This week Tesco published full-page national press advertisements apologising for damages caused by petrol from its pumps contaminated with silicon traced from a batch of unleaded fuel from a storage facility used by one of its suppliers in Essex. This is a brave brand move. What is particularly bold is that Tesco promised to pay for any damage caused by the flawed petrol. To prove damage, motorists need to send the company repair receipts along with details, and ideally proof of purchased of where and when the petrol was bought. A Tesco spokeswoman said if people didn’t have receipts they should call a special advice line and each case would be considered individually.This is a laudable offer, however the brand may end up inundated with bills. Under the Sale of Goods Act 1979 motorists can claim for petrol, any repairs and “consequential” costs. A spokesperson from Asda – the second of three supermarkets found to have contaminated petrol said, it had already put into place a compensation scheme days before the Tesco adverts came out. Morrison’s, the third supermarket said they would also refund petrol costs and repairs, adding that anyone who did not have receipts would be “supported”.In the mid term, Tesco’s, Asda’s and Morrison’s’ offers may, in brand terms, turn out costly. The consumer advice service Consumer Direct has already been contacted by over 2,500 motorists. The service advised that that a motorist’s contract was “with themselves and the organisation they bought the fuel from.” If they can prove the fuel was the cause of the fault they could claim for any petrol bought, reasonable car repairs and compensation for consequential losses incurred such as alternative travel arrangements. Meanwhile local radio stations such as London’s LBC, are asking listeners to keep them in touch about any repair bills which are disputed by the chains. That could prolong a brand crisis story from weeks worth of coverage to months.With such wide and far reaching possible disputes arising from claims, the supermarkets’ good Samaritan deeds may come with a hidden nasty brand perception sting in the tail, potentially knocking profits at both pump and checkouts points.Prudence before profitAt best it would be prudent for Tesco, Asda and Morrisons not to compel motorists to pay for their suppliers’ gaffes. At worse the companies mustn’t prolong price increases at the pump. The AA reported that average petrol prices rose from 88.03p before the fuel scare to 88.32p a litre once the news hit the headlines. Diesel prices remained at the pre crisis average level of 91.77p a litre. Vanessa Guyll, Technical Specialist for the AA’s Public Affairs expected petrol prices at stations close to affected supermarket forecourt sites to increase their prices.With a little brand shrewdness Tesco, Asda and Morrisons could turn negative expectations on their head. Firstly Tesco must follow their own principle that “every little helps”, maintaining prices as they were prior to the crisis. Next, it needs to keep to its advertised promise to repair vehicles, without wriggling out of commitments with mountains of caveats and conditions. By following suit, Asda will show that they indeed offer “more for you for less” whilst Morrisons will demonstrate that there are really are “more reasons to shop at Morrisons.”Raspberry FoolsTesco’s decision to publish a public apology came just one day after some of the press alleged that the brand was misleading customers in its half-price fruit and vegetable promotion – hiking the price of products a few days before rolling out a campaign. For example, it was reported that Tesco slashed artificially high prices by 50 per cent. One such example was a 500g punnet of plums costing £1.48 on December 11, doubled in price on December 28 to £2.99 then halved back to £1.48 four days later.Commenting on the alleged price hike, Martin Fisher from the Trading Standards Institute said the chain was “grossly exploiting”. Chipping in, Labour MP Jim Dowd accused the store of “deceiving customers”. Tesco explained the price changes were caused by seasonal fluctuations – such as transport costs. “Any suggestion we ramp up prices in order to cut them again is the purest nonsense.”Whatever happens next, Asda, Morrisons and Tesco need to ensure their future marketing tactics underpin any strategic commitments to offer value for money as well as safe and sound shopping for the road ahead.Jonathan Gabaywww.brandforensics.co.uk

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