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A banner year for coupons.

* Forget about 2010 being the year of the Golden Tiger--it was the year of the coupon.

Consumer packaged goods (CPG) manufacturers offered recession-weary consumers some $485 billion in savings via coupons, according to a report on 2010 coupon usage. This represents a 13.9% increase over the prior year and 47.4% growth compared to five years ago, according to the NCH Marketing Services 2010 Coupon Facts Report.

"We have seen significant changes to shopping patterns, which have now been established as new habits and routines," said Suzie Brown, chief marketing officer at Valassis, parent company of NCH Marketing Services. "Consumers' continued interest in coupons and savings has been influenced by concerns over their own personal economic situations, and as a result, they are using more coupons, seeking savings wherever they can, combining print and digital offers and permanently becoming strategic shoppers."

In 2010, marketers once again distributed more CPG coupons than the prior year, reaching 332 billion--the largest single-year distribution quantity ever recorded in the U.S., exceeding the prior record set in 2009 by 6.8% or 21 billion coupons.


Nearly two-thirds of all coupons distributed in 2010 were for grocery products, up 8% from the prior year to 216 billion coupons. The remaining coupon offers in 2010--116 billion coupons--were for health & beauty care (HBC) products, up 4.5% from the prior year. According to the report, seven of the top 10 categories with the highest growth are non-food categories, which can be attributed to marketers' desire to make these often-times discretionary purchases more desirable.

In addition, the report found that the average face value of CPG coupons distributed in 2010 increased 6.6% to $1.46, and 26% of all CPG coupons issued in 2010 required the purchase of two or more items to obtain the offer discount.

According to the report, the average coupon face value distributed for HBC products was $1.94, up 6.6% from the prior year. However, just 13% of HBC coupons required multiple purchases to receive the discount.

According to the NCH Coupon Facts Report, overall, 87.7% of all CPG coupons were distributed in 2010 via the freestanding insert (FS1).Total FSI total growth in coupons was 19 billion, the largest volume increase of all media. The second largest share of coupons distributed was via in-store media, amounting to 5.2% of the 2010 total.

Digital coupons, including both paper and paperless formats, continued to grow in 2010 as marketers embraced these methods to reach a new audience. In total, NCH measured a 37% increase in the number of digital coupon offers, the largest increase of all coupon media types.

Luring Them in with Savings

Household and personal care products hold a healthy share of the top 10 categories with highest growth in coupon distribution volume in 2010.

1. Oral Hygiene

2. Laundry Supplies

3. Fresheners & Deodorizers

4. Household Cleaners

5. Breakfast Foods - Shelf Stable

6. Pet Food

7. Yogurt

8. Personal Cleansing & Bath Products

9. Detergents

10. Liquor

Source: NCH Marketing Services
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Title Annotation:News Front
Publication:Household & Personal Products Industry
Date:May 1, 2011
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