Tesco is relaunching its loyalty scheme in a bid to reattract customers who have taken refuge at rivals Asda, Sainsbury’s and Morrisons. Will it work?
Tesco is taking on Sainsbury’s and Asda with a Price Promise that aims to replicate its rivals’ success in attracting cash-strapped consumers through its doors.
The scheme, launched on 11 March 2013 across the UK, guarantees that Tesco will check shoppers’ baskets against prices at Asda, Sainsbury’s and Morrisons. If the comparable basket would have been cheaper shoppers will get a voucher for the difference, up to £10.
Previously, Tesco had allowed shoppers to input the details of their receipt online to check whether their shop would have been cheaper at a rival, but now it will offer instant, at-till analysis.
So how does Tesco’s service match-up to its rivals?
How it works Shoppers must buy at least 10 different items, including one comparable grocery product, from any Tesco Metro, superstore or Extra store (and their attached petrol stations), as well as via the Tesco website. If you could have bought the same grocery shopping cheaper at Asda, Sainsbury’s and Morrisons, Tesco will issue you with a voucher for the difference, up to a maximum value of £10.
But the offer will not apply to Tesco Express stores, often more expensive than larger Tesco supermarkets, or Tesco Homeplus purchases.
Which products are included? Tesco will compare branded groceries (Kellogg’s Cornflakes, Ariel, Coca Cola etc) as well as its own-brand products (where an equivalent is sold at Asda, Sainsbury’s or Morrisons). It will also compare price reductions and promotions such as multibuy purchases (buy one get one free etc), as well as price cuts, for example a discount from 99p to 50p.
Which are excluded? For a full list of exclusions visit the Tesco website, and there are a lot. Tesco will not compare any electrical item, home and furniture items, CDs, DVDs, Blu-rays, DIY and car items, toys, baby and toddler accessories, gifts and jewellery, clothing, phones, opticians, beauty centre products, cafe items, fuel, photo-processing and associated services, newspapers, magazines, stamps, tobacco and cigarettes.
Tesco will also not include meal deals, combination offers such as buy-cheese-and-get-crackers-free, category-wide deals such as 5% off six bottles of wine, and multiple offers (when Tesco or a competitor has more than one offer on the same products running at the same time, such as buy two for £3 or buy five for £6).
How do I claim? You will be given a voucher at the till if your basket would have been cheaper elsewhere, or you’ll be sent an email if you do an online shop. Shoppers must use their vouchers within 28 days and are not allowed to spend them on fuel, lottery tickets, tobacco, infant formula, pharmacy products, gift cards, E–top–ups, stamps, opticians and travel money. Nor can you use them in the Tesco bank or cafe or on entertainment or clothing, in the phone shop or through Tesco Direct.
How it works Sainsbury’s shoppers have their basket of branded grocery goods compared with the cost of the same goods at Asda and Tesco (Morrisons isn’t included in the comparison). If the branded goods would have been cheaper at either store, including in-promotional deals, shoppers will immediately receive a coupon equal to the value of the difference. Shoppers can redeem this the next time they shop.
Customers must spend a minimum of £20 and their basket must include at least one item that is identical (same size/quantity, flavour etc) to one available in Asda or Tesco.
Online shops are excluded, as are certain stores across the country and some central London outlets.
Brand Match coupons will also not be issued at petrol stations, Sainsbury’s Local or convenience stores.
Which products are included? Most branded grocery products.
Which products are excluded? Supermarket’s own label products are excluded from Brand Match. Those aside, the list of exclusions mirrors Tesco’s. Online shopping is not eligible for Brand Match, and like at Tesco, Sainsbury’s also excludes one-off deals and combinations offers.
How do I claim? Any coupons must be redeemed within 14 days and the maximum you can get back is £10. You cannot buy fuel or spend your coupons on prescriptions, online, at cafes or restaurants, or on concessions.
How it works Originally launched in 2010, the Asda Price Guarantee – “The price promise the others wish they could match” – says that if it isn’t 10% cheaper than rivals Tesco, Sainsbury’s, Morrisons and Waitrose it will give you the difference. But the comparison does not happen at the till – you must visit the Asda website and enter your receipt details.
To be eligible you need to have bought at least eight different items, of which at least one should be comparable with Asda’s main competitors. The difference is paid as a voucher, which must be used in an Asda store within 28 days.
Which products are included? Any comparable grocery product.
Which products are excluded? Categories not currently covered include: home, electricals, furnishings, garden, entertainment, hardware, sports, toys, George, tobacco, newspapers, magazines, jewellery, pharmacy, optical, fuel, photo-processing, dry cleaning and all online-only products including financial services, flowers, mobile, travel and gifts.
Also, like its rivals, promotions that make it difficult for Asda to compare fairly are excluded from the price guarantee.
How do I claim? Claims must be made within 28 days either in-store or online.
How it works Waitrose launched its Brand price match in autumn 2010. Although it does not offer any discount vouchers if it finds goods could have been bought cheaper elsewhere, the Brand price match is a long-term commitment to match Tesco prices on 1,000 everyday branded goods that customers buy most frequently.
How it works Morrisons currently operates a campaign where anyone who spends £35 or more in one transaction between 4 March and 24 March 2013 will get a coupon at the checkout. If they collect one coupon each week for three consecutive weeks they can present them all at the checkout and £10 will be automatically taken off the value of their shop – if they spend another £35 or more.