Tesco launches Christmas Price Drop marketing blitz

Tesco is launching a major Christmas campaign based on keeping its everyday product prices low, and highlighting its deals on consumer electronics.

The supermarket giant will reduce the prices of 1,000 products as part of a Big Christmas Price Drop push that launches tomorrow (24 November).

Tesco UK chief executive Richard Brasher said the continued poor economic climate has convinced him that reducing prices is the "right option".

A Tesco spokeswoman said the majority of the 3,000 products included in the initial phase of the price drop will not return to their normal prices, because the value of groceries have been driven down as rival retailers attempt to keep up with Tesco's price cuts.

Brasher claimed he has been vindicated by rivals following suit. He added: "A lot of them dismissed Price Drop and said it was all huff and puff then launched their own price cuts."

A TV campaign pushing the Big Christmas Price Drop will launch tomorrow night during 'I'm a Celebrity…Get Me Out of Here' on ITV1. Red Brick Road created the campaign and Initiative handled the media planning and buying.

Tesco will also launch a Facebook campaign on 2 December that will offer customers the chance to be reimbursed for their entire clothing shop.

The competition will run on the "clothing at Tesco" Facebook page with each winner being capped at a maximum of £1,000.

Tesco claims that since launching the Big Price Drop eight weeks ago there have over 100 million transactions through the tills containing Price Drop lines, accounting for 90% of all transactions.

Tesco is also setting its sights on retailers such as Dixons with a TV campaign launching tonight (23 November) pushing a deal offering a Technika 40-inch 3D enabled television, eight pairs of glasses and a Philips Blu-ray Player for £499.

The advertising comes as Tesco invests heavily in its Tech Teams, which provide in-store technical support. Tesco has invested £12m in training the Tech Team this year, with the staff supported by after-sales advice via Techsupport.com and a specialist helpline.

The investment coincides with Dixons launching a campaign highlighting the quality of service offered by its staff.

Separately, an augmented reality (AR) trial is also being implemented by Tesco as it attempts to free up shelf space and show the full range of products it offers.

Brasher said the retailer is broadening its technology range to devices including internet connected TVs, meaning customers "can come to Tesco and get what they want rather than what we've got".