MINNEAPOLIS, MN, January 7, 2009 – The Marx
Promotion Intelligence 2008 Free Standing Insert (FSI) Distribution
Trends Report issued today, reports that the total dollar value of
consumer incentives distributed through FSI coupons increased 2.9
percent to more than $334 billion in 2008. These FSI coupons were
distributed through more than 195 billion pages containing more than
251 billion offers. Average Face Value increased to a new record level
of $1.33, up $0.06 versus 2007.
“In an extremely challenging economic and retailing environment,
marketers increased their reliance on FSIs as a cost-effective advertising
medium to deliver consumer impressions that encourage consumer loyalty
and drive retail trips,” said Mark Nesbitt, President, TNS
Media Intelligence.
The Consumer Packaged Goods sector (CPG) continues to dominate
page circulation, accounting for 70.0 percent of all FSI pages and
reporting an increase of 0.5 percent versus 2007. Direct Response
represents 21.1 percent of FSI page circulation and Franchise maintains
8.9 percent. Page circulation for Direct Response and Franchise
decreased 4.8 percent and 2.9 percent respectively resulting in
a 1.0 percent decrease in overall FSI page circulation versus 2007.
|
Dollars |
$334.9 billion |
2.9% |
Pages |
195.6 billion |
-1.0% |
Coupons |
251.9 billion |
-2.0% |
Avg Face Value |
$1.33 |
5.0% |
Fuse (weeks) |
9.7 |
-0.8% |
|
The 6th 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
Web site at www.tnsmi-marx.com.
“Retailers are increasingly including FSI promotions
in their marketing mix to engage with their shoppers when they are
actively seeking product information, developing purchase intent and
planning shopping trips. FSI coupons continue to be a source of news
about product categories to the consumer and to be a driver of category
trips for the retailer,” said Mark Nesbitt.
FSIs maintained consistent frequency with activity in 49 out of
the 52 Sundays in 2008 compared to 48 out of the 52 Sundays in 2007.
In 2008, the post-New Year promotion week of January 6 had the greatest
combined weight by delivering a total of 133 pages. The week of
February 10 was also heavily weighted with 115 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
Within the CPG industry, the Non-Food segment continued to grow
with a 0.3 percent increase in coupon circulation while the Food
segment pulled back 5.4 percent. Record levels were set for Average
Face Value within both the Non-Food and Food segments with a 4.2
percent increase to $1.61 for the Non-Food segment and a 4.3 percent
increase to $0.90 for the Food segment. These trends indicate that
manufacturers continued to leverage FSIs to deliver high-value offers
that encourage brand trial and generate category excitement within
the difficult economic environment that confronted consumers and
retailers throughout 2008.
CPG INDUSTRY FSI ACTIVITY |
Total CPG |
251,935 |
-2.0% |
$1.33 |
5.0% |
9.7 |
-0.8% |
Non-Food |
152,816 |
0.3% |
$1.61 |
4.2% |
9.2 |
-0.7% |
Food |
99,287 |
-5.4% |
$0.90 |
4.3% |
10.5 |
-0.4% |
|
Top 10 Categories for New Product Activity
FSI coupon support was included as part of 334 new product introductions
across the CPG industry in 2008, as tracked by Marx Promotion Intelligence.
Food categories contributed 226 of these new items led by Cereals,
Snacks and Beverages. Non-Food categories contributed an additional
108 new items led by Vitamins and Household Cleaning Products. In
addition to the new products that received FSI coupon support in
2008, 290 existing brands more than doubled their FSI support as
compared to the levels achieved by these brands in 2007, indicating
that manufacturers may be shifting marketing support to core brands
as opposed to navigating the risks associated with major new product
introductions.
TOP 10 CATEGORIES FOR NEW PRODUCT ACTIVITY
|
1 |
Cereals |
43 |
2 |
Snacks |
17 |
3 |
Beverages |
16 |
4 |
Vitamins |
12 |
5 (tie) |
Household Cleaning Products |
11 |
5 (tie) |
Other Packaged Goods |
11 |
5 (tie) |
Alcoholic Beverages |
11 |
8 |
Meat/Refrigerated |
10 |
9 |
Diet Aids |
9 |
10 |
Sauce |
8 |
|
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 2008.
Household Cleaning Products led all categories in overall FSI coupon
activity for the fourth year in a row and ranked second in new product
introductions among Non-Food categories. Snacks ranked second across
all categories for new product introductions and second in the Food
sector for overall FSI activity. The top 10 categories accounted
for 33.3 percent of all coupons distributed across the CPG industry.
TOP 10 FSI CATEGORIES (by Coupons Dropped*)
Coupons Dropped (MM)**
|
1 |
Household Cleaning Products |
13,537 |
13,141 |
-2.9% |
-397 |
2 |
Pet Food & Treats |
12,744 |
12,677 |
-0.5% |
-67 |
3 |
Combination/Personal |
10,947 |
12,379 |
13.1% |
1,432 |
4 |
Snacks |
9,021 |
9,930 |
10.1% |
909 |
5 |
Vitamins |
7,183 |
8,257 |
15.0% |
1,074 |
6 |
CCSA |
7,614 |
7,990 |
4.9% |
376 |
7 |
Rug/Room Deodorizer |
9,866 |
7,600 |
-23.0% |
-2,265 |
8 |
Hair Care |
7,023 |
6,953 |
-1.0% |
-71 |
9 |
AP/Deodorant |
5,697 |
5,698 |
0.0% |
1 |
10 |
Bar/Liquid Soap |
5,771 |
5,578 |
-3.4% |
-194 |
|
Top 10 Manufacturers
The ranking of the top 10 manufacturers changed only slightly in
2008. Procter & Gamble retained the top position while General
Mills holds steady with the number two spot. Reckitt Benckiser moved
up two spots while Johnson & Johnson and SC Johnson each moved
down one spot. Colgate-Palmolive moved up one spot putting them
into the top 10 in 2008.
TOP 10 MANUFACTURERS BY COUPONS DROPPED
|
Procter & Gamble Co |
1 |
1 |
General Mills Inc |
2 |
2 |
Reckitt Benckiser PLC |
5 |
3 |
Johnson & Johnson |
3 |
4 |
SC Johnson & Son Inc |
4 |
5 |
Unilever |
6 |
6 |
Nestle SA |
7 |
7 |
Kimberly-Clark Corp |
8 |
8 |
L'Oreal SA |
10 |
9 |
Colgate-Palmolive Co |
11 |
10 |
|
Top 10 Retailers
Page Circulation for retailer FSI promotions increased 16.0 percent
to account for more than 6.6 billion pages across 141 participating
retailers in 2008. Target’s FSI promotion activity accounted
for the greatest number of pages circulated for the second year in
a row. Walmart Stores had the most growth in the top ten, moving up
9 spots to be ranked sixth in 2008.
TOP 10 RETAILERS BY WEIGHTED PAGE CIRCULATION
|
Target |
1 |
1 |
Walgreens |
4 |
2 |
CVS Pharmacy |
5 |
3 |
PETsMART |
2 |
4 |
Kroger |
3 |
5 |
Walmart |
15 |
6 |
Publix |
6 |
7 |
Stop & Shop |
8 |
8 |
Safeway Food & Drug |
11 |
9 |
Dollar General |
10 |
10 |
|
In addition to leading Food, Drug and Mass retailers, Value retailers
(e.g., Dollar General, Family Dollar) and Specialty
retailers (e.g., PETsMART, PETCO, Home Depot) were also active in
2008. A more complete analysis of retailer FSI promotion tactics was
presented in the Marx ProMotion GuidePoint© entitled: “Leveraging
FSI Coupons as a Shopper Marketing Vehicle.”
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 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. The Kantar Group is a wholly-owned
subsidiary of WPP Group plc. For further information, please visit
www.kantargrouptns.com
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