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Sainsbury, the UK retailer that recently lost its second-place ranking to Wal-Mart's Asda Group, reportedly plans to spend the equivalent of $90 million (US) on an image makeover that will stress value in addition to quality.

The Sunday Express reports that the campaign is expected to kick off in the spring, when current CEO Sir Peter Davis moves up to become chairman and is replaced by Justin King. While Sainsbury isn’t confirming the report, spokesman for the chain did tell the paper that management was looking at "the way we communicate our brand to customers, and how that reflects a combination of value and quality."
KC's View:
Not to suggest that value isn't important, but it seems to us that this sort of shift plays right into Wal-Mart's hands. By de-emphasizing quality and putting new weight on "value," this kind of image makeover simply concedes that Wal-Mart is setting the rules of the game.

Is it possible that Sainsbury would be better served by a campaign that sought to better communicate to consumers why quality is more important than value?

Just a thought…