What coupons do:
Retailer Alignment, Advertising Impact, Purchase Incentive
Being Modern is Being Relevant
• What’s the talk?
“One great advantage of digitally
distributed coupons is the ability to specify
which level of incentives you wish to offer
shoppers across multiple websites.”
“FSI coupons continue to
be the dominant vehicle for
distributing purchase
incentives across the
Consumer Packaged
Goods (CPG) landscape”
“FSI coupons effectively engage
shoppers in their homes where
shoppers opt-in to the advertising
and purchase incentives while
writing their shopping lists and
planning their shopping trips”
“…attract shoppers and increase sales by
enabling promotion-responsive shoppers to
easily redeem FSI coupons in their stores”
Being Modern is Being Relevant
• How are coupons relevant in today’s modern age?
– Current Trends in FSI:
• Cause Marketing
• Scale Events
• 2014 Thematic Calendar
– Integrated Print and Digital Coupon Industry Data
• Seasonality
• Area Review
• Growth by Area
• Integrated Print and Digital Coupon - Vitamins
• Different incentives, offers, execution
• Boosting / Interfering
• Mobile…
Being Modern is Being Relevant:
Cause Marketing
• Cause Marketing
– Example: Wounded Warrior
– Manufacturers and Restaurants participate
“…a promotion tied to a
charity can also offer an
intangible emotion of
“doing good” that raises a
brand’s perception in the
eye of the shopper…”
11/9/2014 – Six
Cause Marketing Events
Being Modern is Being Relevant:
Scale Events
• How are coupons relevant in today’s modern age?
– Current Trends in FSI:
• Scale events are the next evolution of multi-brand events for manufacturers with
a large portfolio of powerful brands.
• Started in 2002, helping brands break through the clutter
Being Modern is Being Relevant:
Scale Events
Manufacturer
Procter & Gamble Co
# FSI Scale Events
13
Trusted Brands to Improve your Everyday
Johnson & Johnson
Family of Consumer Companies
Healthy Essentials
L'Oreal SA
7
Save Up To $14.00…
L'Oreal Savings Inside
7
Unilever
6
facebook.com/Making Life Better
facebook.com/unileverusa
Nestle
Nestle Good Food, Good Life
Purina Pet Lovers Savings
Kimberly Clark
Pick Up the Values
Colgate
Pick Up the Values
7 major manufacturers executed a
total of 39 SCALE events in 2014
4
1
1
SCALE Events contains over-arching theme
linking brands together to appear as cohesive
event to the consumer; generally 3 or more pages
consecutively with 4 or more brands participating.
Being Modern is Being Relevant:
Retailer Events
• How are coupons relevant in today’s modern age?
– Retailers participate in Scale Events
– Retailer Pages help drive shoppers into the store
Retailer Pages
% Chg 2013 vs 2014
Store
Walmart
Target
Walgreens
Family Dollar
Dollar General
CVS Pharmacy
Safeway
Kroger
Vons
BJ's
15.3%
-11.1%
-1.8%
36.1%
161.9%
47.2%
20.3%
19.7%
11.8%
26.5%
Store
Target
Walmart
Family Dollar
Walgreens
Retailer Pages (MM)
Parent
Unilever
Johnson & Johnson
Procter & Gamble Co.
Walgreen Co.
Rank
1
2
3
4
Being Modern is Being Relevant:
Retailer Events
• How are coupons relevant in today’s modern age?
– Number of manufacturers per digital retailer website
– Incentives by two major Areas by Retailer
Number of Manufacturers
by Website Type 2014
1265
136
Brand Websites
502
464
Network Websites
Affiliate/Aggregator
Websites
Retailer Websites
Evolution or Revolution: Modernization
More manufacturers in Print – Retailer
pages are up!
1995
2004
Digital Retailer Activity is growing within
digitally distributed coupons
2009
2014
2015
Being Modern is Being Relevant
• How are coupons
relevant in
today’s modern
age?
– Integrated Print
and Digital
Coupon Industry
Data
• Seasonality:
about the
WHOLE
campaign
Being Modern is Being Relevant
• How are coupons relevant in today’s modern age? Scale
– While all Areas increased the use of Digital Promotion in 2014, 4 of 9 Areas increased the use of Print
Promotion.
– Cereals increased both Coupons Dropped and Estimated Prints and has the highest percentage share of
Digital within total activity at 9%.
– Personal Care is both the most active Area (90.4 billion) within Print Promotion and Digital Promotion;
however, unlike Print Promotion where Health Care is the second most active, within Digital, Dry Grocery is
the second most active Area.
Coupons Dropped (MM)
2014
% Chg vs 2013
DIGITAL CPG AREA
Cereals
3,048.1
5.3%
Cereals
Dry Grocery
57,941.2
-2.9%
Dry Grocery
Frozen Products
10,764.4
-16.1%
Health Care
59,753.2
Household Products
PRINT CPG AREA
Estimated Coupon Prints (MM)
2014
% Chg vs 2013
288.9
11.0%
1,406.6
62.8%
Frozen Products
275.7
36.6%
15.5%
Health Care
569.5
54.5%
38,740.1
-9.6%
Household Products
974.5
81.9%
Other Packaged Goods
7,922.6
7.5%
Other Packaged Goods
178.4
74.3%
Personal Care
90,462.0
3.1%
Personal Care
1,440.1
77.2%
Refrigerated Foods
13,723.8
-22.7%
Refrigerated Foods
528.7
56.7%
Shelf Stable Beverages
12,836.4
-8.3%
Shelf Stable Beverages
331.2
49.2%
Being Modern is Being Relevant
• How are coupons relevant in today’s modern age? Alignment
– Face Values tend to be lower in Digital with the exception of Frozen Products, Household Products,
Other Packaged Goods and Refrigerated Foods.
• Shelf Stable Beverages had the most growth in Print Face Values and also had growth in Digital Face Values.
• Health Care Digital Face Values are $0.36 smaller than Print and Personal Care Face Values are $0.33 smaller.
– Expiration Lengths are shorter in Digital than within Print among all Areas.
• Health Care and Personal Care Expirations are relatively in line between Print and Digital.
Area
2014
Cereals
Dry Grocery
Frozen Products
Health Care
Household Products
Other Packaged Goods
Personal Care
Refrigerated Foods
Shelf Stable Beverages
$0.91
$1.12
$0.97
$2.51
$1.26
$2.29
$2.05
$0.84
$1.66
$1.74
Weighted Avg Face Value
Print
Digital
% Chg vs 2013
2014
% Chg vs 2013
-2.2%
9.8%
-3.0%
6.8%
2.4%
-3.8%
-0.5%
1.2%
24.8%
$0.86
$1.03
$1.09
$2.15
$1.32
$4.11
$1.72
$0.88
$1.45
$1.67
1.2%
-7.2%
-5.2%
13.8%
3.9%
37.9%
0.6%
-3.3%
13.3%
2014
6.3
8.5
8.5
7.0
6.0
6.7
5.4
8.3
8.1
6.7
Weighted Avg Expiration (Wks)
Print
Digital
% Chg vs 2013
2014
% Chg vs 2013
0.0%
0.0%
0.0%
-2.8%
-4.8%
19.6%
-6.9%
-4.6%
11.0%
4.6
6.0
5.8
6.8
5.3
5.0
5.1
5.4
6.2
6.8
-8.0%
-6.3%
-6.5%
-15.0%
-7.0%
-21.9%
-13.6%
-14.3%
-4.6%
Being Modern is Being Relevant
• How are coupons relevant in today’s modern age?
– Nature’s Bounty Optimal Solutions Example in Vitamin Category
• Scale: over $14 MM in total promotion investment in this category
• Scale: growing in both Print and Digital offers
• Alignment: getting the incentive aligned in digital and print
Estimated Expenditures Competitive Snapshot
Print Est.
Expenditures
($000)
Print Est.
Expenditures %
Chg. vs. 2013
Digital Est.
Expenditures
($000)
Digital Est.
Expenditures %
Chg. vs. 2013
Total Est.
Expenditures
($000)
Total Est.
Expenditures %
Chg. vs. 2013
Product
Activity Status
2014
Brand A
COOLING OFF
11714.8
-33.6%
3022.2
-20.7%
14737.0
-31.3%
Brand B
LEANING ON DIGITAL
8815.0
-18.4%
1450.6
14.7%
10265.6
-15.0%
HEATING UP
11423.5
7.6%
2894.1
56.2%
14317.6
14.8%
Nature's Bounty Optimal Solutions
Being Modern is Being Relevant
• How are coupons relevant in today’s modern age?
– Growing overall expenditures in 2014, outpacing competitive brands
– The only brand growing, grew by 14%
Being Modern is Being Relevant
• How are coupons relevant in today’s modern age?
– Growing your Share of Voice in the category is important, especially Vitamins
– Helping your brand stand out
Brand A
Brand B
Product
36.4%
27.1%
26.1%
26.2%
37.5%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
46.6%
Share Estimated Expenditures
Print and Digital Share of Promotion Estimated Expenditures
Nature's Bounty Optimal Solutions
2013
2014
Being Modern is Being Relevant
• Vitamins Being Relevant in Print and Digital Coupons
Brand A
Brand B
35.8%
27.2%
27.6%
27.7%
36.7%
50%
40%
30%
20%
10%
0%
45.2%
Share Estimated
Expenditures
Print Promotion Share of Estimated Expenditures
2013
2014
Nature's Bounty Optimal Solutions
Product
39.3%
26.8%
19.7%
20%
18.3%
40%
41.0%
60%
55.0%
Share Estimated
Expenditures
Digital Promotion Share of Estimated Expenditures
0%
Brand A
Brand B
Product
Nature's Bounty Optimal Solutions
2013
2014
Being Modern is Being Relevant
• How are coupons relevant in today’s modern age?
– Integrated Print and Digital Coupon example
• How many week out of the year are your brands ‘on’?
• Timing events with competitors
2014 Promotion Drop Frequency
35
30
30
# Weeks
25
15
19
18
20
17
13
10
Print
Digital
10
5
0
Brand A
Brand B
Product
Nature's Bounty Optimal Solutions
Being Modern is Being Relevant
• How are coupons relevant in today’s modern age?
– Boost your print offers with digital offers to increase Share of Voice, increase
alignment and drive retailer support
2014 % Print Events Boosted
Product
Brand A
80.0%
Brand B
86.7%
Nature's Bounty Optimal Solutions
100.0%
0%
20%
40%
60%
80% 100% 120%
Promotion “Boosting” is defined as when digital
coupons drop within one week of a print promotion
event featuring one or more of the same products
Being Modern is Being Relevant
• How are coupons relevant in today’s modern age?
– Integrated Print and Digital Coupon example
• Competitive interference can reduce the impact of your Print FSI investment, or
steal share from your brand, and potentially encourage switching
2014 % Your Print Events That Competitor
Interfered
Promotion “Interference” is defined as when
competitive digital coupons are dropped within one
week of your promotion event(s) featuring one or
more products within the same category.
Product
Nature Made
Brand A
Brand B
0%
20%
40%
60%
80%
100%
Being Modern is Being Relevant
• How are coupons relevant in today’s modern age?
– Brand A runs more Print at Home than Load to Card offers
– What is missing?
2014 Promotion Event Mix
# Events
120
100
10
80
34
13
11
60
40
20
0
43
48
Digital - Load to Card
Digital - Print at Home
32
24
10
8
12
10
11
Brand A
Brand B
Nature's Bounty Optimal
Solutions
Product
Digital - Load to Wallet
10
7
Magazine
SSCM
FSI - Regional
FSI - National
Being Modern is Being Relevant
• How are coupons relevant in today’s modern age?
– Aligning incentives across media, consistent incentive, consistent message to the
shopper for your brand, supporting your promotional plan
Print and Digital WAFV
$2.50
$2.00
$0.50
$1.82
$2.03
$1.42
$1.67
$2.09
$1.00
$2.12
$1.50
$0.00
Brand A
Brand B
Product
Nature's Bounty Optimal Solutions
Print
Digital
Being Modern is Being Relevant
• How are coupons relevant in today’s modern age?
– Nature’s Bounty Optimal Solutions uses very few Multiple Purchase Requirements,
and only in Digital
Print and Digital % Multiple Purchase Offers
40%
35%
30%
25%
Print
5.3%
5%
2.6%
Digital
12.0%
10%
29.4%
15%
35.1%
20%
0%
Brand A
Brand B
Product
Nature's Bounty Optimal Solutions
Being Modern is Being Relevant
• How are coupons relevant in today’s modern age?
– Average Print FSI Expiration: Healthcare 6.7 Weeks, Digital 7.0 Weeks
– Give the shopper time to redeem
Print and Digital Average Expiration
9.0
8.0
6.0
2.0
7.4
3.0
8.4
8.2
7.5
4.0
8.3
5.0
Print
Digital
4.0
# of Weeks
7.0
1.0
0.0
Brand A
Brand B
Product
Nature's Bounty Optimal Solutions
Being Modern is Being Relevant
Leveraging omnichannel media
11/6/14
11/6/14
11/12/14 11/19/14 11/19/14
11/11/14 11/11/14
$2.00 off 1 $2.00 off 1 $2.00 off 1 $2.50 off 1 $2.00 off 1 $2.00 off 1 $2.00 off 1
Being Modern is Being Relevant
What’s been covered
Insight
Impact
Industry
Marx, a Kantar Media Solution
CPG ADVERTISING AND PROMOTION FOCUS
COMPETITOR
RETAILER
– Competitive Brand Strategy and
Tactics
– Historical Trending
– Manufacturer Insights
Monitoring more than 600
manufacturers in print and more than
800 in digital
Free-Standing Insert
Coupons & Retailer
Promotions
Digital
Coupons
INDUSTRY
– Retailer and Manufacturer Alignment
– Corporate Scale Events
– Retailer Launch Support
– New Product Attributes
– Cross-Channel Insights: Drug, Mass,
Value, Grocery
– Seasonality
Monitoring more than 100 retailer banners in
print and leading retailer websites
Sunday Magazine
Coupons
Consumer Magazine
Coupons
Monitoring more than 200 billion FSI
pages and the leading Network, Retailer
and Brand websites
In-Store Coupon
Machines
Advertising
(18 Media)
Thank you
Darcy Douglas
Kantar Media
darcy.douglas@kantarmedia.com
Office: 952.253.1604
Cell: 612.281.7246