Ocado takes aim at supermarket giants ahead of price war

Ocado: taking on the big supermarkets in price challenge
Ocado: taking on the big supermarkets in price challenge

Ocado is set to launch a price war against Tesco and its other supermarket rivals to convince customers it is the cheaper option.

The online grocer’s chief executive Tim Steiner told The Sunday Telegraph that it will further roll out its "lower price promise" nationally in the next few months.

Steiner said: "The market will not reach tipping point until the online market is cheaper than the supermarkets. It is just not something that is going to go there overnight.

"Two weeks ago, we launched a pilot in Manchester called the 'lower price promise', where we are doing a basket match and we guarantee it will be cheaper.

Ocado will now roll out its lower price initiative nationally.

Ocado hopes to invest the money it saves from the efficiencies of being an online-only business into the price proposition during the next three years to make it cheaper than supermarkets with a physical presence.

The news of the price cuts comes after it emerged Ocado was speaking to advertising agencies for a one-off campaign as part of a growing investment in brand advertising.

It currently focuses adverting on inserts and outdoor activity to raise awareness of promotions and new product ranges.

Ocado's recent promotional marketing included a press campaign highlighting its price-match offer against Tesco on branded products, which used the strapline, "Ocado. Prices worth checking out".

Ocado claims that the majority of its customers come from Tesco and Sainsbury's, but the impending rollout of the "lower price promise" means Ocado will be able to effectively challenge Asda with a convincing alternative to the Asda's "price guarantee". 


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer
Mumsnet admits users' emails and passwords accessed via Heartbleed bug