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GETTING THE MOST OUT OF SAMPLING April, 2011 PMA Game Changer Conference Lisa Bobb-Semple, Product Manager, U.S. Postal Service Marc McCrery, Manager,

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Presentation on theme: "GETTING THE MOST OUT OF SAMPLING April, 2011 PMA Game Changer Conference Lisa Bobb-Semple, Product Manager, U.S. Postal Service Marc McCrery, Manager,"— Presentation transcript:

1 GETTING THE MOST OUT OF SAMPLING April, 2011 PMA Game Changer Conference Lisa Bobb-Semple, Product Manager, U.S. Postal Service Marc McCrery, Manager, Specialty Services, U.S. Postal Service Larry Burns, President, Start Sampling Mark Mitchell, Canoe Ventures

2 Who we are Why Sampling Works and whats new in sampling A Case Study: Sample Showcase Canoe Ventures: RFI and Sampling Questions and Answers Agenda

3 Helping PEOPLE connect with BRANDS… to turn TRYING into BUYING Who We Are Canoe is making TV the next great digital medium Decade old marketing services company Led the creation of on-line sample request solutions market Creative force in the at-home sampling market Manages the StartSampling network which can help brands reach nearly 200 million uniques/month A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation. With 32,000 retail locations and the most frequently visited website in the federal government, usps.com, the Postal Service has annual revenue of more than $67 billion and delivers nearly 40 % of the worlds mail. The Postal Service has been named the Most Trusted Government Agency six consecutive years and the sixth Most Trusted Business in the nation by the Ponemon Institute. Canoe Ventures TM is changing television. We're creating innovative products and services for networks to enhance programming and empower viewers to interact with their TVs. We are accelerating TV's evolution by combining the impact and reach of traditional TV with new technologies and marketing solutions that will better connect consumers with brands. Founded in 2008 by the country's leading cable operators, Canoe is making TV the next great digital medium. Delivering the Future

4 Who we are Why Sampling Works and whats new in sampling A Case Study: Sample Showcase Canoe Ventures: RFI and Sampling Questions and Answers Agenda

5 Sampling is a Powerful Brand Building and Discovery Mechanism 92% 84% 75% 63% Have purchased after trying a sample Would consider changing brands if they like the sample Became aware of a product through a sample Were very or extremely likely to buy the product after sampling The case for product sampling is clear. It converts consumers to brand buyers. Source: All about Sampling & Demonstrations, Art Averbook, Russ Brown and John Karolefski, PMA Promotion Marketing Association Product Sampling reaches 70 million households each quarter.

6 In home (via the mail) In-Store Demonstrations Events and Venues: college campus, community fairs, concerts, sports, and other targeted venues Non-traditional locations: Malls,Movie Theatres, Salons, Cruise ships, Fitness centers, etc On-Pack Catalog Package Insert / e-Commerce Ride Along On-line sample Request Integration with Retailers via Online Requests Newspaper & Magazine Pouch Door Hanger and/or Direct Delivery Integration within Community Media aka Social New Forms of Shared Marketing Platforms In effect, if you can imagine it – there is a vendor to help you deliver that product experience …. The popularity of sampling among consumers has led to an increasingly wide range of sampling opportunities The Sampling Landscape

7 We all know people like samples and there is vast data to support this: –92 percent of consumers find free samples the most influential source of information about new products. –Research shows that 80% of consumers prefer free samples to coupons. –33% of consumers would be willing to pay for something they tried and liked. –76% of consumers are making their purchase decision at homemore focus now on how to reach consumers before they go in-store. Samples are also playing a very important and sometimes overlooked role in the path to purchase. People not only enjoy samples - they also enjoy talking about them, hence… Samples are a very effective conversation starter Source: O'Leary, Noreen. "KFC's Grilled Chicken Tops Most-Recalled '09 Launches." Brandweek (2009); Washington, Kelli, and Richard K. Miller. "CHAPTER 35: SAMPLING.; Ad Age Why Sampling Works …

8 Brands are utilizing social tools to offer people the chance to request samples (mailed home) and then join into conversations. Facebooks Sampling Engagement Ad can target specific demographic groups and brands are using these tools more and more. A few examples - Chick-fil-A and Pepperidge Farm have engaged with people around sampling. V-8 created attention for its V-Fusion + tea drink by giving away 1000 samples a week on Facebook. They continually ran out within hours. Many other brands are increasing their use of social tools as a means to offer samples Source: Quinton, Brian. V-8 Fusion Opts for Facebook as Sampling Channel. 22 Jul PROMO. 28 Jul Community (Social) Media

9 Broad Trend - Single execution … across multiple distribution channels Full integration cross channels while combining both on and off line sampling Leveraging social networking tools that can enhance the brands messaging in very creative ways while finding ways to deliver true peer-to-peer sampling Reaching people in new ways – e.g. RFI youll hear about from Canoe Ventures a bit later; across retailer web sites that directly influence purchasing Creative sample packaging designs - extending brand presence directly via versions of brand shelf presence rendered at miniature scale Surprise and delight placements- in unexpected venues that can break through clutter e.g. distribution at Post offices, entertainment venues, and the Ill cover much PM WEBINAR: Converting Trying into Buying … Product Sampling circa Next Tuesday 12 2pm EST/1PM CST/12noon MST/11AM PST Some of whats new in sampling

10 Agenda Who we are Why Sampling Works and whats new in sampling A Case Study: Sample Showcase Canoe Ventures: RFI and Sampling Questions and Answers

11 Case Study: Sample Showcase

12 Cost of sending samples via mail has become expensive. USPS looking for innovative ways to regain the market. Brands need lower postage cost to make ROI work. Researched what others Posts were doing Interviewed prospective customers Interviewed industry experts Conducted customer focus groups Sample Showcase Breaks through clutter Cost effective Case Study: Sample Showcase Situation What we did Solution

13 The USPS, launched a new sampling vehicle called Sample Showcase. It is a nationally distributed, highly targeted, multiple-sample mailer intended to turn consumers into loyal brand buyers. Introducing the Sample Showcase! Sample Showcase Branded; high- end materials and participants The box was designed to fit in most mailboxes. and can be branded to your company for any custom release* USPS Co- Branding evokes trust and visibility 8 – 12 products targeted right to the CEO of the home 8 – 12 products targeted right to the CEO of the home * Companies can create a customized mailing & timeline if all the spots are purchased. This includes co- branding the outer carton.

14 Box A new sampling opportunity: A targeted sampling platform at an attractive price point Dimensions: Box size: 12 x 5.0 x 1.5 Contents: –Theme based –8-10 product samples –Product Samples and promotional materials Branding: Branded and Brought to you by The U.S. Postal Service Pricing: $0.30 – $0.50 per item per box Audience Sent to target list of consumers based on demographic and lifestyle profiles Consumers can also opt-in to receive additional Showcase Boxes if they qualify Themes include Hispanics New Movers Back to School Sample Showcase: Details

15 Sample Showcase - Inside the box AccountBrandProduct 6. J&JSplendaSplenda with Fiber 7.McCormickGrill MatesMontreal Steak 8.NestleNestleCoffee Strips 9. J&J Shower to Shower Sport and Shimmer Powder 10. P&GSecret Clinical Strength Deodorant 11. J&JBengayMoist Heat Pads AccountBrandProduct 1. HersheyReesesDark 2.MarsDove Silky Chocolate / Peanut Butter 3. J&JAveenoBody Wash 4. J&JAveeno Hair Shampoo & Conditioner 5. J&JAveeno Positively Ageless Moisturizer Illustrative A selection of product samples were sent to 200,000 total households. The audience: a mixture of opt-in customers and targeted purchased lists (Pittsburgh and Raleigh).

16 Sample Showcase: Website

17 How likely would you be to purchase each of the following brands in the next 6 months? Three rounds of survey questions are administered to customers. Questions include….. Pre-Research e.g. Box-Research What was your initial reaction when you received the Sample Showcase Box? e.g. Post-Research Which of the following products have you purchased in the past 6 months e.g. Sample Showcase: Research

18 Results of Sample Showcase……….

19 What we learned Three rounds of consumer surveys intended to understand the impact of the event on brands and the perception of recipients. Consumer participation in these surveys was exceptional and provided robust data for analysis. Measure Results Sample Showcase ResearchMeasurement May 2010 Measurement* Box Survey (An online consumer survey completed by recipients immediately after receipt of the Sample Showcase) Consumer reaction to the Sample Showcase and its contents N = 25,418 Product & Conversion Survey (An online consumer survey completed by consumers 6-8 weeks post-trial) Post-trial brand awareness, lift, purchase intent, and word of mouth N = 6,306 Pre-Sample Survey (An online consumer survey completed by recipients prior to receipt of the Sample Showcase) Pre-trial brand awareness & prior purchase N = 25,376 * 200,000 Sample Showcase recipients; 2010 release

20 What we learned: Sample Showcase Hits the Target Nearly 12% of consumers logged on to give feedback on their Sample Showcase experience. The products were relevant to me97.3% The mix of products inside appealed to me98.4% I felt like I was opening a gift95.8% I was very excited when I received Sample Showcase95.9% Sample Showcase is a good fit with the USPS92.5% The products were easy to use96.2% Sample Showcase is for someone like me97.3% Q7 - Please rate your agreement with the following statements (five point agree / disagree scale*) * Top 2-box on a five point scale, N=25, 418

21 Based on all respondents answering this Product survey question Q10 of the study Base sizes vary by product Nearly four in five (77%) respondents reported purchasing at least one product included in the Sample Showcase since receiving it. What we learned: Purchase Since Sampling

22 Based on all respondents answering this Pre-Survey and Product Survey question Base sizes vary by product Note: Pre-Survey respondents were only asked this question if they indicated awareness in Q4 Summary of Top-2-Box Definitely/Probably Purchase Responses Nearly three-quarters (73%) of consumers expressed Top-2-Box average purchase intent. This represents an increase of twenty-two percentage points from the pre- sample survey. What we learned: Future Purchase Intent Q: Which one phrase best describes how likely you would be to purchase each of the products included in the Sample Showcase Box in the future?

23 What we learned Sample Showcase compared favorably with traditional offline approaches along key targeting and delivery factors. Initial Sample Showcases have averaged 26% purchase since trial Limited tracking available; runs approximately 10% as industry standard Targeting Information Efficiency Brand Message Conversion* Breaking Through SAMPLE SHOWCASE OTHER SAMPLING: In-Store, Event, etc Combination of self-selection (online) & demographically targeted lists Neighborhood clusters; event or store demographics Real-time, actionable consumer feedback (pre & post) and destination confirmation Consumer response rate hovers at 3%, if executed; post-program reports only One item per household; no waste or duplication, the brand is in control Freebie mentality, consumers take what they can get Uncluttered home where its tried and used. Online engagement enhances exposure Unrequested while running for the train, shopping, reading Multiple points of contact for more exposure; opt-in names can be added to a brand database One-time shot; difficult to reconnect or re-market to that household The result? A lower cost per converted consumer! *Case study results for 2010 release

24 Whats next for Sample Showcase and The U.S. Postal Service… Continue with themed releases: Hispanic box, New Mover box, Back to School box Engage retailers as a means to drive traffic to retail Incorporate QR codes to increase customer engagement Explore other sampling offerings to develop a portfolio: Samples at PO Box Radiant sampling programs e.g. Saturate around a store or a market Flat rate Sample Box Detached address label with samples

25 Agenda Who we are Why Sampling Works and whats new in sampling A Case Study: Sample Showcase Canoe Ventures: RFI and Sampling Questions and Answers

26 Agenda Who we are Why Sampling Works and whats new in sampling A Case Study: Sample Showcase Canoe Ventures: RFI and Sampling Questions and Answers

27 USPS Contact for Samples: Marc McCrery Office: (202) USPS Contact for Samples: Lisa Bobb-Semple Office: (202) Canoe Ventures: Mark Mitchell ventures.com Office: (212) Start Sampling: Larry Burns Office: (630) Questions/Comments


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