from Ad Age: Embattled supermarket chain Safeway is set to launch an unprecedented $100 million advertising campaign that includes spot TV buys on prime-time shows such as The Apprentice and CSI -- but utters nary a word on price.

“What we are doing is very different,” said Brian Cornwell, chief marketing officer at the Pleasanton, Calif.-based chain of 1,802 stores with $35.8 billion in sales. “We are moving from the traditional price/item advertising, which is the norm of the supermarket industry, to a more brand-focused identity.”

More than just a tagline change, from “Giving Our Best” to “Ingredients for Life,” the campaign launches April 18 with TV, radio, print and Web elements.

“We are trying to take a page out of the consumer package industry,” added Mr. Cornwell, who joined Safeway in April 2004 after serving as president of Pepsi-Cola North America’s Food Services division.

The campaign, created by Interpublic Group of Cos.’ Dailey & Associates, Los Angeles, represents a significant shift away from print advertising for the chain.

“Retailers like Safeway are stuck in a shrinking and unsustainable middle ground,” said Jon Hauptman, vice president of Willard Bishop Consulting, a Chicago-based firm focused on the grocery industry. “Safeway is being outflanked on all sides.”

On the price side, Safeway must battle with Wal-Mart and limited-assortment retailers such as Aldi, Sav-A-Lot and, increasingly, the so-called dollar stores, which have beefed up food offerings. On the quality and lifestyle side, Safeway competes with upscale regional operators and growing national, high-end retailers such as Trader Joe’s and Whole Foods.

April 6, 2005 by david burn | Permalink | 0 Comments