The Sunday Morning Quarterback

Collaborative shopper marketing is alive and well and living in the folds of your Sunday newspaper.Industry experts continue to debate the current efficiency and future viability of such “old school” tactics as freestanding inserts delivered through such antiquated communication vehicles as newspapers (see "The Evolving Circular" in Related Articles). But judging by activity levels alone, there is weekly evidence that the national co-op FSI programs operated by Valassis Inc. (Redplum) and News America Marketing (SmartSource) are at least efficient and viable enough for the time being.The use of co-equity FSIs – market-level ads tailored for a specific retailer – has increased considerably over the last decade, even as overall FSI distribution (not to mention redemption rates) has fallen. In fact, it’s now a fairly common occurrence for leading brands to dispense with the national coupon offer to work primarily on the co-equity programs. While that’s not exactly a case of the tail wagging the dog, securing feature and display activity at key retailers often seems to be a greater motivator than direct redemption.This certainly seems to be the case among the leading manufacturers that periodically stage multi-page, multi-brand FSI events. While direct consumer redemption is important, so is leveraging the events to drive increased merchandising at key accounts. In just one recent example, a multi-page event from Unilever running in the Chicago marketplace contained as many overlays for Walmart, Target, Walgreens, CVS/pharmacy and Meijer as it did brand-specific ads with coupons.And, increasingly, these co-equity FSIs are looking more like shopper marketing than trade promotion, as the national brands align their own objectives with those of their retailer partners and tailor their messages and offers to match the tactical preferences of each account.Thus, most co-equity FSIs for Walgreens extend a Balance Rewards offer to the chain’s loyalty cardholders, while Safeway’s FSIs often promote Just for U coupon deals and Target’s offer a unique product or promotion; nearly all Walmart FSIs, of course, hammer home the “Everyday Low Price” message (although, notably, some have recently included coupons as well.)Take, for example, Procter & Gamble’s “brandSaver,” which with its monthly frequency and 12-year history is the most pervasive of all FSI events. P&G uses the portfolio-spanning publication (distributed by News America) to present seasonal programs and/or key promotional initiatives – and therefore as a platform from which to spin a steady stream of account-specific programs.In just the latest example, “brandSaver’s” December issue used a “Secrets of the Season” theme to deliver up to $91 in coupons (amounts vary by market) on 26 different brands (see related article). But the event’s post-Thanksgiving drop (on a weekend without any co-op FSI programs) coincided with an abundance of exclusive promotions of all shapes, sizes and strategies, such as:a full-page feature in Walmart’s concurrent circular promoting holiday gift sets, including a pair of Walmart-only SKUs.an offer at CVS/pharmacy dangling $5 in ExtraBucks Rewards to members of the chain’s ExtraCare loyalty program who bought $20 worth of qualifying P&G products.a full-page feature at ShopRite communicating two exclusive programs: a sweeps awarding tickets to the National Football League’s Super Bowl in February and an incentive offer providing $10 off Super Bowl merchandise. (This year’s game will be played in East Rutherford, N.J., which is located in the heart of ShopRite’s operating footprint.)a unique promotion for Rite Aid that leveraged P&G’s Winter Olympics sponsorship for a sweeps awarding ski trips to Lake Placid, N.Y.Similarly, Unilever has used multi-page events within Redplum over the last two years to activate its National Collegiate Athletic Association sponsorship in March (to coincide with the end of basketball season) and September (in conjunction with the start of football season). And retailer overlays are always part of the playbook.Last November, an event spotlighting the manufacturer’s support of nonprofit Feeding America included numerous co-equity FSIs with those aforementioned retailers, as well as corresponding feature activity. In a noteworthy strategic move, collaborations with CVS and Walgreens both focused on Unilever’s food offerings in a nod to the drugstore chains’ efforts to drive trips. Meanwhile, promotions for supermarkets and mass merchants – who typically need a boost in perception as health & beauty destinations – showcased personal care brands.In much the same manner, Johnson & Johnson activates its “Healthy Essentials” marketing platform for periodic events staged whenever there might be a need for stock-ups on first-aid-kit necessities (like back-to-school season). The events almost always involve overlays with the three big drugstore chains, and often with Walmart, Target and a few supermarkets as well.Other frequent “event planners” include Kimberly-Clark, Nestlé and General Mills. The tactic is even employed by such atypical manufacturers as Hasbro Inc., which often uses the weekly co-ops during holiday season to help drive promotions with retailers like Target and Toys “R” Us.Marketers, therefore, should think twice before canceling their Sunday newspaper subscriptions just yet.

The Sunday Morning Quarterback

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