Men: The Coupon Opportunity Thérèse Mulvey Vice President, Marketing Intelligence Valassis

The Coupon Opportunity Who is the Couponing Man? Men as Shoppers Coupon Sourcing and Usage

The Coupon Opportunity 78% of Adults 18+ use coupons x% y% Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013).

The Coupon Opportunity 78% of Adults 18+ use coupons 56% 44% Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013).

Are Men Savings Minded? Men Women   Men Women Price 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% Source: Valassis/Ipsos 2013 Consumer Survey

Who’s More Likely to be a Couponing Man? White Collar Children at Home Home Owner Married College Graduate High School Graduate Household Income > $50k No Children at Home Household Income < $50k Renter Blue Collar Single Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013).

Who’s More Likely to be a Couponing Man? White Collar Children at Home Home Owner Married College Graduate Household Income > $50k Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013).

The Couponing Trend 74% of men use coupons % of consumers who use coupons (ever) 74% of men use coupons Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013).

Coupons by Gender and Generation 18-34 35-54 18-34 35-54 55+ 55+ Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013).

Why do Men Tend to Use Fewer Coupons? Q: I feel embarrassed to be seen using 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.

The Coupon Opportunity Who is the Couponing Man? Men as Shoppers Coupon Sourcing and Usage

Men & Channel Shopping Male Female Supermarkets 87% 88% Supercenters   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.

What’s Important to Men When Shopping? 18-34 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% 69% High-quality private label brands 40% 45% Private label brands in many categories 42% 37% A loyalty/frequent shopper program with relevant rewards 46% 39% 34% Double coupons 29% Ability to use the retailer's app while in-store 16% 4% 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?

Men Plan Shopping Trips Source: Kantar Retail ShopperScape, Data file for November 2012 - January 2014

Shopping Trip Planning by Age Group Source: Kantar Retail ShopperScape, Data file for November 2012 - January 2014

How Men Shop the Store Center Aisles Perimeter 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?

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?

Average Spend Men 18 to 34 Men 35 to 54 Men 55+ $130.69 $139.11 $123.12 . Source: Scarborough Research, Multi-Market 2013 Release 2 Total (Aug 2012 - Sep 2013). Amount household spent on groceries past 7 days (HHLD)

The Coupon Opportunity Who is the Couponing Man? Men as Shoppers Coupon Sourcing and Usage .

% Of Total 2013 U.S. CPG Coupon Distribution Volume - By Media Type All Other Media In/On Pack & Cross-Ruff 1.0% Magazine 1.1% Free Standing Insert Direct Mail 1.7% (FSI) Handout In-Store 3.5% Remaining* <2.0% 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.

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

How do Men PREFER to Receive Coupons? Newspaper Mail Internet: Print at Home Internet: Download Mobile 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

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. 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?

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

Coupons by Category 18-34 35-54 18-34 35-54 55+ 55+ Men 18-34 Q: For each of the following retail categories, please tell us if coupons influence your purchases. Men 18-34 Men 35-54 Men 55+ Grocery 47% 60% 65% Electronics 27% 22% 13% Dining Out 26% 39% 40% Apparel/Clothing 25% 23% 17% Home Improvement 15% 10% Medicines 11% 7% Car/Truck 9% 6% Telecom Services 8% 3% Financial Services/Insurance 2% 18-34 35-54 18-34 35-54 55+ 55+ Source: Prosper Insights & Analytics MBI Survey, Jan 2014

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

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).

Questions? Thérèse Mulvey Vice President, Marketing Intelligence Valassis valassis@valassis.com 877-529-5001