Extreme Couponer Market Segment

J I L L H O L L I S A L E X Z U B A K

B R YA N T E D WA R D S

FEMALE COUPONERS

EXTREME COUPONING

•  http://www.youtube.com/watch?v=P-BsjPjm2bo

Photo Source: www.theprudentpatron.com

FEMALE CONSUMERS

•  As of 2004, women make / influence 80% of all household spending decisions (The Economist)

•  Now estimated that women influence about 95% of all purchases in the USA (Martha Barletta)

•  Women account for over 60% of all start-up businesses

•  Enabled by their partners’ income

•  Women are earning more on their own

7: Female Consumers: New Gender-Specific Trends. Publication. 1,3. Euromonitor International, 14 Aug. 2009. Web. 30 Sept. 2011. < www.portal.euromonitor.com>

Photo Source: www.superstock.com

ROLES OF THE WOMAN CONSUMER

•  “Chief Purchasing Officer” (CPO) for the household •  “Chief Thrift Officer” (CTO) •  Wife •  Mother •  Career-woman •  Friend •  Decision-maker •  Team-worker •  Makes decisions based on her concern for the

environment and the current economic crisis 7: Female Consumers: New Gender-Specific Trends. Publication. 1. Euromonitor International, 14 Aug. 2009. Web. 30

Sept. 2011. <www.portal.euromonitor.com>

Photo Source: www.connectingtowomen.com

CONSUMER TO COUPONER

•  2008 Harris Interactive study: •  63% of respondents would only

make a purchase if a deal is available

•  BurstMedia ‘Online Insights’ survey: •  Increase in female couponing

closely linked to recession

•  2008 Prospectiv Online Survey: •  72% of consumers are using more

coupons than they did 6 months ago

7: Female Consumers: New Gender-Specific Trends. Publication. 4. Euromonitor International, 14 Aug. 2009. Web. 30 Sept. 2011.

<www.portal.euromonitor.com>

Photo Source: blogs.courant.com

COUPONER PROFILE

•  Generations X and Y1 •  Older generations have greater

financial stability – see couponing as a hassle, not a necessity

•  Couponers more family-oriented •  Use coupons to save money on items

they already buy

•  Social consumers2 •  Use social media to pass on deals to

their friends •  Heavy reliance on Internet for coupons

10: Congitamus Consulting. Market Trend: The Couponing Consumer in a Down Economy. Publication. 95, 96. Packaged Facts, Dec. 2008. Web. 25

Sept. 2011. <www.marketresearch.com> 9: How the Recession has Impacted Consumer Shopping Habits. Publication. 6. International Council of Shopping Centers, 2009. Web. 2 Oct. 2011.

<http://www.icsc.org/web/RecessionBooklet-4.pdf > 11: “The Extreme Couponers are Back.” Papas. Web. 2 Oct. 2011. <http://www.pappas.co/?p=1040>

Photo Source: tlc.discovery.com

COUPONER PROFILE

•  Majority aren’t swayed to new stores / products just because of coupons

10: Congitamus Consulting. Market Trend: The Couponing Consumer in a Down Economy. Publication. 76. Packaged

Facts, Dec. 2008. Web. 25 Sept. 2011. <www.marketresearch.com>

COUPONER PROFILE

•  Ages 18-44 •  TLC’s ‘Extreme Couponing’ Season 1 premiere was

leading show among demographic (April 2011)

•  Heavy reliance on technology •  Internet: saves time, easy, lower prices, wider

selection •  Mostly use Internet to locate / research items before

making purchases (41% of consumers)

•  Smartphones •  Social Media •  Out of an online survey with more than 2,700 consumers,

75% aged 18-44 used social media 9: How the Recession has Impacted Consumer Shopping Habits. Publication. 6, 21, 24. International Council

of Shopping Centers, 2009. Web. 2 Oct. 2011.<http://www.icsc.org/web/RecessionBooklet-4.pdf >

COUPONER PROFILE

9: How the Recession has Impacted Consumer Shopping Habits. Publication. International Council of Shopping Centers, 2009. 31. Web. 2 Oct. 2011. <http://www.icsc.org/web/RecessionBooklet-4.pdf >

COUPONER PROFILE

•  Popular reason for couponing: precautionary measures, economic concerns •  Not because of job loss or salary

reduction

•  Majority budget shopping trips •  Will wait for a sale or coupon to make

a purchase •  Especially in Midwest U.S. – focus on

need-based replacement purchases rather than “wants”

9: How the Recession has Impacted Consumer Shopping Habits. Publication. International Council of Shopping Centers, 2009. 15. Web. 2 Oct. 2011.

<http://www.icsc.org/web/RecessionBooklet-4.pdf >

Photo Source: www.iamlow.com

COUPONER PROFILE •  Generally comfortable with current financial situation –

don’t foresee it changing in the future

9: How the Recession has Impacted Consumer Shopping Habits. Publication. International Council of Shopping Centers, 2009. 9. Web. 2 Oct. 2011. <http://www.icsc.org/web/RecessionBooklet-4.pdf >

COUPONER PROFILE: STACEY HOPKINS

•  Age: 21 •  Current Residence:

House, 7 roommates •  Hometown: Newton, PA •  Began Couponing: 2

weeks ago •  Why?: To ‘get more for my

money’ – as a college student, coupons to have quality meals every week

5: Hopkins, Stacey. Personal Interview. 20 Sept. 2011.

COUPONER PROFILE: STACEY HOPKINS

•  Where do you get coupons? •  Manufacturing coupons from

online websites •  Gets an email from website,

selects what she wants to print, then organizes them for the grocery store •  Coupons.com •  Coupon Mom •  Smart Source

•  Mostly uses them for household products & groceries •  Cleaning supplies, frozen meals,

canned goods, juice, yogurt


COUPONER PROFILE: BARI SISSON

•  Age: 20 •  Current Residence:

Apartment, 3 roommates •  Hometown:

Charlottesville, VA •  Began Couponing

Summer 2011 •  Why?: It looked like fun after

watching TLC’s ‘Extreme Couponing’ – makes saving money like a game

8: Sisson, Bari. Personal Interview. 20 Sept. 2011.

COUPONER PROFILE: BARI SISSON

•  Where do you get coupons? •  Mostly from the Sunday paper •  Googles how many coupon inserts

there will be each week and then decides if she wants to buy the paper •  Only buys paper if there are 2+ inserts

•  Keeps a list of coupons she has, organized by when they expire

•  Looks to see what items are on sale that she also has coupons for – makes grocery list accordingly

•  Only cuts coupons for things she already buys •  Cereal, snack food, toothpaste

8: Sisson, Bari. Personal Interview. 20 Sept. 2011.

COUPONING: THE GAME

•  MarketResearch: Consumers are more likely to respond to offers that involve participating in contests or competitions8

•  Bari Sisson: Female Couponer •  “I started couponing this summer after watching

Extreme Couponing on TLC because it looked like fun. I love saving money and seeing how low I can get the price of something feels like a puzzle that I have to solve.”

3: Brown, Dr. Robert, and Ruth Washton. Millennials in the U.S.: Trends and Opportunities Surrounding Gen-Y Adults.

Publication. 106. Packaged Facts, Oct. 2010. Web. 27 Sept. 2011. <www.marketresearch.com>

COUPON USE TRENDING UPWARD

•  According to Experian Simmons NCS from 2005-2009 the percentage of Confident Consumers said coupons drew them to stores they don’t usually shop in increased from 27% to 33%1

•  Imar Coupon Report – Association of Coupon Professionals2: •  During 2008 coupon distribution increased 27%

(Recession) •  2010 coupon distribution increased 8.1% - 333 billion

coupons

1: "The Post-Recession Consumer in the U.S." Market Research Reports - Business Market Research Reports & Industry Analysis.

30. Packaged Facts, May 2010. Web. 25 Sept. 2011. <http://www.MarketResearch.com>. 2: "Summer 2011." Coupon Pros. Association of Coupon Professionals, 2011. Web. 28 Sept. 2011. <http://couponpros.org/wp-

content/themes/couponpros/ezine/ACPezinesummer2011.pdf>.

TREND: INCREASE IN CONFIDENT CONSUMERS

ACCORDING TO EXPERIAN SIMMONS NATIONAL CONSUMER STUDY1

Confident Consumers

•  2009 consumers increased 25% to 48 million •  Less likely to use

cents-off coupons – 72% •  buy online more – 13% vs. 8%

Anxious Consumers

•  2009 consumers decreased 15% to 44 million •  More likely to use

cents-off coupons – 77%

1: "The Post-Recession Consumer in the U.S." Market Research Reports - Business Market Research Reports & Industry Analysis. 12, 24. Packaged Facts, May 2010. Web. 25 Sept. 2011. <http://www.MarketResearch.com>.

PRICE CONSCIOUSNESS TRENDING UPWARD

•  February 2010 study by Booz & Company1 •  Consumer Behavior during recession will continue as

economy rebounds •  65% respondents reason saving money more than spending •  55% prefer the best price over the best brand •  64% would shop at a store with lower prices despite

potential inconvenience

•  Hartman Group published study March 10, 20101 •  Post-recession consumer behaviors are temporary due to

emotionally charged roots

1: "The Post-Recession Consumer in the U.S." Market Research Reports - Business Market Research Reports & Industry Analysis. 28. Packaged Facts, May 2010. Web. 25 Sept. 2011. <http://www.MarketResearch.com>.

TECHNOLOGY TRENDING UPWARD

TREND: SHOPPING WITH SMARTPHONES

•  Consumers 19-29 years old are more likely to use their cellphones to shop in stores3 •  Interested in the technology that would allow them to

select and make purchases in stores

3: Brown, Dr. Robert, and Ruth Washton. Millennials in the U.S.: Trends and Opportunities Surrounding Gen-Y Adults. Publication 106. Packaged Facts, Oct. 2010. Web. 27 Sept. 2011. <www.marketresearch.com>

3: Brown, Dr. Robert, and Ruth Washton. Millennials in the U.S.: Trends and Opportunities Surrounding Gen-Y Adults. Publication. Packaged Facts, Oct. 2010. Web. 27 Sept. 2011. <www.marketresearch.com>

TREND: ONLINE RESOURCES

•  34% (more than 1 in 3) Millennials spend 10 or more hours per week using a computer3 •  BurstMedia ‘Online Insights’ survey7: •  69.4% of women say the Internet is primary source of

info required for running their household •  Majority age 18-44 – 54% of this group are age 25-34

•  62.3% of women say they research products / services online before making a purchase

•  2002: 3.8% of total coupons used were found online •  2009: 16% of total coupons used were found online

3: Brown, Dr. Robert, and Ruth Washton. Millennials in the U.S.: Trends and Opportunities Surrounding Gen-Y Adults. Publication. 97. Packaged Facts, Oct. 2010. Web. 27 Sept. 2011. <www.marketresearch.com>

7: Female Consumers: New Gender-Specific Trends. Publication. 4,5. Euromonitor International, 14 Aug. 2009. Web. 30 Sept. 2011. <www.portal.euromonitor.com>


10: Congitamus Consulting. Market Trend: The Couponing Consumer in a Down Economy. Publication. 138. Packaged Facts, Dec. 2008. Web. 25 Sept. 2011. <www.marketresearch.com>


•  Increasing use of Internet coupon sites •  Alice.com4

•  Coupons.com2 •  Groupon5 •  Livingsocial.com5

4: "Alice.com - the Future of Retailing or a Fad That Will Fail? Part Two." Passport GMID. Euromonitor International, 19 May 2011. Web. 28 Sept. 2011. <http://www.portal.euromonitor.com/>.

2: "Summer 2011." Coupon Pros. Association of Coupon Professionals, 2011. Web. 28 Sept. 2011. <http://couponpros.org/wp- content/themes/couponpros/ezine/ACPezinesummer2011.pdf>.



•  Increasing use of technology (mobile devices, Internet, etc) to make purchases •  Sparked growth of digital coupons and print-at-home coupons •  Can redeem coupons on wireless devices6 •  April 2008, ICOM Information and Communications polled over

1,500 US shoppers •  Results: 52% prefer printable Internet coupons vs. 32% prefer

newspaper coupons6

•  2010 – Ebay consumers bought/sold over $2 billion by means of wireless devices6

•  2010 Apple made $1.8 billion in sales from mobile-device applications6

•  2010 – USA was largest market for Internet retail sales -- $109.8 billion6

6: "Special Report: Global M-Commerce Set for Strong Growth Potential." Passport GMID. Euromonitor International, 21 Sept. 2011. Web. 28 Sept. 2011. <http://www.portal.euromonitor.com/>.


•  Association of Coupon Professionals says digital coupons are fastest growing segment in coupon industry •  Over 332 billion coupons distributed to consumers in 20102 •  Digital made up 10% of all coupons in 20092 •  Digital coupon usage on retailer websites increased 69.8%

since 20102 •  194 manufacturers distributed digital coupons in 2011, 2.6%

increase since 20102

2: "Summer 2011." Coupon Pros. Association of Coupon Professionals, 2011. Web. 28 Sept. 2011. <http://couponpros.org/wp- content/themes/couponpros/ezine/ACPezinesummer2011.pdf>.

HOME-RUN BRAND: GROUPON

•  Website that offers daily deals on products in both the US and Europe •  Purchase coupons •  Takes a percentage of the money earned on

coupons •  Forbes calls it one of the fastest growing companies

ever

WHAT DIFFERENTIATES GROUPON?

•  Better deals and offers •  A minimum interest system •  Guarantees interest in coupon

•  Free marketing to marketers •  Mobile apps •  Large presence in Social Media

TARGET MARKET

•  The market for Groupon is an extremely varied one •  Many different

interests represented through deals

http://www.marketingcharts.com/direct/online-coupon-clickers-number-36-million-5449/coupons-

online-newpaper-user-demographicsjpg/

GROUPON’S SUCCESS

•  Company valued at 20 billion dollars12 •  In the process of announcing their IPO •  Attempting to raise 750 million12

•  66% read Groupon write-ups every day •  89 percent said those customers were likely repeat customers

•  “In August, Groupon surged ahead with its 11th straight month of gains to reach 6.5 million U.S. unique visitors, capturing the title of the web’s most visited coupon site”13

•  “Last year its annual revenue reached $713 million, up from $30.5 million the year before--a 2,241 percent increase. Revenues are on track to be higher still this year. The number of Groupon subscribers increased to 83 million in the first quarter of 2011, up from 1.8 million at the end of 2009.”12

12: Etter, Lauren. “Groupon Therapy.” Vanity Fair 612 (2011): 62. MasterFILE Premier. EBSCO. Web. 8 Oct. 2011. < http://ehis.ebscohost.com/ehost/detail?sid=bf66b735-9eaa-4194-a8c3-dc3e9802955e%40sessionmgr115&vid=6&hid=116&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=f5h&AN=64916600> 13: Lipsman, Andrew. “Groupon.com Audience Grows 1000% in Past Year, Captures #1 Spot Among Coupon Sites.” comScore. Web. 8

Oct. 2011. <http://blog.comscore.com/2010/09/groupon_audience_grows.html >

TRENDS

BRAND TO WATCH: GEOCACHING

•  “Geocaching is a real-world outdoor treasure hunting game. Players try to locate hidden containers, called geocaches, using GPS-enabled devices and then share their experiences online.” •  http://www.geocaching.com/ •  Players set their own terms – scavenger hunts are

based on current locations, and players are responsible for replacing geocache prizes once they are found

BRAND TO WATCH: GEOCACHING

•  Any brand / store can use geocaching to their advantage •  Anyone can submit their own geocache treasure into

the game – brands can hide coupons to promote their organization and consumer involvement •  Geocaching is applicable through the increase in

technological dependency for shopping and couponing within this segment •  Geocaching participants often share their

experiences online, helping to promote brand awareness through the social media consumption culture

WORKS CITED •  1: Brown, Dr. Robert, and Ruth Washton. The Post-Recession Consumer in

the U.S. Publication. 12, 24, 28, 30. Packaged Facts, May 2010. Web. 30 Sept. 2011. <www.marketresearch.com>

•  2: "Summer 2011." Coupon Pros. Association of Coupon Professionals, 2011. Web. 28 Sept. 2011. <http://couponpros.org/wp-content/ themes/couponpros/ezine/ACPezinesummer2011.pdf>.

•  3: Brown, Dr. Robert, and Ruth Washton. Millennials in the U.S.: Trends and Opportunities Surrounding Gen-Y Adults. Publication. 97, 106. Packaged Facts, Oct. 2010. Web. 27 Sept. 2011. <www.marketresearch.com>

•  4: "Alice.com - the Future of Retailing or a Fad That Will Fail? Part Two." Passport GMID. Euromonitor International, 19 May 2011. Web. 28 Sept. 2011. <http://www.portal.euromonitor.com/>.

•  5: Hopkins, Stacey. Personal Interview. 20 Sept. 2011. •  6: "Special Report: Global M-Commerce Set for Strong Growth

Potential." Passport GMID. Euromonitor International, 21 Sept. 2011. Web. 28 Sept. 2011. <http:// www.portal.euromonitor.com/>.

•  7: Female Consumers: New Gender-Specific Trends. Publication. 1, 3, 4, 5. Euromonitor International, 14 Aug. 2009. Web. 30 Sept. 2011. <www.portal.euromonitor.com>

WORKS CITED •  8: Sisson, Bari. Personal Interview. 20 Sept. 2011. •  9: How the Recession has Impacted Consumer Shopping Habits.

Publication. International Council of Shopping Centers, 2009. 6, 9, 15, 21, 24, 31. Web. 2 Oct. 2011. <

http://www.icsc.org/web/RecessionBooklet-4.pdf > •  10: Congitamus Consulting. Market Trend: The Couponing Consumer in

a Down Economy. Publication. 76, 95, 96, 138. Packaged Facts, Dec. 2008. Web. 25 Sept. 2011. <www.marketresearch.com>

•  11: “The Extreme Couponers are Back.” Papas. Web. 2 Oct. 2011. <http://www.pappas.co/?p=1040>

•  12: Etter, Lauren. “Groupon Therapy.” Vanity Fair 612 (2011): 62. MasterFILE Premier. EBSCO. Web. 8 Oct. 2011. < http://ehis.ebscohost.com/ehost/detail?sid=bf66b735-9eaa-4194-a8c3-dc3e9802955e%40sessionmgr115&vid=6&hid=116&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=f5h&AN=64916600>

•  13: Lipsman, Andrew. “Groupon.com Audience Grows 1000% in Past Year, Captures #1 Spot Among Coupon Sites.” comScore. Web. 8 Oct. 2011. <http://blog.comscore.com/2010/09/groupon_audience_grows.html >

BIBLIOGRAPHY

•  Brown, Dr. Robert, and Ruth Washton. The Affluent Consumer Market in the U.S. Publication. Packaged Facts, Nov. 2009. Web. 27 Sept. 2011. <www.marketresearch.com>

•  The New Era of Thrift: Changing Spending Habits in the Face of Recession. Publication. Euromonitor International: Strategy Briefing, August 2009. Web. 30 Sept. 2011. <www.portal.euromonitor.com>

Documents

Extreme Couponer Market Segment