NEW YORK, NY, July
19, 2006 – The Marx Promotion Intelligence FSI Trend
Report issued today reports that during the first six months of
2006, Free Standing Insert (FSI) average face value increased 8.6
percent to $1.18 vs. the same period in 2005. It is the largest
average face value for a half year period on record. This trend
is being driven primarily by the expanded use of FSI coupons for
high-value products which are increasingly being added to the grocery
channel. Face values for high-value products averaged $4.07 during
the first half of 2006, up 20% from the same period in 2005.
The Marx FSI Trend Report is issued by
Marx Promotion Intelligence, a division of TNS Media Intelligence.
Marx Promotion Intelligence is considered the industry standard
for tracking FSI coupon activity.
“Marketers continue to leverage FSIs to provide impression
value and reach while delivering consumer incentive and brand messaging,”
said Mark Nesbitt, chief operating officer, Marx Promotion Intelligence/
TNS Media Intelligence. “However, it is evident that high-value
consumer promotions have emerged as an effective tactic as innovative
new products are introduced and traditional retail channels continue
to blur.”
High value products using FSIs include many personal care items
and household cleaning products. Examples include: |
 |
Teeth whitening kits (Colgate Simply
White® Crest® Night Effects™ and Crest Whitestrips®) |
 |
 |
Diabetes care (OneTouch® Blood
Glucose Monitoring System) |
 |
 |
Portable air treatment systems (Febreze®
ScentStories™, Air Wick FreshMatic™, Glade®
Wisp®) |
 |
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Disposable toilet cleaning systems
(Clorox® Toilet Wand™, Scrubbing Bubbles® Fresh
Brush™) |
|
| |
| Non-Food vs. Food Segments
In the first
half of 2006, average face values of coupons rose 10.9 percent across
all Non-Food segments, versus same period 2005. The Household Products
segment led this trend with a 22.0 percent increase to $1.11 driven
by expanded activity in support of high-value products. Coupons
dropped for Non-Food items decreased 2.7 percent versus the record
levels observed in the first half of 2005. Personal Care and Household
Products segments had slight increases in coupon distribution of
0.4 percent and 0.3 percent respectively, while the Health Care
segment had a decrease of 7.9 percent.
Average face values of coupons among Food categories rose 2.2 percent
to $0.82, led by Refrigerated Foods with an 8.2 percent increase
to $0.74. The Cereals segment countered with a 7.1 percent decline
to $0.83. |
| |
| Non-Food |
$1.42 |
$0.14 |
10.9% |
| Food |
$0.82 |
$0.02 |
2.2% |
| Total Packages Goods |
$1.18 |
$0.09 |
8.6% |
|
| |
| Coupons dropped for Food items decreased 6.5 percent
versus the record levels observed last year, although Refrigerated
Foods had a 3.9 percent increase in coupon circulation. |
| |
| Non-Food |
74,548 |
-2.7% |
| Food |
56,004 |
-6.5% |
| Total Packaged Goods |
130,351 |
-4.2% |
|
| |
| Top 10 FSI Product Types in First Half 2006
(by coupons distributed*)
The top 10 coupon product types accounted for 32.1
percent of all coupons distributed. Rug/Room Deodorizers led the
top 10 with an increase of 24.8 percent, due to the increasingly
competitive Air Treatments segment. |
| |
| 1 |
Household Cleaning Products |
6,418 |
7,125 |
-9.9% |
-707 |
| 2 |
Pet Food & Treats |
5,554 |
5,581 |
-0.5% |
-27 |
| 3 |
Combination/Personal Care |
5,545 |
4,960 |
11.8% |
584 |
| 4 |
Rug/Room Deodorizer |
5,006 |
4,012 |
24.8% |
994 |
| 5 |
Snacks |
4,212 |
4,596 |
-8.4% |
-385 |
| 6 |
Vitamins |
3,728 |
4,282 |
-12.9% |
-554 |
| 7 |
Cereals |
3,294 |
3,292 |
0.1% |
2 |
| 8 |
Hair Care |
2,901 |
3,376 |
-14.1% |
-475 |
| 9 |
Meat/Refrigerated |
2,832 |
2,123 |
33.4% |
709 |
| 10 |
Cough Cold Sinus and Allergy (CCSA) |
2,811 |
2,955 |
-4.9% |
-143 |
|
| |
Overall FSI Activity
During the first half of 2006, more than 130
billion coupons were delivered via Free Standing Inserts (FSIs)
in Sunday newspapers, down 4.2 percent from the same period in 2005,
which was the most active six-month period on record for FSI activity.
This decrease in coupons corresponds with a 2.2 percent decrease
in total pages. As noted, average face values had an 8.6 percent
increase due to an increase in support for high-value items. Finally,
after increasing slightly in 2005, the average offer duration returned
to its historical trend toward shorter promotion periods with a
3.3 percent decrease to 10.3 weeks. These trends indicate that manufacturers
are continuing to leverage FSIs, but increasingly use them to deliver
high-value offers that encourage brand trial and generate category
excitement. |
| |
| Coupons |
130 billion |
-4.2% |
| Pages |
104 billion |
-2.2% |
| Face Value (avg) |
$1.18 |
8.6% |
| Fuse (weeks) |
10.3 |
-3.3% |
|
| |
About Marx Promotion Intelligence
Marx Promotion Intelligence is the industry standard for tracking
Free Standing Insert (FSI) coupon activity. Marx provides the finest
companies in America with web-based strategic insights and tactical
tools that are state of the art. Company website:
www.tnsmi-marx.com.
About TNS Media Intelligence
TNS Media Intelligence is the leading provider of strategic advertising
intelligence to advertising agencies, advertisers, and media properties.
The company's tracking technologies collect advertising expenditure
and occurrence data, as well as select creative executions, for
more than 2.2 million brands across 20 media. Established in 23
countries with more than 16,000 customers, TNS MI is part of the
TNS Group, ranked #2 worldwide in marketing information and the
world’s largest custom research company. The U.S. headquarters
are in New York City with sales locations in major markets throughout
the United States.
www.tns-mi.com
About TNS
TNS is a market information group:
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The world’s largest provider
of custom research and analysis |
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A leader in political and social
polling |
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A major supplier of consumer panel,
media intelligence and TV and radio audience measurement services |
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TNS operates across a global network in over 70
countries, allowing us to provide internationally consistent, up-to-the-minute
and high quality information and analysis.
The group’s employees deliver innovative thinking and excellent
service to local and multi-national clients worldwide. In the custom
business, they combine in-depth sector knowledge with expertise
in the areas of new product development, positioning and segmentation
research, brand and advertising research and stakeholder management.
TNS’ strategic goal is to be recognized
as the global leader in delivering value added information and insights
that help our clients to make more effective decisions.
TNS is the sixth sense of business.
www.tns-global.com |
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