Table of Contents
Overview
Distribution
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Overall CPG Trends
Grocery and HBC Trends
Top 20 Product Categories
Top 10 Categories With Highest Growth
Monthly/Quarterly Distribution Index
Distribution by Media
Distribution by Face Value
Purchase Requirements
CPG Duration Trends
Grocery Duration Trends
HBC Duration Trends
Redemption
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Overall CPG Trends
Grocery and HBC Trends
Consumer Coupon Use
Redemption by Class of Trade
Face Value Redeemed
Redemption Rates
Total Value Saved
Product Categories
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Dry Grocery
Beverages
Refrigerated Foods
Frozen Foods
Household Goods and General Merchandise
Over-the-Counter and Rx Medications
Personal Care and Hygiene
Methodology
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Overview of U.S. Coupon
Distribution and Redemption Trends
In 2010, marketers once again distributed more consumer packaged goods (CPG) coupons than the prior year,
reaching 332 billion – the largest single-year distribution quantity ever recorded in the U.S., exceeding last year’s
prior record by 6.8% or 21 billion coupons.
87.7% of all paper and paperless coupons were distributed in 2010 via Free Standing Insert (FSI) formats,
including co-op, solo, and shared mail. The FSI total growth was 19 billion coupons printed, the largest volume
increase of all media. The second largest share of coupons distributed was via Handout In-Store media, amounting
to 5.2% of the 2010 total.
Digital coupons, including both paper and paperless formats, continued to grow in 2010 as marketers embraced
these methods to reach a new audience of active users who plan their shopping online and in-motion. In total,
NCH measured a 37% increase in the number of digital coupon offers, the largest increase across all types of
coupon media. Paperless digital coupons expanded to more retailers in 2010; however, they represent less than
a projectable share of the total 332 billion coupons distributed.
CPG marketers increased the face value of coupons distributed by 6.6% to $1.46 on average. In addition, 74%
of the coupons distributed required the purchase of one item, and 26% required the purchase of two or more
items to obtain the offer discount. In order to manage the potential redemption liability of their coupon offers, CPG
marketers gave consumers only 10.1 weeks on average to use coupons before expiration in 2010, approximately
a week and a half shorter than the prior year.
As such, overall redemption volume in the U.S. grew 3.1% to 3.3 billion CPG coupons. Consumer demand for
coupons remained high in 2010 as frugal shopping habits created during the most recent recessionary period were
sustained throughout the sluggish economic recovery that occurred during the year.
In fact, 78.3% of consumers report using coupons regularly, up 14.7 share points from pre-recession levels, and a
third of the respondents in NCH’s annual consumer survey said that they used more coupons in 2010 than the prior
year. Since pre-recession levels four years ago, a 10.5 share point increase has been seen among consumers
reporting that they are using more coupons than the prior year.
In total, 2010 consumer CPG coupon usage added up to $3.7 billion of savings in the U.S., an increase of
$200 million over the prior year. With so much money at stake, brand manufacturers and fast moving consumer
goods retailers must continue to collaborate for the most effective use of coupon promotions while ensuring the
expenditures are protected from waste or risk of loss.
About This Report
NCH, the global leader in business solutions for the redemption, settlement and analysis of promotional offers, is
pleased to present its review of annual coupon trends in the U.S. This information is designed to provide detailed
reference tables and charts.
As a knowledge resource for CPG coupon market trends, retailer in-ad coupons are not included in the NCH
analysis, as this vehicle is often funded by trade dollars. As such, retailer in-ad distribution and redemption
quantities are not precisely tracked or reported by manufacturers, which might otherwise impact the accuracy of
marketplace results.
For ease of use, the report is divided into three main sections: distribution trends, redemption trends and product
categories. For more information on the methodology used by NCH to study the coupon marketplace, please see
the methodology section of this report.
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Methodology
NCH Marketing Services, Inc. is a global leader in business solutions for the redemption, settlement and analysis
of promotion offers. NCH is a Valassis Company (NYSE: VCI). Many of the world’s largest companies trust NCH
to protect the financial integrity of more than $4 billion in annual promotional funds transfers between trading
partners across the globe. Being the coupon agent of choice for leading retailers and manufacturers is a position
NCH has earned for more than five decades through an unwavering commitment to quality, integrity and advanced
technology. For more information about NCH, visit www.nchmarketing.com.
With the volume of coupons processed by the company in the United States and worldwide, NCH is in a unique
position to deliver the most accurate analysis of coupon promotional trends. Coupons distributed and redeemed in
the U.S. Consumer Packaged Goods marketplace are studied utilizing our manufacturer client databases, data
cleared via our retailer processing operation and other independent sources. Our proprietary methodology utilizes
rigorous controls and statistical standards to maintain the integrity of the information contained in this report, as
well as, all other information tools supplied by NCH.
This report also contains various references to NCH's most recent Consumer Survey. The data was obtained in
August of 2010 using a market research firm with proficiency in Internet surveys. The sample was derived from an
online consumer opinion panel, and all participants were at least 18 years of age and living in the contiguous
United States. Consumers were emailed an invitation to participate in the survey and were given three days to
complete it. The survey was closed once 1,000 completed responses had been reached. The responses were
weighted by factors obtained from national census data to provide appropriate representations of demographic
groups at summary levels.
Please note that due to rounding, the sum of certain percentages may not equal 100 percent, or a few respondents
to the consumer survey may have chosen not to answer a question, stated that they did not know the answer, or
stated that they had no opinion.
Your syndicated data supplier and promotional agency are best positioned to help you review competitive
marketplace conditions, consumer behaviors and promotional strategies – all of which are contributing factors to
the results that your company or brand may experience. Use this report for understanding the total market picture,
including the dollars to be protected as they are transacted between trading partners, and for comparing your
results to that of the industry averages.
To obtain additional information about this report please contact NCH Analytical Services at 847.317.5500 or via
e-mail at NCHAnalyticalServices@NCHMarketing.com.
Acknowledgments
A special thanks to Marx whose data is included in the analysis conducted to produce this report.
Marx, a Kantar Media solution
952.925.5272
www.kantarmediana.com/marx
Marx, a Kantar Media solution, is the leading provider of syndicated coupon distribution
information to manufacturers of consumer packaged goods. Marx delivers brand and
category-specific promotion intelligence for both advertisers and coupon industry vendors.
© 2011 NCH Marketing Services, Inc. All rights reserved.
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