Valassis Communications offers door-to-door marketing without taking a toll on its shoes. A giant in the marketing services industry, Valassis is a leading producer of newspaper inserts, selling space for advertising and coupons in its four-color booklets. Each week the company's consumer brand RedPlum delivers coupons and deals to more than 100 million households through the mailbox, in the newspaper, on the doorstep, or on the Internet. In order to provide its services, Valassis works in collaboration with more than 15,000 advertisers worldwide. The company was acquired by Harland Clarke in 2014.
Change in Company Type
In early 2014 integrated payment and marketing services provider Harland Clarke purchased Valassis for about $1.8 billion. The deal diversifies Harland Clarke's portfolio and adds some 15,000 customers to its client base. Valassis announced back in mid-2013 that it would explore strategic alternatives for the business after a few years of declining revenue, increased competition from digital offerings, and changes in its markets.
Valassis has about 25 operations facilities in the US and eight internationally. Outside the US, Valassis' products and services reach about 7 million Canadian households. In 2012 the US accounted for about 98% of the company's revenue.
Valassis operates through four segments. Its shared mail segment, which contributed about 63% of total revenue in fiscal 2012, offers a shared mail distribution network.
The company's neighborhood targeted products are targeted to specific newspaper zones or neighborhoods based on geographic and demographic characteristics.
Its free-standing inserts and four-color booklets contain promotions, primarily coupons, from multiple advertisers.
The company's international, digital media & services segment includes Brand.net, NCH Marketing Services, Valassis Canada, Promotion Watch, and its in-store business.
Valassis has seen its revenue decline slightly in recent fiscal years. Its revenue decreased about 3.3% in fiscal 2012 compared to fiscal 2011. The company reported about $2.16 billion for fiscal 2012 after claiming about $2.23 billion in fiscal 2011 and around $2.33 billion for fiscal 2010.
The company has been expanding its marketing capabilities through marketing partnerships. In 2012 Valassis partnered with drugstore chain Rite Aid Corporation to develop and execute in-store marketing and media programs.
Mergers and Acquisitions
In 2012 the company expanded its digital marketing capabilities with the acquisition of Brand.net for about $18 million.