First Quarter Coupon Trends Update - Q2 Webinar...© 2012 Inmar, Inc. All Rights Reserved. Not to be reproduced or distributed without written permission from Inmar Long-term Trend:

Second Quarter Coupon Trends Update July 25, 2012

Matthew Tilley Director of Marketing, Promotions Network

® © 2012 Inmar, Inc. All Rights Reserved. Not to be reproduced or distributed without written permission from Inmar

Network Orchestrator of Complex Transactions

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We operate collaborative commerce networks and make them intelligent.

• Reverse Logistics • Remarketing • Transportation • Donation • Recalls • Hazardous

Material/Waste • Consulting • Value-Added Services • Business Intelligence

• Rx Returns • Medical Device • Hazardous • Material/Waste • Recalls • Reconciliation • Contract

Management • Value Added Services • Business Intelligence

• Digital Promotions • Coupons • Rebates • Promotion Consulting


© 2012 Inmar, Inc. All Rights Reserved. Not to be reproduced or distributed without written permission from Inmar

Where we’re going

• The Big Numbers • The Four Contributing Factors • Two Important Notes

–Counterfeit Coupons –Digital Promotions

• Your Questions

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Long-term Trend: Redemption Growth

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2006 2.6 billion

2009 3.3 billion

2011 3.5 billion

growth rate! Source: Inmar Coupon Report 2012


Redemption The Big Story

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-11% H1 2012

vs. H1 2011

-7% Q1 -17% Q2

Source: Inmar Coupon Report 2012


Redemption Declines Across the Board

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Non-food Food -4.9% Decline

-11.0% Decline

Q1

Q2

H1

-16.3% Decline

-18.5% Decline

-10.7% Decline

-15.3% Decline



ALL Major Methods See Redemption Declines

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Share of Redemption Redemption Volume

Change

Free-standing Insert 46.8% -14%

Instant Redeemable 16.4% -21%

Electronic Checkout 8.7% -13%

Shelf Pad 5.7% -32%

Direct Mail 4.1% -8%

Internet 4.0% -24%

Handout 3.0% -11%

On-pack 2.6% -14%

In-pack 2.3% -29%

Electronic Shelf 1.5% -32% Source: Inmar Coupon Report 2012, Q2 data only



Four Contributing Factors

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Promotion Support Pullback

Unattractive Offers

Private Label

Unemployment


-14-12-10

-8-6-4-202468

% Change Unit Price % Change Any Promo Unit Volume

CPG prices up & promotion support down All Departments 30 periods of price gains;

3.6% increase in latest period

Source: Nielsen Scantrack, Total U.S. All Outlets Combined; 4 week increments (vs. prior year); UPC-coded


Distribution Continues to Fall Distribution

-3.0% H1 2012

vs. H1 2011

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-1.5% Q1 -7.1% Q2



Distribution Declines Across the Board

Non-food Food

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-1.9% Decline

-3.8% Decline

Q1

Q2

H1

-7.1% Decline

-7.1% Decline

-2.0% Decline

-3.6% Decline



Many Major Methods See Distribution Declines

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Share of Redemption

Redemption Volume Change

Distribution Volume Change

Free-standing Insert 46.8% -14% -5%

Instant Redeemable 16.4% -21% +6%

Electronic Checkout 8.7% -13% +23%

Shelf Pad 5.7% -32% +9%

Direct Mail 4.1% -8% +62%

Internet 4.0% -24% -54%

Handout 3.0% -11% -40%

On-pack 2.6% -14% -58%

In-pack 2.3% -29% -59%

Electronic Shelf 1.5% -32% -6%

Source: Inmar Coupon Report 2012, Q2 data only




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Unattractive Offers

Private Label

Unemployment


Distributed:

$1.47/coupon (-9.3%)

Redeemed:

$1.28/coupon (+0.8%)

Distributed:

1.53 units/coupon (+2.7%)

Redeemed:

1.69 units/coupon (+1.8%)

Distributed: 2.1 months

(-12.5%)

Redeemed: 5.0 months

(-7.4%)

Marketer Tactics Are Muting Redemption

Average Face Value

Average Purchase Requirements

Average Redemption

Periods

14 Source: Inmar Coupon Report 2012, Q2 data only




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Unattractive Offers

Private Label

Unemployment



CPG Price Increases Due to Continue

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2.5% - 3.5%

“Food At Home” Inflation

2012 Forecast

Source: USDA


Private Brands

14%growth rate!

2009 $94 billion

2012 $107.1 billion

Source: Nielsen Scantrack, Total U.S. – All Outlets Combined; 52 weeks ending 12/26/2009 & 6/9/2012; UPC-coded




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Unattractive Offers

Private Label

Unemployment


Unemployment Rates (Slightly) Improving

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+5%

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Where is all of this going?

• Distribution still down • Redemption down 5-10%

by year’s end

For more information:

[email protected] 336.631.2524 www.inmar.com/couponreport @matthewjtilley

Matthew Tilley

Documents

First Quarter Coupon Trends Update - Q2 Webinar...© 2012 Inmar, Inc. All Rights Reserved. Not to be reproduced or distributed without written permission from Inmar Long-term Trend: