Coupons The Whole Story What Are Consumer Coupons? Coupons are vouchers that the suppliers of products distribute to help promote the sale of their.
Download ReportTranscript Coupons The Whole Story What Are Consumer Coupons? Coupons are vouchers that the suppliers of products distribute to help promote the sale of their.
Slide 1
Coupons
The Whole Story
Slide 2
What Are Consumer Coupons?
Coupons are vouchers that the
suppliers of products distribute to help
promote the sale of their products.
Coupons give the shopper a reduction
of the price of the product, so making
it more attractive for the shopper to
buy that particular product, rather
than the competitor’s one.
Slide 3
How Effective are Coupons?
52% of coupons redeemed motivated
Brand Switching.
65% of coupons redeemed motivated
Pantry Loading (“I was never going
to buy the product but the coupon
persuaded me to”) and New
Business (“I decided to stock up”).
Slide 4
How Are Coupons Distributed?
In plastic holders or dispensers on the shelf
facings in supermarkets.
Through in-store demonstrators.
On-Pack (attached to the product or printed
as part of the product’s packaging).
As neck tags.
In booklets.
In newspaper or magazine coupons
promotions (including Free Standing Inserts
or FSI’s).
Slide 5
And More Ways?
In Knock-and-Drops.
In direct mailings.
Product replacement.
As part of an advert for the product in
a newspaper or magazine.
On till slips, bus tickets and paper
carriers.
Via computers.
As scratch cards.
Slide 6
Which Are Most Effective?
Point of Purchase coupon promotions are
by far the most effective. This is because
most purchase decisions are made at point
of purchase. The distribution methods are:
On shelf plastic coupon holders/dispensers.
On pack coupons.
Neck tags.
In store demonstrators.
Slide 7
Coupon Redemption
Coupon redemption varies depending on the
product, target market and the method of
distribution of the coupon.
The highest redemption (50 – 80%) occurs where
coupons for a popular and widely used product are
distributed by an in-store demonstrator. However,
the total number of coupons distributed is
comparatively low.
The lowest redemption (up to 1%) occurs when
coupons are printed in a magazine as part of an
advertisement. The counter is that the magazine
circulation may be very high.
Slide 8
Correctly Targeting Your Coupon
Campaign is
VERY IMPORTANT!
Slide 9
What Sort of Price Reduction
Should I Give?
Between 10% and 20% of the selling price
of the product. 14% to 16% seems optimal.
Above 25% gives unpredictably high
redemptions.
Below 10% results in campaigns “bombing
out”.
Slide 10
Do’s and Don'ts
Clearly indicate the product being promoted
– have a picture of it on the coupon.
Show the discount amount boldly.
Do not show the discount amount more
than once on the face of the coupon.
Do not have another coupon on the reverse
side of the coupon.
Do not create entities that look like coupons
but are not.
One product per coupon is ideal.
Slide 11
And the Size of the Coupon?
Coupons the size of the last old R1
note are best.
Coupons should not be too small
because they need to fit into the
check-out printer so as to be
cancelled.
Slide 12
What About the Wording on the
Coupon?
The following is an example:
To the dealer: Please allow the bearer (amount) (incl. VAT) off
the price of one (product description) pack. A coupon obtained
against the sale of only one (product description) pack may be
sent for a cash refund to:
Coupon Clearing Bureau, P O Box 32003, Braamfontein 2017.
Purchase of sufficient stock to cover coupons presented for
redemption must be proven on request. Misuse of this coupon
constitutes fraud. Only original copies will be accepted. The
coupon cannot be used in conjunction with any other promotion.
Slide 13
What about Expiry Dates?
It is recommended that all coupons have an expiry
date.
It is also recommended that the expiry date should
not be too strictly enforced. After all, the coupon
did result in a sale!
Coupon Clearing Bureau will accept coupon claims
up to 3 months after the expiry date unless
otherwise instructed to.
Slide 14
Bar Codes on Coupons
Bar codes are not a requirement at
this point in time (25 Oct 2006).
However, the industry is committed to
the implementation of bar coding on
all coupons in the near future.
Slide 15
What are the Costs Involved?
1.
2.
3.
4.
5.
Design and printing cost of the
coupon.
Distribution costs, if not on-pack.
Face value of the coupon.
Retailer handling fee.
Coupon Clearing Bureau
clearinghouse processing fee.
Slide 16
Who Can Handle Coupon
Distribution for Me?
Primedia Instore –
Graham Bouwer at 011 475 1419
e-mail [email protected] .
ZAPOP –
Christine Cunningham at 021 982 2223 e-mail
[email protected] .
Keynote Communications – 011 791 7001.
Blue Chilli – 082 826 3549.
Niche Sampling – 011 793 5523.
Creative Counsel Promotions – 011 803 9101.
Expanding Branding – David at 031 262 1825.
Slide 17
Coupon Clearing Bureau
Coupon Clearing Bureau (CCB) was founded
in 1978 and is the national clearing house
for all consumer coupons in South Africa.
All claims from retailers and wholesalers are
submitted to Coupon Clearing Bureau who
then audits and settles them on behalf of all
suppliers.
Slide 18
CCB’s Functions
1.
2.
3.
4.
5.
6.
7.
Handle all financial transactions between suppliers and retailers that
relate to consumer coupons.
Audit all coupon claims and alert suppliers to possible
malredemption, actioning whatever decision is made by the supplier
regarding the relevant claims.
Ensuring that all retailers understand and are aware of consumer
coupons and will accept them. No supplier coupons correctly
tendered should be refused at a check-out.
Provision of statistics to all organizations in the coupon industry.
Promote the use of coupons and educate suppliers, retailers and the
public on the function and advantages of consumer coupons.
Handle any required liaison between any parties in the coupon
industry.
Provides a free consulting service on coupon design, distribution, use
and management.
Slide 19
Auditing
Coupon Clearing Bureau is audited on a
continuous basis by BDO Spencer Steward
Inc. who issue a certificate each year to
certify that the clearing house is operating
to the required standards.
Suppliers are at liberty to send their own
auditors without notice to CCB to perform
their own audits on their coupon campaigns.
Slide 20
Potential Growth of
Coupons
We at Coupon Clearing Bureau believe that
the South African coupon industry is only at
about 15% of its full potential.
There is a huge opportunity for growth in
this industry that we believe will be realized
over the next few years (with the result that
costs will reduce through economies of
scale).
(With a population of 55 million, SA redeems 12 million coupons
annually. With a population of 60 million, the UK redeems 360
million coupons annually. The USA’s redemption is 4.6 billion
coupons annually, their population being 250 million)
Slide 21
Is There a Website Where I can
Get More Information?
YES!
www.ccbsa.co.za
Slide 22
Marketing Executive
You have built your brand.
Now, give your customer that little extra
incentive to take your product off the
supermarket shelf.
Offer a Coupon at Point of Purchase!
Slide 23
Coupons Work!
Coupons
The Whole Story
Slide 2
What Are Consumer Coupons?
Coupons are vouchers that the
suppliers of products distribute to help
promote the sale of their products.
Coupons give the shopper a reduction
of the price of the product, so making
it more attractive for the shopper to
buy that particular product, rather
than the competitor’s one.
Slide 3
How Effective are Coupons?
52% of coupons redeemed motivated
Brand Switching.
65% of coupons redeemed motivated
Pantry Loading (“I was never going
to buy the product but the coupon
persuaded me to”) and New
Business (“I decided to stock up”).
Slide 4
How Are Coupons Distributed?
In plastic holders or dispensers on the shelf
facings in supermarkets.
Through in-store demonstrators.
On-Pack (attached to the product or printed
as part of the product’s packaging).
As neck tags.
In booklets.
In newspaper or magazine coupons
promotions (including Free Standing Inserts
or FSI’s).
Slide 5
And More Ways?
In Knock-and-Drops.
In direct mailings.
Product replacement.
As part of an advert for the product in
a newspaper or magazine.
On till slips, bus tickets and paper
carriers.
Via computers.
As scratch cards.
Slide 6
Which Are Most Effective?
Point of Purchase coupon promotions are
by far the most effective. This is because
most purchase decisions are made at point
of purchase. The distribution methods are:
On shelf plastic coupon holders/dispensers.
On pack coupons.
Neck tags.
In store demonstrators.
Slide 7
Coupon Redemption
Coupon redemption varies depending on the
product, target market and the method of
distribution of the coupon.
The highest redemption (50 – 80%) occurs where
coupons for a popular and widely used product are
distributed by an in-store demonstrator. However,
the total number of coupons distributed is
comparatively low.
The lowest redemption (up to 1%) occurs when
coupons are printed in a magazine as part of an
advertisement. The counter is that the magazine
circulation may be very high.
Slide 8
Correctly Targeting Your Coupon
Campaign is
VERY IMPORTANT!
Slide 9
What Sort of Price Reduction
Should I Give?
Between 10% and 20% of the selling price
of the product. 14% to 16% seems optimal.
Above 25% gives unpredictably high
redemptions.
Below 10% results in campaigns “bombing
out”.
Slide 10
Do’s and Don'ts
Clearly indicate the product being promoted
– have a picture of it on the coupon.
Show the discount amount boldly.
Do not show the discount amount more
than once on the face of the coupon.
Do not have another coupon on the reverse
side of the coupon.
Do not create entities that look like coupons
but are not.
One product per coupon is ideal.
Slide 11
And the Size of the Coupon?
Coupons the size of the last old R1
note are best.
Coupons should not be too small
because they need to fit into the
check-out printer so as to be
cancelled.
Slide 12
What About the Wording on the
Coupon?
The following is an example:
To the dealer: Please allow the bearer (amount) (incl. VAT) off
the price of one (product description) pack. A coupon obtained
against the sale of only one (product description) pack may be
sent for a cash refund to:
Coupon Clearing Bureau, P O Box 32003, Braamfontein 2017.
Purchase of sufficient stock to cover coupons presented for
redemption must be proven on request. Misuse of this coupon
constitutes fraud. Only original copies will be accepted. The
coupon cannot be used in conjunction with any other promotion.
Slide 13
What about Expiry Dates?
It is recommended that all coupons have an expiry
date.
It is also recommended that the expiry date should
not be too strictly enforced. After all, the coupon
did result in a sale!
Coupon Clearing Bureau will accept coupon claims
up to 3 months after the expiry date unless
otherwise instructed to.
Slide 14
Bar Codes on Coupons
Bar codes are not a requirement at
this point in time (25 Oct 2006).
However, the industry is committed to
the implementation of bar coding on
all coupons in the near future.
Slide 15
What are the Costs Involved?
1.
2.
3.
4.
5.
Design and printing cost of the
coupon.
Distribution costs, if not on-pack.
Face value of the coupon.
Retailer handling fee.
Coupon Clearing Bureau
clearinghouse processing fee.
Slide 16
Who Can Handle Coupon
Distribution for Me?
Primedia Instore –
Graham Bouwer at 011 475 1419
e-mail [email protected] .
ZAPOP –
Christine Cunningham at 021 982 2223 e-mail
[email protected] .
Keynote Communications – 011 791 7001.
Blue Chilli – 082 826 3549.
Niche Sampling – 011 793 5523.
Creative Counsel Promotions – 011 803 9101.
Expanding Branding – David at 031 262 1825.
Slide 17
Coupon Clearing Bureau
Coupon Clearing Bureau (CCB) was founded
in 1978 and is the national clearing house
for all consumer coupons in South Africa.
All claims from retailers and wholesalers are
submitted to Coupon Clearing Bureau who
then audits and settles them on behalf of all
suppliers.
Slide 18
CCB’s Functions
1.
2.
3.
4.
5.
6.
7.
Handle all financial transactions between suppliers and retailers that
relate to consumer coupons.
Audit all coupon claims and alert suppliers to possible
malredemption, actioning whatever decision is made by the supplier
regarding the relevant claims.
Ensuring that all retailers understand and are aware of consumer
coupons and will accept them. No supplier coupons correctly
tendered should be refused at a check-out.
Provision of statistics to all organizations in the coupon industry.
Promote the use of coupons and educate suppliers, retailers and the
public on the function and advantages of consumer coupons.
Handle any required liaison between any parties in the coupon
industry.
Provides a free consulting service on coupon design, distribution, use
and management.
Slide 19
Auditing
Coupon Clearing Bureau is audited on a
continuous basis by BDO Spencer Steward
Inc. who issue a certificate each year to
certify that the clearing house is operating
to the required standards.
Suppliers are at liberty to send their own
auditors without notice to CCB to perform
their own audits on their coupon campaigns.
Slide 20
Potential Growth of
Coupons
We at Coupon Clearing Bureau believe that
the South African coupon industry is only at
about 15% of its full potential.
There is a huge opportunity for growth in
this industry that we believe will be realized
over the next few years (with the result that
costs will reduce through economies of
scale).
(With a population of 55 million, SA redeems 12 million coupons
annually. With a population of 60 million, the UK redeems 360
million coupons annually. The USA’s redemption is 4.6 billion
coupons annually, their population being 250 million)
Slide 21
Is There a Website Where I can
Get More Information?
YES!
www.ccbsa.co.za
Slide 22
Marketing Executive
You have built your brand.
Now, give your customer that little extra
incentive to take your product off the
supermarket shelf.
Offer a Coupon at Point of Purchase!
Slide 23
Coupons Work!