Tesco has introduced ‘Price Promise’, an automated price check that compares prices of A-brands, private labels and fresh produce with those of competitors Asda, Sainsbuy’s and Morrisons. If their prices are lower, customers at Tesco will get a coupon worth the difference, with a maximum of £10.
Also comparing private labels
Price Promise compares shopping baskets containing at least ten different items of which at least one item can be compared. A spokeswoman of Tesco explains that the item can be an A-brand also available at the competition, but it can also be a comparable private label product.
Price Promise works in shops - where it automatically gives the customer a coupon when he checks out - but also online: if a price difference shows up online, customers will receive a coupon via e-mail.
Unique and similar
Price Promise has to reinforce consumer trust in the pricing competitiveness of Tesco, which is why the system also takes special offers into account. "We are the first major retailer in the UK to compare our own prices against the branded and own label prices of our competitors and give customers an automatic coupon for the difference," said Chris Bush, UK managing director of Tesco.
The width of comparison, also including fresh produce, is definitely unique. The overall functioning of Price Promise however is fairly similar to Brand Match of Sainsbury’s. The fact that customers have to return to spend their coupons is another added advantage.