Minneapolis, MN,
February 27, 2006 – Marx Promotion Intelligence/TNS
Media Intelligence reports that 197 billion pages carrying over
253 billion coupons were delivered via Free Standing Inserts (FSIs)
in Sunday newspapers in 2005 – a 4.2 percent increase versus
2004. Coupon Face Values also rose 11.5 percent to $1.15. Additionally,
Buy-One-Get-One (BOGO) promotions increased 48 percent, fueled
by more creative campaigns and competitive strategies among advertisers.
These findings and more are featured in the annual Marx FSI
Trend Report, the authoritative overview of the FSI industry,
developed by Marx Promotion Intelligence, a division of TNS Media
Intelligence. The Marx FSI Trend Report is available for
free at www.tnsmi-marx.com/getTrends.htm.
“The key metrics for the FSI show a medium in ‘“tactical’
growth mode,” said Chief Operating Officer Mark Nesbitt of
Marx Promotion Intelligence. “Marketers are utilizing FSIs
in a variety of ways, not only to bring more incentives to the consumer,
but to work with retailers as well.”
In 2005 Marx Promotion Intelligence completed a thorough analysis
of Co-marketing activity between retailers and manufacturers. This
study authored by Andrew Rumpelt Marx VP Business Development &
Marketing showed that Co-marketing pages grew 13.4 percent, the
fifth year of strong double digit growth. More than 215 manufacturers
and 186 retailers participated in co-marketing promotions, an increase
of 24 percent and 26 percent, respectively. “These increases
indicate that more manufacturers are using FSIs, and that when they
do, they are enticing consumers with increasingly attractive promotions.
More than $2,758 in savings was offered per household in 2005,”
added Rumpelt. For more insights on this topic contact Marx Promotion
Intelligence to receive a comprehensive Co-marketing white paper.
The Consumer Packaged Goods (CPG) sector remains the largest user
of FSI pages, accounting for two-thirds of all FSI page activity
and the majority of coupons distributed. While FSI coupons overall
grew 0.9 percent, Non-Food items within personal care, health care
and household products segments continued to increase at significant
levels.
Franchise businesses sector (i.e. fast food and casual dine-in
chains) accounts for 9 percent of all page distribution and commonly
focuses on price-point communications to consumers. A strong 11.5
percent growth in this franchise sector continues to exceed that
for CPG, which rose 1.9 percent. Distributed page increases were
driven in part by chain restaurants such as Quizno’s, Cold
Stone Creamery, Friendly’s, Bennigan’s and Pizza Hut.
Trends that impacted the FSI Industry in 2005 included:
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Procter & Gamble brandSaver.
In its fourth year, brandSAVER continues to
methodically expand in size and scope. brandSAVER is
issued by P&G monthly as a stand alone FSI coupon book and
distributed nationally. |
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Continued Co-Marketing Partnering.
More manufacturers and retailers are partnering to execute co-marketing
promotions, thus tying in trade specific events with consumer
coupon promotions. |
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New Product Launches. Several
new product lines/items received significant FSI coupon support
including General Mill’s Honey Clusters and Chocolate
Lucky Charms, Procter & Gamble’s Crest Pro-Health
Rinse, Kimberly-Clark’s Huggies Bath and Body Care Products,
and Kraft’s South Beach Diet line. |
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Free Product Offers. Communicated
via the “Buy-One-Get-One-Free” type offer, the use
of this promotional tactic saw significant growth as several
major manufacturers incorporated this tool as promotion tactic
in 2005. |
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Procter & Gamble, General Mills
and SC Johnson were the top FSI coupon advertisers in 2005. Overall,
the top 20 packages goods companies accounted for 63 percent of
all coupons issued.
Top 10 FSI Companies in 2005 (Ranked by Coupons Dropped)
|
| Procter & Gamble Co |
1 |
1 |
12.50% |
| General Mills Inc |
2 |
2 |
-3.10% |
| SC Johnson & Son Inc |
4 |
3 |
10.70% |
| Unilever |
3 |
4 |
-12.20% |
| Reckitt Benckiser PLC |
8 |
5 |
19.60% |
| Nestle SA (including Ralston Purina) |
5 |
6 |
-8.90% |
| Johnson & Johnson |
7 |
7 |
9.80% |
| Altria Group Inc |
6 |
8 |
-1.00% |
| Gillette Co |
11 |
9 |
13.70% |
| Colgate-Palmolive Co |
9 |
10 |
-9.00% |
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Among the top 10 categories, Household
Cleaning Products issued the most coupons in 2005 with more than
13 billion, a 9.5 percent increase. Rug/Room Deodorizer and Vitamins
increased 22.9 and 30.0 percent, respectively. Prepared Food/Frozen
declined the most among the Top 10 by 16.1 percent.
Top 10 FSI Categories in 2005 (Coupons Dropped)
|
| 1 |
Household Cleaning Products |
11,978 |
13,115 |
9.50% |
| 2 |
Pet Food & Treats |
11,645 |
10,943 |
-6.00% |
| 3 |
Combination/Personal |
9,860 |
10,057 |
2.00% |
| 4 |
Rug/Room Deodorizer |
7,629 |
9,373 |
22.90% |
| 5 |
Snacks |
7,504 |
7,650 |
1.90% |
| 6 |
Vitamins |
5,399 |
7,021 |
30.00% |
| 7 |
CCSA |
6,251 |
6,351 |
1.60% |
| 8 |
Hair Care |
6,527 |
6,135 |
-6.00% |
| 9 |
Cereals |
6,147 |
5,854 |
-4.80% |
| 10 |
Prepared Food/Frozen |
6,859 |
5,755 |
-16.10% |
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Significant increases in coupon distribution were within Health
Care and Personal Care segments. Five of the top 10 growth categories
were Personal Care categories, led by Foot Care and Shaving Cream/Razor,
up 61.1 percent and 54.6 percent, respectively. Health Care was
led by Mouthwash, up 91 percent vs. 2004.
Top 10 FSI Coupon Growth Categories in 2005 |
| 1 |
Mouthwash |
873 |
1,668 |
91.00% |
795 |
| 2 |
Foot Care |
430 |
692 |
61.10% |
263 |
| 3 |
Shaving Cream/Razor |
2,660 |
4,111 |
54.60% |
1452 |
| 4 |
Bath Products |
517 |
732 |
41.40% |
214 |
| 5 |
Ear/Eye Care |
1,162 |
1,619 |
39.40% |
458 |
| 6 |
First Aid |
1,428 |
1,975 |
38.30% |
546 |
| 7 |
Stomach Remedy |
2,485 |
3,426 |
37.90% |
941 |
| 8 |
AP/Deodorant |
3,176 |
4,352 |
37.00% |
1176 |
| 9 |
Fish/Canned |
525 |
711 |
35.40% |
186 |
| 10 |
Crackers |
579 |
777 |
34.20% |
198 |
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| About Marx Promotion Intelligence
Marx Promotion Intelligence is the industry standard
for tracking Free Standing Insert (FSI) coupon activity. Marx provides
end users with real-time information and the tools to understand
and act on the latest consumer promotion trends and Marx is the
only source for census-level FSI data and creative back to 1995.
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 #2 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. For
further information, visit www.tns-mi.com.
About TNS
TNS is a market information group. We are the world’s
largest custom research company and a leading provider of social
and political polling. We are also a major supplier of consumer
panel, TV audience measurement and media intelligence services.
TNS operates a global network spanning 70 countries and employs
over 13,000 people. We provide market information and measurement,
together with insights and analysis, to local and multinational
organizations. We combine our specialist sector knowledge with expertise
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TNS is listed on the London Stock Exchange (TNN) and is a trade
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on www.tns-global.com.
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