It's almost 10 years since the cat was let out of the bag

How did Tesco get so big? One reason has been its adept relations with those at the centre of power.

For example at the Department of Environment, Commentary Food and Rural Affairs Select Committee session held on 29 June 2004  (question 339) Austin Mitchell MP  asked David North, Tesco's Corporate Social Responsibility and Government Affairs Director about Tesco's input on matters such as obesity and food standards with the question:

``How frequently do you have contact with Government on these issues?''

North responded:

``I think contact of one sort or another would be almost daily, whether it is on an individual issue or on wider ranging issues like obesity. Contact with Government is frequent''. (My emphasis added)

see: http://www.parliament.the-stationery-office.co.uk/pa/cm200405/cmselect/cmenvfru/469/4062907.htm

The move to lower prices seems to be an admission that consumers have been ripped off for so long in the multi-buy culture (with consequences for the amount waste generated see: http://www.bbc.co.uk/news/uk-26908613).  It will be interesting to see how Tesco and the other majors work their way out of this.

14 types of mushroom and 6 types of fresh chilli

A visit to my recently refurbished Morrisons was prompted by a need for some cocoa powder for baking some chocolate fondants courtesy of my daughter. Armed with the money-off vouchers that were dropped through the letter box to promote the refresh I went today (Sunday) at 2.15pm. The major change is the relaid fruit and vegetable department. Complete with constant misting of some varieties of produce there is a real sense of theatre to the entrance to the store. Clear signage describes the numerous products being showcased: chayote, krachai, cassava, karela, turia, arbi - all new to me and, judging by consumer dwell time and reading of the clear header cards, many others too. Asparagus was soldier-upright in chilled water. The whole area was awash with staff - five were involved in replenishment. More mainstream product - such as potatoes and tomatoes - were available loose and packed, and the many varieties all had header cards describing use and flavour. Elsewhere, the wine department had an authority, and price was a headline message. The store was busy too - all 20 checkouts open. Just a shame they didn't have the cocoa - but my local Co-op had it and the fondants are almost ready! Here are some photos of the store:

The Great British Bake-Off

News of increasing sales of cake tins and associated ‘kit’ might be ascribed to the new thrift and also to the television programme of the same name. Well a visit to my local farmers’ market today brought more joy. Amongst the usual stalls of locally grown vegetables, locally reared lamb and goat, and Lancashire Bombs (very tasty cheese) were no fewer than 3 cake stalls. In prime position was “Macarons by Design”. Here we can see Margaret Maddern, proud baker and stall holder. We sampled her wares as shown below including orange, mint and chocolate, salted peanut, and chilli and chocolate. A very nice treat indeed. Margaret’s macarons (sic) are gluten-free and can be frozen.

Supermarket law shops to open?

I was asked by our press agency a week ago to write something on the news that supermarkets could start selling legal services. The comment didn't make the press so here is what I wrote anyway:

News that retailers are to start offering legal advice is just part of their move to extend and leverage their brands. In many ways retailers have been mould-breakers and have taken advantage of opportunities to offer a wide range of services at affordable prices. In the past we have seen retailers move into new areas such as eye testing and selling glasses, whilst also tackling restrictive pricing in over-the-counter pharmaceuticals. These initiatives have helped inject greater price competitiveness into new sectors. Whilst the legal profession may be up in arms, the true test will be consumers’ take up of the new services. Given the trust some retailers enjoy these may be worrying times for lawyers.

This is not a price war

I was interviewed over the phone two days ago by David Henry of the Manchester Evening News. This is what he came up with:

http://menmedia.co.uk/manchestereveningnews/comment/blogs/s/1461679_david-henry-who-wins-in-the-sainsburys-tesco-and-asda-price-war

Daniel is listening to the music

Following on from a previous posting - "Halfords are listening to Josh Cooper" - another of my final year undergraduates on my Retail Marketing elective, Daniel Badzire-Smith, has shared this recent experience with me. His observations beg the question if there are optimum music types and genres for different settings:

"Last night I went to Pizza Express in the centre of Manchester, with two of my friends from my local cricket club. Throughout the meal we were surprised by the choice in music the restaurant played, it seemed like it was Motown Gold - all classics by the Jackson 5, Lionel Richie, Diana Ross and many others. The songs were all catchy, things we've heard before and so we developed a game as to who could guess the song first.

When paying the bill at the end of the meal, alleviating from the socially awkward situation were you're waiting for seemingly a life time for PDQ card machines to work, one of my friends asked the waiter what the CD was because "it was cracking". The waiter responded by saying that it was something they had made themselves as the manager didn't like the "pretentious jazz music" that all restaurants are given by HQ and feel playing something customers "know and could sing along to (I'm not sure who sings along to background music in restaurants?) makes them feel more at ease."

Looking at this from a marketing perspective, making a comfortable environment for customers could generate repeat custom as they enjoyed their experience. It could also lead to customers staying in the restaurant for longer, whilst this may impact customer turn over, meaning there is the opportunity to sell more drinks, desserts and coffees which generally have high margins in restaurants. Furthermore this is the impact of perceived service which could lead to better tips for waiters and the opportunity for more relaxed customers to develop relationships with the service staff, again which can lead to repeat custom.

This is important given the large degree of competition, not just from other restaurants but I think there are 5 Pizza Express restaurants just in Manchester City Center. I probably should add this is the third Thursday in a row I've been to that Pizza Express, sitting in exactly the same seats."

Halfords are listening to Josh Cooper

I have just started teaching my final year elective on Retail Marketing to undergraduates here at Manchester Business School. I was very taken by this email I received from Josh Cooper*:

"I would like to tell you about a ridiculous scenario which played out this morning when I purchased a bike for my sister from Halfords

I went in to the store, having found the bike I wanted online (the very modest price of £120) and asked if I could buy it. The sales assistant directed me to the bike in question, and was very helpful. However, upon finding the bike, the price tag was £140 instead of the aforementioned £120. I informed him of this discrepancy, but he shrugged his shoulders, and told me there was nothing he could do about it.

So I asked him if they did in-store collection; he replied in the affirmative. Whilst standing in front of him, and the bike in question, I used my phone to buy it there and then. After purchasing the product online, I showed him the image of the bike we were stood next to, and asked if he had it in stock for me to collect. He nodded, I think a little dumbfounded at my cheek, and took the bike off the rack for me to pick-up. He then told me was it okay if I talked to his manager, because it was the third time that month that somebody had done that to him.
The store manager said he would be telling my story to senior management, and he said they would probably be enacting change because of my actions, so I suppose I have helped Halfords in the long term.

Weird story, and as soon as I left, I thought to myself 'John Pal is going to love this'"

*Reproduced with permission

Yes, indeed, Josh I do love this!!!