U.K. Survey: Grocery Promotions Confusing and Gimmicky

According to the findings of a recent U.K. consumer survey, a flood of different promotions is only confusing and frustrating many shoppers.

The survey of more than 4,000 shoppers by Market Force found little value for price-match guarantees, a popular ploy currently in the nation. Of those surveyed, 82 percent said price-match promises had no influence at all over which supermarket they shopped. Of the respondents, 47.2 percent referred to them as "just a marketing tactic."

But the overall view of supermarket promotions was split. When asked their opinions of promotions, 35.4 percent agreed they were "Helpful" in gauging how much they were saving at each store while 14.5 percent agreed promotions "Build my trust" in each grocer’s value proposition.

On the negative side, 34.5 percent called coupons "Unhelpful: I think it’s a marketing tactic, not a real deal," and 15.6 percent found coupons "Confusing: I’m not sure what benefit I’m really getting."

Asking those who indicated promotions were confusing or unhelpful why they felt so, a little more than half (56.7 percent) indicated either they were "too complicated" to figure out, "not totally transparent" or did "not communicate the savings very well." A third felt they don’t "really save" or get "any benefit." Ten percent said, "it’s difficult to remember to claim back the saving."

On the encouraging side for promotions, 70.3 percent indicated that coupons encourage them to sometimes go to a certain supermarket, with 31 percent admitting they actively seek them out.

However, perhaps sending a call for simpler offers, when shoppers were asked for their favorite promotion, 55 percent said BOGOF (buy-one-get-one-free). Surprisingly, the second was a rare promotion — getting reductions on foods near their sell by date, mentioned by 22 percent. Coming in much lower were percent-off, buy two for a certain amount, and an extra percent free.

"Shoppers are not clear on what a genuine deal is any more, which is leading to a confused and reticent consumer base questioning whether the various price promises are just a gimmick to get them into stores with no justification at the end of it," Market Force marketing manager Simon Boydell told the U.K’s The Grocer, which sponsored the survey.

The survey comes at a promotional period among the U.K.’s four major grocers: Asda, Sainsbury’s, Tesco and Waitrose. Reportedly provoked by Tesco’s efforts to regain share, prices have been lowered across the channel and increasingly aggressive coupons have been introduced.

In early August, Walmart-owned Asda, which has some promotions but generally employs an EDLP strategy, ridiculed the complicated nature of many coupon deals. Asda finance director Rob McWilliam told the U.K. media, "There have been an enormous number of gimmicks to disguise a weak pricing position."

BrainTrust

Discussion Questions

Do you believe shoppers in the U.S. are equally annoyed by the complexity of supermarket promotions and coupons? What are the pros and cons of multiple promotional offers versus fewer approaches? Are “gimmicks” such as price-match offers still worth it?

Poll

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Max Goldberg
Max Goldberg
11 years ago

Shoppers may voice annoyance with promotions and coupons, but they willingly line up to participate. Over 90% of households in the US use coupons and the number that regularly use them has grown during the recession.

The response to loyalty programs has been mixed, somewhat mirroring the results from the UK: consumers enjoy the savings, but they don’t heavily influence shopping habits (which tends to negate the purpose of this tactic).

The bottom line is that consumers like to save money and any program that offers immediate savings, without having to jump through hoops or make multiple purchases, is seen in a positive light.

Get rid of the gimmicks and get behind promotions that offer real, immediate savings.

Gene Hoffman
Gene Hoffman
11 years ago

In an era of multi-faceted shoppers, many folks are jaded by the endless parade of promotions, others rely on them for both economic and adveturous reasons. Frequently both groups live within shopping distance of several stores.

People tend to shop mainly where their “values” or desires are usually met. By knowing what the majority of one’s most profitable customers prefer, a store can increase its competitiveness and/or its survival.

Many customers desire competitive EDLP, others desire all kinds of incentives whether valid or not. Kroger is one of the retailers who know how to best use coupons, assortments and multiple promotions to its advantage and to keep Walmart at bay in their area.

Conversely, some chains are doing that well today without promotions. They have built their businesses without coupons or promotions such as Trader Joe’s and Costco.

Thus a retailer does whatever it thinks it must to succeed or survive. Thus — May its actions be based on sound contemporary information.

Warren Thayer
Warren Thayer
11 years ago

There’s a segment of people more than willing to jump thru hopes for sundry promotional offers, regardless of how complicated they are. Another large segment uses frequent shopper cards, but pays little attention to specials — they just shop and get the benefit of the sale prices on a random basis. Neither is healthy or even in the consumer’s best interest. We need more simplification, and more measurement of results.

Roger Saunders
Roger Saunders
11 years ago

K.I.S.S. — Keep it simple & straight-forward.

Promotions and incentives of all kinds should be established based on five simple principles:

1. Is the incentive consistent with company objectives?
2. Does the offer provide direction to take?
3. Does the offer excite the individual who is receiving it?
4. Is the offer simple to understand?
5. Is the offer easy to administer on extending and receiving side?

If the retailer is asking themselves the question of whether the coupon or other incentive is meeting these steps, they will avoid being “blasted” as a gimmick.

At times, common sense is left out of the design of promotions. Probably a reason that too many promotions have less than stellar effect.

Mark Heckman
Mark Heckman
11 years ago

Deal-driven shoppers have a bit more tolerance for promotions that contain conditional steps, such as buy X and Y and get a Free Z, than those that do not have the time or inclination to engage in these type of promotions.

I have always maintained that the essence of retailing is to find the optimal price and value point that leads to satisfying both consumers and the profitable business interests of the retailer. It is clear to me that some of these more complex, conditional promotions have crossed that “value line” and no longer represent a worthwhile value to many shoppers. Ultimately, these promotions will fade from the landscape as they will not produce the sales and profits they were designed to create.

With a US economy that continues to yield diminishing incomes for many shoppers at the same time it drives higher prices of commodities, promotions will remain extremely important. But even the most prolific “price-driven” shopper will disengage from promotions that become so restrictive or conditional that they no longer represent a value.

Bernice Hurst
Bernice Hurst
11 years ago

Every Saturday the money section of The Guardian publishes a photo sent in by a reader showing a ridiculous promotion. Individual items costing less than those on offer in multiple packs occurs frequently. Over the past several months they have been taken in virtually every retail outlet you can name. No wonder consumers mock.

Roy White
Roy White
11 years ago

Promotions are the lifeblood of supermarket retailing. Without them, a store is lifeless. They create excitement; they provide deals for cash-strapped or economy-minded shoppers; they keep customers coming back by offering something new and different; and much more in making a store appealing to a customer base. A store that espouses EDLP runs the risk of losing all this urgency. Some promotions may be complicated, but the key is that shopper most certainly should be offered an array of promotions to keep her coming back to the store. In my book, multiple promotions are superior.

Craig Sundstrom
Craig Sundstrom
11 years ago

15.6 percent of people couldn’t understand what benefit they were getting from a coupon?!?!

I’m amazed they were able to even find their way to the store entrance.