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."