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.
