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In Brief: P&G couponing

This article was originally published in The Rose Sheet

Executive Summary

P&G couponing: Effective Feb. 1, Procter & Gamble is discontinuing distribution of coupons "for a period of time" in the New York cities of Buffalo, Rochester and Syracuse, the company said. Designed "as a test toward developing more efficient marketing programs for its brands," the coupon cuts will affect all P&G product lines, the firm added. P&G pointed out that during the test period it will "explore promotional alternatives which benefit all, rather than just a percentage, of consumers," noting that only 2% of over 300 bil. coupons issued "by the industry" annually are redeemed. The company also stated that since 1992, list prices for all of its products, with the exception of coffee, have declined $1 bil. In addition, P&G said that "over the past several years" it has cut its couponing budget by nearly 50%. During the winter of 1991, P&G instituted a similar marketing cost-cutting program, whereby the firm offered a lower product price to retail customers while cutting promotional spending to those retailers ("The Rose Sheet" May 4, 1992, p. 6)...
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