To toy or not to toy in supermarket instant reward programs

Abstract

PurposeThis industry viewpoint paper provides a comprehensive overview and critical viewpoint on the use of collectable toy premiums via instant reward programs (IRP) within the retail industry as a marketing tool.Design/methodology/approachThis paper draws upon the uses of a “free” collectable toy premium promotion with a fixed purchase spend (via an IRP) in the supermarket industry as a marketing instrument to increase customer basket spend and repeat visits. Reflections on the recent use of toy premiums by Australian supermarket retailers are also utilised to highlight the ingredients for a successful promotion but also the controversies associated with such promotions.FindingsOne of the key findings suggest that the role of toy premiums is a successful marketing tool by retailers to increase customer total basket spending. However, notable points of caution regarding offering IRPs incorporating collectable toy premiums promotions are established, including environmental concerns and the social, ethical dilemma as to whether these promotions are indirectly targeted at children rather than adult consumers.Practical implicationsThe findings have important implications for retailers to attract customer attention, increased market spend and repeat purchases through a desired collectable premium promotion (via an IRP).Originality/valueThis is the first paper to critically review the usage of collectable toy premiums within the supermarket retail industry.