion pounds Tesco Value food range, as part of attempt to revamp and regain some of the lost ground from rival groups.

Striving to improve its performance in its home market, Tesco has binned the blue and white stripes of Tesco Value, which were first launched during the recession in the 1990s, and instead introduced more colourful packaging.

Clive Black, an analyst at Shore Capital, has said that this shake-up could be a prelude to a wider ranging redesign of the Tesco own-brand.

Many of Tesco rivals too have undergone revamp in order to not just survive but also recoup lost ground. Asda began the trend for revitalising own-brand products by renaming its mid-tier range as Chosen By You.

Morrisons is also redesigning its own-brand ranges as a key part of the strategy implemented by Morrisons' chief executive Dalton Philips.

"Private label is a reasonable battleground for the UK supermarkets at the moment, so Tesco has joined the fray," said Black.

Tesco also said that, as well as introducing new packaging, it had improved the quality and health credentials of the value range, which will now be known as "Everyday Value".

The change will not extend to the price of products, Sidonie Kingsmill, director of global brands at Tesco, insisted. "It is absolutely critical to customers on a budget that they know what price our value range is going to be," she said.

Experts agree that affordable quality is more relevant now than ever before but customer needs have changed. Everyday Value will provide products that taste better, look better and are healthier."

The Value label has grown at more than 9% year-on-year and will now contain more natural ingredients as well as tasting better.

However, the brand has not been wholly well-received by the experts, with Chief Executive Officer of Interbrand London, Graham Hales saying he "can't quite see what the Everyday Value design is trying to say.The new look doesn't feel very Tesco or have that shelf appeal that communicates that quality dimension."

Cliona Lynch, Senior Retail Analyst at Verdict Research however believes that this is "a wise move for Tesco", adding that "like a lot of things with Tesco, the range and the blue lines had become a bit dated - a refresh is only a good thing."

Source: Middle East News.Net