susan - acp: the coupon...

Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017 2

SUSAN JONESSenior Director, Shopper

& Promotion [email protected]

2

Promotion Landscape

Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017

Key Finding: Coupon Distribution (in billions)

4

-4.3%

321 307

2015 2016

4Source: 2017 Inmar Coupon Trends


Key Finding: Coupon Distribution (in billions)

313327 321 321

307

2012 2013 2014 2015 2016



Key Finding: Coupon Redemption (in billions)

2015 2016

2.32.2 -4.1%



2.9 2.8 2.7

2.3 2.2

2012 2013 2014 2015 2016

Key Finding: Coupon Redemption (in billions)

7

-3.3% -4.3% -13.6% -4.1%

Source: 2017 Inmar Coupon Trends


Coupons Drive Purchase Behavior

12%

14%

27%

29%

31%

Switch back to a brand

Purchase a different product within a brand

Purchase a brand they would not otherwise

Make an accelerated purchase

Make a higher volume purchaseAmong the 49%

of shoppers

that used

coupons, those

promotions drove

shoppers to…

810Source: Inmar 2017 Shopper Behavior Study


Fewer Shoppers Looking for Coupons

9

89% of shoppers

used a coupon in

the past three

months compared

to 92% in 2015

16% All of the Time

26% Usually

24% About Half the Time

23% Rarely

11% Never

In the past three months, how often have

you used coupons when shopping:



Eating at Home vs. Eating Away from Home

10

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.

Supermarket

Restaurant

Prepared

Foods

Prepared

Pick-UpMeal Kits Grocerant Restaurant

12

Source: National Restaurant Association//Technomic Source: Inmar Willard Bishop Analytics Key Trends Impacting Grocery Retailing

Digging Into The Data


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

FREE-STANDING

INSERT: 90.1%

2016 Coupon Distribution

12

1.5%

1.1%

0.9%

0.8%

0.8%

0.6%

0.6%

0.5%

0.5%

0.4%

0.4%

1.7%



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

FREE-

STANDING

INSERT

34.6%

13

2016 Coupon Redemption

17.9%

8.3%

5.8%

4.9%

4.3%

4.1%

3.6%

3.4%

3.0%

10.1%



Shopper Attitudes: Coupons

14

How often did you use the following types of coupons to purchase groceries? 2016 2017

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 2016 2017

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%



2016 2015

Average Face

Value Distributed$1.64 $1.74

Average Purchase

Requirement Distributed1.40 1.43

Average Redemption

Period Distributed2.0 2.0

(UP 1.3%)

Promotion Design Impacts Redemption

(DOWN 5.6%)

(DOWN 2.1%)



Method Tactics Vary

$1.65 $1.29 $1.48 $1.38

$2.97

$1.31 $2.01

$0.00

$1.00

$2.00

$3.00

$4.00

Free-Standing Insert(FSI)

Instant Redeemable(IR)

Electronic Checkout(EC)

Shelf Pad(SP)

Print-At-Home(PAH)

Load2Card(L2C)

Handout(HO)

Average Face Value Distributed

1.38 1.34

2.29

1.661.41

1.52

1.23

0.00

0.50

1.00

1.50

2.00

2.50

FSI IR EC SP PAH L2C HO

Average Purchase Requirement Distributed(units)

1.7

6.9

4.7

5.9

4.6

2.3

4.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

FSI IR EC SP PAH L2C HO

Average Redemption Period Distributed(months)



0.33%

18.16%

6.31%

9.03%

10.80%

6.20%

3.31%

FSI IR EC SP NET EDO HO

Average Redemption Rate: 2016

Free-

Standing

Insert

Instant

RedeemableElectronic

CheckoutShelf Pad Print-At-Home Load2Card Handout

Consumer Response Varies Significantly by Method


Food/Non-Food Trends


34.1

65.9 64.4

35.6

Distribution: Food & Non-Food Offers

19

Non-Food Food

2015 2016

Non-Food Food



62.5

37.5 37

63

Redemption: Food & Non-Food Offers

20

2015 2016

Non-Food Food Non-Food Food



Average

Face Value

Distributed

Average

Purchase

Requirement

Distributed

Average

Redemption

Period

Distributed

Food$1.11

-1.4%

1.45 units

-3.3%

2.2 months

-2.6%

Non-Food$1.94

-5.9%

1.37 units

-1.6%

1.8 months

+3.4%

Trends Similar Between Food & Non-Food Offers


Topic Spotlight: FSI and L2C Trends


The Shifting Promotion Mix

23

0.4%

90.1%

9.5%

% Distributed

3.0%

34.6%

62.4%

% Redeemed

Load2Card: EDO Free-Standing Insert: FSI All Other

29


Topic Spotlight: Free-Standing Inserts

Distribution and Redemption Trends

24

89.2% 89.2% 90.1%

2014 2015 2016

% Distributed

39.4% 38.4%

34.6%

2014 2015 2016

% Redeemed

25


Topic Spotlight:

Free-Standing Inserts Tactic Trends by Year

25

0.42% 0.38% 0.33%

2014 2015 2016

Redemption Rate

$1.73 $1.74$1.65

$1.50$1.51

$1.45

2014 2015 2016

Face Values

Avg Face Value Avg FV Dist Per item

1.7 1.7 1.7

2014 2015 2016

Redemption Period (in months)

1.42 1.42

1.38

2014 2015 2016

Purchase Requirement (in units)

26


Topic Spotlight:

Load2Card Distribution & Redemption Trends

26

0.3% 0.3%

0.4%

2014 2015 2016

% Distributed

1.8%

2.5%

3.0%

2014 2015 2016

% Redeemed

30


Topic Spotlight:

Load2CardTactic Trends by Year

27

5.43% 5.16%6.20%

2014 2015 2016

Redemption Rate

2.32.8

2.3

2014 2015 2016

Redemption Period (in months)

1.45

1.47

1.52

2014 2015 2016

Purchase Requirement (in units)

$1.55

$1.30$1.31

$1.22$1.05

$1.08

2014 2015 2016

Face Values

Face Value Face Value per Unit

31

Takeaways


The Emerging Shift

Redemption Decline Slowed

Digital at A Record High

Shoppers Want Convenience

and Savings

Strategy Is Key

1

2

3

4

34


www.inmar-insights.com

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

www.inmar-insights.com

35

Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017 31

Thank you! Questions?

www.inmar.com

www.linkedin.com/company/inmar

@InmarInc

Susan [email protected]

(336) 631-2568

36


• 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 third-party vendors

• Shopper Behavior Study collected in January 2017 representing shopping behavior for the last three months of 2016 (n=1000)

Methodology

3232


Tips for Understanding Trends Data

33

Manufacturer Offers Promotions funded by manufacturers and distributed to consumers

Store Offers Promotions funded by retailers and distributed to consumers

Trade Promotions Promotions funded by manufacturers and distributed by retailers

Loyalty ProgramsPrograms 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

Discovery Context The way in which a consumer discovers a promotion

Distribution MethodThe media vehicle a manufacturer uses to distribute a promotion

to consumers

WHICH SHOULD NOT BE CONFUSED WITH

33

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