Sales promotion tactics change at Tesco and Asda
Saturday, February 28, 2009
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Two news stories provide a couple of excellent examples of sales promotion in action…
The major grocery supermarkets remain locked in a terrific battle for market share and they are tweaking their sales promotional strategies and tactics to try to squeeze an advantage over rivals wherever they can.
Two news stories illustrate how sale promotion plays an important part in the competitive battle.
First up is Asda, which has decided to end BOGOF offers. The reason, according to Asda, is because it intends to win customers’ trust by “not baffling them with vague claims”.. I read this as Asda admitting that it has previously been trying to baffle customers with vague claims!
BOGOF has been a staple sales promotional technique for decades in retailing - I doubt whether we have seen the last of it, even at Asda.
The second story concerns Tesco, and it focuses on the timing of sales promotions. According to the Independent, Tesco is to implement a “pay day discount strategy” - focusing sales promotions on the period when consumers have most disposable income.
That sounds like a clever ploy, though it begs the question - which pay day? Thursday when pensioners get paid? Friday when weekly wages get paid? End of the month, when salaries are paid?
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