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2010 Inmar Coupon Trends Presentation

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Full presentation of Inmar\'s 2009 Trends Review

Full presentation of Inmar\'s 2009 Trends Review

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  • 1. 2009 Coupon Trends Review January 21, 2010
  • 2. Who am I? Matthew Tilley is responsible for marketing Inmar as a premier promotions services firm, Your marketing promotions as a vital tool, and helping Inmar's clients market themselves through better promotions. Presenter Matthew and his team supply the brains and production power behind PromotionsInfoNow.com and the annual Coupon Report, both oft-quoted sources for CPG coupon statistics. Matthew's insights are often included in a variety trade and consumer media including: The Wall Street Journal, La Opinion, Progressive Grocer Chicago Tribune Journal Opinion Grocer, Tribune, PROMO, Baltimore Sun, FOX Business News, Associated Press, Supermarket News, Los Angeles Times,The Wise Marketer, CPGMatters.com and New York Magazine. Matthew is also Co-Chairman of the Promotion Marketing Association's Coupon Council; a Matthew Tilley member of the Association of Coupon Professionals' Taskforce on Mobile and Electronic Professionals Director of Couponing; chairman of the ACP’s Market Research taskforce; a member of the Direct Marketing, Inmar Marketing Association's Mobile Marketing Council; and a member of the Mobile Marketing Association’s mCoupon committee. matthew.tilley@ He has been with Inmar 10 years, in various marketing roles. inmar.com Prior to Inmar, he managed branding, advertising, public relations and government relations campaigns for banking, entertainment, media, heath care and consumer product clients. 336.631.2524 Matthew holds a B.A. in Journalism from Bob Jones University and an M.B.A. from Wake Forest University s Babcock Graduate School of Management University's Management. 2
  • 3. Asking a question 3
  • 4. Methodology What s What’s Covered • Consolidated data from Inmar’s coupon database • Extrapolated industry statistics • Consumer Packaged Goods coupons • All classes of trade and product categories • In ad In-ad Coupons What s What’s Not Covered • “Local” advertiser coupons • Restaurant coupon, other “Self-redeeming” coupons • Retailer coupons 4 © Inmar 2009
  • 5. What happened in 2009? • C Consumers redeemed a l t of coupons d d lot f • Brands made more coupons available • Everybody grew cautiously optimistic y yg y p • The (coupon) world dramatically changed 5 © Inmar 2009
  • 6. Consumers Use More Coupons 2000: 4.4 Billion 2009 2009: 3.3 Billion vs. 2008: +27% redemptions 6
  • 7. Back to the Future 2000: 4.4 Billion 2009: 3.3 Billion 2004 @ 3.2 Billion 7
  • 8. Coupon Groups Increase, Use More Units w/ Coupon Manufacturer Coupon Users 104 + Enthusiasts 13 Enthusiasts E th i t 15 Super Super 51– 103 7 Heavy 9 Heavy 28– 50 Heavy 2 Heavy 2 15– 27 Medium 0 Medium 1 Low -6 Low 4– 14 -5 1– 3 Super Low -9 Super Low -10 Non-Users 2 Non-Users 0 % Chg. in U.S. Households % Chg. in Mfg. Coupon Units Source: Homescan®, a service of The Nielsen Company; UPC-coded purchases; 26 weeks ending 06/27/09 versus year ago 8 © Inmar 2009
  • 9. Five quarters of growth 2009: 3.3 Billion redeemed; 27% annual increase li 2006-2008: 2.6 Billion coupons redeemed annually 9 © Inmar 2009
  • 10. All Major Trade Classes Show Growth Class of Trade Redemption Growth Convenience +12% Conventional Supermarket +20% Dollar/Discount/Variety y +71% Mass Merchandiser +26% Military Commissary +12% Pharmacy +16% 10 © Inmar 2009
  • 11. Started with food … Overall Food F d Non-Food N F d %Change in Redemption Q1 09 +17% +22% +9% Q2 09 +33% +27% +46% Q3 09 +29% +26% +45% Q4 09 +26% +14% +37% FY 2009 +27% +31% +20% 3.3 billion coupons 2.1 billion coupons 1.2 billion coupons Percent change in coupon redemption comparing current year’s period to the same period a year ago redemption, year s ago. 11
  • 12. “If You Can’t Eat It, You Don’t Need It” Top 15 Categories: % Unit Growth (FDM w/WM) Canning & Freezing Supplies 10.9 Fresh Meat 7.0 Frozen Novelties 6.8 Cheese 5.5 Vitamins 5.4 54 Baking Mixes 5.2 Yogurt 4.8 Wine 4.6 Pasta 4.5 Back to basics Fresh Produce 4.5 continues Refrigerated Juices & Drinks 4.2 Prepared Foods-Dry Mixes Foods Dry 4.0 40 Condiments, Gravies & Sauces 3.9 Shortening/Oil 3.7 Spices/Seasoning/Extracts 3.5 Source: Scantrack®, a service of The Nielsen Company; (FDM w/ Walmart) 52 weeks ending 11/28/09 (versus prior year) – minimum $100 million in sales U.S. Buying Trends March 31, 2010 Page 12 Confidential & Proprietary Copyright © 2009 The Nielsen Company
  • 13. Switched to non-food… Overall Food F d Non-Food N F d %Change in Redemption Q1 09 +17% +22% +9% Q2 09 +33% +27% +46% Q3 09 +29% +26% +45% Q4 09 +26% +14% +37% FY 2009 +27% +31% +20% 3.3 billion coupons 2.1 billion coupons 1.2 billion coupons Percent change in coupon redemption comparing current year’s period to the same period a year ago redemption, year s ago. 13
  • 14. Non-Edibles Leading Unit Decline Economy driving % Unit Growth (FDM w/WM) consumers to make trade- offs or buy less ff b l 7.0 4.5 45 2.9 2.1 1.8 1.0 0.9 -0.3 -0.5 li l i ry A en t ch y od ta t De e ea s HB ea r uc ge To Da ce oz er Fo M M -2.6 od -2.8 ra M ro Fr n- h d ve G es Pr n ge No Ge y Be Fr h a Dr es ck ic Pa Fr l ho co Al -8.2 Source: Scantrack®, a service of The Nielsen Company; (FDM w/ Walmart) 52 weeks ending 11/28/09 (versus prior year) U.S. Buying Trends March 31, 2010 Page 14 Confidential & Proprietary Copyright © 2009 The Nielsen Company
  • 15. Overall driven by food coupons Overall Food F d Non-Food N F d %Change in Redemption Q1 09 +17% +22% +9% Q2 09 +33% +27% +46% Q3 09 +29% +26% +45% Q4 09 +26% +14% +37% FY 2009 +27% +31% +20% 3.3 billion coupons 2.1 billion coupons 1.2 billion coupons Percent change in coupon redemption comparing current year’s period to the same period a year ago redemption, year s ago. 15
  • 16. Top Redemption Growth Methods top 10 with significant redemption p g p Method Redemption Growth Internet 263% Direct Mail 69% Magazine Pop-up 51% Instant Redeemable 48% Direct Mail Co-op 45% Electronic Checkout 39% Free-standing I F t di Insert t 36% Digital Promotions 31% Shelf Pad 30% In-ad 27% 16
  • 17. More Coupons Made Available 2009: 367 Billion 2000: 321 Billion 2009 vs. 2008: +14% distribution 17
  • 18. Giving them what they want … Part 1 Overall Food F d Non-Food N F d %Change in Distribution Q1 09 +16% +25% +9% Q2 09 +20% +31% +12% Q3 09 +10% +4% +21% Q4 09 +13% NC +18% FY 2009 +14% +17% +13% 367 billion coupons 148 billion coupons 219 billion coupons Percent change in coupon redemption comparing current year’s period to the same period a year ago redemption, year s ago. 18
  • 19. Giving them what they want … Part 2 Overall Food F d Non-Food N F d %Change in Distribution Q1 09 +16% +25% +9% Q2 09 +20% +31% +12% Q3 09 +10% +4% +21% Q4 09 +13% NC +18% FY 2009 +14% +17% +13% 367 billion coupons 148 billion coupons 219 billion coupons Percent change in coupon redemption comparing current year’s period to the same period a year ago redemption, year s ago. 19
  • 20. Food Drives ’09 Distribution Growth Overall Food F d Non-Food N F d %Change in Distribution Q1 09 +16% +25% +9% Q2 09 +20% +31% +12% Q3 09 +10% +4% +21% Q4 09 +13% NC +18% FY 2009 +14% +17% +13% 367 billion coupons 148 billion coupons 219 billion coupons Percent change in coupon redemption comparing current year’s period to the same period a year ago redemption, year s ago. 20
  • 21. An historic year 2009: 367 Billion 2005 @ 319 Billion 2000: 321 Billion 21
  • 22. An historic year Distribution Redemption Year Growth Growth 2009 +14% +27% ↑↑ 2008 +5% NC ↑↔ 2007 +8% 8% NC ↑↔ 2006 -11% -13% ↓↓ 2005 +5% 5% -6% 6% ↑↓ 1992 +10% +3% ↑↑ 22 © Inmar 2009
  • 23. Cautious Optimism Gets its Due • Th pros and cons of a bad economy The d f b d • Promotional bark with minimal bite • Back to the basics, in a big way g y • New media grows up 23 © Inmar 2009
  • 24. Cautious Optimism Gets its Due • Th pros and cons of a bad economy The d f b d • Promotional bark with minimal bite • Back to the basics, in a big way g y • New media grows up 24 © Inmar 2009
  • 25. All Incomes Increasingly Looking for Grocery Deals % Change in Grocery Channel % Items on Deal % Items on Deal* 12 10 33% 8 32% 6 29% 4 2 0 $70K + $30 t $69 9K to $69.9K -2 < $29K -4 -6 08 /08 09 /08 10 /08 11 /08 11 /08 12 /08 01 /08 02 /09 03 /09 04 /09 05 /09 06 /09 07 /09 08 /09 09 /09 10 /09 10 /09 11 /09 09 8/ 2 9 6 4 1 9 7 4 1 1 8 6 3 1 8 5 3 1 /1 /0 /0 /0 /0 /2 /2 /2 /2 /2 /1 /1 /1 /1 /0 /0 /0 /3 /2 07 4-week period ending * Latest Period Source: Homescan®, a service of The Nielsen Company; excludes gas only or Rx only trips; versus year ago U.S. Retail Shopping Trip Trends March 31, 2010 Page 25 Confidential & Proprietary Copyright © 2009 The Nielsen Company
  • 26. 91% of Shoppers Plan Their Buys, but More Opportunities to Capture Impulse Buys Which one of the following best describes to what extent you plan your grocery shopping? Planned vs. Impulse Shopping: Pl d I l Sh i 2% I usually plan what I want to buy and never buy additional items 45% 91% I usually plan what I want to buy, but sometimes buy additional items 98% I usually plan what I want to buy, but always buy additional items 44% I usually do not plan what I want to buy before I shop 9% Source: Homescan® 09/2009 survey, a service of The Nielsen Company U.S. Retail Shopping Trip Trends March 31, 2010 Page 26 Confidential & Proprietary Copyright © 2009 The Nielsen Company
  • 27. Results of promotion sensitivity Higher response Private Label competitors Brand B d competitors Consumer expectations 27
  • 28. Cautious Optimism Gets its Due • Th pros and cons of a bad economy The d f b d • Promotional bark with minimal bite • Back to the basics, in a big way g y • New media grows up 28 © Inmar 2009
  • 29. Mixed Signals or Managing Spend? 2008 2009 Pre 09 Pre-’09 Trend 321 billion 367 billion Distribution +5% +14% ↑ 2.6 billion 3.3 billion Redemption ±0% +27% ↓ $ $1.45 $ $1.44 Face values distributed distributed ↑ +10% -1% 2.9 2 9 months 2.6 2 6 months Expiration periods -3% -10% ↔ 72% singles 74% singles Purchase requirements i t 28% multiples 26% multiples ↑ 29
  • 30. How Consumers Responded Distributed Redeemed Face Values $1.44 $1 44 $1.07 $1 07 Expiration Periods 2.6 months 4.6 months Purchase requirements 1.52 1.65 30
  • 31. More to gain … more to lose • Increased counterfeit attempts • Increased concern at checkout • Increased vigilance in the industry – Internet coupons – High value coupons – Consumer relations coupons – General redemption assurance 31 © Inmar 2009
  • 32. Cautious Optimism Gets its Due • Th pros and cons of a bad economy The d f b d • Promotional bark with minimal bite • Back to the basics, in a big way g y • New media grows up 32 © Inmar 2009
  • 33. Methods Gaining Ground Percent Volume Percent Volume Method Distributed Distributed Redeemed Redeemed Direct Mail + + + + 1.2% + 40% 3.4% +69% Electronic + + + + Checkout 1.2% 1 2% +23% 9.3% 9 3% +39% FSIs + + + + 88.7% +16% 52.3% +36% Internet + + + + 0.3% +92% 1.5% +263% 91.4% 91 4% 66.5% 66 5%
  • 34. Methods Gaining Ground Percent Volume Percent Volume Method Distributed Distributed Redeemed Redeemed Handout Off- store location - - - - Handout Off- store location - - - - with sample Military Shelf y Pad - - - - On Pack - - - -
  • 35. Cautious Optimism Gets its Due • Th pros and cons of a bad economy The d f b d • Promotional bark with minimal bite • Back to the basics, in a big way g y • New media grows up 35 © Inmar 2009
  • 36. Internet Coupon Redemption 2008: 1st Half 09: 2009: +141% +308% +263% • Significant distribution growth • +92% in 2009 and 2008 • Growing importance: •1.5% of all redemption • 0 3% of all distribution 0.3% • High response rates • “Mixed” = 4 33% Mixed 4.33% • “Print only” = 19.56% 36 © Inmar 2009
  • 37. Digital Promotions Redemption • Growing share of redemption – +31% redemption – 1 5% of total 1.5% • Still small share of distribution – 0.1% of total % f • Significant consumer response – 8.63% redemption rate – 2048 redemption index 37 © Inmar 2009
  • 38. The Inmar Solution 38 © Inmar 2009
  • 39. What happened in 2009? • C Consumers redeemed a l t of coupons d d lot f • Brands made more coupons available • Everybody grew cautiously optimistic y yg y p • The (coupon) world dramatically changed 39 © Inmar 2009
  • 40. So … now what? 2009: 3.3 Billion redeemed; 27% annual increase li 2006-2008: 2.6 Billion coupons redeemed annually 40 © Inmar 2009
  • 41. Coupon Redemption Drivers ? + – “moderating” 41 © Inmar 2009
  • 42. Matthew Tilley Director of Marketing Inmar Marketing, matthew.tilley@inmar.com 336.631.2524 336 631 2524 www.Inmar.com 42 © Inmar 2009

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