The future of coupons: Valassis Yanks Red Plum Inserts in Several Large Markets
by Briana Carter on February 17, 2009
Is the jig up? There are reports that Valassis Corporation who produces the Red Plum Coupon inserts has pulled the inserts from several markets in Ohio, Indiana, Pennsylvania, New Jersey, Utah, Virginia, Washington D.C., North Carolina, Maryland, and Texas. At first I didn’t think I was affected but I do realize now that the week I was missing an insert was a Red Plum from the Kokomo Tribune. The Red Plum is still available from the Indy Star as far as I know.
Apparently Valassis thinks having internet printables (some stores are inconsistent with their treatment of Internet Printables, many internet printables do not double, some consumers have no access to internet or a printer,and others just can’t get them to print on their computer or limited because they use public access terminals) and mailing out Red Plum insert to customers is now enough. I would think with the rise of postage costs, this would be more costly for Valassis. They have not taken into account that many people buy extra newspaper inserts to maximize their savings or buy extra items for charity. In addition, couponers are probably keeping some newspapers afloat by couponers buying extra papers each week just for the extra inserts!
This brings me to the question, is this the beginning of the end of coupons as we know it? I hope not because good old fashioned Sunday Coupon Inserts are what I mainly use to save! In fact, most manufacturer’s view coupons as a form of advertisement. You can’t get that same advertisement in a printable internet coupon or a “e coupon”. Only consumers who sign up for the Red Plum inserts in these areas will receive them INSTEAD of the thousands of people who buy the Sunday paper and flip through the ads/inserts. I’m not a marketing expert but does this make sense to you? Did the manufacturer’s who purchase ad space from Valassis approve of this?
Here’s a news story on the subject: Valassis Angers Blogger Moms by Yanking Red Plum Inserts from newspapers. On a side note, I’m disturbed by this branding of mom bloggers as “angry”. Using the term angry makes us all sound like some type of mad mob, which I guess we really could become if they take away our coupons….So Valassis, do you really want to ANGER your target demographic?
Find out what you can to do at Bring Back the Coupons.
Tagged as: Couponing, red plum
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I posted this on our site. I contacted Valassis directly and got a list of all newspapers and direct mail campaigns that are currently underway. Here is the post:
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I had a very nice conversation with Jennifer at valassis today. She emailed me a list of cities that red plum is now sending out inserts via mail instead of placing them in the newspapers.
The reason they are doing this is simple. They want deeper market penetration. They want their product in front of more eyes. Often they do not discontinue the newspaper insert, but in some cities they are ONLY available through the mail. Those cities are marked in read and with a “*”.
Here are the cities currently affected:
ATLANTA, GA
CHARLOTTE, NC
CLEVELAND, OH*
ERIE, PA* (Buffalo, NY has the insert)
FITCHBURG, MA
HOUSTON, TX
INDIANAPOLIS, IN
LAS VEGAS, NV*
LEXINGTON, KY
MEMPHIS, TN*(suburban papers contain the insert)
MILWAUKEE, WI
NORFOLK – RICHMOND, VA
PHILADELPHIA, PA
PHOENIX, AZ
PITTSBURGH, PA*
PROVIDENCE, RI*
QUINCY – BROCKTON, MA
SAN DIEGO, CA
SEATTLE – TACOMA, WA
ST. LOUIS, MO
WASHINGTON DC*(suburban papers contain the insert)
The original article was posted here:
http://www.weusecoupons.com/upload/questions-ask-here/2326-red-plum-insert-going-into-mail-some-markets.html
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Proctor & Gamble has done promotions where they offer basically a free coupon insert by buying X amount of their products. Red Plum could do something similar with their clients.
Beth – It probably is similar to the Kokomo Tribune. I’ve noticed they have more ads and less coupons. You only get part of the L’oreal coupons is one big one that I’ve noticed.Occasionally, I have noticed a coupon that is in the KT but not in the Indy Star. That is rare but it does happen!
Thanks for sharing this info!
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Mercedes
The deeper market penetration comment sounds like a cop out from Valassis. You don’t cut off one market to get deeper penetration. It appears, they are trying to “diversify” by offering a new approach to coupon inserts but while diversifying they are excluding a large number of current users of their product.
Effective market penetration will:
1. Gain competitor’s customers. (Valassis Plan: Fail – I don’t see this happening as more people/manufacturers will flock to Smart Source.)
2. Convince current customer to use more or gain new customers. (Valassis Plan: Fail. You only have the option to get 1 insert via mail so current customers will not even have the opportunity to increase their usage. New customers may be gained b/c they did not buy the newspaper/have the opportunity to buy a weekly newspaper but the net loss of the people who buy multiple papers just for the coupon inserts will decrease.
I just think they would have a great impact if they continue the coupon inserts in the newspapers AND reached out via mail. I do appreciate they are offering internet printables but until all stores accept them without discrimination, internet printables aren’t the sole answer.
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So far I haven’t had problems using the printables but I have only used them in our local grocery stores, I suppose they know me so I don’t run into any problems (many times the clerk will ask management and they always come over look them over and say yes). I’ve heard them say they’ve had problems with fraud on these coupons basically someone has tried to change the amount or alerted them in some way.
I agree that they will lose sales from the papers if they pull the coupon inserts..I for one will not be buying not 1 but usually 2 on Sunday plus I still print the ones I know our family will use.
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Have you seen the website… http://www.bringbackthecoupons.com
Many people trying to get the word out and hopefully make a difference on RP’s decition.
Let’s look at the pure economies of scale… newspapers are losing readership (and have been for years). The Cleveland Plain-Dealer (the impetus for much of the negative blog posting) lost 2.7% Sunday circ. from 2004-05, -1.6% in 05-06, -1.4% in 06-07 and the 07-08 figures will not be pretty. Advertisers are looking to reach as many people as possible with their advertising in the most cost-effective manner. The fact is that, while a small group of people may think that their purchase of multiple copies of the newspapers is a powerful driver of successful ROI, the fact is that if an advertiser can reach 10%, 20% 30% or 40+% more people by using the mail for the same cost per person as using a newspaper, that is a good thing!
The inability of a group of people to buy multiples of a product using multiple coupons is significantly offset by the ability of an advertiser to reach hundreds of thousands of new consumers who might buy their products.
While consumers may find this hard to believe, manufacturers don’t actually want people buying 10 newspapers to use 10 coupons on their products. They would much rather have 7 new people each use one coupon? Really? They would rather sell 7 items instead of 10? Yes! Coupons are about trial — the goal isn’t to give multiple coupons to a single person — it is to engage a large group of people to try the product and hopefully become regular consumers. To do that, you need to get your coupons in the hands of the most consumers.
If anyone believes that the manufacturers want them using multiple coupons at one time, they need to know that is not reality. That is why there isn’t a coupon every week for the same product. That is why manufacturers are embracing the move to distribution via direct mail. That is why P&G (the largest pckaged goods company in the world) does not advertise online — they are worried about coupon fraud (i.e., consumers printing multiple copies). By that same argument, they would consider the buying of 10 copies of a newspaper to be “newspaper fraud”. In other words, they don’t want people using 10 coupons. They want you using one coupon and then returning to purchase more of the product at the regular price. If manufacturers really wanted you to buy multiples with coupons, they could provide coupons that can be used on the purchase of “up to 10 products”. Then you only need one coupon and can buy as many of each product as you need. Ask yourself why they don’t do this.
Additioanlly, the newspaper business is in danger, and it’s got nothing to do with Red Plum moving to mail (I find the posts ironic that claim that Red Plum moving to mail will put the newspapers out of business). The newspapers don’t need any help with that. In the last 2-1/2 months, 33 newspapers have filed for Chapter 11 bankruptcy, including the Los Angeles Times, Chicago Tribune, Minneapolis Star-Tribune, Philadelphia Inquirer and many more. And, yes they all carry SmartSource and Red Plum coupons and they are still failing financially!
We really can’t blame Red Plum for listening to their advertisers and providing a strategic solution (with shifts to mail and online couponing) that increase the coverage for their advertisers, allow more consumers to have access to their coupons and provide an option should newspapers close or cease business (like the Rocky Mountain News)?
Bloggers, while disappointed that they no longer have access to 10 coupons for their favorite product should be thankful that hundreds of thousands of other consumers in their market can now receive coupon discouts during this financially dificult time. They should be excited that, should their newspaper cease operations, they will still be able to receive their Red Plum coupons in the mail. And they should be pushing their retailers to accept online coupons (if they currently don’t). Finally, they should be making friends with their neighbors, because if they want extra coupons, all they need to do is ask their neighbors if they can have theirs (and they don’t even need to buy extra newspapers to get them).
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While consumers may find this hard to believe, manufacturers don’t actually want people buying 10 newspapers to use 10 coupons on their products. They would much rather have 7 new people each use one coupon? Really? They would rather sell 7 items instead of 10? Yes! Coupons are about trial — the goal isn’t to give multiple coupons to a single person — it is to engage a large group of people to try the product and hopefully become regular consumers. To do that, you need to get your coupons in the hands of the most consumers.
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