SITUATION

Tesco Malaysia, as the largest National supermarket, had halved the number of single-use plastic bags between 2011 – 2017, but the rate of reduction stalled, still only an average of 5% of all Tesco shoppers reused their bag in 2017 .

BRIEF

Find an effective way to accelerate the reduction and eventually eliminate all single use Tesco bags. With only 10,000USD (MYR 40,000) budget at hand, effect significant behavioral changes for customers.

OBJECTIVES

1. Reduce use of single use plastic bags by Tesco customers by increasing the number of shoppers re-using their shopping bags from 5% (3 million transactions) to at least 10% (6 million transactions).

2. Demonstrate that Tesco PLC is taking a leadership role within the marketplace in reducing single-use plastics.

3. An easily executable campaign that can be implemented across all 56 stores at minimal cost and logistical outlay.

All Tesco shoppers have been taxed (RM 0.20 each bag) for a decade following the government policy, but the overall re-use is still at 5%. The moral argument and negative reinforcement such as punishing with taxes weren’t getting traction.

So, instead of trying to make shoppers feel guilty for forgetting their bags, we work within a more powerful and established set of behaviours and routine of chasing for rewards.

By simply adding a simple barcode to an existing bag design, we transform the bag into an ongoing discount that ALL shoppers will keep, continue to use regularly, and be rewarded for it. Transform the humble carrier bag into a regular, habit transforming, rewarded utility. Sold for 50 cents, the bag gives unlimited RM 0.20 rebate every time it’s used. This ongoing rebate would be entirely funded by the 20 cent tax made to shoppers who did not bring back bags.

One universal truth of Malaysian shoppers (of all shoppers) is that they love a bargain and hunt for rewards no matter how small the benefit is. 8 out of 10 (82%) are actively looking for bargain, additional reward or saving .

The store and all internal owned media were utilised as the most efficient and effective means of landing the message with all customers. Presented right at the 'crisis' point of realisation of forgetting their bags, customers were presented with a logical and morally and financially rewarding solution.

The bags were launched Nationwide across all 56 stores via a PR media launch at the Tesco HQ in Kuala Lumpur. International news coverage created mass awareness of the Unforgettable Bag, supplemented by use of Tesco digital and social channels.

POS materials across the stores, including posters, banners, till-point, aprons, door vinyls and shelf stickers helped to spread awareness.

Launched on the 3rd April 2018, the unforgettable bag has proved so successful it remains in all 56 stores nationwide.

The greatest reduction in single-use bags in Tesco Malaysia history:

• A reduction of 20 million single use plastic bags YOY = An overall 26% reduction in the total single-use bags.

• A massive increase in re-usage rates, from 5% before the campaign to 68% post campaign.

- The Unforgettable Bag design has now replaced all other re-usable bags Nationwide

Commercial Savings & ROMI:

• RM 138K YOY bag production cost saving with reduced consumption and the simple cost-effective implementation.

• RM 1.1 million operation cost saving from mitigating the implementation of the Government’s mandate for all retailers to replace all plastic bags to Bio-Degradable bags had Tesco been unable to demonstrate an effective bag reduction.

• With a MYR 40,000.00 total cost, the campaign generated a saving of over MYR 1.1m in operational costs, which gives an impressive ROMI of 275%