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2005 Free Standing Insert Distribution Trends
Section 1: FSI Industry OverviewGo 
Fast Fact Summary
Total Page Allocation
 
Section 2: Consumer Packaged Goods FSI Coupon TrendsGo 
Total (Food vs. Non-Food)
Distribution
Face Value
Expiration
Multi-Purchase Requirments
Major Area
Distribution
Face Value
Expiration
Multi-Purchase Requirments
Leading Coupon Growth Categories
Leading CPG Categories by Key Metrics
Distribution
Distribution % increase
Face Value
Per-Unit Value
Expiration
Multi-Purchase Requirments
Top 20 Manufacturers
 
Section 3: Other FSI Coupon TrendsGo 
Regionality
Seasonality
New Products
Retailer Co-Marketing
Buy One Get One Free (BOGO)
Franchise FSIs
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Section 1: FSI Industry Overview
 
Fast Fact Summary
Measure 2005 Change vs. 2004 Change vs. 2001
Coupons 253 billion +0.9% +16.2%
Pages 197 billion +4.2% +21.0%
Avg Face Value $1.15 +11.7% +40.4%
Fuse (weeks) 10.1 0.0% -8.5%
 
Total Page Allocations
Total pages in 2005 reached 197 billion, an increase of 4.2% from 2004, as the Consumer Packaged Goods (CPG), Direct Response and Franchise sectors all posted gains.
The CPG sector continues to dominate FSI page space, accounting for almost 70% of all pages distributed.
The CPG sector grew another 1.9% in 2005 to137.8 billion pages, its smallest increase since 2002. This is the fourth year in a row this sector has posted gains, averaging almost 5% annual growth since 2002.
The Direct Response and Franchise sectors, coming off robust increases in 2004, continued to grow in 2005, increasing 9.7% and 11.5% respectively.
 
FSI Total Page Allocation 2004
Sector Pages % Chg 2004 Share
CPG 137,755 1.9% 69.8%
Direct Response 42,060 9.7% 21.3%
Franchise 17,574 11.5% 8.9%
Total 197,389 4.2% 100.0%
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Section 2: Consumer Packaged Goods FSI Coupon Trends

Total (Food vs. Non-Food)
Distribution
Total Packaged Goods coupons grew at its slowest pace since 2001, increasing roughly 1% to 253 billion.
Non-Food coupons increased 8% to 142.7 billion, largely due to strong growth in Personal Care and Health Care distribution. The Non-Food sector has outpaced the Food sector the last four years.
Food sector had its largest drop off within the last five years, with FSI coupon distribution decreasing 6.9% to 110.9 billion in 2005. Decreases in Dry Grocery and Frozen Food coupon distribution helped contribute to this decline.
 
FSI Coupon Distribution 2001-2005 (Millions)
Food vs. Non-Food
Sector 2001 2002 2003 2004 2005
Food 113,779 115,848 115,432 119,114 110,929
% Change - 1.8% -0.4% 3.2% -6.9%
Non-Food 104,590 107,153 117,933 132,128 142,712
% Change - 2.5% 10.1% 12.0% 8.0%
Total Packaged Goods 217,733 222,566 232,856 250,764 253,092
% Change - 2.2% 4.6% 7.7% 0.9%
* Non-Food items include HBA, OTC and household-type items. Food includes all food items, such as canned, prepared, cereal, boxed and candy items. More than 800 consumer packaged goods companies had FSI coupon activity in 2005.
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Face Value
FSI average coupon face values continue to climb, increasing to $1.15 in 2005. Both the Food and Non-Food sectors realized gains in average face values for the fifth straight year.
Non-Food average coupon values jumped $0.15, or 12.5% and now average $1.41. Significant increases in face values within the Personal Care, Health Care and Household Products areas helped support this jump.
Food sector increased a modest $0.03, or 4.4%.
 
FSI Coupon Average Face Value 2001-2005
Food vs. Non-Food
Sector 2001 2002 2003 2004 2005
Food $0.68 $0.71 $0.76 $0.78 $0.81
% Change - 3.2% 7.3% 2.6% 4.4%
Non-Food $0.97 $1.04 $1.16 $1.26 $1.41
% Change - 7.0% 12.1% 8.0% 12.5%
Total Packaged Goods $0.82 $0.86 $0.96 $1.03 $1.15
% Change - 5.6% 11.3% 6.9% 11.7%
 
Expiration
Average FSI coupon expiration length remained relatively unchanged in 2005 after a four-year trend of small annual declines. On average, Package Goods coupons have an expiration period of ten weeks.
Food FSI coupons, at 10.4 weeks, continue to be slightly longer than Non-Food coupons.
 
FSI Coupon Expiration Lengths 2001-2005 (Weeks)
Food vs. Non-Food
Sector 2001 2002 2003 2004 2005
Food 11.4 10.8 10.7 10.4 10.4
% Change - -5.2% -1.0% -2.8% 0.7%
Non-Food 10.7 10.5 10.0 9.9 9.9
% Change - -1.9% -4.6% -1.2% -0.2%
Total Packaged Goods 11.1 10.7 10.3 10.1 10.1
% Change - -3.7% -3.0% -2.1% 0.0%
 
Multi-Purchase Requirments
On average, roughly 29% of all FSI coupons require multiple purchases. The amount of multiple-purchase coupons has remained relatively consistent over the last five years.
The Food sector has a much higher likelihood of distributing coupons with multiple-purchase requirements. This is likely due to many Food items, such as Yogurt and Pet Food, having higher consumption rates than Non-Food items.
 
% FSI Coupons w/ Multiple Purchase Requirements 2001-2005
Food vs. Non-Food
Sector 2001 2002 2003 2004 2005
Food 38.4% 41.5% 42.7% 43.1% 41.2%
Actual Change - 3.1% 1.2% 0.4% -1.9%
Non-Food 18.6% 18.7% 16.6% 18.4% 19.7%
Actual Change - 0.1% -2.1% 1.7% 1.3%
Total Packaged Goods 28.5% 30.2% 29.4% 29.9% 28.9%
Actual Change - 1.7% -0.8% 0.6% -1.0%
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Major Areas

Distribution
All Non-Food areas, excluding Other Packaged Goods, increased coupon distribution in 2005.
Dry Grocery continues to be the area with the highest coupon distribution despite its 9.1% decrease in 2005.
The Personal Care area surged 12.2% in 2005, helping strengthen its position as the second leading coupon area with a total of 52 billion coupons.
Coupon distribution for the Frozen Products area fell sharply, decreasing almost 11% in 2005 to 16.7 billion coupons.
 
FSI Coupon Distribution by Area (Millions)
2004 vs. 2005
Area 2004 2005 % Chg
Dry Grocery 68,558 62,288 -9.1%
Personal Care 46,724 52,423 12.2%
Household Products 42,470 44,345 4.4%
Health Care 38,859 42,023 8.1%
Refrigerated Foods 18,603 19,035 2.3%
Frozen Products 18,737 16,697 -10.9%
Shelf Stable Beverages 8,829 9,007 2.0%
Cereals 6,147 5,854 -4.8%
Other Packaged Goods 5,387 5,103 -5.3%
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Face Value
All CPG areas with the exception of Shelf Stable Beverages and Other Packaged Goods had higher FSI coupon average face values in 2005 vs. 2004.
Personal Care coupons top all area coupons with an average face value of $1.70, a 12.6% increase from 2004. The increase in Personal Care was partly due to sizable increases in First Aid and Bar/Liquid Soap coupon values.
Other Non-Food areas with significant face value growth include Health Care and Household Products, which increased 10.7% and 14.2% respectively. Increases in Mouthwash coupon incentives helped drive Health Care growth, while Rug/Room Deodorizers contributed to the rise in Household Product face values.
Average coupon face values on Refrigerated Foods continue to be the lowest, averaging almost $0.20 less than the next lowest category face values.
 
FSI Coupon Average Face Value by Area (Millions)
2004 vs. 2005
Area 2004 2005 % Chg $ Chg
Dry Grocery $0.78 $0.84 7.4% $0.06
Personal Care $1.51 $1.70 12.6% $0.19
Household Products $0.90 $1.03 14.2% $0.13
Health Care $1.29 $1.43 10.7% $0.14
Refrigerated Foods $0.65 $0.68 4.0% $0.03
Frozen Products $0.81 $0.84 3.7% $0.03
Shelf Stable Beverages $0.95 $0.87 -8.2% ($0.08)
Cereals $0.86 $0.88 2.5% $0.02
Other Packaged Goods $1.60 $1.57 -2.1% ($0.03)
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Expiration
The longest coupon expiration lengths continue to be in the Health Care segment, with coupons valid for an average of 11.7 weeks. This is a 4.4% increase from 2004.
After a 6.7% decrease, coupons good on Household Products now have the shortest expiration period of just under 8 weeks.
The Cereals area increased expiration periods the most, jumping from 7.4 weeks in 2004 to 8.8 weeks in 2005.
Household Products, Cereals and Other Packaged Goods continue to be the only areas with expiration lengths less than 10 weeks.
 
FSI Coupon Expiration Lengths by Area (Weeks)
2004 vs. 2005
Area 2004 2005 % Chg
Dry Grocery 10.7 10.6 -1.6%
Personal Care 10.2 10.1 -1.2%
Household Products 8.4 7.8 -6.7%
Health Care 11.2 11.7 4.4%
Refrigerated Foods 10.3 10.4 1.1%
Frozen Products 10.2 10.5 3.2%
Shelf Stable Beverages 10.0 10.3 2.6%
Cereals 7.4 8.8 19.7%
Other Packaged Goods 9.3 9.8 5.5%
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Multi-Purchase Requirements
All CPG areas with the exception of Other Packaged Goods maintained relatively stable coupon-purchase requirements between 2004 and 2005.
Dry Grocery (47.0%) and Refrigerated Foods (42.9%) have the highest percent of coupons requiring multiple-unit purchases.
In contrast, Health Care (12.7%) and Personal Care (18.7%) have the lowest percent of coupons with multiple-purchase requirements.
 
FSI Coupons w/ Multiple Purchase Requirements
by Area 2004 vs. 2005 (Weeks)
Area 2004 2005 Act Chg
Dry Grocery 44.9% 47.0% 2.1%
Personal Care 20.3% 18.7% -1.6%
Household Products 23.8% 21.6% -2.1%
Health Care 15.3% 12.7% -2.7%
Refrigerated Foods 39.2% 42.9% 3.6%
Frozen Products 31.8% 35.0% 3.2%
Shelf Stable Beverages 39.4% 36.6% -2.7%
Cereals 39.8% 41.6% 1.8%
Other Packaged Goods 12.0% 28.4% 16.4%
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Leading Coupon Growth Categories within Major CPG Segments
The following charts provide leading growth categories by major CPG product area. Only categories in which 2005 coupon distribution was at least 500 million and 2005 growth was at least 5% are included.
Dry Grocery
Coupons Dropped (Millions)
2005 Rank* Category 2004 2005 % Chg
88 Canned fish 525 711 35.4%
83 Crackers 579 777 34.2%
41 Breakfast Food 1,832 2,369 29.3%
48 Jelly/Honey/Peanut Butter 1,427 1,830 28.3%
70 Sugar 869 1,115 28.3%
79 Gum 694 863 24.4%
63 Mexican Foods 1,097 1,337 21.8%
50 Cooking Products 1,577 1,806 14.5%
33 Baking Mixes 2,556 2,791 9.2%
76 Frosting 828 899 8.5%
* Category rank is based on 2005 coupon distribution.
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Personal Care
Coupons Dropped (Millions)
2005 Rank* Category 2004 2005 % Chg
91 Foot Care 430 692 61.1%
21 Shaving Cream & Razors 2,660 4,111 54.6%
86 Bath Products 517 732 41.4%
43 First Aid 1,428 1,975 38.3%
18 Antiperspirant & Deodorants 3,176 4,352 37.0%
65 Facial Cleansers 1,073 1,332 24.1%
30 Diapers 2,455 2,997 22.1%
19 Hair Coloring 3,522 4,290 21.8%
42 Hand & Body 1,730 2,106 21.7%
39 Toilet Tissue 2,055 2,375 15.6%
* Category rank is based on 2005 coupon distribution.
 
Household Products
Coupons Dropped (Millions)
2005 Rank* Category 2004 2005 % Chg
4 Rug & Room Deodorizers 7,629 9,373 22.9%
56 Cleaning Devices 1,470 1,647 12.1%
1 Household Cleaning Products 11,978 13,115 9.5%
74 Furniture Polish 915 982 7.3%
* Category rank is based on 2005 coupon distribution.
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Health Care
Coupons Dropped (Millions)
2005 Rank* Category 2004 2005 % Chg
54 Mouthwash 873 1,668 91.0%
57 Ear & Eye Care 1,162 1,619 39.4%
27 Stomach Remedy 2,485 3,426 37.9%
6 Vitamins 5,399 7,021 30.0%
52 Laxatives 1,665 1,779 6.9%
12 Toothbrushes 5,060 5,339 5.5%
* Category rank is based on 2005 coupon distribution.
 
Frozen Products
Coupons Dropped (Millions)
2005 Rank* Category 2004 2005 % Chg
11 Frozen Desserts 4,723 5,579 18.1%
* Category rank is based on 2005 coupon distribution.
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Refrigerated Foods
Coupons Dropped (Millions)
2005 Rank* Category 2004 2005 % Chg
75 Refrigerated Prepared Foods 726 919 26.6%
29 Milk & Milk Products 2,813 3,201 13.8%
16 Rfrgrtd Baked Goods & Dough 3,962 4,451 12.4%
* Category rank is based on 2005 coupon distribution.
 
Shelf Stable Beverages
(Millions)
2005 Rank* Category 2004 2005 % Chg
26 Coffee 2,768 3,574 29.1%
* Category rank is based on 2005 coupon distribution.
 
Cereals
There were no categories which met the minimum criteria
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Leading CPG Categories by Key Metrics

Distribution
Of the top 20 categories, 13 showed increases in coupon distribution in 2005.
Household Cleaning Products, Pet Food & Treats and Personal Care continue to be the most-couponed categories. More than 10 billion coupons were dropped in each of these categories in 2005.
Vitamins (30%) and Rug/Room Deodorizer (22.9%) had distribution growth of more than 20% for the second consecutive year.
Antiperspirant & Deodorant and Hair Coloring entered the top 20 behind robust distribution growth of 37% and 21.8% respectively.
 
FSI Coupon Distribution 2004 vs. 2005*
(Millions)
2005 Rank** Category 2004 2005 % Chg
1 Household Cleaning Products 11,978 13,115 9.5%
2 Pet Food & Treats 11,645 10,943 -6.0%
3 Personal Care 9,860 10,057 2.0%
4 Rug & Room Deodorizers 7,629 9,373 22.9%
5 Snacks 7,504 7,650 1.9%
6 Vitamins 5,399 7,021 30.0%
7 Cold/Cough/Sinus/Allergy 6,251 6,351 1.6%
8 Hair Care 6,527 6,135 -6.0%
9 Cereals 6,147 5,854 -4.8%
10 Frozen Prepared Foods 6,859 5,755 -16.1%
11 Frozen Desserts 4,723 5,579 18.1%
12 Toothbrush 5,060 5,339 5.5%
13 Dish & Dishwashing 5,057 5,189 2.6%
14 Other Packaged Goods 5,155 4,941 -4.2%
15 Toothpaste 4,768 4,791 0.5%
16 Rfrgrtd Baked Goods & Dough 3,962 4,451 12.4%
17 Diet Aids 5,200 4,395 -15.5%
18 Antiperspirant & Deodorant 3,176 4,352 37.0%
19 Hair Coloring 3,522 4,290 21.8%
20 Refrigerated Meats 4,369 4,280 -2.1%
* Represents categories with more than 500 million coupons distributed in 2005.
** Category rank is based on 2005 coupon distribution.
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Distribution % Increase
Eight of the top 10 growth categories are Non-Food, led by Mouthwash (91%) and Foot Care (61.1%).
Ear & Eye Care, Gum, Vitamins and Rug & Room Deodorizer products remain in the top 20 for the second consecutive year.
The Mouthwash category exploded in 2005, nearly doubling coupon distribution to 1.7 billion coupons.
 
FSI Coupon Distribution % Increase
2004 vs. 2005* (Millions)
2005 Rank** Category 2004 2005 % Chg
1 Mouthwash 873 1,668 91.0%
2 Foot Care 430 692 61.1%
3 Shaving Cream & Razors 2,660 4,111 54.6%
4 Bath Products 517 732 41.4%
5 Ear & Eye Care 1,162 1,619 39.4%
6 First Aid 1,428 1,975 38.3%
7 Stomach Remedy 2,485 3,426 37.9%
8 Antiperspirant & Deodorant 3,176 4,352 37.0%
9 Canned Fish 525 711 35.4%
10 Crackers 579 777 34.2%
11 Vitamins 5,399 7,021 30.0%
12 Breakfast Food 1,832 2,369 29.3%
13 Coffee 2,768 3,574 29.1%
14 Jelly/Honey/Peanut Butter 1,427 1,830 28.3%
15 Sugar 869 1,115 28.3%
16 Refrigerated Prepared Foods 726 919 26.6%
17 Gum 694 863 24.4%
18 Facial Cleansers 1,073 1,332 24.1%
19 Rug & Room Deodorizer 7,629 9,373 22.9%
20 Diapers 2,455 2,997 22.1%
* Represents categories with more than 500 million coupons distributed in 2005.
** Category rank is based on percentage change between 2004 and 2005.
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Face Value
65% of the top 20 categories had average face values over $1.
100% of the Non-Food categories in the top 20 had average face values greater than $1 as opposed to only 36% of the Food categories.
Four of the top 5 categories based on FSI coupon average face-value growth are Personal Care categories.
First Aid is the number-one face value growth category for the second year in a row, increasing another 90.6%. At $3.64, the First Aid category now has the highest coupon-average face value.
 
FSI Coupon Average Face Value
2004 vs. 2005*(Millions)
2005 Rank** Category 2004 2005 % Chg
1 First Aid $1.91 $3.64 90.6%
2 Bar & Liquid Soap $0.81 $1.28 57.6%
3 Feminine Products $0.94 $1.46 55.4%
4 Rug & Room Deodorizer $1.15 $1.76 52.2%
5 Baby Wipes $0.82 $1.24 51.3%
6 Mouthwash $0.84 $1.26 50.2%
7 Shelf Stable Vegetables $0.52 $0.68 32.5%
8 Hair Coloring $2.44 $3.12 27.8%
9 Feminine Hygiene $0.88 $1.12 27.2%
10 Shelf Stable Baked Goods $0.64 $0.82 27.2%
11 Baby Personal Care $1.08 $1.35 24.7%
12 Frosting $0.88 $1.09 24.4%
13 Rice $0.58 $0.71 22.3%
14 Pet Food & Treats $1.07 $1.25 16.6%
15 Beverages $0.78 $0.90 16.3%
16 Shelf Stable Bread $0.54 $0.62 15.4%
17 Frozen Baked Goods & Dough $0.57 $0.65 15.1%
18 Pet Products $0.87 $1.00 15.0%
19 Gum $0.89 $1.02 14.5%
20 Frozen Vegetables $0.68 $0.78 14.5%
* Represents categories with more than 500 million coupons distributed in 2005.
** Category rank is based on percentage change between 2004 and 2005.
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Per-Unit Value
The top 20 per-unit value categories are almost evenly split between Food (9) and Non-Food (11) categories. However, the top 5 growth categories are Non-Food categories.
First Aid is the number one per-unit-value growth category for the second year in a row. Its $3.62 per-unit value indicates this category almost exclusively drops coupons requiring a one-unit purchase.
 
FSI Coupon Average Per-Unit Value
2004 vs. 2005* (Millions)
2005 Rank** Category 2004 2005 % Chg
1 First Aid $1.87 $3.62 93.7%
2 Mouthwash $0.66 $1.02 54.1%
3 Rug & Room Deodorizer $1.01 $1.47 45.7%
4 Feminine Products $0.94 $1.36 45.1%
5 Bar & Liquid Soap $0.63 $0.85 34.3%
6 Crackers $0.39 $0.52 32.9%
7 Breakfast Food $0.49 $0.63 29.2%
8 Shelf Stable Vegetables $0.22 $0.28 26.9%
9 Cleaning Devices $0.64 $0.78 21.5%
10 Canned Fish $0.32 $0.39 20.5%
11 Beverages $0.47 $0.56 20.1%
12 Baby Wipes $0.63 $0.75 19.0%
13 Baby Personal Care $0.96 $1.14 18.6%
14 Pet Food & Treats $0.75 $0.88 17.9%
15 Cooking Products $0.47 $0.55 16.9%
16 Other Packaged Goods $1.29 $1.50 16.5%
17 Feminine Hygiene $0.74 $0.85 16.0%
18 Snacks $0.46 $0.53 14.2%
19 Foot Care $1.30 $1.47 12.9%
20 Ready-to-Eat Cookies $0.54 $0.61 12.8%
 
* Represents categories with more than 500 million coupons distributed in 2005. Unit value includes both coupon value and coupon purchase requirements. For example, $1 off two items would result in a per-unit value of 50¢.
** Category rank is based on percentage change between 2004 and 2005.
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Expiration
Both Food and Non-Food categories were relatively balanced in terms of the number of categories with increasing and decreasing expiration lengths.
Hair Coloring (-2.0 weeks) and Feminine Products (+4.0 weeks) had the largest expiration-length changes for Non-Food categories.
Ready-to-Eat Cookies (-4.9 weeks) and Jelly/Honey/Peanut Butter (+3.4 weeks) had the largest expiration-length changes for Food categories.
Pet Products continue to have the longest expiration periods, increasing from 17.8 to 20.9 weeks in 2005.
 
Largest % Increases in FSI Coupon Expiration Lengths
2004 vs. 2005 (Weeks)
2005 Rank* Category 2004 2005 % Chg
1 Jelly/Honey/Peanut Butter 9.6 13.0 35.4%
2 Feminine Products 15.5 19.5 26.1%
3 Feminine Hygiene 10.1 12.3 22.1%
4 Butter & Margarine 11.9 14.3 20.2%
5 Cereals 7.4 8.8 19.7%
* Category rank is based on percent change between 2004 and 2005.
 
Largest % Decreases in FSI Coupon Expiration Lengths
2004 vs. 2005 (Weeks)
2005 Rank* Category 2004 2005 % Chg
1 Ready-to-Eat Cookies 13.1 8.2 -37.4%
2 Hair Coloring 10.6 8.6 -19.1%
3 Shelf Stable Vegetables 13.2 10.8 -18.3%
4 Refrigerated Prepared Foods 12.4 10.2 -17.9%
5 Mouthwash 10.8 8.9 -17.7%
* Category rank is based on percent change between 2004 and 2005.
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Longest FSI Coupon Expiration Lengths
(Weeks)
2005 Rank* Category 2005 % Chg vs. 2004
1 Pet Products 20.9 16.9%
2 Butter & Margarine 14.3 20.2%
3 Pasta & Macaroni 13.3 6.4%
4 Baby Food 13.0 -2.0%
5 Jelly/Honey/Peanut Butter 13.0 35.4%
* Category rank is based on percent change between 2004 and 2005.
 
Shortest FSI Coupon Expiration Lengths
(Weeks)
2005 Rank* Category 2005 % Chg vs. 2004
1 Ready-to-Eat Cookies 8.2 -37.4%
2 Coffee 8.2 -9.2%
3 Refrigerated Baked Goods & Dough 8.1 -0.1%
4 Crackers 7.6 -8.1%
5 Soup 7.4 -4.8%
* Category rank is based on percent change between 2004 and 2005.
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Multiple-Purchase Requirements
The five categories most likely to have multiple-purchase requirements are Food categories, specifically Dry Grocery products. This is primarily due to their lower price points and higher consumption rates.
By contrast, the categories least likely to have multiple-purchase requirements are Non-Food categories. Four of the top 5 categories are in Health Care and have significantly higher price points with intermittent use.
Cracker products made the most significant shift in purchase requirements. In 2004, Cracker coupons required multiple unit purchases almost 90% of the time; in 2005, this number has dropped to under 50%.
 
Largest Increase in FSI Coupons w/ Multiple Purchase Requirements
2005 Rank* Category 2004 2005 Act Chg
1 Toothpaste 26.4% 45.9% 19.4%
2 Pesticides 2.3% 21.4% 19.2%
3 Hair Coloring 12.3% 30.7% 18.4%
4 Shelf Stable Baked Goods 18.4% 35.4% 17.0%
5 Baby Wipes 15.5% 31.5% 16.1%
* Category rank is based on 2005 actual percent change.
 
Largest Decrease in FSI Coupons w/ Multiple Purchase Requirements
2005 Rank* Category 2004 2005 Act Chg
1 Refrigerated Prepared Foods 26.1% 11.6% -14.4%
2 Mouthwash 35.6% 18.6% -16.9%
3 Other Packaged Goods 29.6% 12.4% -17.3%
4 Breakfast Food 63.4% 40.0% -23.4%
5 Crackers 86.5% 49.7% -36.8%
* Category rank is based on 2005 actual percent change.
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Highest % of FSI Coupons w/ Multiple Purchase Requirements
2005 Rank* Category 2005 Act Chg vs. 2004
1 Soup 91.7% 15.1%
2 Gum 85.3% 7.4%
3 Shelf Stable Vegetables 80.8% -1.8%
4 Baby Food 80.0% -5.0%
5 Canned Fish 78.5% 0.1%
* Category rank is based on 2005 actual percent change.
 
Lowest % of FSI Coupons w/ Multiple Purchase Requirements
2005 Rank* Category 2005 Act Chg vs. 2004
1 Analgesic 1.5% 1.4%
2 External Analgesics 0.0% 0.0%
3 Pharmaceuticals 0.0% 0.0%
4 Foot Care 0.0% -2.3%
5 Laxative 0.0% -6.6%
* Category rank is based on 2005 actual percent change.
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Top 20 Manufacturers
CPG manufacturers distributed 0.9% more coupons in 2005 than in 2004, with the top 20 manufacturers accounting for roughly 60% of all coupons dropped.
More than 75% of FSI coupons distributed by the top 10 manufacturers fall into Non-Food categories.
There is very little movement among the top 20 manufacturers. However, below the top 20 there were significant shifts in FSI activity for many manufacturers.
Malt-O-Meal jumped more than 80 places to number 49. This was the highest ranking achieved by any manufacturer new to the top 100 list in 2005.
MET-Rx jumped more than 400 places to number 90 on the list. At 6600%, this was the largest increase for any top 100
manufacturer.
WD-40 dropped 26 places to number 70. This was the greatest drop for any of 2004 top 50 manufacturers.
 
Top 20 CPG Manufacturers
Ranked By Coupons Dropped
Manufacturer 2004 Rank 2005 Rank
Procter & Gamble Co 1 1
General Mills Inc 2 2
SC Johnson & Son Inc 4 3
Unilever 3 4
Reckitt Benckiser PLC 8 5
Nestle SA (including Ralston Purina) 5 6
Johnson & Johnson 7 7
Altria Group Inc 6 8
Gillette Co 11 9
Colgate-Palmolive Co 9 10
Kimberly-Clark Corp 12 11
L'Oreal USA 13 12
ConAgra Foods Inc 10 13
GlaxoSmithKline PLC 19 14
Campbell Soup Co 14 15
Kellogg Co 15 16
Masterfoods USA 16 17
PepsiCo 18 18
Sara Lee Corp 20 19
Del Monte 17 20
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Section 3: Other FSI Trends
Regionality
Coupon distribution was highest in urban areas, both in terms of raw numbers and per capita.
 
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Seasonality
Consumer Packaged Goods FSI coupon distribution had three peaks during the calendar year 2005:
January, with Super Bowl promotions, New Year’s resolutions and the start of a new fiscal year for many companies
May, with spring cleaning and upcoming summer season, with the greatest boost from the Dry Grocery, Personal Care, Household Products and Health Care segments
October and November, which are traditionally high-coupon periods as the major holidays approach, and the cold and flu season begins
 
 
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CPG Segment Seasonality
Seasonality by major CPG segment varied for a number of reasons, including holidays, consumer behavior and national events/activities. Segment highlights include:
Dry Grocery peaked in January and in May. The Super Bowl is the primary driver of the January increase, as coupon distribution increased substantially for Sauces and Snacks. Pet Foods & Treats is the single driver behind the spike in May.
Personal Care peaked in January and April, with a slow decline in activity in the second half of the year. The peaks may be attributed to New Year's resolutions and summer preparation promotions by manufacturers.
Household Products peaked in early spring for spring cleaning, and again in late summer and early fall for new product introductions and fall/holiday cleaning.
Health Care peaked in the fall and was driven by the seasonality of Cold and Flu remedies. The January peak was caused by Diet Aids as manufacturers market towards New Year's weight-loss resolutions.
Frozen Products, Refrigerated Foods, Shelf Stable Beverages and Cereals had relatively constant couponing during the year. There was some month-month variation as manufacturers tried to match the promotion with the consumption rate.
 
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New Products
FSIs are one of the best ways to monitor new product introductions or tests as manufacturers often support new products with consumer promotions.
Marx recorded 422 new products in FSIs in 2005, accounting for 886 event dates. This equates to an average of 2.1 events per new product.
 
2005 New Product Introductions
Active CPG Categories 107
New Products 422
Total Event Dates 886
Average Event Dates Per New Product 2.1
 
For more information about New Products, please refer to our New Products Promotion GuidePointİ paper.
 
The most active new product categories with FSI support in 2005 were Cereal, with 34 new products; Snacks, with 21; and Refrigerated Meats, with 17.
Out of the top 21 categories, 15 categories were Food.
 
Most New Product Introductions
2005 Rank Category # New Products
1 Cereals 34
2 Snacks 21
3 Refrigerated Meats 17
4 Beverages 16
5 Vitamins 15
6 Household Cleaning Products 13
7 Diet Aids 12
 7 Frozen Desserts 12
9 Frozen Prepared Foods 10
10 Other Packaged Goods 9
 10 Seasoning/Spice/Salt 9
 10 Shelf Stable Fruit 9
13 Ready-to-Eat Cookies 8
14 Breakfast Food 7
 14 Candy 7
 14 Milk & Milk Products 7
17 Personal Products 6
 17 Yogurt 6
 17 Sauce 6
 17 Laundry Treatment 6
 17 Frozen Meats 6
 
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Retailer Co-Marketing

For years, CPG manufacturers and retailers have utilized FSI Co-Marketing promotions to enhance the sales effort beyond just coupons and maximize the reach of FSIs. As indicated by another year of Co-Marketing growth in 2005, more and more manufacturers are turning to this type of promotion to improve consumer reach and maximize promotional impact.
Co-Marketing continues its strong growth over the last five years, increasing another 13.4% from 2004 to 6.3 billion pages
The number of manufacturers and retail banners engaging in FSI Co-Marketing also continues to grow, increasing 23.6% and 25.7% respectively over 2004 participation
Gillette, Procter & Gamble and Altria Group (which includes Kraft Foods) were the top 3 manufacturers respectively in terms of page participation
Kroger was the top retail banner with over 1.9 billion pages, more than 4 times the next most active banner, Albertsons. This is primarily due to Kroger continuing to drop its own stand-alone Co-Marketing FSI
 
FSI Co-Marketing Fast Fact Summary
Group 2001 2002 2003 2004 2005
Pages (MM) 1549.1 2402.2 4678.3 5553.7 6295.7
% Change - 55.1% 94.8% 18.7% 13.4%
# Manufacturers 70 89 134 174 215
% Change - 27.1% 50.6% 29.9% 23.6%
# Retail Banners 87 106 134 148 186
% Change - 21.8% 26.4% 10.4% 25.7%
 
Personal Care increased more than 59% from 2004 and is now the number-one Co-Marketing promotion area.
Health Care, Refrigerated Foods and Frozen Foods also saw solid growth, with increases of more than 175 million pages from 2004.
Areas that did not grow, such as Cereals, had only nominal reductions, with no area reducing Co-Marketing promotion more than 50 million pages.
 
FSI Co-Marketing Page Participation by Area
2004 vs. 2005
Area 2004 2005 % Chg
Cereals 236.6 190.1 -19.7%
Dry Grocery 1742.4 1695.6 -2.7%
Frozen Products 1185.6 1364.8 15.1%
Health Care 1428.4 1631.1 14.2%
Household Products 864.8 848.1 -1.9%
Other Packaged Goods 261.0 412.2 58.0%
Personal Care 1292.0 2056.1 59.1%
Refrigerated Foods 622.9 822.0 32.0%
Shelf Stable Beverages 661.8 682.7 3.2%
 

Buy One Get One Free (BOGO)

'Buy-One-Get-One-Free' FSI promotions are a growing trend with CPG manufacturers. BOGO coupons have increased in both volume and face value for the last several years as manufacturers more aggressively use BOGO coupons to deliver value, drive volume, retain loyalty and build share. BOGO FSI promotions deliver a clear message to consumers of value, generally with the word FREE highlighted in the offer.

BOGO coupon offers within CPG FSI promotions increased 48% in 2005 from 2004.
The average face value for BOGO offers are $3.33, which represents the value of the free product and is more than double the face value from 2002.
The total BOGO coupons circulated increased 3 billion to 9.4 billion, driven primarily by 3 segments – Household Products, Dry Grocery and Health Care.
The most common BOGO offer is a Buy-Two-Get-One-Free, which accounted for 45% of all BOGO offers in 2005.
BOGO coupons, on average, have shorter expiration lengths than typical cents-off coupon.
 
For more information about BOGO promotion, please refer to our BOGO Promotion GuidePointİ paper.
 
BOGO Coupons Dropped (Millions)
Area 2002 2003 2004 2005
Dry Grocery 3,994 3,453 3,058 3,715
% Change - -14% -11% 21%
Personal Care 897 1,007 1,633 2,100
% Change - 12% 62% 29%
Household Products 241 737 863 1,931
% Change - 206% 17% 124%
Health Care 220 399 354 1,311
% Change - 81% -11% 271%
Shelf Stable Beverages 429 974 54 227
% Change - 127% -94% 317%
Refrigerated Foods 321 355 227 235
% Change - 11% -36% 3%
Frozen Products 273 143 140 158
% Change - -48% -2% 13%
Other Packaged Goods 145 94 142 5
% Change - -35% 51% -96%
Cereals 69 153 1 7
% Change - 122% -99% 663%
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Franchise

The Franchise sector, which includes Restaurants and Retail and Home Services, continued its status as the fastest growing FSI sector. Total Franchise pages increased 11.5% vs. YAG.

 
Franchise FSIs (Millions)
Year Pages % Chg vs. 2004
2001 13,147 -
2002 13,365 1.7%
2003 13,794 3.2%
2004 15,761 14.3%
2005 17,574 11.5%
 
The Restaurant segment accounted for only part of the overall Franchise growth with a 4.0% increase vs. 2004.
The top 10 Restaurants continued outpacing their rivals with a 12.5% growth in FSI pages.
Chains such as Blimpie, Cold Stone Creamery and Quizno's posted significant increases in FSI ad activity.
TCBY, which ranked 11th last year in total FSI pages, had no activity in 2005.
 
Top 10 FSI Restaurant (Millions of Pages)
2001-2005
Restaurant 2001 2002 2003 2004 2005 % Chg
Boston Market 1,177 1,110 807 1,065 979 -8.1%
Chuck E. Cheese's Pizza 675 668 653 762 774 1.5%
Quizno's 5 0 60 542 690 27.2%
Cold Stone Creamery 8 54 24 197 405 105.8%
Pizza Hut 535 400 422 267 340 27.2%
Sweet Tomatoes 122 169 222 294 315 7.0%
HoneyBaked Ham Company 157 245 303 303 273 -9.9%
Olive Garden 166 231 232 245 260 6.1%
Friendly's 119 119 122 170 223 31.4%
Bennigan's 128 129 101 116 197 70.4%
Top 10 3,092 3,125 2,944 3,961 4,455 12.5%
All Other 4,823 4,517 4,291 4,053 3,884 -4.2%
Total 7,890 7,641 7,235 8,014 8,336 4.0%
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