Tesco's over promise lead it in trouble

Setting: 2011, UK. In a bid to tackle its rival Asda, Tesco launches a tricky promotional scheme.

What Happened: Since 2005, Tesco and its smaller rival Asda face off on one bone of contention: who offers the cheapest prices? In fact, August 2005, Tesco challenged Asda advertising itself as the cheapest supermarket in Britain. The Advertising Standards Agency upheld Tesco’s complaint and Asda was forced to change its punch line. Yet, both retail chains continued to claim that they were cheaper.

In early 2011, Tesco launched a new promotion: “double the difference”. It promised shoppers that if they found the same item cheaper at a rival chain it would pay out twice the difference in the form of vouchers.

As the news spread, Tesco was faced with an army of savvy shoppers who went bargain hunting to find items that were cheaper. Tesco was forced to alter the scheme and completely do away with it, conceding that the offer had “given rise to a cottage industry of savvy and determined people”.

What it Means: Don’t over promise, ever. If you don’t meet the high targets, you’ll lose face.