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Valassis' Plan to End Newspaper Coupons Outrages Middle America

By Jim Edwards | Feb 24, 2009

Valassis CEO Alan Schultz told investors recently that “we are hearing some consumer grumbling” about his company pulling its Red Plum coupons out of local newspapers in favor of sending them via the U.S. Postal Service or making them available online at RedPlum.com.

But it’s more than just grumbling. There’s an online tidal wave of anger at Valassis for yanking its newspaper coupons. At BringBacktheCoupons.com, angry commenters have filled up 38 pages of bulletin boards with their ire at Valassis.

The regular media has been asleep at the wheel on this story, which is odd because removing coupons from local newspapers is a huge threat to that industry — much greater, economically, than declining circulation caused by the movement of readers to the web. I suspect the lack of interest is due to the fact that the victims in the story live outside New York and Los Angeles, and media professionals don’t rub shoulders very often with families that rely on coupons to put food on the table. The advertising trade media has historically ignored the coupon business because it is not as sexy as covering Super Bowl ads, and because their reporters don’t understand it.

But out in blogland, people are up in arms. Coupon-cutters hate what Valassis has done. (They created the images you see on this page.) Here’s a roundup of the outrage. Make sure you scroll down to the last item, where the Let’s Be Thrifty blog describes the (non)responses she got when contacting Nestle and Mrs. T’s for comment. Mrs. T’s claims “These are circumstances beyond our control,” which is either a lie or a really strange strategic error on that company’s part.

(Note to marketers: Responding to your customers with generic statements is no longer a smart idea in the internet age!)

Attempting Frugality:

The Red Plum/Valassis insert is getting pulled from some papers. Boo!

Are you affected? Valassis has pulled their RedPlum coupon inserts from major cities in Ohio, Indiana, Pennsylvania, New Jersey, Utah, Virginia, Washington, D.C., North Carolina, Maryland, and Texas.

Bargain Briana:

Apparently Valassis thinks having internet printables (some stores are inconsistent with their treatment of Internet Printables, many internet printables do not double, some consumers have no access to internet or a printer,and others just can’t get them to print on their computer or limited because they use public access terminals) and mailing out Red Plum insert to customers is now enough. … They have not taken into account that many people buy extra newspaper inserts to maximize their savings or buy extra items for charity. In addition, couponers are probably keeping some newspapers afloat by couponers buying extra papers each week just for the extra inserts!

This brings me to the question, is this the beginning of the end of coupons as we know it? I hope not because good old fashioned Sunday Coupon Inserts are what I mainly use to save! In fact, most manufacturer’s view coupons as a form of advertisement. You can’t get that same advertisement in a printable internet coupon or a “e coupon”. … I’m not a marketing expert but does this make sense to you?

In Good Cents:

Frugal shoppers and coupon users nationwide are up in arms about this decision with very good reason! When Red Plum has a great insert, we head to the store to pick up extra copies of the paper, but for many that won’t be an option any longer. Since newspaper inserts are the number one source of savings for many frugal shoppers, I’m personally stunned Valassis would decided to upset it’s target audience by making it’s insert more complicated and sometimes impossible to obtain for consumers.

Valassis says that they are now using a more direct marking campaign in which their coupons will be available online, but since many stores have difficult Internet coupon policies or completely do not accept them, this really doesn’t seem like an equal exchange at all.

I Heart Wags:

For the average person, this may not seem like a big deal, but for couponers who buy multiple Sunday newspapers to get more than just one set of coupons, this is a major setback.

What the Cornbread?

Where did the Sunday coupons go?

Well, that’s a great question. If you bought a Sunday paper today you might be disappointed … cutting coupons is not about frugality in tough economic times, it’s about survival.

Womanly Excellence:

DON’T DO IT, VALASSIS!

Dear Valassis, I’m a “coupon blogger” and “blogger mom”. I buy 4 newspapers a week for the coupon inserts and I only shop using my coupons. I will be very upset if the coupons are pulled from newspapers. I understand that we can have them mailed to us, however, that prevents me from getting multiples. This is very upsetting news. More and more people are couponing during this hard economic time and I believe it would be a very bad move for not only consumers, but also manufacturer’s and the stores.
Don’t do it! Please!

Not living Without:

Even if you have not been impacted by this, I think it is smart to voice your concern.  Given the current economic situation a lot of newspapers and printers are having a lot of problems staying afloat.

Common Sense With Money:

I am in Las Vegas and we started receiving the Red Plum inserts with our weekly grocery flyers months ago. About 3 weeks ago, those stopped. I haven’t seen a Red Plum in weeks. We also don’t get the P&G BrandSavers (once in a year have I seen it in our paper). We are down to Smart Source and that’s it. It’s pretty frustrating!

Mrs. Alspaugh:

They gave the line, you can print coupons. Most stores won’t take them and the ones that do want perfectly printed ones. The coupon in paper maybe coming to a end. I know I use cellfire.com, shortcuts.com, and P&G coupons on my Kroger card. Could RedPlum be starting this? Some of the coupons I load don’t even work. It is a real bother to get home and see on my reciept that I bought full priced items.

Let’s Be Thrifty:

I don’t know what else to call it, but a mishap.  If you haven’t yet heard, Valassis (publisher of Red Plum coupon inserts found in Sunday newspapers) has decided to pull their insert from Cleveland, Ohio area newspapers and instead direct mail these inserts to Cleveland households.

So, why am I so irritated?  I mean, after all, I’m way down here in South Carolina!

Because what is started somewhere else will more than likely end up here as well, unless something is done about it.

So far I’ve received these responses:

From Nestle - Thank you for contacting Nestle.  I would like to assure you that I have reported your comments regarding the Red Plum coupon insert to our Marketing department.  We are committed to providing you with products that live up to our high standards for taste, quality, nutrition and enjoyment - in short, “the very best.”  We appreciate your interest and hope you will visit our website often for the latest information on our products and promotions.  Sincerely, Tara Williams.

Well…..thanks so much Ms. Williams, for telling me about your commitment to quality products.  I truly appreciate the formmail approach.

From Mrs. T’s - Thank you for contacting Mrs. T’s Pierogies with your concern.  Unfortunately Red Plum has decided to drop the Cleveland Plain Dealer from their circulation list.  These are circumstances beyond our control here at Mrs. T’s.  You will be happy to know that if you were/are a subscriber to the newspaper you will be receiving the coupon insert via the U.S. Mail.  If you are interested in receiving coupons from Mrs. T’s beyond the Red Plum piece, please reply to me with your mailing address and we can add you to our mailing list.  You will receive coupons and recipes directly from Mrs. T’s twice a year.

Gee….thanks.  I appreciate your offer of 2-3 coupons a year versus the hundreds I would have otherwise received.
All of this really leaves me wondering….do these people honestly care about the consumer?  I mean really.  Do they honestly have any idea what it’s like to feed a family of 5 on less than $400 a month?  My guess is no.  They have some cushy job making a ridiculous amount of money making stops at the corner grocery or local restaurant spending $60 or more on a single meal.   They’ve probably never cut a coupon in their life.

Some ladies are talking about boycotting these companies that advertise with Red Plum.  I really don’t even have the power.  The simple fact is….if I don’t have a coupon for it, I don’t buy it….period.  I guess that’s boycotting by default?

It’s a durn shame that something like this is happening in the middle of this gruesome economic crisis.

Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.

BNET User Analysis

Web Buzz:
  • Valassis to Stick With "Majority" of Newspapers; Settles Fraser Billing Dispute

    BNET Advertising - 239 days 19 hours 53 minutes ago

    Brian Costello, general manager of Valassis' RedPlum network, gave a little more detail on on whether Valassis will pull more coupons from newspapers this year in favor of shared mail and online downloads. "It's not the majority" of newspapers, he told the Pontiflex CPL Summit in New York on Thursday. "The majority are still getting...

  • Valassis Pulls Coupons From L.A. Times; 3rd Large Paper Axed From Network

    BNET Advertising - 93 days 21 hours 46 minutes ago

    Valassis has pulled its Red Plum coupons from the Los Angeles Times, the largest newspaper yet to lose its insert revenue. Valassis previously axed

  • Valassis Angers Blogger Moms by Yanking RedPlum Coupons From Newspapers

    BNET Advertising - 278 days 17 hours 59 minutes ago

    Valassis's decision to stop using newspapers for its RedPlum coupon inserts is causing drama across the kitchen tables of suburban America. Now a campaign to have them brought back has been started by coupon-clipping moms who are also bloggers. The issue is also a fateful for one for the newspaper industry. The worst-kept secret in newspapers is...

  • 'Dallas Morning News' Taps Valassis for Direct Mail Package

    Brandweek - 178 days 7 hours 3 minutes ago

    The Dallas Morning News said Wednesday it is combining its advertising inserts with Valassis' RedPlum Direct Mail Package in a single shared offering that will reach 1.5 million households weekly in the Dallas-Fort Worth area.Beginning in August, the RedPlum package will be delivered to more than 485,000 home-delivery customers of the Morning...

  • Newspapers: Three Nails, One Coffin

    Seeking Alpha - 89 days 1 hour 32 minutes ago

    Jeff Jarvis submits: Line by line, newspapers’ businesses are falling apart as they shrink and become less efficient for advertisers against the competition and reach of online media. Consider: * Coupon giant Valassis abandons newspaper distribution for the postal service in three more markets. Says Crains: “The

 
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  •  
    1

    Duhki

    02/24/09 | Report as spam

    RE: Valassis? Plan to End Newspaper Coupons Outrages Middle America

    As an advertising executive that has worked with Valassis and News America for over 20 years as an advertiser within their FSI products, I have a slightly different opinion on this matter.

    Let's look at the pure economies of scale... newspapers are losing readership (and have been for years). The Cleveland Plain-Dealer (the impetus for much of the negative blog posting)lost 2.7% Sunday circ. from 2004-05, -1.6% in 05-06, -1.4% in 06-07 and the 07-08 figures will not be pretty. Advertisers are looking to reach as many people as possible with their advertising in the most cost-effective manner. The fact is that, while this small group of bloggers and supporters may think that their purchase of multiple copies of the newspapers is a powerful driver of successful ROI, the fact is that if an advertiser can reach 10%, 20% 30% or 40+% more people by using the mail for the same cost per person as using a newspaper, that is a good thing!

    The inability of a small (but vocal) group of people to buy multiples of a product using multiple coupons is significantly offset by the ability of an advertiser to reach hundreds of thousands of new consumers who might buy their products.

    While consumers may find this hard to believe, manufacturers don't actually want people buying 10 newspapers to use 10 coupons on their products. They would much rather have 7 new people each use one coupon? Really? They would rather sell 7 items instead of 10? Yes! Coupons are about trial -- the goal isn't to give multiple coupons to a single person -- it is to engage a large group of people to try the product and hopefully become regular consumers. To do that, you need to get your coupons in the hands of the most consumers.

    If anyone believes that the manufacturers want them using multiple coupons at one time, they need to know that is not reality. That is why there isn't a coupon every week for the same product. That is why manufacturers are embracing the move to distribution via direct mail. That is why P&G (the largest pckaged goods company in the world) does not advertise online -- they are worried about coupon fraud (i.e., consumers printing multiple copies). By that same argument, they would consider the buying of 10 copies of a newspaper to be "newspaper fraud". In other words, they don't want people using 10 coupons. They want you using one coupon and then returning to purchase more of the product at the regular price. If manufacturers really wanted you to buy multiples with coupons, they could provide coupons that can be used on the purchase of "up to 10 products". Then you only need one coupon and can buy as many of each product as you need. Ask yourself why they don't do this.

    Additioanlly, the newspaper business is in danger, and it's got nothing to do with Red Plum moving to mail (I find the posts claiming that Red Plum moving to mail will put the newspapers out of business). The newspapers haven't needed any help with that. In the last 2-1/2 months, 33 newspapers have filed for Chapter 11 bankruptcy, including the Los Angeles Times, Chicago Tribune, Minneapolis Star-Tribune, Philadelphia Inquirer and many more. Oh, all of these newspapers carry SmartSource and Red Plum, yet they are failing financially.

    We really can't blame Red Plum for listening to their advertisers and providing a strategic solution (with shifts to mail and online couponing) that increase the coverage for their advertisers, allow more consumers to have access to their coupons and provide an option should newspapers close or cease business (like the Rocky Mountain News)?

    Bloggers, while disappointed that they no longer have access to 10 coupons for their favorite product should be thankful that hundreds of thousands of other consumers in their market can now receive coupon discouts during this financially dificult time. They should be excited that, should their newspaper cease operations, they will still be able to receive their Red Plum coupons in the mail. And they should be pushing their retailers to accept online coupons (if they currently don't). Finally, they should be making friends with their neighbors, because if they want extra coupons, all they need to do is ask their neighbors if they can have theirs (and they don't even need to buy extra newspapers to get them).

  •  
    2

    The Coupons

    02/25/09 | Report as spam

    RE: Valassis

    Funny, the same comment is in the bringbackthecoupons.com site but under a different name... Are you Jane? Duhki? Or Tom?

    All I can say is that Valassis is hurting us consumers when we need these coupons the most.

    Perhaps if you worked with manufacturers to extend the coupon expiration date and stop pushing the costs to the consumer to print internet coupons then we wouldn't have these issues.

    Talk about consumer-unfriendly....

    Remember New Coke...at least Coke listened to their consumers...

  •  
    3

    roger_wabbit

    02/26/09 | Report as spam

    RE: Valassis

    I know there's alot of anger among us couponers but these articles are so very true. These companies are losing caboodles of money from us couponers that buy 10 of 1 product along with using 10 coupons. It's plainly stated on the coupon in small print a whole bunch of legal mumble jumble. It's been my guess for a long time that coupon inserts in weekly newspapers would be ceased to a more efficient distribution to whereas a consumer can only use 1 coupon. I can almost bet Smart Source will do the same thing, just a matter of time. Hey, the way I see it I'll be fortunate to have that 1 coupon. After all the companies do not have to give us any at all and 1 is better than none. I've gotten angry in the past over coupons and threatened I'd never use the product again but truth is, I still use it. It all depends if I love the product enough or not. Another wild thought, is Red Plum doing this to also offset online sales of coupons, hmmmm???

    Roger in Maryland

  •  
    4

    roger_wabbit

    02/26/09 | Report as spam

    RE: Valassis

    I know there's alot of anger among us couponers but these articles are so very true. These companies are losing caboodles of money from us couponers that buy 10 of 1 product along with using 10 coupons. It's plainly stated on the coupon in small print a whole bunch of legal mumble jumble. It's been my guess for a long time that coupon inserts in weekly newspapers would be ceased to a more efficient distribution to whereas a consumer can only use 1 coupon. I can almost bet Smart Source will do the same thing, just a matter of time. Hey, the way I see it I'll be fortunate to have that 1 coupon. After all the companies do not have to give us any at all and 1 is better than none. I've gotten angry in the past over coupons and threatened I'd never use the product again but truth is, I still use it. It all depends if I love the product enough or not. Another wild thought, is Red Plum doing this to also offset online sales of coupons, hmmmm???

  •  
    5

    roger_wabbit

    02/26/09 | Report as spam

    RE: Valassis

    I know there's alot of anger among us couponers but these articles are so very true. These companies are losing caboodles of money from us couponers that buy 10 of 1 product along with using 10 coupons. It's plainly stated on the coupon in small print a whole bunch of legal mumble jumble. It's been my guess for a long time that coupon inserts in weekly newspapers would be ceased to a more efficient distribution to whereas a consumer can only use 1 coupon. I can almost bet Smart Source will do the same thing, just a matter of time. Hey, the way I see it I'll be fortunate to have that 1 coupon. After all the companies do not have to give us any at all and 1 is better than none. I've gotten angry in the past over coupons and threatened I'd never use the product again but truth is, I still use it. It all depends if I love the product enough or not. Another wild thought, is Red Plum doing this to also offset online sales of coupons, hmmmm???

  •  
    6

    b4neil@...

    02/27/09 | Report as spam

    RE: Valassis

    " You will be happy to know that if you were/are a subscriber to the newspaper you will be receiving the coupon insert via the U.S. Mail. " -per the Mrs T's comments

    Well what if you don't suscribe to the paper but buy it at the grocery or the paper box? I'm automatically off the list? What if I have a PO Box or an apartment & not a house to have a paper delivered to?

    Seems like they will be ticking more people off by adding more "junk" mail to people who don't want it & for those of us who do, will be desperate to find more & can't.

    Newspapers will definatly take a nose dive after this.

  •  
    7

    I_told_U_so

    02/27/09 | Report as spam

    Let's look at this realistically

    Newspapers are NOT an endangered species as Duhki or whatever name he uses in any forum says. I work in a library which receives many, many newspapers daily. I have asked the publishers of the newspapers, and the aggrigator through whom we get our papers if there are any problems with the papers between the economy and the internet. There are no problems with readership being down because of the internet, and only a few relating to the economy - but that hits practically every level anyway.

    I already receive my RedPlum insert through the mail. It is bundled with about 20 other ads. 90% of these deliveries will be thrown out untouched. I only discovered it was there by accident and past issues have been thrown away.

    It costs more for bulk mail than it does to put it in the paper. Obviously, the people whose coupons are in the insert are paying a fee - probably a lot. RedPlum is paying someone else - Smart Source - to include their inserts in their ad mailing (if this is not true, then I apologize - here, the insert comes inside a Smart Source ad bundle) or else is paying the US Post office to deliver it. Bulk mail costs are going to go up, and they already cost quite a bit more than having the papers insert them. This is going to cause the cost of inserting an ad in RedPlum to go up, because you know THEY won't absorb the additional cost.

    Because the mail goes to everyone, there will be greater coverage IF the people receiving the mail look at it. As I said 90% of these ads get thrown away untouched other than to take them out of the box and put them in the trash. How much coverage is it if the majority of the people who you want to see your ad throws it out without looking at it?

    RedPlum also plans to use internet coupons. That's a real good idea - Smart Source will tell you that most of the stores will not accept internet coupons (EVEN IF IT COMES FROM THE STORE'S OWN WEBSITE) because they are afraid it's not a legitimate coupon.

    Basically, RedPlum is taking their money and isn't giving them as much return as they had been.

    I also understand that one of the reasons RedPlum is doing this is because they are in deep financial trouble. If their stocks are worthless, and their bills are unpaid - it could be why they changed. They pay the papers, and if the papers don't get paid, then they aren't going to accept their product. Because they changed to the post office, they are starting fresh. If, indeed, the problem is insufficient cash flow, it will catch up there, then the only thing that will be left is internet. Very few people try to print internet coupons because the stores won't take them. But also, if the only way they can distribute the coupons is via the internet, then why would a company pay them to distribute it if they themselves have a website?

    I, and several other persons who use coupons am going to boycott any company doing business with RedPlum. If a company has an ad there, I will purchase the competitor's brand. I'm already letting the companies know that I will no longer buy their product because of their choice of advertising. My purchases won't put them into a lower tax bracket, but if other people join me, then maybe we can make a statement. I am encouraging companies to shift to Smart Source, which is a stronger player anyway - they run the blinkies in the stores, the inserts, an online site, AND an ad distribution service which, it seems RedPlum is using. Why not take out the middle man?

  •  
    8

    I_told_U_so

    02/27/09 | Report as spam

    I forgot to say

    The majority of the papers having trouble with readership issues and economic issues are papers that do not, and have not carried coupons and ads. Christian Science Monitor is the biggest name I've heard changing their publishing - and that's NOT because of the economy or readership issues. It's just going from a daily to a weekly - I think in May.

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