Men: The Coupon Opportunity

Thérèse MulveyVice President, Marketing Intelligence Valassis

1

The Coupon Opportunity

• Who is the Couponing Man?

• Men as Shoppers

• Coupon Sourcing and Usage

2

The Coupon Opportunity

78% of Adults 18+ use coupons

Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013).

x% y%

3

44% 56%

The Coupon Opportunity

78% of Adults 18+ use coupons

Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013).

4

Are Men Savings Minded?

Source: Valassis/Ipsos 2013 Consumer Survey

  Men WomenPrice Conscious, I buy the least expensive items all the time

29% 27%

Promotion Sensitive, aware of sales, coupons and discounts

38% 59%

Brand Loyal regardless of price 18% 8%

Time Crunched, I buy whatever is available, fastest, and easiest

5% 3%

Not sure 10% 3%

5

Who’s More Likely to be a Couponing Man?

Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013).

Children at Home

Household Income > $50k

High School Graduate

College Graduate

White Collar

BlueCollar

Home Owner

Renter

Single

Married

No Children at Home

Household Income < $50k

6

Who’s More Likely to be a Couponing Man?

Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013).

Children at Home

Household Income > $50k

College Graduate

White CollarHome

OwnerMarried

7

The Couponing Trend%

of

co

nsu

mer

s w

ho

use

co

up

on

s (e

ver)

Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013).

74% of men use coupons

8

Coupons by Gender and Generation

Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013).

18-3

4

35-5

4

55+

18-3

4

35-5

4

55+

9

Why do Men Tend to Use Fewer Coupons?

Source: Valassis/Ipsos 2013 Consumer Survey. Base: Use Coupons when shopping for items such as food, otc medications, paper products, and health & beauty care.

Q: I feel embarrassed to be seen using coupons

10

The Coupon Opportunity

• Who is the Couponing Man?

• Men as Shoppers

• Coupon Sourcing and Usage

11

Men & Channel Shopping

  Male Female

Supermarkets 87% 88%

Supercenters 60% 66%

Drug Stores 58% 62%

Dollar Stores 44% 56%

Warehouse Clubs 39% 37%

Source: Kantar Retail ShopperScape, Data file for November 2012 - January 2014. Format shopped past 4 weeks.

12

Source: Kantar Retail ShopperScape, Data file for November 2012 - January 2014. Q: Among the factors listed below, which are important to you when you are shopping in general?

What’s Important to Men When Shopping?

Men 18-34

Men 35-54

Men 55+

Specific items I want being in-stock 63% 71% 80%

Knowing that I'm paying a low price 61% 74% 77%

Feeling like I got a "good deal" 64% 71% 69%

High-quality private label brands 40% 45% 40%

Private label brands in many categories 42% 40% 37%

A loyalty/frequent shopper program with relevant rewards 46% 39% 34%

Double coupons 37% 37% 29%

Ability to use the retailer's app while in-store 29% 16% 4%

13

Source: Kantar Retail ShopperScape, Data file for November 2012 - January 2014

Men Plan Shopping Trips

14

Source: Kantar Retail ShopperScape, Data file for November 2012 - January 2014

Shopping Trip Planning by Age Group

15

Source: Kantar Retail ShopperScape, Data file for November 2012 - January 2014. Q: Which one of these best describes how you shop a supermarket on a typical trip?

How Men Shop the Store

Pe

rim

ete

rC

en

ter

Ais

les

16

Trip Types…Not What You’d Expect

Source: Kantar Retail ShopperScape, Data file for November 2012 - January 2014. Q: Regarding your last grocery shopping trip, what was the primary reason you went to the store on this occasion?

17

Average Spend

Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013). Amount household spent on groceries past 7 days (HHLD)

Men 18 to 34 Men 35 to 54 Men 55+

$130.69 $139.11 $123.12

18

The Coupon Opportunity

• Who is the Couponing Man?

• Men as Shoppers

• Coupon Sourcing and Usage

19

% Of Total 2013 U.S. CPG Coupon Distribution Volume - By Media Type

HandoutIn-Store

3.5%

In/On Pack &Cross-Ruff

1.0%

Magazine 1.1%

Direct Mail 1.7%

Remaining* <2.0%

All OtherMedia

Free StandingInsert

All Other Media

Source: NCH Marketing Services, Inc., Coupon Facts Report, 2014. *Remaining Includes: Newspaper, All Digital Formats, Handout Away From Store, Military And Miscellaneous, Where No Individual Media Format Exceeds One Share Point Of The Total Market. Retailer In-Ads Excluded.

(FSI)

20

Coupon Sourcing

Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013). How household usually obtains cents-off coupons

21

How do Men PREFER to Receive Coupons?

Source: Valassis/Ipsos 2013 Consumer Survey. Base: Use Coupons when shopping for items such as food, otc medications, paper products, and health & beauty care. Q: How do you prefer to receive coupons? A: Strongly/Somewhat Agree

Newspaper

Mail

Internet: Print at Home

Internet: Download

Mobile

22

Source: Prosper Insights and Analytics: Media Influences on Grocery (Food/Cleaning/Beauty) Purchases (Dec-2013). Q: Which of the following media influences your Grocery (Food/Cleaning/Beauty) purchases?

Media Influence for Grocery Purchases (top 10)

Despite the reported “stigma” of coupon usage, 57% of men say they’re influenced by coupons for their grocery purchases.

23

The Discount is Everything

Source: Valassis/Ipsos 2013 Consumer Survey. Base: Use Coupons when shopping for items such as food, otc medications, paper products, and health & beauty care

Q: Please select the coupon discount that is the lowest discount amount that you will use a coupon regardless of the product the coupon is for.

Men want a higher discount when it comes to coupons.

24

Coupons by Category

Source: Prosper Insights & Analytics MBI Survey, Jan 2014

18-3

4

35-5

4

55+

18-3

4

35-5

4

55+

Q: For each of the following retail categories, please tell us if coupons influence your purchases.

25

The Male Coupon Opportunity

The Couponing Man: • Family man, educated, upper income• Cares about paying the lowest price, but sensitive about the image

associated with couponing• VERY brand loyal

Men as Shoppers• Similar to women’s habits, but tend to be coupon opportunists• More likely to shop the perimeter of the store, but if you can get

them to the center aisle, they’re more likely to shop EVERY aisle

Coupon Sourcing and Usage• Men need coupons with a higher dollar value to drive them to action

26

The Opportunity

• Men spend $543.20/month on groceries*

• Men are half of the population• No matter what the source, the number of “Brand New

Men” who are responsible for shopping decisions is increasing.

• ESPN = 31% [14% in 1985]• BPN = 40%• Yahoo = 51%• Defy Media = 54%

*Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013).

27

Questions?

Thérèse MulveyVice President, Marketing Intelligence Valassis

valassis@valassis.com877-529-5001

28