Tesco and Asda at loggerheads in strapline row

Marketing 24-Oct-02

Tesco and Asda have clashed after the UK's biggest retailer attempted to trademark advertising straplines almost identical to those used by Asda.

According to Asda, Tesco has already withdrawn attempts to register phrases such as 'Always Low Prices, Always Tesco' and 'Permanently Low Prices for Ever at Tesco' as a result of Asda objections. However, there is still an unresolved dispute over the ownership of the phrase 'We sell for less', which Asda has used in its advertising campaigns.

A Tesco spokesman said that the matter had already been resolved, while Asda denied an agreement had been reached. The row underlines the importance of value-based marketing to the UK's biggest grocery retailers, with Asda's Everyday Low Pricing (EDLP) strategy putting the firm in the running to overtake Sainsbury's as the country's second-largest chain this Christmas.

Analysts expect a price war to be kicked off by Tesco in the next few weeks as the major retailers attempt to win the custom of Christmas shoppers.