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Kantar Media Reports FSI Coupon Activity Increased 7.2 Percent in 2010

January 5, 2011

2010 vs. 2009
Dollars Circulated — $451 billion, +17.1%
Coupons Dropped — 291 billion, +7.2%
Pages Distributed — 212 billion, +4.5%
Face Value (average) — $1.55, +9.2%

Sector Activity

The Consumer Packaged Goods (CPG) sector remained as the largest user of FSI pages with a 74.2 percent share, followed by Direct Response, which includes general advertising activity, and Franchise, comprised of restaurants, portrait studios, and other businesses.  CPG pages distributed increased 8.5 percent while Direct Response posted an 8.1 percent decrease versus 2009 and Franchise was flat.

Top Retailers based on Pages Circulated

Retailer promotion pages increased 46.4 percent to more than 13.3 billion pages in 2010.  Dollar General took the top spot from Target with a 162.9 percent increase to 2.3 billion pages. Target dropped to second despite a 22.5 percent increase to 2.2 billion pages. Wal-Mart had the largest jump within the top 10, moving up from 16 to seventh in 2010 with a 254.2 percent increase. These trends reflect the overall growth of retailer promotion within traditional FSI vehicles to drive shopping trips, transaction size, and overall profits across channels and retail formats.

Top Categories for New Product Activity

During 2010, there were 344 new products that delivered FSI coupons across 709 event dates as part of their introduction, averaging 2.1 event dates per new product.  This activity is down from 388 new products, 788 event dates, and 2.0 event dates per new product during 2009.  Despite being allowed to use FSI coupons to promote in only a limited number of markets, Alcoholic Beverages had the greatest number of new products with 32 in 2010.  Snacks followed with 21 new products and Milk/Milk Products was third with 14 new products.

CPG Non-Food vs. Food

In 2010, Non-Food categories distributed more than 173.4 billion coupons, up 8.1 percent versus a year ago, driven by the 11.8 percent increase within the Household Products area.  Food categories distributed 118.7 billion coupons, representing an increase of 6.0 percent, led by the 3.3 percent increase for the Dry Grocery area.  Eight of the nine areas defined by Kantar Media reported increases in Coupons Dropped during this period with Other Packaged Goods being the only area with a decrease in 2010 versus 2009.

Additionally, manufacturers are increasing the value of the offers being delivered to consumers in both the Non-Food and Food segments.  Weighted Average Face Value (WAFV) for Non-Food increased 11.7 percent to $1.93 and was combined with a 0.1 point increase in Multiple Purchase Requirements (MPR) resulting in Weighted Average Face Value Per Unit (WAFVPU) increasing 10.4 percent to $1.70.  Similarly, WAFV for Food increased 1.9 percent to $0.99 and was combined with a 1.5 point increase in MPR resulting in WAFVPU increasing 0.7 percent to $0.74.  These changes appear to be a response to economic pressures to increase the perceived consumer value of each offer relative to retail price.  

Top FSI Product Types in 2010 (by Coupons Dropped*)

The top 10 product types based on Coupons Dropped accounted for 35.7 percent of all FSI coupon activity during 2010.   Pet Food & Treats ranked first and increased 13.6 percent to distribute more than 14.9 billion coupons. Combination/Personal products (comprised of Personal Care brands which are promoted across multiple individual Personal Care categories) dropped to second place with a 13.7 percent increase to 14.8 billion coupons.

The 8th annual FSI Distribution Trends Report is issued by Kantar Media’s Marx solution.  Copies of the comprehensive Marx FSI Distribution Trends Report are available by request through the Kantar Media website at:

About Kantar Media

Established in more than 50 countries, Kantar Media helps clients master the world’s multimedia momentum through analysis of print, radio, TV, internet, cinema, mobile, social media, and outdoor worldwide. Kantar Media offers a full range of media insights and audience measurement services through its global business sectors – Intelligence, Audiences, TGI and Custom.  Kantar Media companies also include Compete, Cymfony and SRDS. Drawing upon the deepest expertise in the industry, Kantar Media tracks more than 3 million brands and delivers insight to more than 22,000 customers worldwide.

Source: Company press release.



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