How Lidl grew a lot

IPA Effectiveness Awards Case Study 2018

Shoppers were sceptical about Lidl’s value model, assuming that cheaper meant worse. To address this perception and increase household penetration, Lidl adopted a more mass reach strategy. Between 2014 and 2017, campaigns focused on revealing truths about the brand and its products, backed with increased media spend. Following the activity, Lidl’s market share peaked at 5.3%. This case estimates that £2.7bn of direct and long-term sales were generated, with a £398m net profit delivered over four years.

The case history shows the potential rewards that can be achieved when you commit to consistent and heavyweight advertising investment. We had the confidence in Lidl's ability to challenge the conventions of the grocery market and by investing in broad reach media, at levels ahead of our market share, we have driven mass penetration over the long term. We continue to derive the benefits of us taking the 'long view'. In an increasingly competitive market , we have held our nerve about the importance of long term advertising communication and its ability to deliver a tangible return on investment.

Claire Farrant, Marketing & Advertising Director
Lidl