While politicians debate the merits of commercialising education, two of the UK’s best-known brands have done a deal that may well get more people studying for HE qualifications.

The deal between The Open University (OU) and Tesco means shoppers can use Tesco Clubcard points to pay for part or all of an OU course. This is an innovative idea as it helps the OU extend its reach while giving Tesco customers a unique opportunity to pay for tertiary education.

Tesco have always tried to be a first mover in the area of developing sales promotions and loyalty schemes that link to education. Fifteen years ago they launched Tesco Computers for Schools, still running in 2006. While this was not an idea developed by Tesco (it was a sales promotion licensed from an American company) it was the first and until recently probably the best-known of several schemes linking FMCG spending in supermarkets with rewards for schools.

Unfortunately for Tesco, Sainsbury’s Active Kids and its link with their Nectar card scheme bumped them from the top position in this highly competitive category. Even launching the near identical Tesco Sport didn’t get them back on top. This is why, by shifting strategy and jumping to the HE sector, Tesco have been so smart. They once again have first mover advantage in an area of education with strong consumer appeal (think retiree baby boomers, young parents, etc) while their main competitor Sainsbury’s are heavily committed to their schools programme.