Why Are People in Some States Getting Extra Coupons…

Why Are People in Some States Getting Extra Coupons While Others Get Nothing?

You are talking to a friend who lives in another state, and you are both complaining about the high cost of groceries. They mention a great coupon they just used from a major national brand. You are surprised because you have never seen that coupon in your local store or on your app. This frustrating experience is not an accident. It is the result of a sophisticated marketing strategy called “regional couponing.” Companies will intentionally offer different discounts in different parts of the country for a variety of strategic reasons.

Responding to Local Competition

The level of competition in a local market is the number one reason for regional coupons. If a national brand like Procter & Gamble is facing a tough challenge from a strong local brand in a specific state, they will flood that state with high-value coupons. They do this to protect their market share. In a state where they are already the dominant player, they have no incentive to offer those same deep discounts.

Testing New Promotions

A company that is thinking about launching a new national promotion will often test it in a smaller, regional market first. They will release a new type of coupon or a BOGO deal in a few select states, like Ohio or Arizona, that are known for having demographics that reflect the national average. They will then carefully analyze the sales data from that test market to see if the promotion is a success before they decide to roll it out to the rest of the country.

Targeting Specific Demographics

Companies use a huge amount of data to understand the unique demographics of different regions. They know which states have a higher concentration of families with young children, or which cities have a large population of retirees. They will then send targeted coupons for products like diapers or denture cream to the specific regions where they are most likely to be used. This makes their marketing much more efficient.

Clearing Out Regional Inventory

A company’s inventory is not spread out evenly across the country. A specific product might be selling poorly in the Southeast but flying off the shelves in the Pacific Northwest. To get rid of the excess inventory in the Southeast, the company will issue a high-value, regional coupon that is only valid in those states. This is a simple and effective way to clear out a warehouse and to make room for better-selling products.

The Coupon Lottery

The practice of regional couponing can make shoppers feel like they are the victims of a “coupon lottery.” The deals you get are based entirely on where you live and the specific marketing goals in your region. It is a powerful reminder that the discounts are not a reward for our loyalty. They are a calculated business tool designed to influence our behavior.

Do you ever notice that the coupons available in your area are different from those in other states? How do you feel about this practice of regional couponing? Let us know!