incorporating the buy one get one strategy
One of the advantages that come from incorporating the buy one get one strategy is that it attracts people a lot. People are always keen to get free commodities, and when such an offer comes along, they take it up very fast. Another advantage that comes from this on the side of the retailer is that it is possible to free up merchandise very fast as compared to product coupons. At times, a person might have many commodities in his/her shelf in such a manner that they might reach the expiry date without getting a consumer and naturally go to waste. It is imperative to note that using the strategy; one can free up space and manage to get new and fresh products.
Despite the outlined advantages, it is also possible to review the disadvantages that come from this strategy. One of the problems associated with buy one get one is that the retailer makes enormous losses. The amount of money that the retailer had paid to the supplier is not reflected because one of the products is given to the customers free of charge as compared to product coupons (Gordon-Hecker, 2020). The case can extend so much that it might affect the stature of the company by failing to have proper book management.
Another disadvantage of the strategy is that the sellers might have ill intentions seeking to clear out stock and thus sell even expired commodities under the guise that they are carrying out customer service. Problems that come from this are numerous, and this is where people might also get health complications that might not even enable them to work effectively in their respective positions. Coupons impact the extended supply chain in that they make it easier for people without financial ability to get products even at the lowest level with the lowest prices. By understanding this, people can get all the required products at any point in the supply chain.
References
Gordon-Hecker, T., Pittarello, A., Shalvi, S., & Roskes, M. (2020). buy-one-get-one-free deals attract more attention than percentage deals. Journal of Business Research, 111, 128-134.