Morrisons has done the right thing by parting with Ant and Dec – now it needs a new comms strategy
Hot on the heels of drastic Dave’s wholesale change strategy at Tesco, Morrisons is following suit. Or so it might seem... First the ousting of Dalton Philips, then the closure of a raft of its M local stores and now axing its most recognisable advertising equity – Ant and Dec. All much-needed change.
Ant and Dec's deal with Morrisons is over
And this latest news is perhaps the most welcome, on a few counts.
Morrisons needs reinvention. Its proposition is confused and sales remain in continuous year-on-year decline, with annual profits down more than 50 per cent. A repositioning in the eyes of its shoppers to reverse this situation needs to come across loud and clear at all touchpoints. National treasures they may be, but in the harsh world of grocery retailing, Ant and Dec are too much of a link with a failing business for Morrisons to stick with them. It’s an easy decision to make, really. Tick.
Secondly, in a market landscape that is totally focussed on communicating value and quality, what part do two well-remunerated TV personalities have to play in this positioning? Never mind saving the talent fees and reinvesting in prices, the British public knows that celebs don’t front adverts out of the kindness of their hearts. For hard-pressed shoppers, having the dynamic duo as the face of Morrisons is an admission that its prices aren’t as low as they could be. So far so good.
Of course Morrisons may feel those savings on talent burning a hole in its pocket if current reports of a new campaign are to be believed. The last thing it should do is simply replace Ant and Dec with cheaper versions of the same. At the very least, it needs to think a little bit beyond trying to be ‘a brand of the people’ and invest in some talent that will drive credibility and back up reasons to believe, like Jamie Oliver did for Sainsbury’s. Morrisons' past picks, such as Freddie Flintoff, Richard Hammond and Alan Hansen don’t inspire confidence in this respect.
Morrisons needs to go back to basics on what it stands for as a brand, rather than trying to match every other grocer's value-quality positioning. What does it REALLY mean by this, and how will it deliver it? When it knows this, then it can figure out whether a big name plays a role in communicating this, and who that might be. Celebrities rarely scream good value for money in retail, so it might be time for a long overdue and permanent change in comms strategy rather than just a changing of the guard.
What could Morrisons focus on? There are glimmers of hope in it business, such as online. Its vertically integrated supply chain should be more of a marketing asset than it’s been used for in the past, especially at a time when food provenance remains an important differentiator. But the lack of transparent pricing, including the poorly constructed and communicated Match & More loyalty scheme, must be addressed first and foremost, and more footfall driven into stores. Clarity here and a still to be determined competitive positioning will not come from another Ant and Dec.
Tesco has shown the approach with some tough decisions that have meant significant short-term pain for its teams in order to secure the future of the business. In comparison, Morrisons’ actions so far look like messing around at the edges while failing to address the core of the problem. Maybe it will prove us wrong, but what it does next is crucial.
Ian Humphris is managing director of LIFE