P&G; Will Clip Coupons in 3 Cities

Procter & Gamble Co. said it will temporarily stop distributing coupons in three New York cities as it seeks an alternative to a marketing device hated by manufacturers and retailers but adored by at least some consumers.

P&G;, the maker of Tide detergent, Crest toothpaste and Bounty paper towels, said the test will begin Feb. 1 in Buffalo, Rochester and Syracuse and continue for an unspecified period.

“They’re trying to get a monkey off their back and free up lots of dollars that could be spent on more promotions and advertising,” said George Rosenbaum, chief executive of Leo J. Shapiro & Associates, a Chicago-based market research company.

As the world’s largest consumer products company and one of the biggest issuers of coupons, P&G; “has the power to do it,” Rosenbaum said.

P&G; spokesman Greg Rossiter said the Cincinnati-based company has cut its spending on coupons by 50% because they are costly and inefficient. Manufacturers spend $6.5 billion a year on coupons.

Rosenbaum said the company is up against a substantial minority of shoppers who take those little slips of paper seriously.

“About 35% of shoppers are profoundly influenced by coupons as a shopping tool,” he said. “For that 35%, there can’t be too many coupons.”