BOGOF becomes BOGOFL (or BNFNT)
Wednesday, November 18, 2009
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BOGOFL hasn’t quite got the same ring to it has it - but it’s a development that is being used in the latest round of supermarket wars.
BOGOFL stands for “Buy One Get One Free Later”, and involves the customer receiving a voucher at the till which entitles them to a second product free at a later date. It is also referred to as BNFNT (Buy Now Free Next Time)
The idea was first announced by Tesco in October as a response to criticism that BOGOF offers created waste as many of the foodstuffs were going off before customers could use the free product. However, today Tesco’s arch rival Sainsburys, which has seen some positive signs lately, were able to implement the idea before Tesco and launched the offer on two products.
The first two products to be promoted in this way are Nappies and Baguettes - exactly the type of products that Sainsbury’s claims that customers want the delayed offer. Nappies because they are bulky which makes them difficult to carry and store if you have to take two packs, and baguettes because few people would need a second baguette on the same day.
However, some people are a little cynical about the BOGOFL ploy. Firstly, the customer must remember to bring the voucher back into store within the time the voucher is valid - so how many will get lost or forgotten. The second reason is that supermarkets are using it as a method of ensuring that customers return - something that doesn’t hold true for the traditional BOGOF.
There is of course another business studies slant on this story. Tesco’s idea would be classed as an innovation - but did they make a mistake in announcing it too early? Have they handed a major rival a competitive advantage?
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