Friday 10 May 2013

The Savvy Consumer-group – how co-buying makes a difference…

With one of our highest page-view counts this year, each lasting an average of 2.54 minutes, yesterday’s NamNews announcement re Tesco’s new co-buying Wine initiative was by far our most popular NamNews item. It also indicated the high level of reader interest in what could be a new way of relating with a brand’s consumers.

Essentially, co-buying (cooperative buying power) provides a way of aggregating consumer demand and using the resulting power to influence all aspects of the offering (Product, Price, Presentation and Place), with cost-price reduction obviously making the news. (For other uses, see Pepsi, GSK, Pfizer, Sony, Warehouse, Achica and Mumsnet case-studies here)  

In practice, co-buying enables the savvy consumer to identify like-minded individuals, anywhere, all focused on your brand, and share views, experiences and especially perceptions of value. If that temporary grouping can then pool their demands, find a way of negotiating collectively with the supplier, and secure effective fulfillment of the order, then suppliers will have opened up a new two-way route to the consumer.

The new Tesco wine-buying initiative provides a way of removing some of these hurdles and road-testing the basic concept, with machinery that can scale and embrace additional categories in response to real demand, fast. 

It also gives Tesco extra buying muscle, but because of the two-way nature of the new channel, along with the 10:1 complain/praise ratio, the retailer will obviously be ultra-conscious of how they are seen to handle needs at each end of the supply chain…
…a potential win-win-win for consumer, retailer and supplier?

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