1. A L OOK AT T RENDS IN P ROMOTION A CTIVITY AND S HOPPER B EHAVIOR Senior Analytics Lead, Promotion Analytics / Inmar Andrew W. Coleman

2. © 2015 Inmar, Inc. Session agenda 1.Introduction 2.Definitions and methodology 3.Topline findings 4.Economic conditions 5.Promotion landscape 6.NEW: Canadian trends 7.Spotlight: Digital trends 8.Conclusions and predictions 9.Questions 2

3. © 2015 Inmar, Inc. 3 Senior Analytics Lead, Promotion Analytics Background in creative and digital brand management Agency and client-side perspective Loves data, hates buzzwords New dad

4. © 2015 Inmar, Inc. 4 Distribution and redemption data consolidated from the Inmar coupon database. Percent change compares activity throughout 2014 with activity from 2013. Industry distribution and redemption statistics extrapolated using Inmar and Kantar Media data. Analysis conducted to develop key insights. Data cross-checked with major coupon distributors and third-party vendors.

5. © 2015 Inmar, Inc. 5 Manufacturer offers vs. coupon codes Digital vs. digital-ish Convenience vs. accuracy IR vs. IRC DEP (Dual electronic and paper) EC (Electronic checkout) EDO (Electronic discount opt-In / load2card) FSI (Free-standing insert) HO (Handout) IR (Instant redeemable) NET (Internet printable / print at home) SP (Shelf pad)

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10. 10 Source: 2014 Inmar Coupon Trends Free-standing insert Up from 87.4 % in 2013

11. © 2015 Inmar, Inc. 11 Free-standing insert Down from 40.0% in 2013 Source: 2014 Inmar Coupon Trends Electronic checkout Shelf pad Direct mail Internet Other Instant redeemable Instant redeemable cross ruff Dual electronic and paper

12. © 2015 Inmar, Inc. 12 Source: 2014 Inmar Coupon Trends

13. © 2015 Inmar, Inc. 13 Source: 2014 Inmar Coupon Trends

14. © 2015 Inmar, Inc. 14

15. © 2015 Inmar, Inc. 15 2013 2014 Source: 2014 Inmar Coupon Trends Non-Food Food Non-Food

16. © 2015 Inmar, Inc. 16 2013 2014 Source: 2014 Inmar Coupon Trends Non-Food Food Non-Food Food

17. © 2015 Inmar, Inc. 17 Free-Standing InsertInstant RedeemableElectronic CheckoutShelf Pad Internet Printable /Print at Home Electronic Discount Opt-In / Load2Card Handout

18. © 2015 Inmar, Inc. 18 Free-Standing InsertInstant RedeemableElectronic CheckoutShelf Pad Internet Printable /Print at Home Electronic Discount Opt-In / Load2Card Handout

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20. © 2015 Inmar, Inc. 20 Gas prices falling Consumer confidence increasing Unemployment rate falling Misery index falling Retail improving, but CPG eCommerce lagging

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22. © 2015 Inmar, Inc. 22 Baskets and trips on the rise Face values getting sweeter Units holding steady Shrinking redemption period

23. © 2015 Inmar, Inc. 23 Average face value distributed Average purchase requirement distributed Average redemption period distributed Source: 2014 Inmar Coupon Trends

24. © 2015 Inmar, Inc. 24 New Product Event Dates in 2014 (814 in 2013) New Products Promoted via FSI in 2014 (412 in 2013) Categories Featuring New Product Events in 2014 (96 in 2013) Source: Marx / Kantar Media

25. © 2015 Inmar, Inc. Average face value distributed 25 Source: 2014 Inmar Coupon Trends Free-Standing InsertInstant RedeemableElectronic CheckoutShelf Pad Internet Printable /Print at Home Electronic Discount Opt-In / Load2Card Handout

26. © 2015 Inmar, Inc. Average purchase requirement distributed (units) 26 Source: 2014 Inmar Coupon Trends Free-Standing InsertInstant RedeemableElectronic CheckoutShelf Pad Internet Printable /Print at Home Electronic Discount Opt-In / Load2Card Handout

27. © 2015 Inmar, Inc. Average redemption period distributed (months) 27 Free-Standing InsertInstant RedeemableElectronic CheckoutShelf Pad Internet Printable /Print at Home Electronic Discount Opt-In / Load2Card Handout Source: 2014 Inmar Coupon Trends

28. © 2015 Inmar, Inc. 28 Average purchase requirement distributed Average redemption period distributed Average face value distributed Source: 2014 Inmar Coupon Trends

29. © 2015 Inmar, Inc. 45 Source: Nielsen Homescan, 52 w/e 12/28/2013 - excludes gas-only or Rx-only trips

30. © 2015 Inmar, Inc. 30

31. © 2015 Inmar, Inc. 31 (Billions) Source: 2014 Inmar Promotions – Canada

32. © 2015 Inmar, Inc. 32 (Millions) Source: 2014 Inmar Promotions – Canada

33. © 2015 Inmar, Inc. 33 Source: 2014 Inmar Promotions – Canada

34. © 2015 Inmar, Inc. 34 20132014 Source: 2014 Inmar Promotions – Canada

35. © 2015 Inmar, Inc. 35 2014 Source: 2014 Inmar Promotions – Canada

36. © 2015 Inmar, Inc. 36 Source: 2014 Inmar Promotions – Canada

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39. © 2015 Inmar, Inc. 39 Still a small share of distribution Declining share of redemption Rich face values Wide range of redemption rates – Overall average: – “Middle half” spans Source: 2014 Inmar Coupon Trends 2013: 5.0%

40. © 2015 Inmar, Inc. 40 Similarly small share of distribution Growing share of redemption Decent face values Average redemption rates: ‒Overall average: ‒“Middle half” spans 2013: 0.9% Source: 2014 Inmar Coupon Trends

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42. © 2015 Inmar, Inc. 42 Large share of distribution Large share of redemption Average face value Average redemption rate ‒Overall average low ‒Middle half spans Source: 2014 Inmar Coupon Trends

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45. © 2015 Inmar, Inc. 45 “The eventuality of the world is a one-to-one relationship with every consumer which results in trust, loyalty – all the things that a brand wants.” 1 “I think the days of traditional mass marketing are kind of over. Marketing has to be a conduit into the multi-screen world that everyone’s living in. How do you create a two-way conversation?” 2 SOURCE: 1) AdAge, AdAge Digital A-List: P&G, February 2011. 2) Business Insider, Frito-Lay CMO: The Days of Traditional Mass-Marketing are Over, July, 20, 2012 Bob McDonald Former CEO & Chairman of the Board, Procter & Gamble Ann Muhkerjee, SVP and CMO, Frito-Lay North America

46. © 2015 Inmar, Inc. 46 SOURCE: 1) L2 Business Intelligence for Digital, “Where Consumers Look for Grocery Coupons”, 2) Institute for Advanced Analytics, NCSU September 2014, 3) Knowledge Networks, Trend Report 2011; Coupons.com Digital User Behavior presentation 2011 4) 2014 Redemption Statistics, Hopster Coupon Platform Engagement coupons generate 5x redemption of traditional print-at-home coupons 4

47. © 2015 Inmar, Inc. 47 Multiple print technologies Industry best security options Seamless media integration Robust data capture Integrated engagement activities Accepted at all retailers

48. © 2015 Inmar, Inc. 48 Personalized emails delivered through retail partners Targeting capabilities match offers with shoppers Maximize promotional dollars with targeted offers Robust financial and behavioral data capture

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51. © 2015 Inmar, Inc. 51 In our client conversations, we have heard: Consumer promotion budgets have been shrinking and/or shifting (from national programs to retail-specific / shopper marketing / activation strategies). Despite these cuts, brands continue to use remaining budgets to evolve their marketing mix: to reach new shoppers, leverage new technologies and lead innovation in their categories. There are also new and different ways to distribute offers that bypass traditional clearing and settlement processes.

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53. © 2015 Inmar, Inc. 78 Ongoing decline of paper redemptions Continued rapid growth of digital distribution AND redemption Increased adoption of digital platforms by retailers Increasing sophistication across targeting methodologies Shoppers will continue to look for deals beyond established distribution methods, and reward the companies that make it easy for them to participate 10-digit mobile overtakes email address as primary unique identifier Coupon offers delivered directly to your Oculus Rift* Not intended to be a factual prediction

54. andrew.coleman@inmar.com @andrew_coleman 336.631.2973 Andrew Coleman