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Presentation on theme: "GETTING THE MOST OUT OF SAMPLING"— Presentation transcript:

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 April, 2011

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

3 Who We Are Decade old marketing services company
Helping PEOPLE connect with BRANDS… to turn TRYING into BUYING Delivering the Future 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,, the Postal Service has annual revenue of more than $67 billion and delivers nearly 40 % of the world’s 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 VenturesTM 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. 3

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

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

6 The Sampling Landscape
The popularity of sampling among consumers has led to an increasingly wide range of sampling opportunities 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 …. 6

7 Samples are a very effective conversation starter
Why Sampling Works … 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 home—more 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

8 “Community” (Social) Media
Brands are utilizing social tools to offer people the chance to request samples (mailed “home”) and then join into conversations. Facebook’s 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 it’s 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 <

9 Some of what’s new in sampling
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 you’ll 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 I’ll cover much PM WEBINAR: Converting Trying into Buying … Product Sampling circa 2011.  Next Tuesday 2pm EST/1PM CST/12noon MST/11AM PST

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

11 Case Study: Sample Showcase

12 Case Study: Sample Showcase
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 Situation What we did Solution

13 Introducing the “Sample Showcase”!
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. 8 – 12 products targeted right to the CEO of the home 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 * Companies can create a customized mailing & timeline if all the spots are purchased. This includes co-branding the outer carton. 13

14 Sample Showcase: Details
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

15 Sample Showcase - Inside the box
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). Illustrative Account Brand Product Hershey Reese’s Dark Mars Dove Silky Chocolate / Peanut Butter 3. J&J Aveeno Body Wash 4. J&J Hair Shampoo & Conditioner 5. J&J Positively Ageless Moisturizer Account Brand Product 6. J&J Splenda Splenda with Fiber McCormick Grill Mates Montreal Steak Nestle Coffee Strips 9. J&J Shower to Shower Sport and Shimmer Powder 10. P&G Secret Clinical Strength Deodorant 11. J&J Bengay Moist Heat Pads -Different approaches to roll-out What learnings Consumer research (to help sell in)

16 Sample Showcase: Website

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

18 Results of Sample Showcase……….

19 Sample Showcase Research
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. Sample Showcase Research Measurement May 2010 Measurement* 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 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 Measure Results * 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. Q7 - Please rate your agreement with the following statements (five point agree / disagree scale*) The products were relevant to me % The mix of products inside appealed to me 98.4% I felt like I was opening a gift % I was very excited when I received Sample Showcase 95.9% Sample Showcase is a good fit with the USPS 92.5% The products were easy to use % Sample Showcase is for someone like me 97.3% * Top 2-box on a five point scale, N=25, 418

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

22 Summary of Top-2-Box “Definitely/Probably Purchase” Responses
What we learned: Future Purchase Intent 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. 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? Summary of Top-2-Box “Definitely/Probably Purchase” Responses 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

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

24 What’s 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 what’s 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 what’s new in sampling
A Case Study: Sample Showcase Canoe Ventures: RFI and Sampling Questions and Answers

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


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