To solidify its market position, Lidl UK will implement product innovation, branding, health-oriented, and technology marketing strategies collectively termed as responsible marketing and health marketing. Lidl intends to gain greater branding and marketing share while fostering positive customer relations through the use of digital marketing.
As part of operational branding, Lidl has adopted technology integration as a primary focus area to improve customer service and operational efficiency. The Lidl Plus app is central to this strategy, offering unmatched loyalty rewards by personalizing promotions along with providing discounts and savings during purchasing activities. The retailer also utilizes efficient barcode systems and “shelf ready” packaging to minimize operational costs as well as improve convenience. Built in technology within stores facilitates Lidl’s emphasis on speed and efficiency and offers customers a seamless shopping experience.
Product innovation remains central to Lidl’s approach. The retailer’s aggressive marketing strategy, which included expanding and promoting British supply sources, resulted in a twenty percent increase during the peak buying season. This coupled with Lidl’s competitiveness, led to annual sales growth of approximately 7%, or over 2 million customers. The expansion of the Deluxe offering which included Christmas Jumper dessert and Sticky toffee cupcakes later diversified.
While maintaining their standard pricing and quality, Lidl makes sure that it adapts to changes in customer preferences by implementing strategic approaches.
Lidl has developed a branding strategy with the aim of changing the image of the company from a low cost retailer to a high-end product provider with affordable prices. The “Big on Quality, Lidl on Price” slogan actively seeks to reinforce the perception related to the company’s products. Lidl is able to grab the attention of customers on social platforms and via email and even through traditional advertisement channels, all working towards building the brand recognition. The “middle aisle” store layout approach makes non food products available in other aisles more intriguing; promoting unplanned purchases and greater loyalty to the store.
Referring to the responsible marketing, Lidl has set a target for mid-2025 to stop using child appealing design features on unhealthy private label products. This step is meant to comply with the forthcoming UK food advertising regulation and is designed to promote healthier decisions among consumers. The removal of design elements like cartoons and bright colors on sugary processed products can help promote better consumption choices among children. This change signifies the softer side of retailing and enables businesses to show concern for customers.
These targets will help Lidl to remain the first in line for health and nutrition initiatives by setting sales targets aimed to increase fiber content across all products.
The retailer targets a 20% increase in total fiber sales by 2026, along with wholegrain product sales reaching 25% of total grain sales by 2030. Lidl actively promotes healthier food choices, and assistive collaborations with suppliers will improve recipes with healthier fiber-rich aid ingredients.
Lidl UK is consolidating its position in the competitive retail industry through a combination of innovation and advancement in technology, strong branding, marketing, product innovation, and health-oriented initiatives. Being able to flex with consumer trends without increasing cost guarantees further growth along with sustaining customers.