SUSAN JONES. Senior Director, Shopper & Promotion Analytics
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- Sibyl Potter
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1
2 SUSAN JONES Senior Director, Shopper & Promotion Analytics 2 2
3 Promotion Landscape
4 Key Finding: Coupon Distribution (in billions) % Source: 2017 Inmar Coupon Trends 4
5 Key Finding: Coupon Distribution (in billions) Source: 2017 Inmar Coupon Trends 55
6 Key Finding: Coupon Redemption (in billions) % Source: 2017 Inmar Coupon Trends 66
7 Key Finding: Coupon Redemption (in billions) % -4.3% -13.6% -4.1% Source: 2017 Inmar Coupon Trends 7
8 Coupons Drive Purchase Behavior Among the 49% of shoppers that used coupons, those promotions drove shoppers to Make a higher volume purchase Make an accelerated purchase Purchase a brand they would not otherwise Purchase a different product within a brand Switch back to a brand 14% 12% 29% 27% 31% Source: Inmar 2017 Shopper Behavior Study 10 8
9 Fewer Shoppers Looking for Coupons 89% of shoppers used a coupon in the past three months compared to 92% in 2015 In the past three months, how often have you used coupons when shopping: 16% All of the Time 26% Usually 24% About Half the Time 23% Rarely 11% Never Source: Inmar 2017 Shopper Behavior Study 11 9
10 Eating at Home vs. Eating Away from Home Supermarket Restaurant Prepared Foods Prepared Pick-Up Meal Kits Grocerant Restaurant Grab and Go Pre-Ordered Online or In-Store (Kiosk prior to shopping) In-Store Third-Party Hybrid Ordered Onsite, Pre-Ordered Online or In-Store (Kiosk prior to shopping) Food Service Revenues in Supermarkets Expected to Reach $30MM in 2017 The Business Insider cites research from NPD Group s recent report A Generational Study: The Evolution of Eating, which finds fresh, restaurant-quality food, chef-driven menus and instore experiences are reasons for millennials to visit and spend at grocerants. Source: National Restaurant Association//Technomic Source: Inmar Willard Bishop Analytics Key Trends Impacting Grocery Retailing 12 10
11 Digging Into The Data
12 2016 Coupon Distribution FREE-STANDING INSERT: 90.1% 1.5% 1.1% 0.9% 0.8% 0.8% 0.6% 0.6% 0.5% 0.5% 0.4% 0.4% 1.7% Dual Electronic and Paper: DEP Electronic Checkout: EC In-ad: IA Magazine Pop-up: MPU Handout: HO Instant Redeemable: IR Direct Mail: DM Magazine On-page: MOP Sunday Supplement: SS Instant Redeemable Cross Ruff: IRC Load2Card: EDO Other Source: 2017 Inmar Coupon Trends 14 12
13 2016 Coupon Redemption FREE- STANDING INSERT 34.6% 17.9% 8.3% 5.8% 4.9% 4.3% 4.1% 3.6% 3.4% 3.0% 10.1% Instant Redeemable: IR Electronic Checkout: EC Instant Redeemable Cross Ruff: IRC Dual Electronic and Paper: DEP Direct Mail: DM Shelf Pad: SP Print-At-Home: NET Handout: HO Load2Card: EDO Other Source: 2017 Inmar Coupon Trends 1513
14 Shopper Attitudes: Coupons How often did you use the following types of coupons to purchase groceries? Loaded onto my retail store loyalty card/associated with my account number 37% 42% Inserts from the Sunday newspaper 43% 40% Found in the store circular 42% 39% Barriers to Coupon Use My coupons often expire before I have the chance to use them 62% 63% I can t find coupons for the products that I want to buy 62% 63% It takes too much time to find coupons 45% 48% Source: Inmar 2017 Shopper Behavior Study 16 14
15 Promotion Design Impacts Redemption Average Face Value Distributed $1.64 $1.74 (DOWN 5.6%) Average Purchase Requirement Distributed (DOWN 2.1%) Average Redemption Period Distributed (UP 1.3%) Source: 2017 Inmar Coupon Trends 17 15
16 Method Tactics Vary Average Face Value Distributed $4.00 $3.00 $2.00 $1.00 $0.00 $1.65 Free-Standing Insert (FSI) $1.29 $1.48 $1.38 Instant Redeemable (IR) Electronic Checkout (EC) Shelf Pad (SP) $2.97 Print-At-Home (PAH) $1.31 Load2Card (L2C) $2.01 Handout (HO) Average Purchase Requirement Distributed (units) Average Redemption Period Distributed (months) FSI IR EC SP PAH L2C HO FSI IR EC SP PAH L2C HO Source: 2017 Inmar Coupon Trends
17 Consumer Response Varies Significantly by Method 18.16% Average Redemption Rate: % 10.80% 6.31% 6.20% 3.31% 0.33% Free- FSI Instant IR Electronic EC Shelf SP Pad Print-At-Home NET Load2Card EDO Handout HO Standing Redeemable Checkout Insert Source: 2017 Inmar Coupon Trends 19 17
18 Food/Non-Food Trends
19 Distribution: Food & Non-Food Offers Non-Food Food Non-Food Food Source: 2017 Inmar Coupon Trends 21 19
20 Redemption: Food & Non-Food Offers Non-Food Food Non-Food Food Source: 2017 Inmar Coupon Trends 22 20
21 Trends Similar Between Food & Non-Food Offers Average Face Value Distributed Average Purchase Requirement Distributed Average Redemption Period Distributed Food $ % 1.45 units -3.3% 2.2 months -2.6% Non-Food $ % 1.37 units -1.6% 1.8 months +3.4% Source: 2017 Inmar Coupon Trends 23 21
22 Topic Spotlight: FSI and L2C Trends
23 The Shifting Promotion Mix 9.5% 0.4% 3.0% % Distributed % Redeemed 34.6% 62.4% 90.1% Load2Card: EDO Free-Standing Insert: FSI All Other 29 23
24 Topic Spotlight: Free-Standing Inserts Distribution and Redemption Trends % Distributed % Redeemed 89.2% 89.2% 90.1% 39.4% 38.4% 34.6%
25 Topic Spotlight: Free-Standing Inserts Tactic Trends by Year Redemption Rate 0.42% 0.38% 0.33% Face Values $1.73 $1.74 $1.65 $1.50 $1.51 $ Avg Face Value Avg FV Dist Per item Redemption Period (in months) Purchase Requirement (in units)
26 Topic Spotlight: Load2Card Distribution & Redemption Trends % Distributed % Redeemed 0.4% 3.0% 0.3% 0.3% 2.5% 1.8%
27 Topic Spotlight: Load2CardTactic Trends by Year Redemption Rate 5.43% 5.16% 6.20% $1.55 $1.22 Face Values $1.30 $1.05 $1.31 $ Face Value Face Value per Unit Redemption Period (in months) Purchase Requirement (in units)
28 Takeaways
29 The Emerging Shift 1 Redemption Decline Slowed 2 Digital at A Record High 3 Shoppers Want Convenience and Savings 4 Strategy Is Key 34
30 On demand reporting, research & education for CPG brands and retailers Industry Trends Shopper Research Education Reports focused on key trends data and analysis from the promotion industry Studies and findings analyzing shopper behavior and the path to purchase Fundamental information about the promotion industry and best practices 35 30
31 Thank you! Questions? Susan Jones (336)
32 Methodology Percent change compares activity throughout the full year of 2016 with activity from the full year of 2015 Distribution and redemption data consolidated from the Inmar coupon database Industry distribution and redemption statistics extrapolated using Inmar and Kantar Media data Analysis conducted to develop key insights Data cross-checked with major coupon distributors and thirdparty vendors Shopper Behavior Study collected in January 2017 representing shopping behavior for the last three months of 2016 (n=1000) 32
33 Tips for Understanding Trends Data Manufacturer Offers Promotions funded by manufacturers and distributed to consumers Store Offers Promotions funded by retailers and distributed to consumers Trade Promotions Loyalty Programs Discovery Context WHICH SHOULD NOT BE CONFUSED WITH Distribution Method Promotions funded by manufacturers and distributed by retailers Programs that link a consumer to a unique ID and enable the retailer to provide savings to the consumer through Load-to-Card promotions and other savings vehicles The way in which a consumer discovers a promotion The media vehicle a manufacturer uses to distribute a promotion to consumers 33
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