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Being generous in the teeth of a price war

Asda's price guarantee, that it will be 10 per cent cheaper than rival supermarkets, was clearly a marketing stunt from the off. Few people are going to have the energy to complete a major shop in Asda and then check what price the same products were across town at Tesco.

However, Tesco has said that it will protest to the Advertising Standards Authority about the "confusing and misleading claim".

"It is vitally important that the whole industry acts in a way that deserves the trust of customers," says UK chief executive Richard Brasher. "In our view customers are being misled by false Asda claims."

What is remarkable about this is that Tesco is getting twitchy - following on from last week's weak results statement. Local retailers may take comfort from the inference that the market leader is finding things as difficult as they are - whatever you think about the actual issues of the way that supermarkets represent themselves to the media and to shoppers as the consumers' champions.

There is, over a 40 year horizon, a great deal to support the supermarkets' claims to champion the interest of ordinary shoppers. However, the independent shop sector and its wholesale supply chain has got its act together and is capable of providing shoppers with a good alternative - as demonstrated in the current NISA Local television commercial. The market is tough now for almost every participant.

What to do? I am currently reading Linchpin by Seth Godin and it may help you to become indispensable to local shoppers. He provides the following food for thought: "Wal-Mart wins because it is cheap and close. Everyone else who wins must do it by being generous."

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