What should I think about before building a BOGO?
A BOGO is a mechanic-driven promotion, where shopper behaviour plays a critical role.
Key considerations:
Redemption – not all shoppers will take the free unit
Effective price per unit – significantly reduced due to the free product
Expected volume uplift – typically high, but dependent on execution
Coverage – wider distribution increases both impact and cost
Funding approach (OI vs Scan) – determines how the cost is applied
Merchandising support – critical to clearly communicate the offer
Cannibalisation within your range – increased demand for one SKU may reduce sales of others
A strong BOGO balances shopper value, participation, and total investment, while considering the net impact across your product range.