An Introduction to Coupons

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Introduction to coupons. What are coupons? How coupons are used, How are barcodes assigned to coupons etc

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AN INTRODUCTION TO
COUPONS COUPONS
INTRODUCTION
•Coupons are created by encoding a Coupon-12 number
into a UPC-A barcode
•The coupon standard makes it easy for issuers of
coupons and retailers to work together in automating the
handling of coupons handling of coupons
•The Coupon-12 must be properly coded in a UPC-A
barcode to be scanned at the point-of-sale
COUPON-12 CONSTRUCTION
• The Coupon-12 consists of:
U P C Prefix 5 – U.P.C. Prefix 5
– Manufacturer ID
– Family Code
Val e Code – Value Code
– Check Digit
U.P.C. PREFIX 5
• 5 12345 87890 4
– Must always begin with U.P.C.
Prefix 5 Prefix 5
– Tells the POS system that it is
scanning a coupon
MANUFACTURER ID
• 5 12345 87890 4
– Use only digits 2 through 6 of
the assigned U P C Company the assigned U.P.C. Company
Prefix (see next slide)
– Partially identifies manufacturer
of the couponed items p
– Must be same as on products
being couponed
MANUFACTURER ID (CONT’D)
• Only use positions 2 through 6 of the U.P.C. Company Prefix for the
Manufacturer ID
• Always drop the first digit of the U P C Company Prefix and replace it with a • Always drop the first digit of the U.P.C. Company Prefix and replace it with a
five (5)
• If a company is assigned a U.P.C. Company Prefix that is longer than 6-
digits, drop all digits after position 6 g p g p
FAMILY CODE
• 5 12345 87890 4
Products that are couponed must • Products that are couponed must
be assigned a family code
• Designates items being couponed
• Purchase validation at POS • Purchase validation at POS
• Family codes must be
communicated to retailers
VALUE CODE
• 5 12345 878904
– The two digits following the
three-digit family code three-digit family code
– Redemption value of the
coupon
– Predefinedvalue code table Predefined value code table
CHECK DIGIT
• 5 12345 87890 4
– The last digit of the code
Calculatedfromthe previous 11 – Calculated from the previous 11
digits
FAMILY CODES
FAMILY CODES
• A family code should be treated like an item reference number. Once it is
assignedto a product it should remain the same through the lifetime of that assigned to a product, it should remain the same through the lifetime of that
product.
• There can only be one family code per item reference number. Although you
can have multiple item reference numbers under one family code. p y
FAMILY CODES (CONT’D)
• If a product is sold in a number of flavors, colors, or forms, and these items
are expected to be couponed together the same 3-digit family code should are expected to be couponed together, the same 3-digit family code should
be assigned to each item.
• If the product is sold in more than one size and it is likely that the sizes will
always be couponed together (e.g. 25 cents off 1 giant or 1 regular size), the y p g ( g g g )
same family code number should be assigned to each size.
FAMILY CODES (CONT’D)
• There are 1,000 family code numbers (000-999) available for use
Family codes 001 009are reserved for future use • Family codes 001-009 are reserved for future use
• Family codes 990-999 are reserved for future use (with the exception of 992)
• A family code that ends in "0" should not be assigned to individual products
or be used to represent a single product on a coupon or be used to represent a single product on a coupon
992 FAMILY CODE
992 FAMILY CODE
• This code (also called 992-bypass code) was effective J anuary 1, 1999
The purpose of the code is to allowscannable coupons to be issued for a • The purpose of the code is to allow scannable coupons to be issued for a
number of products, which have traditionally required the manual input of a
cashier
992 SHOULD BE USED AS THE FAMILY CODE ON
COUPONS ONLY UNDER THESE CIRCUMSTANCES:
• Random weight products where the consumer package is encoded with a
U P C Prefix 2 U.P.C. Prefix 2
• When the supplier’s product line carries more than one U.P.C. Company
Prefix for the group of products that are couponed
• Coupontie-in offers ($1.00 off your next purchase) Coupon tie in offers ($1.00 off your next purchase)
• In-ad coupons for promoted products that are paid for by the retailer
• Only fixed value codes can be used with the 992 Bypass code
• Avoid using “free merchandise”value codes Avoid using free merchandise value codes
HOW TO ASSIGN VALUE CODES
VALUE CODES
• Choose from predefined value code table
• The Application Standard for UCC Coupon Codes lists the available value
codes codes
– The standard can be found in the Solutions Center (free access for Partner
Connections members)
– May be purchased fromthe Product Catalog May be purchased from the Product Catalog
NEW VALUE CODES
• New value codes were added effective August 1, 2000
Value code 05 $1 40 off – Value code 05 ---$1.40 off
– Value code 07 ---Buy 3 or more, get $1.50 off
– Value code 08 ---Buy 2 or more, get $3.00 off
Val e code 09 B t 3 or more get $2 00 off – Value code 09 ---But 3 or more, get $2.00 off
– Value code 13 ---Buy 4 or more, get $1.00 off
RETIRED VALUE CODES
• Effective August 1, 2000, several value codes were “reserved for future use”
– Value code 17 ---$2.10 off
Value code 94 $4 25 off – Value code 94 ---$4.25 off
– Value code 97 ---$4.75 off
IN-STORE DISTRIBUTED COUPONS
IN-STORE DISTRIBUTED COUPONS
• Coupons that are distributed in the store
• Good only at a specific store
Examples • Examples
– Checkout coupons
– Shelf talker coupons
In store promotions – In-store promotions
• EAN-13 barcode
• 99 replaces U.P.C. Prefix 5
IN-STORE DISTRIBUTED COUPONS (CONT’D)
• The remaining information is the same as regular coupon
• Retailer POS must be able to handle
Retailers must request this fromtheir supplier • Retailers must request this from their supplier
IN-STORE DISTRIBUTED COUPONS (CONT’D)
• Important Note: These coupons are not found in Sunday supplements
(FSI’s), manufacturer direct mail, on-pack coupons, instant redeemable
coupons (peel-off) or in-ad coupons. coupons (peel off) or in ad coupons.
GS1-128 COUPON EXTENDED CODE
GS1-128 COUPON EXTENDED CODE
• Mandatory on all coupons
• Used by clearinghouses
GS1 128symbology (formerly called UCC/EAN 128) • GS1-128 symbology (formerly called UCC/EAN-128)
• Five formats to choose from
FORMAT 1
• Application Identifier (8100)
• U.P.C Prefix
Five digit offer code • Five digit offer code
FORMAT 2
• Application Identifier (8101)
• U.P.C. Prefix
Five digit offer code • Five digit offer code
• Expiration date
FORMAT 3
• Application Identifier (8100)
• U.P.C. Prefix
Five digit offer code • Five digit offer code
• Application Identifier (21)
• Household ID
FORMAT 4
• Application Identifier (8101)
• Five digit offer code
ApplicationIdentifier (21)
• U.P.C. Prefix
• Expiration date
HouseholdID • Application Identifier (21) • Household ID
FORMAT 5
• Also called the Null code
• Application Identifier (8102)
The number zero • The number zero
• U.P.C. Prefix
COUPON RE-ENGINEERING
COUPON RE-ENGINEERING
• J oint Industry Coupon Committee (J ICC) initiative
– Members include P&G, Target, Ahold, General Mills, Kraft, Kelloggs, Pfizer, Nestle, etc.
– (GMA & FMI sponsored)
• Goal is to replace coupon U.P.C.-A and GS1-128 with GS1 DataBar in 2010 (See next)
• Benefits
– Enhanced validation at checkout
– Enhancedpromotion opportunities for coupon issuers Enhanced promotion opportunities for coupon issuers
– Enhanced coupon value capability
– Reduced cashier intervention
– Incorporates variable length U.P.C. Company Prefixes
I t i ti d t h ki bilit – Incorporates expiration date checking capability
• J ICC working with FMI, GMA, and GS1 US and other trade association to promote to
retailers, suppliers, coupon / promotion professionals, hardware / software suppliers, etc.
• J ICC Co-chairs from P&G and Giant Foods collaborating on webinars and conference
t ti t t i iti ti presentations to promote initiative.
• Coupon clearinghouses supporting through webinars, newsletters, and meetings
• Transition period starts J anuary 1, 2008
TRANSITION PLAN:
GS1 DATABAR + NEW DATA
CURRENT
UPC-A&GS1-128 UPC A & GS1 128
INTERIM
UPC-A & GS1DataBar
Expanded p
FINAL
Started 1 / 2008
FINAL
GS1 DataBar Expanded Only
Starts 2011
REFERENCE MATERIALS
• Application Standard for UCC Coupon Codes
Source: GS1 US (available in Solutions Center and for purchase in Product Catalog)
• Coupons: A Complete Guide (J oint Industry Coupon Guidelines) Coupons: A Complete Guide (J oint Industry Coupon Guidelines)
Source: GMA
• Electronic Coupon Clearing Guidelines (J oint Industry Coupon Committee)
Source: GMA
QUESTIONS? COMMENTS?
• For information contact GS1 US Customer Service:
– E-mail: [email protected]
Tel: (937) 435 3870 – Tel: (937) 435-3870

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