Ever wonder why manufacturers offer coupons? In-pack coupons, on-pack coupons, and Instantly Redeemable Coupons (IRC’s) give a manufacturer tremendous power:
- PRODUCT PURCHASE
File this one under “duh!” Consumers like to save money, and they like value. Offer them an attractive incentive, they will accept. Coupons sell product.
- INCREASE PURCHASES PER PERIOD
Coupons cause consumers to buy more than they otherwise would in a given time period, especially BOGO (buy one, get one) coupons. Don’t assume BOGO has a strict definition; it has many variations (“buy three, get one free”, “33% off when you buy three”, etc).
- EXTEND TYPICAL PURCHASING SEASON
If your sales usually occur in only a portion of the year, a coupon can extend the length of your selling season. Offer coupons early (to jumpstart the season) and late (to extend the season).
- PRODUCT TRIAL
This tactic is ideal for a new product, but works just as well for established products. Apply an on-pack offer that encourages people to try your product for the first time. You can offer anything from an instant discount to a mail-in offer for a gift card or rebate. Encourage consumers to grab your product instead of the one next to it on the shelf.
- ENCOURAGE MULTIPLE PURCHASES
An on-pack offer can encourage larger purchases (“save R10.00 when you buy 3”). In-pack offers can do the same on future purchases and generate repeat business, leading to loyal customers.
- BEAT THE COMPETITION
On-pack offers scream to consumers at the point of purchase, drowning out allegiance to a competitor and the competitor’s packaging. In-pack offers encourage consumers to commit to your product before they begin their shopping trip, which means they are less susceptible to last-second competitor offers.
- MOTIVATE RETAIL ACTION
Coupon campaigns can help grease the wheels with retailers, leading to improved stocking, display, signage, and shelf positioning. Manufacturers who need to convince retailers to stock a product gain an advantage with an on-pack instantly redeemable coupon campaign.
- OFFSET PRICE INCREASES
Need to cushion the shock of a price increase? Try coupons.
- PUMP UP IMPULSE PURCHASES
An on-pack, instantly redeemable coupon offer is the best way to generate impulse purchases.
- EASY CROSS PROMOTION
In-pack offers reach a terrific segment: your customer! Instead of a discount on the item in hand, consider offering an incentive on a product produced by anther business unit within your company. Or, offer a discount with a complimenting product (milk and biscuits, chips and dip, etc).
If you would like to know more, but don’t know how to get started, send us a mail or better call us, and we will gladly give you further information.
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