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Monday, 19 July 2010 14:21

How To Develop an FSI (Free Standing Insert) - Part I

Written by  Dave Wohlner
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fsi_coupon_lscLarge retail, chain stores are a necessary channel of manufactured, consumer goods. Having the widest selection and best prices, these stores offer consumers most every product desirable. A fundamental promotional tool in the marketing mix is to promote products with Free Standing Inserts (FSIs) which publicize new product features usually with cents off coupons.

Free Standing Inserts
The Free Standing Insert (FSI) is a publication, typically several pages long, that is distributed by inserting it into a newspaper. The Free Standing Insert is printed on its own paper and is frequently sized differently than the newspaper. Free standing inserts have become a tradition in the Sunday paper, and many people wait until they get the weekend paper in order to check prices. Using the Free Standing Inserts, consumers can compare promotions of several brands at once without having to leave home.

Marketing Objectives/Uses

  • New product introduction - Discounts price and therefore reduces consumer's risk when trying a new product.
  • Low cost advertising - Coupon and accompanying advertising reach a broad audience for minimal cost.
  • Incremental volume/repeat purchase - Discount lures new consumers to product and rewards current consumers for being loyal.
  • Reinforce brand image - Accompanying advertising supplement can reinforce the featured brand's image.
  • Retail support - Generates retail support, especially when coupon is part of a manufacturer/retailer co-equity program.

Strengths

  • Reaches a broad audience at minimal cost.
  • Allows geographic targeting and specific timing.
  • Offers proven advertising value.
  • Supports new product introductions and encourages repeat purchase.
  • Encourages trade support, especially with retailer co-equity tie-ins.
  • Can be tied to themed events, promotional overlays, etc.

Weaknesses

  • Limits demographic targeting.
  • Cannot be easily changed - requires long lead times.

2007 Statistics

  • Average Redemption Rate: 0.57%
  • Average Face Value Distributed: $1.24
  • Average Expiration Period Distributed: 2.6 months
  • Average Purchase Requirement Distributed: 1.46 units

Source: CMS Trends 2008

Last modified on Sunday, 25 July 2010 20:50

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by Dave Wohlner Thursday, 17 May 2012 17:30

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