Life cycle of a

Coupon

Branding & Coupons

Have you ever been to a Pillsbury store? Nestle? What

about a Green Giant store? Of course the answer is No!

Instead, all grocery manufacturers are side by side at the

store competing for you to pick them. A shopper’s

purchase is typically influenced by either brand loyalty

or pricing.

How does a manufacturer get you to pick their product

over another brand?

2 Pieces of The Puzzle

Store Sale Coupon

Manufacturer offers products at

a promotional price to the store.

The store passes savings along to

shoppers through weekly store

specials.

Draws attention to the product

through a coupon.

A manufacturer’s way of

having a sale directly to the

shopper.

How Coupons Work

Manufacturers design coupons and product promotions with

their Marketing Team.

The coupon is then printed through a “coupon clearing house.”

The two largest are Vlassis and News America, the same

companies that distribute weekly newspaper inserts.

The Clearing House creates a coupon for the manufacturer and

they decide which markets it will be issued in (coupons are

regional). Then, the coupon is added to the newspaper insert

distribution.

Store Clearing

House

Manufacturer

You

Coupon

How Coupons Work

You get the coupon by cutting it out of your newspaper inserts.

Then you take it to the store. While you are seeing all those

different brands on the shelf together, you remember you have a

coupon for one of them so you pick that one.

You purchase the product and your cashier scans your coupon.

That amount is deducted from your total bill. Then, the cashier

puts the coupon with the others they have gotten that day.

How Coupons Work

At the end of the day, the coupons are all collected and sent back

to the Clearing House. They are scanned (all the bar codes) and

an invoice is created for the manufacturer to pay the store to

reimburse them for the coupon amounts.

Each store gets reimbursed by the manufacturer for the coupons

they’ve accepted. Also the manufacturer adds an additional

$0.08 per coupon to cover the store’s cost of handling each

coupon.

For Example,

Green Giant wants you to purchase their brand

over other brands in the store.

They also want you to specifically purchase

the Steamers version of their products

They will have this coupon printed & distributed

for consumers to use on their product.

VOID

For Example,

When you use this Green Giant coupon at the

store, they will deduct $0.40 off your total bill.

They will send it to the address on the coupon

and will get reimbursed $0.48 back to their

store.

Any double that is given is not reimbursed. It is

given directly by the store. VOID

Why?

Why do manufacturer’s do this knowing they are going to have

to pay back the store for the coupon?

One big reason is that while you are continuing your shopping trip,

you have also become a walking billboard for the manufacturers

whose products are in your cart.

Have you ever “checked out” another

shopper’s cart and made a mental note

about a product in their cart?

Come on! Raise your hand„we all do it!

Combining Store Savings with

Coupons is the KEY to

lowering your grocery bill!

Time 2 $ave helps you save more by

providing the tools you need to put these

two pieces together.

Store Sale + Coupon = BIG $avings!