I think it foolish to not be diligent about saving and investing one’s resources. Print media is clearly an outdated medium for effective use of coupon promotion/advertising by the manufacturer considering their objective of getting their product(s) exposed to a wider market. In print media, there is no way to track usage, demographics, and market penetration, etc.

It’s only a matter of time that this imbalance of coupon usage will be adjusted… the days of coupon inserts is limited… just as the days of the print newspapers are.

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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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As Jane indicated, it makes business sense for Red Plum & manufacturers to distribute more coupons to more people. The sad thing is during such economic hard times, the negative impact of this move will leave many soured and frustrated with Red Plum.

The bright side is you could ask neighbors to save those unwanted Red Plum Direct Mailers for you and collect more coupons. Of course they may also be wanting to use them now…

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).

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.

Rachels last blog post..Free Samples Galore! ]]> http://bargainbriana.com/the-future-of-coupons-valassis-yanks-red-plum-inserts-in-several-large-markets/comment-page-1/#comment-12376 Heather N Wed, 18 Feb 2009 13:27:22 +0000 http://bargainbriana.com/?p=3709#comment-12376 I'm in IA and we just bought two different Sunday papers this week and we couldn't find any coupon inserts in either paper. :( I'm going to email those papers and ask because we buy the Sunday paper just for the coupons. This is an eye opener for me...from now on I'll be checking before I spend the money for nothing. 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. I’m in IA and we just bought two different Sunday papers this week and we couldn’t find any coupon inserts in either paper. :( I’m going to email those papers and ask because we buy the Sunday paper just for the coupons. This is an eye opener for me…from now on I’ll be checking before I spend the money for nothing.
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.

Nicoles last blog post..Free Samples ]]> http://bargainbriana.com/the-future-of-coupons-valassis-yanks-red-plum-inserts-in-several-large-markets/comment-page-1/#comment-12276 Bargain Briana Tue, 17 Feb 2009 21:41:59 +0000 http://bargainbriana.com/?p=3709#comment-12276 Yes, it is kind of addicting to save $! Everyone has to vent! :) I thought you had to love me a little to spend so many hours even if you didn't like what you had to do...ha ha... :) Yes, it is kind of addicting to save $! Everyone has to vent! :) I thought you had to love me a little to spend so many hours even if you didn’t like what you had to do…ha ha… :) ]]> http://bargainbriana.com/the-future-of-coupons-valassis-yanks-red-plum-inserts-in-several-large-markets/comment-page-1/#comment-12275 jennifer Tue, 17 Feb 2009 21:40:05 +0000 http://bargainbriana.com/?p=3709#comment-12275 thanks for commenting on my blog! i really do love your site! for all my whining about budgets and saving money, i'm finding that it's kind of fun to find good deals! thanks for helping a sister out! <abbr><em><abbr><em>jennifers last blog post..<a href="http://thetillmanfamily.blogspot.com/2009/02/shes-just-not-that-into-you.html" rel="nofollow">she's just not that into you</a></em></abbr></abbr></em> thanks for commenting on my blog! i really do love your site! for all my whining about budgets and saving money, i’m finding that it’s kind of fun to find good deals! thanks for helping a sister out!

jennifers last blog post..she’s just not that into you ]]> http://bargainbriana.com/the-future-of-coupons-valassis-yanks-red-plum-inserts-in-several-large-markets/comment-page-1/#comment-12271 Frugal Plus » Blog Archive » Valassis Yanks Red Plum Inserts in Several Large Markets! Tue, 17 Feb 2009 20:20:51 +0000 http://bargainbriana.com/?p=3709#comment-12271 [...] Read more here on Bargain Briana’s Blog [...] [...] Read more here on Bargain Briana’s Blog [...] ]]> http://bargainbriana.com/the-future-of-coupons-valassis-yanks-red-plum-inserts-in-several-large-markets/comment-page-1/#comment-12261 Bargain Briana Tue, 17 Feb 2009 19:20:23 +0000 http://bargainbriana.com/?p=3709#comment-12261 BTW, Mercedes @ Common Sense with Money wrote this piece a few days ago about the Valassis debacle: http://tinyurl.com/dad3pc Check it out for lots of discussion in the comments. It is always nice to read more than one commentary on a subject like this! 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. BTW, Mercedes @ Common Sense with Money wrote this piece a few days ago about the Valassis debacle: http://tinyurl.com/dad3pc Check it out for lots of discussion in the comments. It is always nice to read more than one commentary on a subject like this!

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.

Mercedes

Brandys last blog post..Giveaway Winners!! ]]> http://bargainbriana.com/the-future-of-coupons-valassis-yanks-red-plum-inserts-in-several-large-markets/comment-page-1/#comment-12257 Gina Tue, 17 Feb 2009 18:20:41 +0000 http://bargainbriana.com/?p=3709#comment-12257 I'm in a suburb of Washington DC, and the two weeks that we've had no RedPlum in the Sunday inserts, it came in the mail on Wednesday with that larger RedPlum junk mail insert. So we did still get them. Thanks for sharing this info! <abbr><em><abbr><em>Ginas last blog post..<a href="http://sahmmoney.blogspot.com/2009/02/meal-planning-monday.html" rel="nofollow">Meal Planning Monday</a></em></abbr></abbr></em> I’m in a suburb of Washington DC, and the two weeks that we’ve had no RedPlum in the Sunday inserts, it came in the mail on Wednesday with that larger RedPlum junk mail insert. So we did still get them.

Thanks for sharing this info!

Ginas last blog post..Meal Planning Monday ]]>