Super Bowl 2012 Retail Promotions February, 2012 What You Need to Know About Super Bowl Retail Promotions • Copyright restraints keep retailers from promoting the Super Bowl by name. Most make general references to “the big game”. • Old El Paso, Hidden Valley and Ortega are just some of the brands showing nearly four times as many ads for Super Bowl week compared with an average week. • For many small brands, Super Bowl week defines their year. Brands such Amoy, Cardiff Cellars, Jim’s Organic and Poppers advertise more than 50% of their yearly circular ads during Super Bowl week. • Other brands decide to go all in on FSI coupons. Newman’s Own, Cape Cod Chips run their only coupons during Super Bowl week. • Super Bowl TV ads are not coordinated with retail promotions. Many food TV spots have no connection to retail circular ads. • Retailers downplay their private brands for the Super Bowl. Super Bowl week traditionally ranks dead last in private brand ad support. 2 Super Bowl Tie-Ins Vary Across Supermarkets Kroger – 1/29/2012 No Super Bowl Tie-In on Front Cover – Page 2 features “Game Day Greats” Safeway – 2/1/2012 Visual Front Cover Super Bowl Tie-Ins Including Daily Deals Publix – 2/1/2012 Super Bowl Theme for 13 of 16 Pages Including Front & Back Covers Plus a Slider Recipe 3 Super Bowl Sales Events in the Mass Channel Walmart– 1/29/2012 Super Bowl Theme on 6 of 20 Pages. 2.5 Pages on TVs/Video, 2.5 on Party Food, and 1.0 on BBQ/Kitchen Appliances Target– 1/29/2012 Like Walmart, Front Cover Shows Half Food & Half Electronics. Super Bowl Theme Limited Mainly to Front & Back Covers. Also at Walmart Two Full Pages of Baseball Equipment??? Target’s back cover is focused on party foods. 4 Super Bowl Sales Events in Other Retail Channels CVS – 1/29/2012 Less than of third of the CVS front cover is tied to the Super Bowl. Walgreens – 1/29/2012 About half of front cover is tied to Super Bowl. Page 2 includes ad for Bud Light Platinum, a new brand featured in a Super Bowl TV Spot. Dollar General 1/29/2012 Total front cover is tied to Super Bowl. Menard’s - 1/29/2012 Home improvement retailer with front cover featuring salsa, chips, sausage and a turkey fryer. 5 Some Retailers Choose to Repeat Last Year’s Circulars Safeway 2-1-2011 Safeway 2-2-2012 A closer look shows some big price increases on featured products. 6 Walgreens Features Super Bowl Theme in 2012 Walgreens 1-30-2011 Walgreens 1-29-2012 No Front Cover Super Bowl Tie-In for 2011. For 2012, Half of the Front Cover Tied to Super Bowl Theme. 7 Copyright Fears Keep Retailers from Promoting the Super Bowl by Name Retail Banner Shop 'n Save Wal-Mart Schnucks Safeway Bloom Dillons Stop & Shop Meijer Hannaford Kmart Lucky Target Kroger Econo Foods Stop & Shop A&P Super Bowl Event Kickoff Game Time Super SAVINGS! Joy of Foodball Football Frenzy Game Day Greats Game Day Savings! Make it Super Football Frenzy Football Frenzy Game Day Heroes Big-Play Savings Game Day Greats Touchdown Savings Gigantic Game Sale Big Game Favorites Retail Banner Adams Brookshire's Market Basket CVS Fry's Foods Redner's ACME Lunds ShopRite Food 4 Less King Kullen Walgreens EW James Aldi Stater Bros. Price Rite Super Bowl Event Game Day Super Sale Game Day Essentials Big Game Snack Sale Save on the BIG GAME! Game Day Celebration! The Big Game Meal Deal Game on Big Game Savings Finger food at its finest. Get The Big Party Started! A Super Line-Up of Savings! BIG GAME Party Headquarters Big Savings for the Big Game! Get your BIG GAME Party Started Start the Big Game with low prices Shop for the Biggest Game of the Year Score BIG with Big Bowl Party Favorites 8 By comparison, Doritos index at 166 – or 66% higher than an average week. Major Food Brands Spiking Ads for the Super Bowl Ad Count Index – Super Bowl Week Ending 2/4/12 Vs. 52-Week Average Ro*Tel Tomatoes Lawry's Wonderful Pistachios Old El Paso Hidden Valley Ortega 532 Sweet Baby Ray's 356 Philadelphia 349 T.G.I. Friday's 344 Velveeta 342 Marzetti's 339 Hellmann's 337 465 437 Ro*Tel has 5x as 399 many ads for Super Bowl week 394 compared to an 377 average week. Valentine Russell Stover 364 Heinz 329 Valentine Vlasic 363 Dove Chocolate 324 Miracle Whip 360 Planters 322 Orville Redenbacher's 359 Lipton 316 9 Over Three Times as Many Ads for Party Platters on Super Bowl Week. Top Food Sub-Categories Promoted for the Super Bowl Ad Count Index – Super Bowl Week Ending 2/4/12 Vs. 52-Week Average Deli Dips & Spreads Party Platters/Trays Avocado Refrigerated Dips Poultry/Wings Salsa/Dips (Shelf Stable) Barbeque/Steak Sauces Mayonnaise Snack Nuts & Seeds Ketchup Mustard Gravies, Sauces 377 344 332 292 291 278 281 257 224 219 219 214 Meat Snacks Cauliflower Sour Cream Canned Beans Sandwich & HD Buns Pickles & Olives Limes Poultry/Fried Sandwiches (Store-Prepared) Tomato Sauces\Paste Prepared Foods (Refrigerated) 206 205 201 198 197 196 189 184 181 180 178 Excludes Candy (promoted for Valentines Day) 10 Platter Wars – How Supermarkets Differentiate Super Bowl party platters allow supermarkets to feature their deli & produce departments to create a differential advantage vs. mass and drug competitors selling food. For Some Smaller Food Brands, The Super Bowl Defines Their Year Brands Running 50% or More of Annual Ads on Super Bowl Brand Name Alberts Amoy Bridgford Cactus Coolers Cardiff Cellars Graham's Hanna Hendrick's Hengstenberg Hinsdale Farms Manufacturer Name Alberts Amoy Food Limited Bridgford Foods Dr. Pepper Snapple Cardiff Vineyards Symington Family Ests Terlato Wine Group William Grant & Sons Rich. Hengstenberg Hinsdale Farms Brand Name Jesse Dalton's Jim's Organic La Fortaleza Macayo Pearls Poppers Tasty Brand Trentadue Warre's Warrior Yoplait Asana Manufacturer Name Best Maid Products Jim's Organic Coffee La Fortaleza Inc. Fiesta Canning Musco Olive H.J. Heinz Co., L.P. TastyBaby, LLC Trentadue Winery Vineyard Brands Aliments Breton 50%+ of Circular Ads Running on Week Ending 2/4/2012 12 Betting it All on Super Bowl FSIs For smaller brands, a successful FSI can make or break their year. Free standing inserts (FSIs) allow a brand to stand out and differentiate with unique attributes, recipes and coupons. Blue Diamond, Pace, Ortega, and Velveeta each run one of their two annual FSIs for the Super Bowl. Newman’s Own and Cape Cod Potato Chips run their only annual FSI for the Super Bowl. Brands like Planters, Frigo, Jolly Time, & Johnsonville each commit a third of their FSIs to the Super Bowl. 13 Coordinating FSIs with Retail Ad Support Weekly Retail Ad Counts Strong Ad Support with Velveeta 150 Velveeta Super Bowl FSI 100 Back-to-School FSI Also Aligned with Ad Support 50 2/4/2012 1/14/2012 12/24/2011 12/3/2011 11/12/2011 10/22/2011 10/1/2011 9/10/2011 8/20/2011 7/30/2011 7/9/2011 6/18/2011 One FSI Per Year on 1/22/12 Unrelated to Retail Ad Support 5/28/2011 5/7/2011 4/16/2011 3/26/2011 3/5/2011 Newman's Own 2/12/2011 0 60 50 40 30 20 10 0 14 Pre-Super Bowl Circular Ads Week Ending 2/4 Many Super Bowl TV Ads Are Not Coordinated with Retail Promotions Coca-Cola Coke share of soda ads declined Pre-Super Bowl. Bud Light Platinum Only 19% of Bud Light ads included the Platinum brand extension. Pepsi Max Only 8% of PepsiCo soda ads mention Pepsi Max by name. Doritos Doritos share of corn/tortilla chip ads declined Pre-Super Bowl. Dannon Oikos Greek Yogurt Only 11% of Dannon ads mention Oikos by name. Skechers Only 3 Retailers Ran PreSuper Bowl Ads for Skechers. 15 Private brand ad support is tied to demand for ad space. High demand for Pre-Super Bowl circular ads creates less room for store brands. Retailers Pull Back on Private Brand Ads for the Super Bowl Private Brand Share of Supermarket Food Promotions 19.4% 15.8% 18.5% 15.3% 15.7% 11.6% Calendar Year 2009 Super Bowl Week Ending 2/6/10 Calendar Year 2010 Super Bowl Week Ending 2/5/11 Calendar Year 2011 Super Bowl Week Ending 2/4/12 16 Supermarket Social Media Super Bowl Tie-Ins Lacking Lucky: Friday, February 03, 2012 The Bay Area is a mecca for professional sports. Do you have a favorite spot where you're going to watch the Big Game this weekend? Sweetbay: Monday, January 30, 2012 46 games, and no one’s topped Da Bears’ Shuffle. What would your dream team’s dance number be? http://www.youtube.com/watch?v=glC9tlxilfc Fred Meyer: Saturday, February 04, 2012 Wouldn't it be awesome to watch this Sunday's big game chance! Come in today and score a 60" 600Hz 1080P Plasma HDTV for only 899.99! (Reg. 1499.99— you save $600!) This deal is so hot, we can't even mention the brand name, but it's a famous one you trust for quality. Come check it out! on a super-crisp HUGE screen? Shoprite : Friday, February 03, 2012 Big Game Hypothetical: Super Saturday instead of Sunday? Discuss ... Most Supermarket Retailers have been slow to adapt to Facebook and Twitter and then post relevant content to their core female customer. Huge opportunity for CPG brands to step in and assist. 17 Target & Wal-Mart Super Bowl Tie-Ins Make good Use of Social Media Wal-Mart Tuesday, January 31, 2012 Make game time gatherings a breeze. Try our new Marketside Trifeasta pizza, breadstick and wing combo for a quick and easy crowd pleaser, just $9.98. Wal-Mart Friday, February 03, 2012 You'll want to put this on your playbook: head into your local store tomorrow for samples of game time goodies! Walmart.com - Walmart Game Time Sampling Event - I Target: Sunday, January 29, 2012 It’s up, it’s good! All TVs on sale: http://tgt.bz/6036Rx86 Plus an additional 10% off with the purchase of an HDMI Cable: http://tgt.bz/6037Rx8B Mass retailers are using social media to announce specific promos to their core audience in a timely fashion. 18 Promoted Pricing Types Across Key Supermarkets Key retailers use similar promotion types for Super Bowl week compared to previous 52 weeks. Kroger Promo Type Safeway Albertson's (SVU) Meijer Target Current Wk Ending Current Wk Ending Current Wk Ending Current Wk Ending Current Wk Ending 52-Weeks 2/4/2012 52-Weeks 2/4/2012 52-Weeks 2/4/2012 52-Weeks 2/4/2012 52-Weeks 2/4/2012 Price Point 65% 68% 77% 81% 70% 68% 53% 49% 65% 61% X/For 32% 28% 18% 15% 27% 28% 44% 47% 30% 33% % Off 0% 0% 2% 1% 1% 2% 1% 2% 4% 6% B1G1 1% 1% 2% 2% 1% 2% 1% 1% Other 2% 3% 1% 1% 1% <1% <1% 19 Lowest U.S. Prices on Super Bowl Snack & Beverages Retailer Snacks Redner's Markets Acme Markets Dollar Tree Save-A-Lot Aldi CVS Save-A-Lot Meijer Walgreens Meijer Beverages Redner's Markets Save-A-Lot Walgreens King's County Mart Redner's Markets Walgreens Western Beef Fred Meyer Stores Ad Price Product Description Size $0.89 $1.00 $1.00 10/$10.00 $1.19 4/$5.00 $1.49 3/$5.00 2/$4.00 2/$5.00 Redner's Crunchies Pretzels Herr's Potato Chips, Pringles Potato Crisps Lay's Stax Potato Chips Clancy's Tortilla Chips Frito Lay Doritos Senora Verde Tortilla Chips Ritz and Triscuit Crackers Blue Diamond Snack Nuts Planters Nuts 20 oz. 3.75 - 5.25 oz. 4.9 oz. 5.5-5.75 oz. 13 oz. 3.25-5.5 oz. 13 oz. 5-15 oz. 6 oz. 16 oz. $0.69 $0.85 $0.98 4/$10.00 4/$10.00 $5.99 $7.99 $8.99 Super Chill Soft Drinks Save-A-Lot Soft Drinks Pepsi Products Assorted Soda Brands Pepsi Products Playa De La Cruz Beer Miller High Life Pabst Blue Ribbon Beer 2 ltr. 2 ltr. 2 ltr. 12 oz. 12 pk. 12 oz. 12 pk. 12 oz. 6-pk 12 oz. 12 pk. 12 oz. 12 pk. Source: ECRM’s Hot Price Tracker, Pre-Super Bowl week ending 2/4/2012 20 Lowest U.S. Prices on Super Bowl Dipping & Disposables Retailer Ad Price Condiments/Salsa/Dips/Ingredients Aldi $0.49 Acme Markets $0.99 Meijer $0.99 Meijer $0.99 Stop & Shop 10/$10.00 Acme Markets $1.69 Platters & Trays Meijer Pathmark A&P $2.99 $3.99 $6.99 Disposable Cups, Plates, Napkins Pathmark $0.99 Dollar Tree $1.00 Dollar Tree $1.00 Product Description Size Avocado Kraft and Bull's-Eye BBQ Sauces Dean's Refrigerated Dips Chi-Chi's Salsa French's Mustard Heinz Ketchup 1 ct. 18 oz. 12-16 oz. 16 oz. 12 oz. 40 oz. Organic Vegetable Platter Pre-Cut Fruit Platter Great Lakes Cheese Platter 16 oz. 1 lb. 16 oz. Disposable Cups Disposable Plates Disposable Cups, Napkins 51 ct. 30 ct. 160 ct. Source: ECRM’s Hot Price Tracker, Pre-Super Bowl week ending 2/4/2012 21 Methodology & Details Report Methodology • Retail ad support measured by number of ad blocks in retailer print circulars. • “Pre-Super Bowl” week includes week ending 2/4/2012 More About ECRM’s MarketGate Ad Comparisons Web Site: www.AdCompare.MarketGate.com Studies on Seasonal & Category Promotions: www.PromotionalReflections.com Contacts: Scott Whalley Tom Pirovano 847-482-1793 440-528-0418 scott@ecrm.marketgate.com tpirovano@ecrm.marketgate.com Upcoming Events: http://adcompare.marketgate.com/Events/?y=2012 Snack, Beverage, & Grocery 2/20/2012 - 2/23/2012 Private Brand Foods 4/16/2012 - 4/19/2012 Fresh & Frozen Foods 4/17/2012 - 4/19/2012 Global Wine, Beer & Spirits 8/27/2012 - 8/29/2012