BIG BOX ADVERTISMENT OF INKS UP COLLECTION OF EMPTIES DOWN

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BIG BOX ADVERTISMENT OF INK CARTIRDGES UP COLLECTION OF EMPTY CARTRIDGES DOWN

Gap Intelligence Says Ink Ads Are Up and Compares Cartridge-Collection Programs
According to gap intelligence advertising data, circular advertising for ink supplies has increased by almost 60 percent for the first eight months of 2011 compared to the same time in 2010.  Manufacturers are dedicating more of their ad dollars toward ink supplies in an effort to push the razor blade part of the equation and increase their profits.  Furthering this point is the very slight, and arguably negligible, 8 percent increase seen in All-in-One printer ads for 2011 thus far compared to the same period last year.  While manufacturers are not lowering their investment on pushing hardware through advertisements, there is certainly a renewed sense that awareness around consumables may also help generate higher sales.

Some of the most notable increases in ad volume are at OfficeMax and Staples with 186 and 64 percent hikes, respectively.  The third major office supplier, Office Depot, also showed increased ink supplies circular advertisements with 28 percent more placements in 2011 over 2010.  The increase of ink cartridge ads in the office supply channel is particularly noteworthy considering this is one of the primary channels that consumers shop for this product category.  The increased circular activity for ink supplies potentially indicates a renewed sense of confidence by manufacturers in the channel, which is demonstrated by increased investments.

Another store type that saw significantly more circular advertising for ink is the mass merchant channel, particularly Kmart and Walmart with growth of 388 and 106 percent, respectively.  Target did not experience the same surge of ink advertisements with a mere 28 percent increase during the time period.  However, increased advertising investment into the mass merchant channel indicates that these types of stores are growing in popularity as places that consumers are frequenting to pick up their ink supplies.  Comparatively, it should be noted that Best Buy’s advertising levels remained even with 59 ads during the nearly 8 month period of 2010 and 2011.

Weekly circular advertising for the ink industry has undoubtedly seen growth during 2011 compared to 2010 but it is also important to note which brands these ads are coming from.  The largest growth was seen in advertisements for the OfficeMax brand (refills), Multi-brand ads (featuring a variety of consumable brands), and Kodak in that order with growth of 350, 272, and 144 percent, respectively.  However, it should be noted that the absolute number of ads featuring the OfficeMax brand went from 8 to 36, which is not nearly as impressive.  Absolute numbers for Multi-brand ads, however, do present an impressive increase from 43 to 160 placements in Sunday circulars.  The increase demonstrates that retailers are heavily pushing ink supplies in their circulars and promoting programs such as ink recycling and merchant rewards.

Even more interesting is when we look at specific ink manufacturers’ advertising numbers.  Kodak bolstered its advertising placements by an impressive 144 percent year over year, which makes perfect sense considering the company’s heavy investment in its inkjet technology.  Kodak is depending on its inkjet products and has made it perfectly clear that cameras are not the company’s key to success.  Kodak announced its second ink set in January of this year with the No. 30 family, which supports the company’s lowest total ink replacement cost claims.  With so much invested in its inkjet business, Kodak knows that advertising dollars have the potential to take the company far.  HP and Lexmark also showed increases in ad volume with growth of 16 and 59 percent, respectively.

The other major printer companies including Epson, Canon, and Dell showed respective declines of 14, 22, and 50 percent in the number of ads for their ink supplies.  It should be noted that Dell only advertised two times in 2010 and a single instance in 2011 so far in Sunday circulars.  Brother’s ad volume has remained consistent with 15 ads during the first seven and a half months of both 2010 and 2011.  The drop in ad volume by these manufacturers may indicate a slight change in their sales strategy or more realistically reflect the continued challenges posed by the weakened US economy.

Overall, the increase in Sunday circular advertisements featuring ink supplies is positive for the industry.  While resellers are likely contributing a large part of this growth with advertisements for their recycling programs and merchant rewards, the industry remains one of the key money makers for many companies.  Promoting cost savings through ink advertisements may be a key ingredient to consumers’ decision making process on what hardware to purchase.  If Kodak keeps telling consumers that it has the lowest total ink replacement cost in the industry and HP continues to showcase the savings from buying multipacks over single cartridges, consumers are eventually going to listen and that means more printer sales and a higher installation base for those invaluable drops of ink.

Which Store is the Greener Way to go?
It is easy to recycle your ink cartridges or toners, but which store can you benefit most from?If you have been throwing away your ink cartridges or toners, you are not the only one. Every second 13 cartridges are thrown away, yes every second isn’t that just crazy?  Cartridge Fundraising.I have done my research with four different stores, including Staples, OfficeMax, Office Depot, and Best Buy to find out which store has the most bang for your buck.  The following stores have different recycling programs to choose from so you can help the environment and make a few bucks.

Recycling an ink cartridge or toner is so easy that all you have to do is take it with you to the store, or do you?  Staples has a few different options available.  First you have to be a member of the Staples rewards and then you can receive $2 for every ink cartridge or toner that you bring in.  A maximum of 10 cartridges per month.  However, customers can receive rewards up to 10 cartridges and toners.  Staples has another recycling option where a person must join the Staples Advantage program.  Under the program Staples will deliver office supplies and will pick up used ink  and toner cartridges from you.  Staples offers rewards for recycling all brands of ink or toner cartridges..

With OfficeMax, a person has to be part of the MaxPerks program to receive rewards for recycling.  Once a person is a MaxPerks member they can start recycling their ink cartridges or toners and receive $3 for undamaged HP, Dell, or Lexmark ink or toners.  A person can recycle any other brand of ink and toner but just will not receive MaxPerks rewards.  However,  MaxPerks members can receive only up to $60 per month, which is a total of 20 inks or toners, compared to Staples limit 10 per month.

Office Depot has a rewards program called Worklife.  A person must join the program  to recycle their ink and/or toner there and receive rewards.  Worklife members receive $2 back on ink and toner in recycling rewards, but can only submit up to 20 cartridges per month.  It should be noted that ink tanks do not qualify.

Best Buy probably has the easiest recycling program since a person does not have to be a member.  However, a person does not receive anything back in return for submitting their used cartridges.

Overall, recycling at Best Buy you will not receive any money back but, you are still doing the environment a favor.  Recycling at Staples you can gain an extra $20 a month by recycling 10 cartridges and toners.  Office Depot you can gain a total of $40 back by recycling up to 20 cartridges a month.  OfficeMax came in the leader with $60 per month by recycling 20 ink and toners, but limited to only recycling HP, Dell, Lexmark.  There are many different stores to recycle ink cartridges and toners.  These are just a few stores that have recycling programs.  Another good thing to look into would be what each store does with their recycled ink cartridges and toners.

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August 15, 2011 at 12:23 PM