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SUSAN JONESSenior Director, Shopper
& Promotion [email protected]
2
Promotion Landscape
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Key Finding: Coupon Distribution (in billions)
4
-4.3%
321 307
2015 2016
4Source: 2017 Inmar Coupon Trends
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Key Finding: Coupon Distribution (in billions)
313327 321 321
307
2012 2013 2014 2015 2016
55Source: 2017 Inmar Coupon Trends
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Key Finding: Coupon Redemption (in billions)
2015 2016
2.32.2 -4.1%
66Source: 2017 Inmar Coupon Trends
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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:
11Source: Inmar 2017 Shopper Behavior Study
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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
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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%
14Source: 2017 Inmar Coupon Trends
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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%
15Source: 2017 Inmar Coupon Trends
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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%
16Source: Inmar 2017 Shopper Behavior Study
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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%)
1517Source: 2017 Inmar Coupon Trends
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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)
16116Source: 2017 Inmar Coupon Trends
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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
1719Source: 2017 Inmar Coupon Trends
Food/Non-Food Trends
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
34.1
65.9 64.4
35.6
Distribution: Food & Non-Food Offers
19
Non-Food Food
2015 2016
Non-Food Food
21Source: 2017 Inmar Coupon Trends
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
62.5
37.5 37
63
Redemption: Food & Non-Food Offers
20
2015 2016
Non-Food Food Non-Food Food
22Source: 2017 Inmar Coupon Trends
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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
2123Source: 2017 Inmar Coupon Trends
Topic Spotlight: FSI and L2C Trends
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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
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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
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The Emerging Shift
Redemption Decline Slowed
Digital at A Record High
Shoppers Want Convenience
and Savings
Strategy Is Key
1
2
3
4
34
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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
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Thank you! Questions?
www.inmar.com
www.linkedin.com/company/inmar
@InmarInc
Susan [email protected]
(336) 631-2568
36
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
• 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
Inmar confidential – do not copy, distribute or use without Inmar written permission, 2017
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