MINNEAPOLIS, MN, January 9, 2008 –
The Marx Promotion Intelligence 2007 FSI Distribution Trends Report,
issued today, reports that more than 197 billion pages containing
257 billion consumer offers representing over $320 billion in consumer
incentives were delivered through Free Standing Insert (FSI) coupons
in Sunday newspapers during 2007. Average Face Value increased to
a new record level of $1.26, up $0.07 versus 2006.
|
Coupons |
257.0 billion |
1.5% |
Pages |
197.6 billion |
-1.0% |
Average Face Value |
$1.26 |
6.4% |
Fuse (weeks) |
9.8 |
-0.6% |
|
The 5th annual FSI Distribution Trends Report is issued by Marx Promotion
Intelligence, a TNS Media Intelligence company. Marx Promotion Intelligence
is considered the industry standard for tracking FSI coupon activity.
Free copies of the comprehensive Marx FSI Distribution Trends Report
are available through the Marx Promotion Intelligence website at www.tnsmi-marx.com.
“Marketers continue to leverage FSIs as a cost-effective
advertising medium to deliver consumer impressions and to create
purchase intent for their brands,” said Mark Nesbitt, chief
operating officer, Marx Promotion Intelligence. “Additionally,
many retailers align quality merchandising support with these FSI
promotions to improve overall promotion effectiveness and to increase
incremental sales. FSIs continue to be a source of news about product
categories to the consumer and to be a driver of category trips
for the retailer.”
FSIs maintained consistent frequency with activity in 48 out of
the 52 Sundays in 2007. This compares to activity in 49 out of the
53 Sundays in 2006. In 2007, the post-New Year’s promotion
week of January 7 had the greatest combined weight by delivering
a total of 147 pages. The pre-Thanksgiving week of November 4 was
also heavily weighted with 133 pages of FSI promotions. On average,
FSIs reach almost 70 million households on a weekly basis, with
household reach varying across national, regional, and local brands.
The dynamics among the three key principles of frequency, weight,
and reach, provide important insight into category, competitor,
and brand strategies.
Overall FSI Activity
During 2007, over 197 billion pages containing more than 257 billion
coupons were delivered via FSI coupons in Sunday newspapers. Consumer
Packaged Goods (CPG) activity dominated these trends accounting
for 69.0 percent of total FSI pages, followed by Direct Response
with 22.0 percent and Franchise at 9.1 percent. CPG activity is
up 1.2 percent versus 2006, along with Franchise which also increased
2.7 percent. However, Direct Response decreased 8.8 percent versus
2006 which is the first decline in activity for this industry since
2003.
Within the CPG industry, the Non-Food segment had a 3.9 percent
increase in coupon circulation while the Food segment pulled back
1.8 percent. Record levels were set for Average Face Value within
both the Non-Food and Food segments with a 5.8 percent increase
to $1.54 for the Non-Food segment and a 5.1 percent increase to
$0.87 for the Food segment. These trends indicate that manufacturers
are continuing to leverage FSIs, but are increasingly using them
to deliver high-value offers that encourage brand trial and generate
category excitement.
CPG INDUSTRY FSI ACTIVITY
|
Total CPG |
257,046 |
1.5 |
$1.26 |
6.4% |
9.8 |
-0.6% |
Non-Food |
152,263 |
3.9 |
$1.54 |
5.8% |
9.3 |
-1.0% |
Food |
105,041 |
-1.8 |
$0.87 |
5.1% |
10.6 |
0.2% |
|
Top 10 Categories for New Product Activity
FSI coupon support was included as part of 441 new product introductions
across the CPG industry in 2007, as tracked by Marx Promotion Intelligence.
Food categories contributed 312 of these new items led by Cereals,
Beverages and Snacks. Non-Food categories contributed an additional
129 new items led by Household Cleaning Products and Home Paper/Plastic.
TOP 10 CATEGORIES FOR NEW PRODUCT ACTIVITY
|
1 |
Cereals |
39 |
2 |
Beverages |
25 |
3 |
Snacks |
20 |
4 |
Milk/Milk Products |
18 |
5 (tie) |
Household Cleaning Products |
17 |
5 (tie) |
Meat/Refrigerated |
17 |
7 |
Prepared Food/Frozen |
12 |
8 (tie) |
Pet Food & Treats |
11 |
8 (tie) |
Juices |
11 |
10 |
Home Paper/Plastic |
10 |
|
This level of activity reinforces how manufacturers are continuing
to integrate FSI coupons as part of their new product introductions.
A more complete analysis of leading practices was presented in the
Marx ProMotion GuidePoint© entitled: “New Product
FSI Promotion: A Look at Consumer Packaged Goods (CPG) FSI Promotion
Tactics in Support of New Product Introductions.”
Top 10 FSI Categories
Three of the top 10 categories for new product introductions were
also among the top 10 categories for overall FSI activity in 2007.
Household Cleaning Products led all categories in overall FSI coupon
activity and ranked number one in new product introductions among
Non-Food categories for the second year in a row. Snacks ranked
second across all categories for new product introductions and was
the top-ranked Food category for overall FSI activity. The top 10
categories accounted for 32.4 percent of all coupons distributed
across the CPG industry.
TOP 10 FSI CATEGORIES (by Coupons Dropped*)
|
1 |
Household Cleaning Products |
13,281 |
12,426 |
6.9% |
855 |
2 |
Pet Food & Treats |
12,744 |
12,295 |
3.7% |
450 |
3 |
Combination/Personal |
10,978 |
10,462 |
4.9% |
516 |
4 |
Rug/Room Deodorizer |
10,471 |
10,787 |
-2.9% |
-316 |
5 |
Snacks |
8,407 |
7,247 |
16.0% |
1,160 |
6 |
Cough Cold Sinus Allergy (CCSA) |
7,569 |
6,619 |
14.3% |
949 |
7 |
Hair Care |
7,213 |
6,186 |
16.6% |
1,028 |
8 |
Vitamins |
7,180 |
6,123 |
17.3% |
1,057 |
9 |
Other Packaged Goods |
5,682 |
5,693 |
-0.2% |
-11 |
10 |
Bar/Liquid Soap |
5,413 |
4,162 |
30.1% |
1,252 |
|
Top 10 Manufacturers
The ranking of the top 10 manufacturers changed slightly in 2007.
Procter & Gamble retained the top position. Reckitt Benckiser
PLC moved up two spots while Unilever dropped down to the sixth
position. Kraft foods also moved up two spots along with L’Oreal
which broke into the top 10 in 2007.
TOP 10 MANUFACTURERS (by Coupons Dropped)
|
Procter & Gamble Co |
1 |
1 |
General Mills Inc |
2 |
2 |
SC Johnson & Son Inc |
3 |
3 |
Reckitt Benckiser PLC |
4 |
6 |
Johnson & Johnson |
5 |
5 |
Unilever |
6 |
4 |
Nestle SA |
7 |
7 |
Kraft Foods |
8 |
10 |
Kimberly-Clark Corp |
9 |
9 |
L'Oreal SA |
10 |
11 |
|
About Marx Promotion Intelligence
Marx 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 2007 FSI Distribution Trends Report at
the company website:
www.tnsmi-marx.com
About TNS Media Intelligence
TNS Media Intelligence is the leading provider of strategic advertising
intelligence to advertising agencies, advertisers, and media properties.
The company's tracking technologies collect advertising expenditure
and occurrence data, as well as select creative executions, for
more than 2.2 million brands across 20 media. Established in 23
countries with more than 16,000 customers, TNS MI is part of the
TNS Group, ranked number two worldwide in marketing information
and the world’s largest custom research company. The U.S.
headquarters are in New York City with sales locations in major
markets throughout the United States. www.tns-mi.com
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