Lidl's BIG national brands promotion will help accelerate growth
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Lidl does a lot of things well, but at this point, it also needs to do something different to get shoppers to try its stores and personally experience the benefits. That’s how they will attract more regular customers.
Since many American consumers aren’t familiar with the European hard discount form of retailing with its heavy dependence on private label, Lidl has to attract customers with ads for perishables – but they also need to aggressively promote the limited number of name brands they offer.
The Lidl ad that broke on April 26 does just that – with a “by one, get one for 50% off” offer for big brands like Bounty, Charmin, Tide, Coke, Crest, Goya, Kettle Chips, Welch's, Pepperidge Farm, and many others, featured across 12 pages of the full flyer (see pictures below).
Per a comment from Lidl communication manger Will Harwood published in this FoodDive post, "the company’s circulars won’t necessarily be name-brand-focused going forward, citing the rotational nature of its promotions." While it is true that national brands have had a role in Lidl's merchandising strategy, this week's ad clearly shows that role is being taken to a whole new level.Since many American consumers aren’t familiar with the European hard discount form of retailing with its heavy dependence on private label, Lidl has to attract customers with ads for perishables – but they also need to aggressively promote the limited number of name brands they offer.
The Lidl ad that broke on April 26 does just that – with a “by one, get one for 50% off” offer for big brands like Bounty, Charmin, Tide, Coke, Crest, Goya, Kettle Chips, Welch's, Pepperidge Farm, and many others, featured across 12 pages of the full flyer (see pictures below).
BMC POV
These deals will likely pull more price-sensitive customers into Lidl stores this week. Once customers are in the door, Lidl just needs to merchandise in a way to ensure that shoppers also try some of its private label items, so they can experience the attractive combination of high quality and low price that make these items such exceptional values.
It takes a while for US consumers to appreciate the value of the private label products sold by hard discounters, but when they do they’re hooked.
It takes a while for US consumers to appreciate the value of the private label products sold by hard discounters, but when they do they’re hooked.
We expect this tactic will drive trial, expand Lidl’s shopper base, and speed up the flywheel of growth for them.
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