Tesco have been struggling of late. The supermarket that stakes a claim right in the middle of the grocery market has lost out to brands that offer cheaper essential items and competitors that are more appealing for top quality produce. The shift is symbolic of an erosion of the big four supermarket brands – Tesco, Asda, Sainsbury’s and Morrisons – which have all experienced turbulence in one of the most lucrative consumer markets.
That’s why this year’s Global Brand Simplicity Index – which measures the perceived simplicity or complexity of brands’ products, services, interactions and communications in relation to their industry peers – has revealed further confirmation of how brands outside the big four are getting it right. As Tesco endures yet more criticism for its handling of finances, today Aldi has taken the number one spot of the index, beating global brands such as Google, McDonald’s and Netflix to the spot. Lidl, which competes for a similar segment of the market, has landed in third place on the list.
So what does the annual index tell us about the state of the grocery market in the UK? Well, the times they are a-changin’. The big four’s dominance is clearly being eroded by a consumer base that is more conscious of how it fills its basket; a recent TLE article highlighted the role price and health is playing. But the Global Brand Simplicity Index shows that while brands such as Lidl and Aldi have hit a sweet-spot with consumer appetite, they’ve also managed to market their products well and put increased impetus on how their brand is perceived. Kudos to them and all that made the top ten. For Ryanair, AXA and Bupa, it’s time to buck up your ideas.
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