How Free Standing Coupon Inserts Can Help

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Stand and Deliver

How Free Standing Coupon Inserts Can Help

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We’ve talked about the major types of coupons that manufacturers tend to run in one of our recent blogs.  So I thought it would be nice to include a case study looking at an FSI we ran for a fresh produce company who was introducing a new convenience product to their line.  Remember FSI coupons (Free Standing Inserts) are usually found in newspapers, most generally in the Sunday paper.

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The brand that we were representing had never run an FSI coupon and didn’t have national distribution on their new product, but a large retail chain in Michigan and Illinois was stocking the product and  wanted to engage trial among consumers in those shopping areas.  The group decided to run the coupon the week prior to Easter as it is a heavy shopping holiday.

You might ask here why we decided to do an FSI instead of online coupons or some other type of promotion.  The group looked at all options and felt that the increased exposure in a small area with a fresh produce coupon would encourage more trial with less effort than an online coupon would (where you would have to obtain or organically engage a large number of shoppers from that area).

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We chose to run 5.6 million coupons for the product on a ½ page ad offering $.55 off.  News America, who places FSI coupons nationally, charged $3.58 per thousand plus a production charge of $2,600, resulting in an up-front cost of $22,665.90.

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So what were our results? Our redemption rates were 0.2% or 11,200 coupons.  The cost per redemption was $.55 plus $.08 for handling, costing the company $7,056.  And the volume increase over the promotion was 0.07% which stayed steady after the promotion with sales levels never falling below pre-promotion numbers.