Super Bowl 2014 Retail Promotions February, 2014 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”. • Drug Chains are moving away from a big Super Bowl push CVS did not even mention it on their front cover. • Mass Retailers are running multiple pages of electronics (especially TVs) and food. • Other brands decide to go all in on FSI coupons. Newman’s Own, Velveeta run their most of their coupons during Super Bowl week. • Super Bowl TV ads have become better coordinated with retail promotions. Top Super Bowl Commercial Brands are matching the spending with additional circular advertising. • 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 – 1/27/2014 Super Bowl Tie-In on Front Cover “Party must-haves” Page 4 features “Game Day Greats” Safeway – 1/29/2014 Visual Front Cover Super Bowl Tie-In “The Joy of Football” Publix – 1/30/2014 Super Bowl Theme on front page including party themed pages 8 & 9. (10 pages contain football game themed page topping banners) 3 Super Bowl Sales Events in the Mass Channel Walmart– 1/26/2014 Super Bowl Theme on 6 of 20 circular pages. 3 pages featuring TVs/Video, 3 pages featuring cell phones & tablets. 4 Super Bowl Sales Events in the Mass Channel Walmart– 1/26/2014 Super Bowl Theme Wrap Pages “Game Time” food item focused. “Game Time” Appliances on 50% of page 3. Page 4 devoted a quarter page to a Valentine’s Day item section! 5 Super Bowl Sales Events in the Mass Channel Target– 1/26/2014 Unlike Walmart, front cover includes snack and beverage items. Pages 2 & 3 feature TVs and electronics, similar to Walmart. 6 Super Bowl Sales Events in the Mass Channel Target– 1/26/2014 In contrast to Walmart, Target chose to feature event food item on only 2 middle circular pages. Like Walmart, Target gave Valentine’s Day items a quarter page this week. 7 Super Bowl Sales Events in Other Retail Channels No CVS 2014 circular front cover Super Bowl connection! Walgreens – 1/26/2014 75% front cover is tied to Super Bowl. Pages 3 & 4 feature party food items. CVS – 1/26/2014 Only page 3 of CVS circular is tied to the Super Bowl. 8 Super Bowl Sales Events in Other Retail Channels Family Dollar – 1/26/2014 Front page “Savings For The Game” promotion Dollar General – 1/26/2014 No front circular cover Super Bowl connection. Page 4 has only mention of Super Bowl theme. 9 Some Retailers Diverged from Last Year’s Circular Safeway 2-3-2013 Safeway 2-2-2014 Safeway 1-29-2014 Similar items featured 2014 week-toweek and as in previous 2013 year but without the heavy focus on “The Joy of Football” 10 CVS Does Not Feature Super Bowl Theme in 2014 CVS 1-27-2013 CVS 1-26-2014 No Front Cover Super Bowl Tie-In for 2014! 11 Walgreens Features Super Bowl Theme in 2014 Walgreens 1-27-2013 Walgreens 1-26-2014 A bit more overt Super Bowl connection in 2014! 12 Copyright Fears Keep Retailers from Promoting the Super Bowl by Name Retail Banner Super Bowl Event CVS Big Game Dillons Game Day Giant Eagle Big Game Hannaford Football Frenzy Kmart Biggest Game/Football Frenzy Kroger Game Day Lucky Supermarkets Big Game Meijer Big Game Publix Supermarkets Game Day Safeway Stores The Joy of Football Shop 'n Save The Big Game Stop & Shop Game On Target Stores Game Day Walgreens Game Day Walmart Game Time 13 Major Food Brands Spiking Ads for the Super Bowl Limited to Brands with over 100 true ad block count over the 52 week period. Ad Count Index – Super Bowl Week Ending 2/1/14 Vs. 52-Week Average Annie Chun's 1,124 Recipe Secrets 484 Red Hot 980 Pace 459 Lit'l Smokies 930 Naked Juice 445 Wholly Guacamole 614 La Choy 613 Voskos Annie Chun’s has 11x as many ads for Super Bowl week compared to an average week. Farm Rich 436 Curly's 428 565 Back To Nature 428 REV 549 Twix 415 Ro*Tel 546 Black Box 407 Garden Fresh… 538 Sweet Baby… 393 SuperPretzel 515 Claussen 390 14 Limited to sub categories with over 100 true ad block count over the 52 week period. Top Food Sub-Categories Promoted for the Super Bowl Ad Count Index – Super Bowl Week Ending 2/1/14 Vs. 52-Week Average Platters/Trays 359 Limes 219 Dips & Spreads 287 Mustard 218 Barbeque/Steak & Other Sauces 286 Grapefruit 214 Salsa&Chip Dips 282 Snack Nuts & Seeds 212 Ketchup 269 Avocado 205 Refrigerated Dips 262 Sandwich & Hot Dog Buns 197 Poultry/Wings 262 Cream Cheese 196 Pizza Sauces 258 Salty Snack Mix 195 Hard Cider 249 Nutritional Snacks 194 Radishes 227 Malt Liquor 190 15 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. 16 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. 32% of Newman’s Own annual FSI’s occurred the week of the Super Bowl Ragu, Dannon Oikos, and Speed Stick, each see significant portions of their annual ads during the super bowl week. 24% of Axe’s annual FSI’s occurred the week of the Super Bowl 17 Source: ECRM’s Marketgate Coordinating FSIs with Retail Ad Support 250 Weekly Circular Ad Counts Velveeta 200 150 Strong Ad Support with Velveeta Super Bowl FSI Back-to-School FSI Also Aligned with Ad Support 100 50 0 200 150 100 Newman's Own One FSI Per Year on 1/22/12 Unrelated to Retail Ad Support 50 0 18 Source: ECRM’s Marketgate 2014 Super Bowl TV Ads & Coordination with Retail Promotions Budweiser ‘Puppy Love’ Budweiser feature ads increased 39.3% week prior to Super Bowl. Cheerios Increased promotional support in the week prior to event by 28.5% Dannon Oikos Greek Yogurt Promotional share increased for week prior to event; +4.6% Coca-Cola ‘America the Beautiful’ Flat (+0.04%) change in promotional share week prior to event & lower feature ad support for the same week vs. same week prior year (-12.6%) Doritos ‘Cowboy Kid’ Increase in promotional share the week prior to event; +3.9% Heinz Ketchup Increased promotional share 22.5% week before Super Bowl event 19 Retailers Pull Back on Private Brand Ads for the Super Bowl 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. 19.4% 15.8% 18.5% 15.3% 15.7% 11.6% 15.9% 13.3% 15.5% 12.8% 20 Promoted Pricing Types Across Key Retailers Key retailers use similar promotion types for Super Bowl week compared to previous 52 weeks. Albertsons IM Promo Type Price Point X-For BOGO Free w/Purchase Incentive Recipe Save $X Save X% W/Purchase Kroger CIN Meijer Safeway Stores Target Stores Current Wk Ending Current Wk Ending Current Wk Ending Current Wk Ending Current Wk Ending 52-Weeks 2/1/2014 52-Weeks 2/1/2014 52-Weeks 2/1/2014 52-Weeks 2/1/2014 52-Weeks 2/1/2014 64% 66% 57% 42% 63% 58% 66% 66% 83% 80% 26% 26% 26% 20% 19% 21% 19% 24% 6% 7% 3% 4% 1% 2% 5% 7% 4% 4% 2% 1% 0% 0% 0% 1% 0% 0% 0% 0% 0% 0% 0% 0% 2% 2% 3% 1% 0% 2% 1% 0% 1% 0% 11% 2% 2% 0% 0% 31% 4% 0% 1% 0% 6% 5% 0% 7% 0% 2% 5% 0% 1% 0% 6% 1% 3% 1% 0% 3% 0% 1% 2% 0% 1% 6% 0% 3% 0% 1% 8% 0% 21 Lowest U.S. Prices on Super Bowl Snack & Beverages Retailer Ad Price Product Size Snacks Longs Drug (Hawaii) Sentry Foods Navarro Discount Pharmacies Bi-Mart H.E.B. Walgreens Walgreens Harvey's Supermarkets Northgate Market Lowes Big 8 $0.69 $0.79 $0.79 $0.88 $0.88 $0.99 $0.99 $0.89 $0.99 $1.29 Just the Basics Cheese Twists Essential Everyday Crackers Conchita Guave Bites Act II Popcorn H.E.B. Potato Chips Keebler Cookies Nabisco Cookies Turkey Creek Pork Skins Corn Nuts Snacks Calidad Tortilla Chips 5 oz. 9 oz. 4.9 oz. 3 ct./pk. 4 oz. 5.25 oz. 3.47-7 oz. 3 oz. 4 oz. 12 oz. $0.47 $0.58 $0.59 $0.68 $0.69 $0.69 $0.77 $0.78 $0.79 $0.79 Parade Soft Drink Products Powerade Giant Mixers Super Chill Sparkling Water Coca-Cola Products Glaceau Vitamin Water Pepsi Products Yoo-hoo Chocolate Drink Schweppes Mixers A&W Products 2 ltr. 32 oz. 1 ltr. 17 oz. 2 ltr. 20 oz. 2 ltr. 6.5 oz. 3 ct./pk. 33.8 oz. 2 ltr. Beverage Terry's Super Markets Albertsons SOW Giant Food Landover Hornbachers Foods Lowes Foods Safeway Stores Weis Markets Food Basics Acme Markets (NAI) Save Mart 22 Source: ECRM’s Marketgate Lowest U.S. Prices on Super Bowl Dipping & Disposables Retailer Ad Price Product Size Condiments/Salsa/Dips/Ingredients Breaux Mart Supermarkets La Fiesta Lowe's Market Hy-Vee Food Stores Sellers Bros. Foodtown Foodarama Market Select Markets $0.39 $0.49 $0.69 $0.69 $0.69 $0.79 $0.79 $0.89 Shurfine Hot Dog Sauce Kraft Barbecue Sauce Shur Fine Mustard Sweet Baby Ray's Barbecue Sauce Kraft Barbecue Sauce Foodtown Sauerkraut Vlasic Relish Western Family Olives 10.5 oz. 17.5-18 oz. 12 oz. 18 oz. 17.5-18 oz. 14 oz. 10 oz. 3.8 oz. Hy-Vee Food Stores Cardenas Markets $0.98 $0.99 Kraft Barbecue Sauce Hunt's Barbecue Sauce 16.25-18 oz. 18 oz. $1.89 $1.99 $2.97 Mars Store Prepared Deviled Egg Platter/Tray In-Store Bakery Kaiser Roll Platter/Tray Fruit Platter/Tray-Store Prepared 6 ct./pk. 6 ct./pk. 1 lb. Good Time Disposable Tableware Clear Value Disposable Tableware Ideal Disposable Cutlery 22 ct./pk. 40 ct./pk. 24 ct./pk. Platters & Trays Mars Super Markets Market Street United El Super Disposable Cups, Plates, Napkins Food Town (TX) Price Chopper (Golub) Discount Drug Mart $0.55 $0.58 $0.79 23 Methodology & Details Report Methodology • Retail ad support measured by number of ad blocks in retailer print circulars. • “Pre-Super Bowl” week includes week ending 2/1/201 More About ECRM’s MarketGate Ad Comparisons Web Site: www.AdCompare.MarketGate.com Studies on Seasonal & Category Promotions: www.PromotionalReflections.com Contacts: Scott Whalley 847-482-1793 scott@ecrm.marketgate.com 24