UK-based Tesco, the world’s fourth largest retailer is testing a unique promotional concept that seems to make a lot of sense to me.
The concept, “Buy One Get One Later” (BOGOL) is aimed at reducing the amount of waste in fresh / perishable foods that is usually associated with the traditional “Buy One Get One Free” (BOGOF).
The idea is that shoppers are purchasing products on promotion but are not able to use the “free” item before it expires. This is particularly true of single households and small families.
It’s smart for two reasons:
1) The most obvious is that it cuts food waste – a no brainer.
2) It creates a return trip to the grocer helping drive shopper loyalty and repeat purchase.
Canadian demographics back up the potential appeal for Canadian shoppers. According to Statistics Canada, there were 12.4 million households in Canada in 2006. Of these, 27% were single person households while a further 34% of households were made up of only two people.
However, a potential downside of BOGOL is that this may actually end up being bad for shoppers but good for retailers and suppliers.
With redemption for these schemes likely to be much lower than 100% BOGOL may be an opportunity to increase sales at regular prices while saving overall promotional expenses. However this efficiency comes at the expense of shopper value.
If anything it’s an interesting idea worth trying!
You can read more here.