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MINNEAPOLIS -- 'Buy One Get One Free' (BOGO) Free Standing Insert (FSI) promotions increased 48 percent over 2005, according to a new report released yesterday by Marx Promotion Intelligence/TNS Media Intelligence here. The total BOGO coupons circulated increased 3 billion to 9.4 billion.
The large increase was fueled primarily by three segments: household products, dry grocery, and health care, the latter of which promotions grew by 63 percent.
"Through the increased use of FSI BOGO offers, manufacturers are implementing varying strategies depending on the product and category," said Andy Rumpelt, v.p. of business development & marketing at Marx Promotion Intelligence. "Health care and personal care manufacturers are becoming more aggressive by offering free refill-type cartridges with the purchase of base units. Additionally, food manufacturers are leveraging high-equity brands to drive trial on other products, as well as fill up the kitchen cupboard with higher multiple purchase requirements to get the free item."
BOGO coupons have increased in both volume and face value over the last several years, as manufacturers aggressively use BOGO coupons to deliver 'value', drive volume, retain loyalty, and build share, said Marx. In 2005, there was a significant increase in non-food categories, which grew by nearly 80 percent; fueled by major household products companies like Procter & Gamble, Reckitt Benckiser and S.C. Johnson & Sons.
The average BOGO coupon value also continues to rise, largely due to increased BOGO promotion on higher ticket items in non-food categories. Overall, the average BOGO face value increased to $3.33 in 2005, a jump of 118 percent versus $1.53 in 2002. The average face value of a non-food BOGO is now $4.57 versus $1.75 for food.