a l ook at t rends in p romotion a ctivity and s hopper b ehavior senior analytics lead, promotion...
TRANSCRIPT
A LOOK AT TRENDS IN PROMOTION ACTIVITY AND SHOPPER BEHAVIOR
Senior Analytics Lead, Promotion Analytics / InmarAndrew W. Coleman
© 2015 Inmar, Inc. 2
Session agenda
1. Introduction
2. Definitions and methodology
3. Topline findings
4. Economic conditions
5. Promotion landscape
6. NEW: Canadian trends
7. Spotlight: Digital trends
8. Conclusions and predictions
9. Questions
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• Senior Analytics Lead, Promotion Analytics• Background in creative and digital brand
management• Agency and client-side perspective• Loves data, hates buzzwords• New dad
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Distribution and redemption data consolidatedfrom the Inmar coupon database.
Percent change compares activity throughout 2014 with activity from 2013.
Industry distribution and redemption statistics extrapolated using Inmar and Kantar Media data.
Analysis conducted to develop key insights.
Data cross-checked with major coupondistributors and third-party vendors.
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• Manufacturer offers vs. coupon codes
• Digital vs. digital-ish
• Convenience vs. accuracy
• IR vs. IRC
• DEP (Dual electronic and paper)
• EC (Electronic checkout)
• EDO (Electronic discount opt-In / load2card)
• FSI (Free-standing insert)
• HO (Handout)
• IR (Instant redeemable)
• NET (Internet printable / print at home)
• SP (Shelf pad)
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2013 2014
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2013 2014
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Source: 2014 Inmar Coupon Trends
Free-standing insert
Up from 87.4 % in 2013
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Free-standinginsertDown from 40.0%
in 2013
Source: 2014 Inmar Coupon Trends
Electronic checkout
Shelf pad
Direct mail
Internet
Other
Instant redeemableInstant redeemable cross ruff
Dual electronic and paper
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January February March April May June July August September October November December0
20
40
60
80
100
120
140
160
180
20102011201220132014
Source: 2014 Inmar Coupon Trends
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January February March April May June July August September October November December50
60
70
80
90
100
110
120
130
2010
2011
2012
2013
2014
Source: 2014 Inmar Coupon Trends
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2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: 2014 Inmar Coupon Trends
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2013 2014Source: 2014 Inmar Coupon Trends
Non-Food
FoodFood
Non-Food
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2013 2014Source: 2014 Inmar Coupon Trends
Non-Food
FoodNon-Food
Food
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FSI IR EC SP NET EDO HO0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Average Redemption Rate: 2014
Free-Standing Insert Instant Redeemable Electronic Checkout Shelf Pad Internet Printable/Print at Home
Electronic DiscountOpt-In / Load2Card
Handout
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FSI IR EC SP NET EDO HO0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Average Redemption Rate: 2014
Free-Standing Insert Instant Redeemable Electronic Checkout Shelf Pad Internet Printable/Print at Home
Electronic DiscountOpt-In / Load2Card
Handout
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Gas prices falling
Consumer confidence increasing
Unemployment rate falling
Misery index falling
Retail improving, but CPG eCommerce lagging
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Baskets and trips on the rise
Face values getting sweeter
Units holding steady
Shrinking redemption period
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Average face value distributed
Average purchase requirement distributed
Averageredemption perioddistributed
Source: 2014 Inmar Coupon Trends
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New Product Event Dates in 2014(814 in 2013)
New Products Promoted via FSI in 2014 (412 in 2013)
Categories Featuring New Product Events in 2014
(96 in 2013)
Source: Marx / Kantar Media
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FSI IR EC SP NET EDO HO$1.00
$1.10
$1.20
$1.30
$1.40
$1.50
$1.60
$1.70
$1.80
$1.90
$2.00
201420132012
Average face value distributed
Source: 2014 Inmar Coupon Trends
Free-Standing Insert Instant Redeemable Electronic Checkout Shelf Pad Internet Printable/Print at Home
Electronic DiscountOpt-In / Load2Card
Handout
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FSI IR EC SP NET EDO HO1.00
1.20
1.40
1.60
1.80
2.00
2.20
201420132012
Average purchase requirement distributed (units)
Source: 2014 Inmar Coupon Trends
Free-Standing Insert Instant Redeemable Electronic Checkout Shelf Pad Internet Printable/Print at Home
Electronic DiscountOpt-In / Load2Card
Handout
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FSI IR EC SP NET EDO HO0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
201420132012
Average redemption period distributed (months)
Free-Standing Insert Instant Redeemable Electronic Checkout Shelf Pad Internet Printable/Print at Home
Electronic DiscountOpt-In / Load2Card
Handout
Source: 2014 Inmar Coupon Trends
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Average purchase requirement distributed
Average redemption perioddistributed
Average face value distributed
Source: 2014 Inmar Coupon Trends
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< $25K
$25K - $34K
$35K - $49K
$50K - $69K
$70K - $99K
$100K - $124K
$125K - $149K
$150K - $199K
$200K +
140
142
141
138
139
140
146
144
142
Basket Ring Per Trip Trips Per ShopperSource: Nielsen Homescan, 52 w/e 12/28/2013 - excludes gas-only or Rx-only trips
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2012 2013 20140.0
2.0
4.0
6.0
8.0
31
(Bill
ions
)
Source: 2014 Inmar Promotions – Canada
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2012 2013 20140.0
20.0
40.0
60.0
80.0
100.0
120.0
32
(Mill
ions
)
Source: 2014 Inmar Promotions – Canada
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Source: 2014 Inmar Promotions – Canada
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2013 2014
Source: 2014 Inmar Promotions – Canada
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FSI
In/On Pack
In Store
Direct Mail
Magazine
Internet
Other
2014Source: 2014 Inmar Promotions – Canada
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Source: 2014 Inmar Promotions – Canada
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• Still a small share of distribution
• Declining share of redemption
• Rich face values
•Wide range of redemption rates
– Overall average:
– “Middle half” spans
Source: 2014 Inmar Coupon Trends
2013: 5.0%
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• Similarly small share of distribution
• Growing share of redemption
• Decent face values
• Average redemption rates:
‒ Overall average:
‒ “Middle half” spans
2013: 0.9%
Source: 2014 Inmar Coupon Trends
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• Large share of distribution
• Large share of redemption
• Average face value
• Average redemption rate
‒ Overall average low
‒ Middle half spans
Source: 2014 Inmar Coupon Trends
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“The eventuality of the world is a one-to-one relationship with every consumer which results
in trust, loyalty – all the things that a brand wants.”1
“I think the days of traditional mass marketing are kind of over. Marketing has
to be a conduit into the multi-screen world that everyone’s living in. How do you create
a two-way conversation?”2
SOURCE: 1) AdAge, AdAge Digital A-List: P&G, February 2011. 2) Business Insider, Frito-Lay CMO: The Days of Traditional Mass-Marketing are Over, July, 20, 2012
Bob McDonald Former CEO & Chairman of the Board, Procter & Gamble
Ann Muhkerjee,SVP and CMO,Frito-Lay North America
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SOURCE: 1) L2 Business Intelligence for Digital, “Where Consumers Look for Grocery Coupons”, 2) Institute for Advanced Analytics, NCSU September 2014,
3) Knowledge Networks , Trend Report 2011; Coupons .com Digital User Behavior presentation 20114) 2014 Redemption Statistics, Hopster Coupon Platform
Engagement coupons generate 5x redemption of traditional print-at-home coupons4
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• Multiple print technologies
• Industry best security options
• Seamless media integration
• Robust data capture
• Integrated engagement activities
• Accepted at all retailers
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• Personalized emails delivered through retail partners
• Targeting capabilities match offers with shoppers
• Maximize promotional dollars with targeted offers
• Robust financial and behavioral data capture
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In our client conversations, we have heard:
• Consumer promotion budgets have been shrinking and/or shifting (from national programs to retail-specific / shopper marketing / activation strategies).
• Despite these cuts, brands continue to use remaining budgets to evolve their marketing mix: to reach new shoppers, leverage new technologies and lead innovation in their categories.
• There are also new and different ways to distribute offers that bypass traditional clearing and settlement processes.
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• Ongoing decline of paper redemptions
• Continued rapid growth of digital distribution AND redemption
• Increased adoption of digital platforms by retailers
• Increasing sophistication across targeting methodologies
• Shoppers will continue to look for deals beyond established
distribution methods, and reward the companies that make it easy for
them to participate
• 10-digit mobile overtakes email address as primary unique identifier
• Coupon offers delivered directly to your Oculus Rift*
Not intended to be a factual prediction