Shoppers give mixed reaction to BOGOFs

Monday, 19 October 2009

More than a third of shoppers have admitted they are tempted to try something new by in-store promotions such as "buy one get one free" (BOGOF).

According to consumer research by IGD, 37% of shoppers said in-store promotions, such as "reduced price" and 'BOGOFs prompted them to buy a new product when they were food shopping, compared to 29% who said advertising on TV or in magazines encouraged them to try something new.

Nearly one-in-four shoppers (23%) said BOGOFs were a major factor in trying a new product, followed by "reduced price" (17%) and "3 for 2" (15%).

However, views about multi-buys, such as BOGOFs, were mixed.

A quarter (26%) of shoppers wanted to see an end to such offers on fresh food - echoing the call from Hilary Benn, secretary of state for Environment, Food and Rural Affairs,
and almost 30% were concerned about food waste resulting from promotions.

Fourteen per cent of shoppers said they did not approve of multi-buys at all.

Joanne Denney-Finch, chief executive, IGD said: "Shoppers are changing their behaviour by shopping around more, taking more time and looking out for the best deals.

"They are clearly swayed by in-store promotions, but the most effective way to encourage new product trial is to use a combination of advertising, merchandising and promotions.

"Multi-buys remain extremely popular but a growing concern about food waste is influencing shoppers and so retailers are becoming more selective, increasingly targeting these promotions at long-life and non-food items."

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Graham Howarth said:

...
With the debate surrounding the use of BOGOFs and other price promotions showing no signs of abating, brands should be reviewing their promotional strategy.

They should be looking to value-added sales promotions as a way of increasing brand awareness, understanding and sales, whilst maintaining margins. This will allow them to avoid price wars and to sidestep the potentially negative publicity being generated by the current headlines linking BOGOFS with food waste and obesity.

An attention-grabbing on-pack promotion, such as a mail-in offer when everyone is a winner, will draw consumers to the supermarket shelf when they are making decisions about which brand to put in their shopping trolley. At the same time, it can convey desirable brand images through its content and mechanics. Offering rewards such as vouchers for money-off holidays, luxury breaks and dining, on which many people have been cutting back their personal spending in the current economic climate, will certainly attract interest and response.

BOGOFs are instantly forgotten, here today, gone tomorrow; a promotion with an aspirational reward can deliver long-term benefits to the brand.

Graham Howarth
Director
P&MM Sales Promotion
Milton Keynes