The Upstarts: Lidl, Aldi and #LittleSurprises

For supermarkets the Christmas season represents a chance to boost sales and profits at a time when normal rules are suspended.  According to market researchers Kantar, all of the top 5 UK supermarkets (with the exception of Asda) are losing market share.  While gains have been made by Waitrose and small multiple stores, the biggest gainers are Lidl (up 18% in the latest quarter) and Aldi (27% higher in the same period).

Jools Holland in the 2014 Aldi advertisement
Picture from MarketingMagazine

Both these stores are well established challengers to Tesco, Asda, Sainsbury's and Morrisons.  Each of these have now rolled out impressive-sounding TV advertising campaigns for 2014.  It is important to remember, though, that the biggest spender in 2013 was Tesco, who actually lost sales during the festive period.

Lidl's campaign for the end of 2014 is part of a much larger one, based around the theme of 'Lidl surprises'.  The overall campaign (not just the Christmas part) is costing the company  £20 million (according to The Grocer) - this looks impressive except when set against Tesco's spend last year of £25 million.  Lidl, like other supermarkets this year, intend to get more value out of their advertising by linking it to social media and other channels.

The 'surprises' theme in the Lidl advertisement comes over in the reaction of the 'ordinary people' from Hertfordshire who are seen tucking into a Christmas meal prepared from Lidl groceries.  There is surprise at being served lobster at the start, and stollen for dessert. Most of all, the diners are surprised to discover the provenance of the food: they had believed that it was from Waitrose or Marks & Spencer (both named in the film).  This should come as no surprise as Lidl had named these as targets in the pre-publicity.

On social media Lidl has been promoting the campaign, and has succeeded in getting the advertisement seen nearly 300,000 times to date.  Of course this is a small figure alongside the 12 million views that Sainsbury's has achieved.  Lidl is far less active on Twitter than all its competitors with a mere 16,500 followers.  Here there seems to be a great deal of confusion, with the official Twitter feed using numerous hashtags including #LidlChristmas, #Lidler and #LidlSurprises.  The social media channels are very effective at getting over the 'surprising' new Christmas goodies in store.

Lidl has 750,000 Facebook fans, where is uses the same range of hashtags.  The campaign launch was somewhat overshadowed by Lidl introducing what was popularly believed to be a "ban" on the use of any language but English by staff in Lidl stores.  

Aldi, unlike most retailers in 2014, has opted to feature a celebrity: Jules Holland and his band appear at the end of commercial.  The theme of the advertisement, "everyone's coming to us" is a witty poke at the way Aldi is growing at the expense of established competitors.  The TV advertisement itself, launched on Novemer 5, is nowhere near as popular as Lidl's, gaining just 50,000 views to date, despite the celebrity endorsement.  However the company outscores its German rival on Facebook with over 800,000 fans.  It also has a far larger Twitter following.  Both high scores are probably attributable to the company's successful ways at 'incentivizing' its fans with competitions and offers.  There is just one mention of the TV campaign, though.

The success of Aldi and Lidl should not be overstated: much of it is attributable to locational effects - both firms are opening new stores steadily across the UK.  Their campaigns in broadcast media and online stress product quality over low prices.  But the market share figures speak for themselves: everyone is going to them.

Is this war? Morrisons and #MakeChristmasSpecial

Ant & Dec in the new advertisement.  Picture Daily Star

The last major UK retailer to reveal their Christmas advertising campaign is Morrisons.  This is launching tonight (14 November) during the commercial break in Coronation Street, which should expose the ad to around 7 million viewers.
 
Morrisons' 350,000 Facebook fans were given a preview last night, while the ad was launched on YouTube earlier today.  It was a slow start: at the time of writing the ad was getting about 50 hits an hour on the official page: in the same period last night, Sainsbury's were achieving 150,000 an hour.  Sainsbury's have a theme of war, and the press have been making it clear that competition on the high street is so severe that war is exactly what is being declared on TV and online.

According to the popular press Morrisons are targeting Lidl and Aldi, and using the ad to stress the freshness of their food.  Evidently 2013 found Morrisons shoppers to be "promiscuous", splitting their shopping between the major supermarket and their cheaper German rivals. With like-for-like sales down 7.4% in the first 6 months of 2014, this turned out to be "disastrous" for Morrisions and the new campaign aims to win the wayward shoppers back into a monogamous relationship.

Marketing is the key to Morrisons' turnaround strategy, according to their brand and communications director; the plan is to "ramp up [the] Christmas marketing budget".  Last year Tesco did the same and actually saw a drop in sales of 2.4%.  Morrisons plans to be more clever with their spend: like others it has plans to leverage social media traffic.  This involves music, with the supermarket sponsoring Capital FM's Jingle Bell Ball, and a deal with boy band Union J.  Both of these initiatives are designed to give audiences content to share on social media. Union J have more than 1.5 million Twitter followers, mostly thought to be children or young teens.  The Jingle Bell Ball will associate Morrisons with major acts including Taylor Swift, Take That, OneRepublic and Ed Sheeran.

Morrisions are also behind the launch of a special recording of their Christmas song "It's beginning to look a lot like Chrismas" by Union J, which will be performed at special ''song booths' in some stores where customers will be able to record their own voices over the song and share these via social media.  Sounds like a terrible idea to us, but hey, there's a war on.



Some more point-of-sale promotion (rather than the virtual kind) will come via giant Christmas pudding shaped vans visiting 32 different stores, offering free food and money off vouchers.  This is similar to what online-only retailer Littlewoods is doing with pantomime themed promotions in city centres.

Morrisons are continuing to invest in celebrity endorsement, with the 2014 fronted by Ant and Dec as in previous years.  As we have noted in other posts, celebrities can be very useful in social media if they work for their money, as they generally have much larger fan bases than the retailers.  Morrisons have been attempting to kickstart the campaign via Twitter with the #MakeChristmasSpecial hashtag - a clumsy choice (too long and tricky to spell) which so far has gained no traction online.

In summary, a piece of advertising which will fail to engage with the chattering classes, but which clearly targets a particular audience - "Mums and kids".  Morrisons have thought through the issues and have something in place that may just people sharing its values.  The problem is that, at the time of writing at least, not even the mums and kids have bought into the campaign.