Local marketing experts have stated that engaging in price wars is not the most viable way of marketing one’s products, with there being a number of other more effective ways that can avoid having a direct impact on reputation.

This comes a few days after local retail giants Lidl Malta and PG Group took to social media to engage in a marketing battle about their different pricing strategies. The accounts of Pavi and Pama, PG Group’s two supermarkets, initially replied to a marketing campaign from Lidl where the latter was comparing its prices with averages from other local supermarkets. Pavi and Pama posted an advert comparing the price of a 330-millilitre can of Coca-Cola with that of Lidl, stating that Lidl sold the product for €0.79 while PG Group did so for €0.75.

It drew plenty of online attention, with Lidl then replying with a post of its own, showcasing a receipt from Pavi that showed that the price was in fact €0.99, €0.24 higher than it was advertised. Lidl then proceeded to announce a drop in the price of Coca-Cola to €0.69, a move that was commended by many customers.

The original post on Pavi and Pama’s accounts has since been deleted, while Lidl has continued to compare its prices to those of other supermarkets.

Some social media users stated that they knew PG Group’s ad was “bad advertising from the start,” and that Lidl emerged as the winner from the campaign.

However, what do local marketing specialists think about the case?

Raquel Galdes Briffa, a freelance Digital Marketing Specialist working at Leady, told WhosWho.mt that while the price war could be ultimately beneficial to consumers as it fosters competition and price-consciousness among supermarkets, “it might not be the most strategic marketing move from PG Group.”

Digital Marketing Specialist Raquel Galdes Briffa / LinkedIn

Ms Galdes Briffa has amassed years of experience in the local marketing sphere, having worked for a number of companies before setting up digital marketing company Leady in 2019.

“Critically, PG Group may want to consider avoiding direct mentions of Lidl in its promotional activities, especially when a new competitor with potentially lower prices enters the market,” she added, referring to Eurospin’s planned arrival to Malta.

On the other hand, Lidl’s response, emphasising transparency by presenting receipts, proved to be a “savvy marketing move,” she said.

Digital Marketing Consultant Gordon Borg Urso explained to this newsroom that consumers are always price-conscious, “especially during the last few months where we experienced a variation in prices for commodities.”

Mr Borg Urso is a seasoned marketer who has more than 20 years of hands-on experience in the area. He has worked with different companies across a range of industries, and has also collaborated with local and global brands.

He said that PG Group’s aim of the marketing campaign was to attract more customers to its supermarkets, yet it “certainly backfired on its reputation, especially when the competition makes a marketing spin out of it.”

Digital Marketing Consultant Gordon Borg Urso / LinkedIn

Ms Galdes Briffa remarked that Lidl’s current advertising strategy of featuring items priced at €1 and leveraging brand ambassadors showcasing its cost-effective purchases, “appears to have effectively countered PG Group’s direct mentions.”

“While PG Group’s campaign may have initially challenged Lidl’s marketing efforts, the latter’s strong comeback showcases resilience and reinforces its commitment to affordability and value,” she continued.

Ms Galdes Briffa said that price considerations play a significant role in today’s consumer landscape, with individuals being “keenly aware of the cost-effectiveness of their purchases, influenced by the specific items in their shopping carts.”

She added that consumers are the superior beneficiaries of the competition, yet Lidl emerged as a “frontrunner” by swiftly responding to the situation. “By promptly providing evidence that contradicts PG Group’s claims about pricing, Lidl effectively demonstrated its commitment to affordability, potentially reinforcing its position as a cost-effective choice for shoppers,” Ms Galdes Briffa stressed.

Mr Borg Urso stated that even though it is a fact that consumers constantly search for deals and good prices, there are other factors in consumer behaviour that must be considered in order to have a well-thought-out marketing strategy.

These include the “shopping experience, choice of product, loyalty programmes in place,” as well as other benefits that a consumer can “enjoy and benefit from.”