Targeted attack or friendly fire: Wednesday 30th September

John Lewis is following in the footsteps of other retailers including Waitrose who launched Waitrose Essentials in March 2009. With the apparent success of this range John Lewis are possibly re-assured that the launch of its own Value range is timely. They also have the advantage of following on from the initial success at Waitrose whilst also seeing how the homewares market has developed across supermarkets from Tesco to Sainsbury’s.

Craig Inglis, John Lewis' head of brand communications, has commented that the introduc¬tion of the range does not affect the brand's current positioning. ‘We are still firmly a mid-premium retailer. All we're doing is ensuring that we have products that reflect both the value and premium ends of the scale.'

What are the risks and opportunities to John Lewis?

Recessionary tactic: If, as some would believe we are on the verge of coming out of the recession then the launch may appear to be somewhat late in its creation. However, maybe the current recession has triggered a long term attitudinal change in consumers towards a more considered approach where they are seeking both high quality as well as low prices and surely this is something John Lewis clearly has the potential to deliver? Importantly, the recession may well have created a consumer where time will be spent to ensure that they do get quality balanced with low prices within ranges.

Tackling the supermarket giants: Whilst this could be seen as a short term tactic to combat recessionary shopping habits it may also prove to be a very clever way of competing against the homeware ranges of supermarkets whose markets have snowballed over recent years.

Opening up to a wider market: Does the introduction of a Value range simply ensure that a brand makes the optimum use of its sales potential by targeting and maximising the number of price points available to customers? John Lewis will be hoping that it broadens its customer base by selling to a wider audience with the offer or premium and value brands.

Brand credentials: Time will tell but there is a risk that John Lewis will weaken its mid-premium brand credentials with this launch. Whilst aiming to gain sales against Tesco and other supermarket retailers they may well see a decline in sales of their own existing premium ranges.

John Lewis believes they have seen the long term potential in introducing a Value range to its brand. Does this mean that launching a value range is now an integral requirement for any brand and if so without research how will you be sure your value range will deliver?

For expert guidance on launching new ranges and brands contact Chris Sinclair  or Andrew Tharme or call +44 (0)1865 728272 at The Oxford Research Agency. For qualitative understanding call Sunita, Emma or John on +44 (0)1865 20 84 03 or contact info@mimosa-qual.com.