CONCORDIA, Kan. -- In an effort to draw traffic to its health and beauty care departments, a Fleming retail division here has begun running in-ad coupons from major HBC manufacturers on a regular basis.
According to a source in the area, the Boogaart Retail division of Fleming Cos./Scrivner Group has been placing HBC coupons in its advertising once every four weeks for the past several months. The 22-store retailer's coupons are valid for one week and are usually worth at least $1 off the retail price of an HBC product, he noted.
Boogaart has already experienced success using in-ad coupons in other departments, like grocery, added the source, but these recent moves have marked its first venture into using the promotional method regularly for HBC.
"[The Boogaart division] is really bringing HBC into the spotlight with a heavier emphasis by running these coupons," said the source, who asked to remain anonymous. "These are generally manufacturer coupons inserted in the chain's weekly ad."
The source said he has seen coupons for Advil and Alka Seltzer Plus brands in Boogaart ads in recent weeks.
Boogaart benefits from the program, said the source, because unlike a regular freestanding insert drop, the in-ad coupons can only be redeemed at Boogaart, and this increases store traffic and consumer awareness of the chain's HBC department.
"This program is a good way to get people to take a walk down the HBC aisle," said the source. He added that Boogaart also runs weekly ads in the newspaper featuring HBC price specials -- another effort to draw attention to that department.
Manufacturer ad money is important to the existence of an in-ad coupon program, said the source, but chains like Boogaart find it easy to get that support.
"Boogaart is a smaller division and is dealing with a rural area, so manufacturers are pretty receptive to supporting [in-ad coupon programs]," said the source. He explained many of Boogaart's customers do not purchase larger, urban newspapers that feature a deluge of FSIs. Thus, manufacturers are more likely to support the in-ad program with their ad monies to ensure their coupons reach the rural market.
"[In a case like Boogaart's] these in-ad coupons are better than just a regular FSI drop [for everyone involved]," the source said.
To date, the HBC products Boogaart has run on in-ad programs have moved well, he said. Boogaart's main retail competitor is Dillon Stores, Hutchinson, Kan., a division of Kroger Co., Cincinnati, said the source.
The source added he heard Boogaart has impending plans to continue the program, with the possibility of an advertisement with "five or six different major [HBC] manufacturer coupons in one ad."