This week, we're diving into crucial strategies for brands. We'll explore why startups should prioritise building communities over traditional sales funnels, especially on platforms like TikTok for products under £25. We'll then discuss the critical need for personalised content based on specific retail shoppers, like Tesco versus ASDA. Finally, we'll dissect KitKat's latest shrinkflation move, revealing it as a sophisticated margin optimisation strategy.

Happy reading!

#1 Startup Brands: Think ‘Community’ Before You Think ‘Customer’

If you’re a startup brand right now, stop thinking in sales funnels—and start thinking in shared spaces.

The best-performing challenger brands in 2024 aren’t just running ads.
They’re building communities. And if your product is priced under £25, there’s one platform doing the heavy lifting for you: TikTok.

Why TikTok Is a Community Platform, Not Just a Content One

Yes, TikTok drives discovery.
Yes, TikTok drives conversion.
But where it really excels for startup brands?

It creates conversation around your product.
It builds shared language, inside jokes, and loyalty loops.
It turns buyers into creators - and creators into evangelists.

This isn’t influencer-led push marketing. This is organic obsession, fuelled by users showing real value, real hacks, and real love for your product.

Especially if it sits below £25, where the barrier to try is practically non-existent.

The Psychology of the <£25 Product

Why does TikTok work so well for low-ticket brands?

• Low friction: One scroll-to-shop and the purchase is done

• Impulse zone: Products under £25 don’t require deep thought

• High volume potential: More people can try, more content gets created

• Fast repeat cycles: If the product works, you’re into the second purchase fast

This is the ideal storm for startup growth: low cost to test + high content potential = community in motion.

What Does “Community” Look Like in Practice?

You’re not just launching a product.
You’re building a mini world around it.

Ask yourself:

• How does my product fit into a daily ritual or identity?

• What emotion or reaction can users share?

• What kind of content do users naturally create around it?

• How can I make them feel seen, validated, or in-the-know?

Then show up. Not with sales copy but with your point of view, your story, your personality.

Startups That Do This Well?

Think:

• Estrid (razors) - not just shaving, but self-worth

• TALA (activewear) - not just gymwear, but sustainability and body acceptance

• Funkin Cocktails - fast, easy drinks that people want to demo on camera

They don’t just have customers.
They have followers, creators, advocates - and fans.

How to Build Community-First Strategy on TikTok

1. Start with education or entertainment
   Don’t sell. Show how it fits into life.

2. Spot your super-users early
   Reward them, repost them, collaborate with them.

3. Use the comments
   This is where your brand voice is forged. Every comment is a micro-conversion.

4. Create rituals and series
   People love formats they can repeat, remix and recognise.

5. Link to your owned platforms
   Use TikTok to spark. Use your site or email to scale.

Final Word

Startups often focus too much on how to sell - and not enough on who they’re selling with.

In 2024, growth for <£25 products doesn’t come from pushing offers.
It comes from pulling people into a world they want to be part of.

TikTok is your stage.
But community is the product you should be building.

Because loyal customers buy once.
But a community?
They come back - and bring friends.

#2 A Tesco Shopper is NOT an ASDA Shopper — So Why Are You Serving Them the Same Content?

We talk a lot about personalisation in marketing.
But oddly, that thinking often stops at the retailer level.

Tesco shopper?
ASDA shopper?
Ocado shopper?

Same master creative. Same offer. Same execution.

And that’s the mistake.

The Tesco Retail Media Network (RMN) is raising the bar

Tesco’s Media and Insight Platform is delivering serious results:

• +4% sales uplift

• +10% profit growth

• £6.60 ROAS per £1 spent (vs £3.80 via other channels)

That’s not just reach - it’s activation.
But here’s the point: this only works if your message is built for that shopper, in that channel, at that moment.

And most brands aren’t going far enough.

One Size Doesn’t Fit All

This week I was reviewing sales data for a major CPG brand.
Crushing it in Tesco. Struggling in ASDA.

Why?
Different shopper mindset. Different mission. Same lazy content.

• Tesco is often a planned shop, driven by promotions, loyalty rewards, and family missions.

• ASDA leans more towards value perception, impulse offers, and convenience.

• Ocado shoppers? They're thinking premium, speciality, time-saving.

Yet the same creative runs across all three.

Your Content Strategy Needs to Flex Per Retailer

Retail Media Networks (RMNs) like Tesco’s are incredibly powerful - but they don’t work in a vacuum. Your content has to match the mindset of the mission.

So, what does that mean?

Tesco Content

• “You save more with Clubcard”

• Family meal bundles

• Smart, planned shop messaging

• Reinforce loyalty benefits

ASDA Content

• Value-first, bold pricing

• Impulse shoutouts (“Grab & Go”)

• Time-of-day relevancy (“Tea Time Treats”)

• Bold visuals, less explanation

Ocado Content

• Premium positioning

• Ingredient stories

• “Better for you” moments

• Quick-serve elegance

3 Rules for Smarter Retail Content Strategy

1. Tailor to mission, not just media
   Know how the shopper arrives at that moment and what they want when they do.

2. Let retailer data guide creative strategy
   Use retail media platforms as more than media buying tools - use them to shape comms.

3. Create modular assets, not master creatives
   Build flexible toolkits that adjust tone, claims and visuals for different retailers.

Final Thought

Retailers are investing in media platforms.
Brands are investing in spend.

But the gap lies in creative strategy that treats every channel - and every retailer - as unique.

Because a Tesco shopper isn’t an ASDA shopper.
And your content should know that.

Want better results?
Segment not just by person, but by place.

#3 Shrinkflation and KitKat: A Lesson in Margin Strategy, Not Just Ingredient Costs

Shrinkflation isn’t just a pricing tactic - it’s a margin optimisation strategy disguised as consumer convenience.

And few case studies expose this better than KitKat’s latest multipack switch, where the product got smaller… but the price didn’t. In fact, in some cases, it went up.

Let’s break this down - specifically, what it means from a cost segmentation and profitability standpoint.

The Shift: Same Price, Less Product

Take the KitKat 2 Finger Milk Chocolate 9-pack (20.7g each).
Previously sold for £2.20 at Tesco and Sainsbury’s.

That’s 186.3g of product in total.

Now? It’s been replaced by an 8-pack, still at £2.20 - but with 165.6g of chocolate.

Price per 100g:

• Old: £2.20 ÷ 186.3g × 100 = £1.18 per 100g

• New: £2.20 ÷ 165.6g × 100 = £1.33 per 100g

That’s a 12.7% price per gram increase - with no change in RRP.

But What About Cocoa Prices?

Yes, cocoa prices have surged. Let’s look at that:

Cocoa price up +19.26% YoY
(from $7,538 → $8,990 per metric tonne)

But here's where segmentation matters:
Cocoa only accounts for ~10–20% of a chocolate bar’s cost of goods sold (COGS).

Even assuming 15% cocoa contribution to COGS, the effective total product cost increase from cocoa inflation is:

0.1926 (YoY change) × 0.15 (COGS contribution) = ~2.9%

So while cocoa is undeniably more expensive, its impact on the total unit cost is relatively modest.

Compare that to a +12.7% increase in consumer price per gram, and it’s clear:
Nestlé is still well ahead - by a margin of ~10%.

Where Else Is the Margin Coming From?

It’s not just cocoa and packaging. Let’s factor in a few more margin wins:

Reduced packaging costs
Fewer bars per pack = less wrapper material and potentially cheaper box formats.

Lower logistics and handling
Lighter, smaller packs reduce shipping costs per unit and warehouse handling time.

Retail shelf price perception stays flat
RRP remains £2.20 - keeping consumers’ attention away from the effective price increase. It’s stealth pricing, not sticker shock.

Possible cocoa hedging
Big FMCG brands often hedge commodity prices months in advance, meaning their true cost exposure lags behind market spikes.

All of this adds up to one conclusion: shrinkflation is less about shielding costs and more about margin engineering.

What Does This Mean for Consumers?

Consumers see the same packaging, the same price - and likely don’t clock the weight drop unless they’re really looking.
Most won’t check price per 100g.
Most will assume price holds = value holds.

But the net result is:

• Less value per purchase

• More margin per gram for the brand

Final Word: Shrinkflation Isn’t a Symptom - It’s a Strategy

Let’s call this what it is:
Not just a reaction to rising ingredient costs, but a deliberate play to lift profitability while managing consumer perception.

KitKat’s example shows the math.
Even after accounting for cocoa inflation, Nestlé wins.

And unless brands become more transparent - or regulators step in - shrinkflation will keep happening, because it works.

The bars are getting smaller.
The prices are staying the same.
And the margins?
They’re quietly getting bigger.

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