Retailer promotion activity increased 23.6% to more than 4 billion pages 199 new product introductions included FSI coupon support
MINNEAPOLIS, MN July 8, 2009 – Free Standing Insert (FSI) coupon activity increased 9.3 percent versus the same time period a year ago based on Coupons Dropped during the first six months of 2009 according to Marx Promotion Intelligence, a division of TNS Media Intelligence.
“In the current climate of economic uncertainty, FSI coupons represent a proven promotional vehicle to deliver advertising impact, influence consumer behavior, and secure retailer alignment,” said Mark Nesbitt, President, TNS Media Intelligence.
Marx Promotion Intelligence, the industry standard for tracking FSI coupon activity, reports that Coupons Dropped across the Non-Food segment of the Consumer Packaged Goods (CPG) industry increased 5.7 percent to 83.6 billion, driven by the 13.1 percent increase within the Personal Care area. Coupons Dropped across the Food segment increased 15.7 percent to 58.2 billion, led by the 10.1 percent increase for the Dry Grocery area. Eight of the nine major areas across the Non-Food and Food segments increased Coupons Dropped for the first half of 2009.
Manufacturers delivered more than $199 billion in consumer incentives as part of 141 billion coupons distributed across more than 106 billion pages during the first half of 2009. FSI coupon support was included as part of 199 new product introductions during this period, up from 174 during the first half of 2008. Additionally, retailer participation in FSI promotions increased 23.6 percent to over 4.3 billion pages during this six month period, driven by the 29.0 percent growth of “co-marketing” events that frequently link a manufacturer coupon with a retail feature price to communicate a combined offer to the consumer.
“Manufacturers continue to leverage FSIs as an effective advertising vehicle to deliver consumer impressions and reinforce messaging for both new and existing brands,” said Mark Nesbitt. “Leading retailers are also increasing their use of FSIs to drive planned shopping trips and build shopper loyalty. Manufacturers and retailers are working together to deliver relevant incentives to their consumers and shoppers during increasingly difficult economic times. Although ‘shopper marketing’ tactics are still evolving, FSIs have definitely emerged as a key component of manufacturer and retailer cooperative consumer promotion support.”
Overall FSI Activity
During the first half of 2009, more than $199 billion in consumer incentives were delivered via FSIs in Sunday newspapers, up 15.0 percent from the same period in 2008. During the same six month period, over 141 billion coupons were distributed within more than 106 billion FSI pages. FSI coupon average Face Value achieved a new record level in the first half of 2009 at $1.41, up 5.2 percent versus the first half of 2008. However, Average Expiration (Fuse) dropped below ten weeks for the first time to 9.7 weeks, down 4.6 percent versus a year ago. These trends indicate that manufacturers are delivering more offers of greater value to the consumer, but are managing their financial exposure by reducing the length of time that these offers are available in the market.
| First Half 2009 Results versus First Half 2008 | ||
| Measure | First Half 2009 | % Change |
| Dollars Circulated | $199 billion | 15.00% |
| Coupons Dropped | 141 billion | 9.30% |
| Pages Distributed | 106 billion | 4.70% |
| Face Value (average) | $1.41 | 5.20% |
| Fuse (weeks) | 9.7 | -4.60% |
Sector ActivityThe CPG sector remains the largest user of FSI pages with a 71.2 percent share, followed by Direct Response, which includes general advertising activity, and Franchise, comprised of restaurants, portrait studios, and other businesses. CPG and Franchise increased in number of pages distributed while Direct Response posted a decrease.
| First Half 2009 Results by Sector versus First Half 2008 | |||
| Sector | Pages | % Change | Share |
| CPG | 75,959 | 6.40% | 71.20% |
| Direct Response | 20,932 | -2.30% | 19.60% |
| Franchise | 9,860 | 8.30% | 9.20% |
| Total | 106,751 | 4.70% | 100.00% |
CPG Non-Food vs. FoodIn the first half of 2009, Non-Food categories distributed more than 83.6 billion coupons, up 5.7 percent versus a year ago, while Food categories distributed 58.2 billion coupons, representing an increase of 15.7 percent. All areas except Cereal reported increases in Coupons Dropped during this period.
Additionally, manufacturers are increasing the value of the offers that are being delivered to consumers in both the Non-Food and Food segments. Weighted Average Face Value (WAFV) for Non-Food increased 6.3 percent to $1.71 and was combined with a 1.2 point decrease in Multiple Purchase Requirements (MPR) resulting in Weighted Average Face Value Per Unit (WAFVPU) increasing 8.1 percent to $1.55. Similarly, WAFV for Food increased 6.3 percent to $0.97 and was combined with a 0.7 point decrease in MPR resulting in WAFVPU increasing 6.0 percent to $0.74. These changes appear to be a response to economic pressures to increase the consumer value per unit and decrease the total investment required for a qualifying purchase.
| Class | Coupons Dropped (MM) | Avg Face Value ($) | Avg Value Per Unit ($) | % Multiple Purchase | Avg Duration (weeks) | |||||
| 1st Half 2009 | % Chg | 1st Half 2009 | % Chg | 1st Half 2009 | % Chg | 1st Half 2009 | Point Chg | 1st Half 2009 | % Chg | |
| Non-Food | 83,694 | 5.70% | $1.71 | 6.30% | $1.55 | 8.10% | 14.00% | -1.2 | 9.4 | -3.90% |
| Food | 58,219 | 15.70% | $0.97 | 6.30% | $0.74 | 6.00% | 35.80% | -0.7 | 10.2 | -5.40% |
| Total CPG | 141,537 | 9.30% | $1.41 | 5.20% | $1.22 | 6.20% | 22.90% | -0.5 | 9.7 | -4.60% |
Top 10 FSI Product Types in First Half 2009 (by Coupons Distributed*)The top 10 product types based on coupons distributed accounted for 35.0 percent of all FSI coupon activity during the first half of 2009. Combination/Personal products ranked first and increased 13.2 percent to distribute more than 7.0 billion coupons. Snacks moved to second place with a 17.9 percent increase to 6.5 million coupons with 786.6 million coupons being associated with 21 new product introductions during the first six months of 2009.
| Rank | Product Type | Coupons Dropped (MM) | |||
| 2008 (1st Half) | 2009 (1st Half) | % Chg | Actual Chg | ||
| 1 | Combination/Personal | 6,188 | 7,003 | 13.20% | 815 |
| 2 | Snacks | 5,557 | 6,550 | 17.90% | 993 |
| 3 | Pet Food & Treats | 6,666 | 6,482 | -2.80% | -184 |
| 4 | Household Cleaning Products | 7,618 | 6,216 | -18.40% | -1,402 |
| 5 | Vitamins | 4,982 | 4,962 | -0.40% | -20 |
| 6 | Rug/Room Deodorizer | 3,288 | 4,237 | 28.90% | 949 |
| 7 | Hair Care | 3,309 | 3,669 | 10.90% | 360 |
| 8 | CCSA | 3,298 | 3,642 | 10.40% | 344 |
| 9 | AP/Deodorant | 2,921 | 3,468 | 18.70% | 547 |
| 10 | Meat/Refrigerated | 2,903 | 3,334 | 14.90% | 431 |
*Coupons Distributed equals the actual number of coupons distributed in FSI inserts for manufacturers’ brands.
Top 10 Manufacturers based on Coupons DroppedProcter & Gamble continues to lead among CPG manufacturers based on total FSI Coupons Dropped, driven in part by their proprietary P&G brandSaver vehicle. General Mills and Unilever also distributed proprietary FSI coupon vehicles during the first half of 2009 and were among the most active manufacturers. Corporate “scale” events, including proprietary FSI coupon vehicles, are a growing tactic for CPG manufacturers to leverage the strength of their portfolio of brands to break through weekly competitive promotion activity to win “share of voice” with consumers and “share of merchandising” with retailers.
| Manufacturer | Rank 2008 (1st Half) | Rank 2009 (1st Half) |
| Procter & Gamble Co | 1 | 1 |
| Johnson & Johnson | 5 | 2 |
| General Mills Inc | 3 | 3 |
| Unilever | 6 | 4 |
| Reckitt Benckiser PLC | 2 | 5 |
| SC Johnson & Son Inc | 4 | 6 |
| Kimberly-Clark Corp | 8 | 7 |
| Nestle SA | 7 | 8 |
| L'Oreal SA | 10 | 9 |
| Colgate-Palmolive Co | 9 | 10 |
Top 10 Categories for New Product ActivityDuring the first half of 2009, there were 199 new products that delivered FSI coupons across 301 event dates as part of their introduction, averaging 1.5 event dates per new product. This activity is up from 174 new products, 251 event dates, and 1.4 event dates per new product during the same six month period in 2009. The Snacks category led with 21 new products, followed by the Cereals with 13 new products and the Milk/Milk Products categories with 11 new products. After a decline in new product activity in 2008, manufacturers again appear to be investing in innovation to grow their brands.
| First Half 2009 Results by Sector versus First Half 2008 | ||
| Rank | Product Type | # New Products |
| 1 | Snacks | 21 |
| 2 | Cereals | 13 |
| 3 | Milk/Milk Products | 11 |
| 4 | Bread Product/Shelf | 8 |
| 4 | Alcoholic Beverages | 8 |
| 6 | Pet Food & Treats | 7 |
| 6 | Prepared Food/Frozen | 7 |
| 8 | Sauce | 6 |
| 9 | Household Cleaning Products | 5 |
| 9 | Breakfast/Frozen | 5 |
Top 10 Retailers based on Pages CirculatedRetailer promotion pages increased 23.6 percent to more than 4.3 billion pages in the first half of 2009. Target continues to lead with more than 781 million pages, up 21.4 percent versus the first half of 2008. Dollar General increased 338.1 percent to more than 500 million pages to rank second during the first half of 2009. Walgreen’s, CVS/pharmacy, and Rite Aid were all within the top 10 based on retailer promotion pages and had increases versus the same period year ago of 31.4 percent, 73.3 percent, and 40.2 percent, respectively. These trends reflect the overall growth of retailer promotion within traditional FSI vehicles to drive trips, transactions, and profits across channels and retail formats.
| Store | Rank 08 | Rank 09 |
| Target | 1 | 1 |
| Dollar General Store | 10 | 2 |
| PETsMART | 4 | 3 |
| Walgreens Store | 2 | 4 |
| CVS Pharmacy | 6 | 5 |
| Kroger Grocery Store | 3 | 6 |
| Publix Store | 8 | 7 |
| Safeway Food & Drug Grocery Store | 9 | 8 |
| Rite Aid | 13 | 9 |
| Ralphs Store | 12 | 10 |
About Marx Promotion IntelligenceMarx Promotion Intelligence, a TNS Media Intelligence company, is the definitive source for Free Standing Insert (FSI) coupon intelligence and is the leading provider of consumer promotion insights. Through our industry-leading ProMotion PLUS Services, our clients are able to remain ahead of their competition by effectively identifying emerging product trends, retail partnership opportunities, critical category dynamics and competitive promotion tactics. Marx Promotion Intelligence supports our clients’ overall marketing, research, category management and brand planning needs. You may request a copy of the complete Marx 2008 FSI Distribution Trends Report at the company Web site: www.tnsmi-marx.com
About TNS Media
Established in more than 30 countries, TNS Media explores all media - print, radio, TV, Internet, social media, cinema and outdoor worldwide, 24 hours a day, seven days a week, and offers a full range of insights, analyses and audience measurement services. TNS Media combines the deepest expertise in the industry to provide media and marketing intelligence including advertising expenditure monitoring, advertising creation monitoring, audience measurement, market influence analytics, online consumer behavior tracking, news monitoring, sports sponsorship evaluation and more. The TNS Media companies track more than 3 million brands and provide vital market intelligence to 16,000 customers around the world. For further information, please visit www.tnsmediagroup.com
About Kantar Group and TNS
The Kantar Group is one of the world's largest research, insight and consultancy networks. By uniting the diverse talents of more than 20 specialist companies – including the recently-acquired TNS – the group aims to become the pre-eminent provider of compelling and actionable insights for the global business community. Its 26,500 employees work across 80 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group’s services are employed by over half of the Fortune Top 500 companies. For further information, please visit www.kantargrouptns.com