News

Study: Return to promotion of new products spells rise in FSI coupon distribution in 2012

BY Antoinette Alexander

MINNEAPOLIS, Minn. — More than 274 billion Free Standing Insert coupons were distributed in 2012, marking a 0.8% increase in activity versus 2011, as retailer promotion pages also rose by 5.2% during the year with Walmart snagging the top spot followed by Walgreens, according to Kantar Media.

“Over the past 10 years, FSI coupon distribution has grown by 18%, reinforcing the role that FSI coupons have on delivering advertising impact, retailer alignment and purchase incentives within an overall marketing mix,” stated David Hamric, general manager of Kantar Media Marx. 

FSI pages increased 1.4% overall with the consumer packaged goods and franchise sectors increasing 2.4% and 10.2%, respectively, offsetting an 8% decline in the direct response sector. FSI coupon support for new products within the CPG sector increased 23.2% versus 2011, while retailer FSI promotion pages also increased 5.2%.

Manufacturers returned to promoting new products in 2012 after decreases in new product FSI coupon activity during the past few years, according to Kantar Media.

“During the challenging economic conditions experienced during the past several years, manufacturers focused more of their FSI promotion support on core brands. However, we are seeing new product innovation increasing, and FSI coupon support is a proven tactic for building retail distribution, creating brand awareness and encouraging trial purchasing for new product introductions,” Hamric noted.

Retailer pages rose 5.2%, while the number of manufacturers participating in retailer events declined from 390 to 352 in 2012. 

“Manufacturers and retailers are participating in cooperative events to influence the shopper on their path-to-purchase. However, retailers are increasingly seeking unique or exclusive programs with manufacturers during key promotion weeks and within strategic categories to engage with their shoppers and win key shopping trips,” Hamric added.

During 2012, more than $419 billion in consumer incentives were delivered via FSI coupons, down 0.4% from 2011. During the same period, more than 274 billion coupons were distributed within more than 208 billion FSI pages. FSI coupon average face value decreased, down 1.2% to $1.53. Average expiration (fuse) continued a steady downward trend with a decrease to 7.3 weeks, down 9% versus a year ago. According to Kantar, these trends indicate that manufacturers are managing their financial exposure by maintaining similar levels of coupons distributed but decreasing the purchase incentive and shortening the length of time that these offers are available in the market.   

The CPG sector remained the largest user of FSI pages with a 74.3% share, followed by direct response, which includes general advertising activity, and franchise, comprised of restaurants, portrait studios and other businesses. 

Retailer promotion pages increased 5.2% and accounted for more than 17.9 billion pages in 2012. Walmart held the top spot with a 47.3% increase to 5.8 billion pages. Walgreens came in second with a 42.6% increase to 2.4 billion pages and Target maintained the third spot with 2.3 billion pages. Family Dollar and Dollar General had the largest changes in rank within the top 10, with Family Dollar up three spots to No. 4 and Dollar General down three spots to No. 5.

During 2012, there were 348 new products that delivered FSI coupons across 727 event dates as part of their introduction, averaging 2.1 event dates per new product. This activity is up from 291 new products, 590 event dates and two event dates per new product during 2011. Cereals had the greatest number of new products in 2012 with a total of 25. Snacks followed with 22 new products and pet food and treats was third with 15 new products, Kantar Media stated.

In 2012, nonfood categories distributed more than 171 billion coupons, up 4.2% versus a year ago, driven by the 12.5% increase within the personal care area. Food categories distributed more than 103 billion coupons, representing a decrease of 4.5%, led by the 14.1% decline for the refrigerated foods area. Six-of-the-9 areas defined by Kantar Media reported declines or remained flat in coupons dropped during this period. However, three areas — including other packaged goods, personal care and shelf stable beverages — posted double-digit increases in 2012, according to Kantar Media.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon’s entry would shake up the most?
News

Valpak, YaSabe.com partner to target Hispanic consumers

BY Alaric DeArment

LARGO, Fla. — A company that provides local print and digital coupons is partnering with a company that provides information for Hispanics.

Valpak Direct Marketing Systems, the coupon provider, said it would work with YaSabe.com to help users find Valpak coupons and special offers online from their mobile phones.

"We are pleased to be able to reach out to the Hispanic community and offer values and savings," Valpak and Cox Target Media president Michael Vivio said. "Valpak is dedicated to helping families save money anywhere at any time, and we’re happy to be able to do just that and now serve the Hispanic community in a meaningful way through online and mobile searches."

Users can search for coupons in Spanish or English at YaSabe.com, Google, Bing, Univision.com and other platforms. The service highlights local merchants and service providers offering discounts and specials through Valpak.

"Coupons are a natural extension of YaSabe, and our relationship with Valpak lets us offer valuable content to Hispanic consumers all over the country," YaSabe CEO Zubair Talib said. "Our users are already actively searching for local deals and coupons."

According to the Pew Hispanic Center, Latinos in the United States have embraced technology, while research by the firm Relevant Insights finds that six-in-10 Hispanic households use coupons. Meanwhile, more than 31 million Hispanics are online, with 70% regularly accessing the Internet via mobile.


Find us on Facebook for even more insight, analysis and the latest in drug store news.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon’s entry would shake up the most?
News

Catamaran CEO sees future opportunities for PBM

BY Alaric DeArment

NEW YORK — Pharmacy benefit manager Catamaran Corp. hopes to expand business with client Cigna Corp. and foresees other opportunities, according to published reports.

At Monday’s J.P. Morgan healthcare conference in San Francisco, CEO Mark Thierer said the company was looking at big opportunities. The company already has accounts with Blue Cross Blue Shield of Rhode Island, which it took over from CVS Caremark Corp., and a three-year contract with Target that it got from Express Scripts. Media reports quoted Thierer as saying that the company was looking at deals with two Fortune 10 companies.

The company has seen significant expansion in recent months, in December adding a new center of excellence in Indiana and adding two new board members, Betsy Holden and Karen Katen.


Interested in this topic? Sign up for our weekly DSN Collaborative Care e-newsletter. 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon’s entry would shake up the most?