Published: September 26, 2008
Valassis Releases Findings on Consumer Behaviors and Motivations for Seeking Savings and Value
LIVONIA, Mich., Sept. 26 /PRNewswire-FirstCall/ -- Valassis (NYSE: VCI),
one of the nation's leading media and marketing services companies, revealed
insights that define today's primary household budget manager and the
motivations behind savings behaviors. In addition to tough economic times, the
thrill of savings and a sense of community are just some of the motivations
learned during recent consumer research focus groups with women between the
ages of 25 to 54 with household incomes over $50,000.
There are both rational and emotional insights that truly resonate with
today's savers and together build a profile of our target consumer's mindset.
Rationally, saving on staples helps them liberate their budget to spend on
other things they really want, particularly spending time with their family.
Many see managing the household budget as their job, even more important to
those with children and in today's challenging economic environment.
Emotionally, participants indicated they felt smart while looking for coupons
and deals. Getting the best deal for their family motivates them to do so.
Happiness, success, power, relief, winning, confidence and caring are emotions
associated with saving as revealed in the focus groups.
"People are very passionate about savings and value and like to talk about
it," said Suzie Brown, Valassis Chief Marketing Officer. "We've all had an
experience when we found a great deal and couldn't wait to share the story
with a friend or family member. Not only do consumers like to brag about their
finds, they truly enjoy the thrill associated with saving money and see it is
as playing a game, making them feel more powerful. This consumer research
provides a glimpse into the hearts and minds of our target consumers and how
they're spending, saving and relating these savings activities to caring for
their families."
Consumer research indicates big-ticket purchases require substantial
research driven by household budget and the level of complexity. Electronics,
appliances, furniture, autos and trips top the list of more expensive items
that require planning. When seeking big-ticket purchases, participants said
the Internet is central to finding value. Redplum.com, a savings and lifestyle
site launched earlier this year, provides consumers local and national deals
and offers. The site also features original, weekly editorial articles on
parenting, fashion, beauty, dining, home, yard, entertainment, pets, autos,
electronics, healthy living and money.
Couponing and deal seeking have become time-honored rituals that save
Americans nearly $3 billion annually. According to the Promotion Marketing
Association's (PMA) Coupon Council, spending just 20 minutes a week taking
advantage of coupons and special offers can save consumers up to $1,000 a year
or more. For more facts about saving in today's economy, please visit
http://www.valassis.com/combo/pdf/redplum_economy.pdf .
"Based on what we've learned from our research, I have never been more
confident than in today's tough economy that RedPlum is relevant to today's
consumer," Brown added. "RedPlum is a leading provider of consumer-oriented
deals and savings on brands consumers want most and provides the savings they
seek with ease and convenience, which is important to today's budget manager."
Editor's Note: September is National Coupon Month. The PMA has declared
September as National Coupon Month since 1998. This year, the economy is the
theme of the 11th annual Coupon Month.
About Valassis
Valassis is one of the nation's leading media and marketing services
companies, offering unparalleled reach and scale to more than 15,000
advertisers. Its RedPlum media portfolio delivers value on a weekly basis to
over 100 million shoppers across a multi-media platform -- in-home, in-store
and in-motion. Through its newest offering -- redplum.com -- consumers will
find compelling national and local deals online. Headquartered inLivonia,
Michigan with approximately 7,000 associates in 28 states and nine countries,
Valassis is widely recognized for its associate and corporate citizenship
programs, including its America's Looking for Its Missing Children(R) program.
Valassis companies include Valassis Direct Mail, Inc., Valassis Canada,
Promotion Watch, Valassis Relationship Marketing Systems, LLC and NCH
Marketing Services, Inc. For more information, visit http://www.valassis.com
or http://www.redplum.com .
Safe Harbor and Forward-Looking Statements
Certain statements found in this document constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks and
uncertainties and other factors which may cause the actual results,
performance or achievements of Valassis to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, the following:
price competition from our existing competitors; new competitors in any of our
businesses; a shift in customer preference for different promotional
materials, promotional strategies or coupon delivery methods including as a
result of declines in newspaper circulations; an unforeseen increase in our
paper or postal costs; changes which affect the businesses of our clients and
lead to reduced sales promotion spending including a decrease in marketing
budgets which are generally discretionary in nature and easier to reduce in
the short-term than other expenses; challenges and costs of achieving
synergies and cost savings in connection with the ADVO acquisition and
integrating ADVO's operations may be greater than expected; our substantial
indebtedness, and our ability to incur additional indebtedness, may affect our
financial health; certain covenants in our debt documents could adversely
restrict our financial and operating flexibility; fluctuations in the amount,
timing, pages, weight and kinds of advertising pieces from period to period,
due to a change in our clients' promotional needs, inventories and other
factors; our failure to attract and retain qualified personnel may affect our
business and results of operations; a rise in interest rates could increase
our borrowing costs; the outcome of ADVO's pending shareholder lawsuits;
possible governmental regulation or litigation affecting aspects of our
business; and general economic conditions, whether nationally or in the market
areas in which we conduct business, may be less favorable than expected. We
disclaim any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. Additional risks include, but are not limited to those risk factors
described in our Annual Report on Form 10-K for the year ended Dec. 31, 2007
(the 2007 Form 10-K) and our other filings with the United States Securities
and Exchange Commission ("SEC").
SOURCE Valassis
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