Tesco today (31 July) hailed its “transformative” Price Promise comparison scheme after the UK’s advertising watchdog threw out a complaint from rival Sainsbury’s.
The Advertising Standards Authority dismissed Sainsbury’s concerns Tesco was unfairly comparing own label and fresh food through its Price Promise programme, which measures prices between the UK’s big four grocers.
In its ruling, the ASA said the “basis” of Tesco’s comparisons was “clear” and did not breach regulations.
The ruling, news of which first emerged earlier this week, is a boost to Tesco as it looks to revitalise a UK business that has struggled in recent quarters.
In response, Sainsbury’s today launched a nationwide advertising campaign with the tagline “same price, different values” that sought to emphasise the provenance of its own label compared to Tesco.
Reflecting on the ASA ruling, Tesco’s UK marketing director David Wood said the UK’s largest retailer was “delighted” with the ruling.
“Price Promise is very simple, but it is very powerful. It tells customers they don’t need to worry about price because we’ve got it covered,” Wood said.
He added: “If there’s something that a lot of disruptive innovation has in common, it’s that some people don’t get it right away. The computer, mobile phone, internet, social media – all of them encountered a bit of ‘It’ll never catch on’. We experienced it ourselves when we launched Clubcard in 1994; our competitors dismissed it as just ‘green shield stamps’, and then spent the next 19 years trying to copy it. This week, we’ve overcome a challenge to another innovation.”