This tutorial covers why retailers distribute coupons. How stores get paid back - even with more people couponing than ever it's still a win for everyone as long as everyone works together to follow proper guidelines.

1. Life cycle of a
Coupon

2. 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?

3. 2 Pieces of The Puzzle
Store Sale Coupon
Manufacturer offers products at Draws attention to the product
a promotional price to the store. through a coupon.
The store passes savings along to A manufacturer’s way of
shoppers through weekly store having a sale directly to the
specials. shopper.

4. 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.

5. Manufacturer
Clearing
Store Coupon
House
You

6. 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.

7. 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.

8. 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

9. 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
VOID given directly by the store.

10. 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!

11. Combining Store Savings with
Coupons is the KEY to
lowering your grocery bill!

12. Time 2 $ave helps you save more by
providing the tools you need to put these
two pieces together.
Store Sale + Coupon = BIG $avings!