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Study: Average Face Value of FSI Coupons Surpass $1 Mark in '04

NEW YORK -- In 2004 the average face value of coupons distributed within newspaper free-standing inserts (FSIs) reached beyond the $1 mark for the first time, according to the Marx Promotion Intelligence 2004 FSI Trend Report, recently released here.

The average face value of FSI coupons hit $1.03, compared to 95 cents in 2003, representing an 8.1 percent increase or an extra eight cents per coupon. The jump in coupon values is attributed to new product introductions and an increase in coupon values for both food and nonfood items.

"The trend to offer consumers increased savings through coupons is evident. We are seeing more manufacturers present greater incentives to shoppers, whether on a face-value or per-unit basis. By their increasing participation, marketers continue to validate that FSIs are a great tool to build awareness and gain trial," said Mark Nesbitt, c.o.o. at Marx Promotion Intelligence, a division of TNS Media Intelligence.

In 2004 manufacturers of items of higher retail value issued introductory coupons with values far beyond those of traditional packaged goods, according to the study. Coupons for electronic air fresheners, household cleaning systems, coffee makers, diabetic testing kits, and other household appliances made a noticeable impact on overall values. This trend is expected to continue as CPG manufacturers continue to launch innovative products and use FSIs as a key media platform for reaching significant blocks of target consumers.

Coupon values for both food and nonfood items increased in 2004. First aid, shaving cream and razor, and drain cleaner product categories posted the highest rate of coupon value increase. Overall CPG sector value trends include:

--In nonfood, which was the largest sector of coupon distribution in 2004, average coupon face value increased 11 cents to $1.26.

--Food categories also realized higher average face values, up two cents to 78 cents, a 2.8 percent increase vs. 2003.

--Despite a decline in face values in some food categories, an increase in value per unit signified a possible change from the multipurchase promotion strategy in which the consumer is offered an incentive to purchase more than one item.
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