Fighting the food price flak: how customer insights can assist in winning consumers over

Whether it’s perception or reality, I’m not alone in thinking that food prices are rising. When I reach the checkout in my local supermarket, notwithstanding the buy-one-get-one-free offers, the extra points on my loyalty cards or the promotions to feed my family for a week for only £50, the money in my wallet doesn’t seem to be stretching as far as it did twelve months ago.

But who is the consumer going to blame? Whereas the government, and to a lesser extent the oil companies, seem to be in the eye of the storm over petrol and diesel prices, are the latest promotions from our leading supermarkets a way of deflecting consumer anger that they are making higher than necessary profits at a time when some families are struggling to put food on the table?

The multiples would argue, not without some justification, that their ranges have adapted to suit the changing economic circumstances. Whilst the prestige own-brand ranges continue, they have also broadened their ranges of value or basic products. Even stores with a perceived higher-end clientele have adjusted, with Waitrose extending its Essentials range and Marks & Spencer re-running its Dine In for £10 promotion.

Perhaps the highest profile bid to wear the “we’re on your side” crown has come from Sainsbury’s with its Feed Your Family for £50 campaign. More interesting than the microsite with meal plans, recipes and nutritional information, is the way Sainsbury’s is using social media not only to extend the reach of the promotion but also to engage with consumers and reinforce the perception that they’re on the customer’s side.

This is evident in the video application on the microsite which encourages consumers to film their interpretations of the meal plans, with some being featured on Sainsbury’s advertising during ITV’s Britain’s Got Talent.

It is even more evident on the Sainsbury’s Facebook page. What is more interesting than the slightly gushing comments about the recipes (“it was delicious, much tastier than I expected,” according to Dionne, and “lovely, lovely” according to Russell) is the fact that Sainsbury’s has fronted up to some negative comments and is engaging with consumers to resolve their issues. To do that in a public forum is a sign of a confident brand.

But that confidence will not have been arrived at by accident. Using customer insight and knowing the issues that concern its customer base, Sainsbury’s has taken a calculated risk that this promotion will not only protect it against any flak that may fly over food prices, it will encourage loyalty among its price-sensitive consumers and support the company’s ongoing financial performance. But, given the research that would likely have supported this strategy, Sainsbury’s will already know that the risk is low.