Its That Most Wondeful Time of the Year...

Well maybe for statistical geeks like me. It is that time when annual numbers for 2009 are solidified and we start to get a better picture of the American consumer and the retail marketplace.

Today we have been provided data on consumer use of coupons. With the recession, it was likely that coupon use would be up - but the results are jaw dropping. Coupon use is +27% worth over $35B in retail sales.

A quick quote from the article...

“There has been a noticeable increase in page count over the past year,” said News America Marketing EVP of Marketing, Jesse Aversano. “Manufacturers understand that in a tough economy, coupons are an effective and efficient way to spend their advertising dollar.”

“Brands saw coupons as a key to maintaining brand strength,” adds Matthew Tilley, Director of Marketing for Inmar’s promotion services division. “If they reduced their promotional presence, they stood to lose sales to lower priced competitors and store brands – so they doubled down hoping to create brand loyalty once the economic dust settles.”

Hmm. Coupons as a source of brand building? Sorry, nice try. Coupons have become a way to keep retailer prices high (ie not give back the hard won price increases of 2007) but still give price motivated consumers a promotional reason to buy their product. Coupons have become the path of least resistance and greatest motivation in a market place full of easily duplicated products.

I could buy that these are tactics to gain share, but in 2009 these were tactics of survival - and not cunning plans for brand domination.