Kantar Media Reports FSI Coupon Activity Increased 7.2 Percent in 2010
“Corporate scale FSI coupon events enable manufacturers to leverage their brand portfolios to break through the promotion clutter to increase share-of-voice with their consumers and share-of-merchandising with their retailers,” concluded Mark Nesbitt.
Overall FSI Activity
During 2010, more than $451 billion in consumer incentives were delivered via FSI coupons, up 17.1 percent from 2009. During the same period, over 291 billion coupons were distributed within more than 212 billion FSI pages. FSI coupon average Face Value achieved a new record level in 2010 at $1.55, up 9.2 percent versus 2009. However, Average Expiration (Fuse) continued a steady downward trend with a decrease to 8.5 weeks, down 8.9 percent versus a year ago. These trends indicate that manufacturers are delivering more offers of greater value to the consumer, but are managing their financial exposure by reducing the length of time that these offers are available in the market.
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%
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