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Retailers Mostly Advertise Food Products in Leaflets |
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Seasonal publications flourish
Budapest, 17th August 2005. The market of leaflets was stagnating during the first half of 2005 the Nr. 55 Report entitled Strategic Letter released by GfK Hungária Market Research Institute has found. The publications of hypermarkets and cash&carry stores mostly feature non-food products, while their proportion is a lot lower in supermarkets, discount stores and drug stores. Three quarters of the advertised FMCG products on sale come from the food category. After analysing the 30-month data of GfKs Leaflet Monitor first published in 2003, it can be established that the dynamics of the leaflet market was unchanged in the first half of 2005. The number of published leaflets stagnated during the first half of the year, the number of advertised products decreased in some categories, especially due to the fact that retailers put a greater emphasis on the clearer and more structured layout of the publications instead of the higher number of advertised products. The distribution of leaflets is also more and more sophisticated. Non-food products make up the highest proportion even up to 50% - of the hypermarket and cash&carry publications. Publication of seasonal leaflets is typical, especially connected to the beginning of the school year, Christmas, New Years Eve and Easter. High quality publications connected to vintage and presenting both the wines of Hungarian and foreign wineries and the essential accessories (cheese, glasses) are gaining more and more prominence. Non-food products are present in the leaflets of supermarkets, discount stores, drug stores and groceries as well, but their proportion is considerably lower (10-20%). Chains usually adjust the publication date of their leaflets to that of their competitors, and as a result of the shopping habits of Hungarian consumers, their validity period usually includes two weekends. The presence of private label products is more and more prominent in leaflets, though stagnation could be observed in this respect during the first half of this year. Generally it is true that more private label products appear in leaflets during the first half of the year than in the July-December period. The presence of private label products is the strongest in the food, tinned vegetable and fruit, cold cuts and soft drinks categories. Seventy-five per cent of the FMCG products advertised in leaflets come from the food category and 25% from the chemical products category. Traditionally, drink categories are the most advertised ones, meat products come second and long-life food products have a stable third place (e.g. sugar, cereals etc.). Cosmetics have the highest proportion in the chemical category (about 50%), followed by washing and cleaning agents. Top 10: Food categories advertised in leaflets, First half of 2005 Category | Percentage | Drinks | 25.3 | Meat products | 22.7 | Long-life food products | 12.0 | Dairy products | 11.5 | Sweets, biscuits | 9.3 | Vegetables, fruit | 9.1 | Other tinned food | 4.2 | Bakery products | 2.5 | Vegetable fat and oil | 2.0 | Other fresh products | 0.9 | Child/baby food | 0.5 |
Source: GfK Leaflet Monitor 2005. I.The survey has been conducted by GfK Market Research Institute, Hungarys leading market research institute. The GfK Group The GfK Group, the No. 4 market research organization worldwide, achieved sales of EUR 672 million (excluding NOP World) for financial year 2004 in its five business divisions, Custom Research, Retail and Technology, Consumer Tracking, Media and HealthCare. In addition to 13 German subsidiaries, the company has over 130 subsidiaries and affiliates located in 63 countries. Of a current total of more than 7,600 employees, approx. 1,500 are based in Germany. For further information, visit our website: www.gfk.com. On 1 June 2005, GfK acquired the market research group, NOP World, from British media group, United Business Media. With over 1,500 NOP employees joining GfK, the Group has considerably expanded its team of market research and marketing experts. NOP World and the GfK Group recorded joint sales of almost one billion euros in 2004.
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