Back-to-School Promotions - 2011 BTS Season: July 3 – September 17, 2011 Questions Addressed • Across all school & office supplies, which categories, manufacturers and brands receive the most retail ads support during the back-to-school season? • How has retail ad support changed vs. BTS-2010? • How does ad support vary across retailers? • Which pricing formats are most common among channel-leading retailers? • How do BTS web promotions vary across retailers and manufacturers? • Which brands are promoted most in key back-toschool categories? Weighted Share of School & Office Supply Ad Blocks Filing Supplies & Accessories 1.0% All Other Supplies 18.4% BTS Ad Support Across School & Office Sub-Categories Note: Includes ads for branded & private label products, but not unbranded General School Supplies 18.3% Desk Accessories 1.3% Office Storage & Security Meeting & 2.0% Presentation Supplies 2.5% Paper (excl photo) 3.3% Equipment & Machines 9.7% Writing Instruments 9.3% Tapes & Adhesives 4.2% Business Bags, Cases, Accessories Binders, Pocket 6.9% Portfolios & Sheet Protectors 7.3% Notebooks & Pads 7.3% Backpacks, School Bags, Lunch Kits 8.7% Source: ECRM 11 Weeks Ending 9/17/2011 Excludes Computers and Luggage Ad Support Vs. Year Ago By Sub-Category Weighted Retail Ad Support Change Vs. Year Ago Meeting & Presentation Supplies +92% Business Bags, Cases & Accessories +88% Notebooks & Pads +68% General School Supplies +21% Backpacks, School Bags, Lunch Kits +8% Equipment & Machines -4% Binders, Pocket Portfolios, Sheet Protectors -4% Writing Instruments Tapes & Adhesives -11% -24% Paper (Excl Photo) -30% Total School & Office weighted ad counts are up 11.1% vs. year ago. Total School & Office Ad Support Across Back-to-School Weeks Weighted Retail Ad Support BTS-2011 BTS-2010 Jul-9 Jul-16 Jul-23 Jul-30 Aug-6 Aug-13 Aug-20 Aug-27 Sept-03 Sept-10 Sept-17 Week Ending Dates Source: ECRM Retailers Running the Most BTS School & Office Supply Ads Staples Office Depot OfficeMax Fred Meyer Walgreens Jewel-Osco Zellers Bartell Drug Shoppers Drug Mart Smith's Marketplace Target Stores Walmart Shopko Stores ShopRite CVS Kinney Drugs Rite Aid 463.1 313.9 271.3 172.0 157.3 Staples leads all retailers 149.0 in BTS ad counts. 135.5 131.5 108.0 106.0 Number Retail Print Ads for 92.8 School & Office Supplies 83.0 Decimals represent ads shared with 82.0 multiple categories – measured as 80.0 fractional ad counts. 78.2 77.8 Source: ECRM 11 Weeks Ending 9/17/2011 75.1 Retailers Increasing School & Office Ads For BTS # of School Retailer & Office Ads Staples 463.1 Smith's Marketplace 106.0 OfficeMax 271.3 Giant Food Landover 53.7 Fred Meyer Stores 172.0 Stop & Shop 52.7 Shopko Stores 82.0 Giant Food Carlisle 53.7 Best Buy 63.5 Target Stores 92.8 Office Depot 313.9 Source: ECRM 11 Weeks Ending 9/17/2011 Vs. Year Ago Change Vs. Year Ago +106.4 +94.0 +55.6 +37.3 +36.8 +35.3 +34.0 +30.5 +25.5 +25.5 +23.5 % Chg Vs. Year Ago +30% +782% +26% +227% +27% +203% +71% +132% +67% +38% +8% Retailers Running Fewer July School & Office Ads # of School & Office Ads Change Vs. Year Ago % Chg Vs. Year Ago Weis Markets 22.7 -46.8 -67% City Market 54.0 -42.5 -44% Jewel-Osco 149.0 -41.1 -22% 53.0 -37.5 -41% 157.3 -32.9 -17% Rite Aid 75.1 -32.7 -30% Hilander 21.0 -32.5 -61% Owen's Market 21.0 -32.5 -61% Retailer King Soopers Walgreens Scott's Food & Pharmacy Shoppers Drug Mart Pathmark Meijer BTS ad support due to increases -61% at 21.0 grew overall-32.5 major players 108.0 including Staples, -32.0 OfficeMax, Office -23% Depot, Best Buy and Target.-25.9 But most retail banners 43.1 -38% ran fewer 69.0 School & Office ads -25.5vs. BTS-2010. -27% Kinney Drugs Source: ECRM 11 Weeks Ending 9/17/2011 Vs. Year Ago 77.8 -25.0 -24% Top Promoted School & Office Manufacturers Weighted Share of School & Office Supply Ad Blocks Private Brand Manufacturer 15.6% MeadWestvaco 8.8% Sanford Corp. 8.6% Hewlett Packard 8.0% Crayola LLC. 5.8% Texas Instruments 4.9% Avery Dennison 4.4% Bic Corporation 3.9% Eastman Kodak Company 3.4% Elmer's Products, Inc 2.9% Fiskars Brands, Inc. 2.0% Canon 2.0% 3M 1.9% VF Corporation 1.8% Targus, Inc. 1.7% Source: ECRM Wenger North America 1.6% 11 Weeks Ending 9/17/2011 Top Promoted School & Office Brands for BTS Private Brand HP (Hewlett Packard) Crayola Five-Star Texas Instruments Avery Kodak Bic Sharpie Papermate Mead Elmer's Fiskars Canon JanSport Targus SwissGear Weighted Share of School & Office Supply Ad Blocks 15.6% 8.0% 5.8% 5.7% 4.9% 4.4% 3.4% 3.1% 3.1% 3.1% 2.6% 2.4% 1.9% 1.9% 1.8% 1.7% Source: ECRM 1.6% 11 Weeks Ending 9/17/2011 Promotion Types Across Key Retailers Price Point N for $ Buy N Get X Save X% Other Promo Price Point N for $ Buy N Get X Save X% Other Promo Ofc Dep OfcMax Staples Walmart Target Kmart 58.0% 6.0% 1.0% 19.0% 16.0% 51.0% 12.0% 3.0% 9.0% 25.0% 91.0% 100.0% 97.0% 3.0% 80.0% 2.0% 2.0% 13.0% 3.0% Walgreens CVS 77.0% 10.0% 8.0% 4.0% 1.0% 9.0% 29.0% 47.0% 11.0% 4.0% 5.0% 4.0% Rite Aid Jewel-Osco Kroger Safeway 13.0% 12.0% 40.0% 34.0% 1.0% 73.0% 9.0% 84.0% 16.0% 87.0% 3.0% 10.0% 18.0% Source: ECRM 11 Weeks Ending 9/17/2011 Includes All School Supplies Retailers Running the Most School & Office Web Promotions # of BTS Web Promos Staples 309 OfficeMax 226 Target Stores 105 Rite Aid 92 Fred Meyer Stores 66 Best Buy 65 Office Depot 64 Toys - R - Us 60 Sam's Club 58 Walgreens 42 Kmart 39 CVS 31 Jay C Stores 23 # of BTS Web Promos Pay Less 23 Ralph's 23 Smith's Food & Drug 23 Owen's Market 23 King Soopers 23 Sears 22 Fry's Food & Drug 21 Hilander 21 BI-LO 20 H.G. Hills Food Stores 20 Walmart-US 20 Quality Food Centers 20 Source: ECRM, 11 Weeks Ending 9/17/2011 School & Office Manufacturers with the Most BTS Retail Web Promotions 3M MeadWestvaco Sanford Corp. Hewlett Packard Crayola LLC. Day Runner, Inc. Bic Corporation Texas Instruments Avery Dennison Brother International Corp. Epson America Inc. International Paper Acco Brands Inc. Wenger North America Xerox Corporation Elmer's Products, Inc Lexmark International, Inc 17.9% 5.9% 5.6% 5.1% Share of (un-weighted) 4.6% School & Office Retailer 4.1% Web Promotions 3.4% 1.4% 1.1% 1.0% 0.7% 0.7% 0.6% 0.5% 0.5% 0.5% 0.4% 7 companies dominate retailer web promotions during the BTS season. Source: ECRM 11 Weeks Ending 9/17/2011 Top Promoted Brands Across Key School & Office Categories Top Promoted Brands in Notebooks & Pads Weighted Share of Retail Ad Blocks Five-Star 42.8% Private Brand 30.9% Mead Top Flight 18.3% 3.1% Ampad 1.1% Tops 0.7% Oxford 0.7% Hilroy 0.5% Carolina Pad… 0.4% Source: ECRM 11 Weeks Ending 9/17/2011 Top Promoted Writing Instrument Brands Weighted Share of Retail Ad Blocks Papermate 31.6% Bic 19.2% Pilot 11.1% Dixon 10.7% Private Brand 8.0% Uni-Ball 5.0% Sharpie 4.9% Pentel Write Bros. Zebra Sarasa RSVP 2.5% 2.0% 1.3% 0.8% 0.7% Source: ECRM 11 Weeks Ending 9/17/2011 Top Promoted Paper Brands Weighted Share of Retail Ad Blocks Private Brand 37.3% Georgia-Pacific 15.1% Five-Star 12.9% Hammermill 12.4% HP (Hewlett Packard) PrintWorks Top Flight Boise Includes Filler Paper, Excludes Photo Paper 10.1% 4.2% 3.6% 2.5% Source: ECRM 11 Weeks Ending 9/17/2011 Top Promoted Brands in Binders, Pocket Portfolios, and Sheet Protectors Weighted Share of Retail Ad Blocks Avery 53.8% Five-Star 14.8% Private Brand 12.7% Pro Platinum 6.0% Mead 5.5% Hilroy 1.9% Wilson Jones 1.6% Oxford 1.0% Source: ECRM 11 Weeks Ending 9/17/2011 Top Promoted Office Equipment Brands Weighted Share of Retail Ad Blocks Texas Instruments 51.3% Private Brand 20.9% P-Touch Mighty Might Casio TI-Nspire 7.3% 4.4% 3.7% 2.5% Fellowes 1.8% Dymo 1.6% Powershred 1.0% Source: ECRM 11 Weeks Ending 9/17/2011 Top Promoted Tapes & Adhesives Brands Weighted Share of Retail Ad Blocks Elmer's 56.3% Scotch 15.3% RoseArt 9.6% Private Brand Avery Command Scholastic 8.4% 3.2% 1.9% 1.1% Source: ECRM 11 Weeks Ending 9/17/2011 Top Promoted Brands in Business Bags, Cases, and Accessories Weighted Share of Retail Ad Blocks Targus 24.2% SwissGear 22.9% InCase 14.4% Private Brand 12.0% Speck 9.0% SOLO 7.6% HP (Hewlett Packard) 3.6% Golla 3.6% Source: ECRM 11 Weeks Ending 9/17/2011 Top Promoted Brands in Backpacks, School Bags, and Lunch Kits Weighted Share of Retail Ad Blocks Private Brand 20.9% JanSport 20.6% Yak Pak 7.3% Adidas 5.4% High Sierra 4.1% Nike 4.0% Disney 3.8% FUL 2.3% Hawk Apparel 2.1% Skechers 2.1% Source: ECRM 11 Weeks Ending 9/17/2011 Methodology • Retail ad support measured by number of ad blocks in retailer print circulars. Ad share is weighted by retailer size. • Ad counts branded & private label products, but not unbranded. • 11-Week Period Ending 9/17/2011 Vs. Year Ago • U.S. & Canadian Retailers • Excludes Computers & Luggage Categories • 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