s provide an immediate gratification for consumers and can stimulate consumer impulse buying. The same pitfall of rewarding consumers who already use a product is unavoidable with this type of distribution. Likewise with On-Pack coupons, the manufacturer is most likely rewarding consumers who already use its products. Recognizing these difficulties, many manufacturers and retailers have shifted their promotional strategy to cater to what cost conscious consumers want. Lower prices.Promotional strategy has shifted in some areas by taking the focus off the occasional discount offered by coupons and going with an Every Day Low Price (“EDLP”) strategy. Using this strategy consumers are assured of getting the lowest price, and there is no need for the consumer to bother with coupon clipping at all. An EDLP approach creates tremendous price competition between manufacturers, making it costly to take market share from the competition using coupons, when margins are already razor thin. Moving in on the name brand manufacturers is an increasingly stronger competitor, Private Label. Private label are retailer house branded products.Private Label has steadily increased its reputation by improving quality, while almost always providing the lowest prices. Some private label names have been so successful, examples are President’s Choice, Sam’s Choice and Heritage House, that they have nearly the appeal and familiarity of the regular name brand items. The private label brands continue to provide consumers with very low prices, an additional incentive for consumers to skip the time consuming coupon clipping process. If manufactures are going to compete for market share with private label, as well as other name brands, they must find ways to target new users for their products. In order to do this manufacturers and retailers need to know who uses coupons and how to identify coupon users who don’t use their produ...
