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LIGHT BULB AD ACTIVITY AT FOOD STORES FLAT

OMAHA, Neb. -- Supermarket print advertising in the light bulb category stayed flat during the fourth quarter of 1993 compared with the same period a year earlier.But shine a light on the major competitors in the category, General Electric, Philips Lighting and GTE/Sylvania, and significant contrasts become apparent.General Electric, the clear leader in co-op print advertising among the top-50 supermarket

James Tenser

May 2, 1994

2 Min Read
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JAMES TENSER

OMAHA, Neb. -- Supermarket print advertising in the light bulb category stayed flat during the fourth quarter of 1993 compared with the same period a year earlier.

But shine a light on the major competitors in the category, General Electric, Philips Lighting and GTE/Sylvania, and significant contrasts become apparent.

General Electric, the clear leader in co-op print advertising among the top-50 supermarket chains, decreased its co-op ad count by 9.9% in the period, while Philips boosted its levels by 44.7%. No. 3, GTE/Sylvania, gained slightly, by 3.5%. Store-brand advertising dropped 5%, but on a small base.

Because General Electric's ad activity is three to four times the size of the other two competitors', the net effect of its reduction is to offset Philips' gains, resulting in an overall decline of 1.1%, according to data from Ad Activity Marketing Services here, obtained exclusively by Brand Marketing.

The Ad Activity report follows the activities in 37 major product categories by the nation's 50 largest supermarket chains across 24 major U.S. markets. Data for the report are compiled by monitoring supermarkets' newspaper and direct mail advertising.

Light bulbs were a $424.3 million category in supermarkets during calendar year 1993, according to data obtained from Information Resources Inc. For the year, General Electric supermarket bulb sales declined 3.2% to $276.8 million, and GTE/ Sylvania dropped 12% to $48.7 million. Philips Lighting gained 4.4% in supermarket sales to $49.1 million.

Ad Activity data showed that among the 10 most active supermarket chains, light bulb ad counts grew at a 31.3% rate, well ahead of the industry average.

Light bulb advertising is clearly a high priority among New York area supermarkets. The report put three New York chains -- Key Food, Pathmark and Grand Union -- among the top nine in total ad activity. Ad levels for the entire New York area of dominant influence grew 41.2% on the strength of a major push by Key Foods, which quadrupled its frequency, and the arrival of Grand Union in the category.

One Bright Spot

Philips Lighting, which has been gaining market share in supermarkets, also has stepped up its co-op activities with the top-50 food chains.

FREQUENCY OF ADVERTISEMENTS BY THE TOP 50 CHAINS

1993 1992 % change

General Electric 200 222 -9.9

Philips Lighting 68 47 44.7

GTE/Sylvania 59 57 3.5

Store brands 19 20 -5.0

Tungsram 2 2 0

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