Cawley Nea\TBWA has picked up the creative account for Dunne’s Stores as the retailer plans a major assault on the own-label market in Ireland.
Cawley Nea\TBWA will now work with Dunne’s on the roll-out of the retailer’s new range of own-label products as it prepares to go head-to-head with rival discounters Aldi and Lidl, both of which have been steadily gaining market share over the last 12 months.
The agency will develop a comprehensive TV, press and radio campaign for the retailer as it attempts to win back customers that have switched to the likes of Aldi, Lidl or SuperValu in recent years.
It is understood that Dunne’s Stores is planning to roll out 250 new own-label products this year with another 250 due to be added to the line-up in early 2014. The own-label is likely to be called “Family Favourites” and will feature a large range of everyday food and household products.
The retailer is planning to compete with rival discounters on three fronts – price, quality and range. It is also understood that all prices will be matched with the equivalent price in the comparable Aldi range.
The Irish market for own-label products is now worth around €1.9 Billion or 22% of all grocery sales and this is expected to rise to around 40% within the next two years. In the UK, own-label already accounts for 40% of total grocery sales while in Germany, home to both Aldi and Lidl, it now accounts for as much as 70% of total grocery sales.
For the past couple of years, Dunne’s Stores has had to contend with Aldi and Lidl chipping away at its market share while SuperValu, which also has a substantial own-label portfolio, has overtaken it in terms of market share following the acquisition of Superquinn. Tesco still remains the number one retailer in terms of market share while SuperValu is now in second place with Dunne’s Stores in third.
