Download - A different road to brand experience
A Different Road to Brand Experience
Many thanks to our kind sponsors
For supporting and taking part at this evenings event
Today’s agenda • 16.00 – 16.30: Registration and coffee
• 16.30 – 16.50: Welcome and event introduction
16.50 – 17.10: A Different Road to Brand Experience
• 17.10 – 17.25: Brand Comms: Making advertising more effective
• 17.25 – 17.45: The Rise of Couponing
• 17.45 – 18.00: Refreshment break
• 18.00 – 18.20: The Importance of Marketing Research
• 18.20 – 18.35: The Power of Big Brilliant Ideas
• 18.35 – 18.55: Augmented Reality
• 18.55 – 19.05: In Home Sampling
• 19.05 – 19.15: Q&A
• 19.15 – 20.00: Networking - drinks and canapés to follow
Nick WellsCEOTNT Post UK
100%
90%
10%
70%
60%
50%
40%
30%
20%
80%
TV 85%
Press 85%
Radio61%
OOH 49%
Internet 74%
Facebook 46%
Twitter 16%
DM & Door Drop 100%
Pinterest 0.3%
UK
Med
ia R
each
(% p
opul
ation
)Firstly remember our strengths…
Source: British Marketing Survey 2008-2011
Secondly remember our strengths…
Difference between spend and effect per channel
Source: BCG Focus on the Future June 2012
But times are changing…
Multi-channel strategy drives above pure-play online growth (US)
Source: BCG Focus on the Future June 2012
Multi-channel customers prove to generate more revenues for each single channel
Source: BCG Focus on the Future June 2012
Entertainer Case StudyTo prove uplift in online sales in door dropped areas versus non door dropped areas, specific cities were chosen where there are no stores, meaning the only access to shop was online.
2010 v 2009 Test Area vs Total Online Sales Uplift
64.22%
18.70%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Test Area Online Sales Uplift All sales uplift
Test and Control Areas
% O
nli
ne
Sal
es U
pli
ft
2010 v 2009
A clean test, where online sales from 2009 in the same areas can be analysed versus 2010 sales
UK is the country with the largest % internet contributions to GDP in 2010
Online retail is expected to account for 23% of total retail in 2016
25% of people in the UK would give up sex for the internet
Even Google use DM!
DSA – how it works
DSA Postal Process UK
Inward depot
16 Letter sorters
2 Packet sorters
7 Depots Transport fleet
Outward depot
> 125 trucks per day
Transport
RM delivery
Delivery
95% next day
Transport
Collections
300 vehicles
8000 clients
Collections
97% handover quality
60 Royal Mail IMC’s
Up to 20m items per day
60 IMC’s
Mail market by competitor
OTH
ER
End to End – Why now?
Desire for alternative supplier
Reducing reliance on Royal Mail
20% Increase
PRICES
DSA volumes of 3.9 billion in 2011
Proven track record
Liverpool pilot since 2007
Experience from EMN
countries
VAT resolution in sight
Z.G.P.P. enables urban selection
Marginpressure on DSA
OFCOM support as new regulatory body
UK is the 2nd largest postal market in terms of total addressed mail volume in Europe
Clients interested Market ready
Internal capabilities Regulatory
TNT Posties
“Rumours of my death have been greatly exaggerated”Mark Twain
GREAT direct mail and door drop is still about
Relevance... impact... engagement... interactivity and integration
A different road to brand experience……..
How well do you know your Kellogg’s cereals?......
Let the games commence…….
The Background & Challenges…..
•To Re launch a brand to a different target market• Targeted to women aged 35+
•Focusing on digestive health harmony and balance
•A whole shift FROM BUM TO TUMFROM BUM TO TUM
•Changing people’s taste perceptions
Meet Jo…. What she can offer?
Two stage is the way forward…
• Day OneDay One – – Drop a bag through the householders door
• Day TwoDay Two – – Householder leaves bag outside door before 9am
• TNT Network then deliver a full size product
= 1 very happy consumer= 1 very happy consumer
Also = One happy client
Effective mechanic
Tailored to client objectives
Meet all budgets, requirements and objectives
Many variants of product
What we did
• Targeting is key…..
Joanne HigginsonComms Strategy ConsultantBrand Comms Department
© dunnhumby 2011 | confidential
•Did it work?
•Should you do it again?
•Do you need to do things differently next time?
© dunnhumby 2011 | confidential
The starting point
The client’s ultimate business objectives
Logistical info about the campaign, inc which postal
sectors have been exposed to the door-drop
© dunnhumby 2011 | confidential
We then look for the Tesco Clubcard holders amongst that group
© dunnhumby 2011 | confidential
To see if their shopping behaviour has changed since they received the door drop….
● We first look to see if it is different to what we would have expected
● And we quantify this so that we can say exactly how many sales the door drop has driven
● Then we did a little deeper in order to understand how and why shopping behaviour has changed
– Are people buying more each time they visit?
– Or is it just that they are buying more often?
– Are people trying the product for the 1st time?
– Are people being tempted back after they had abandoned the brand?
● We do all of this anonymously and comply with data-protection regulations
© dunnhumby 2011 | confidential
By doing this, we can tell
1. How many sales a campaign drove
2. How it changed consumers shopper behaviour
Thus indicating: •If the campaign has been successful
•How, when & where it has worked best
So did we meet Kellogg’s objectives?.....
ROIROI
InsighInsight t
GroupGroupss
Online Online ExposurExposur
ee
What does the future hold for us?.....
Two more campaigns this year..possibly three
© dunnhumby 2012 | confidential
Brand Comms: Making advertising more effective
September 2012
© dunnhumby 2012 | confidential
We evaluate clients’ brand advertising using behavioural data
….and this enables us to advise on how to optimise & improve
future campaigns.
What dunnhumby Brand Comms offers
© dunnhumby 2012 | confidential
We combine various data-sets at a household level to give a 360° view of the consumer
Actual shopping behaviour of
17m shoppers
“Shopper Thoughts” panel of 85k customers
Shopping Behaviour
Media Exposure
Attitudinal & claimed media
consumption
Campaign exposure
© dunnhumby 2012 | confidential
Step 1 – Isolate those exposed to the media or campaign
Step 2 – Build a control group of shoppers matched to exposed group on brand and category purchase behaviour, demographics and profiles
Step 3 – track and evaluate the changes in sales etc of the advertised product between the 2 groups
Vs.
To do this we use a test & control methodology as this allows us to isolate the effect that the campaign is having
© dunnhumby 2012 | confidential
So rather than measuring success by media currencies, we measure it according to the objectives the campaign was intended to drive
Repeat purchase rates
Coupon redemption
New customer Trial
Loyalty
Brand switchingSales uplift generated
Market share / share of requirement
Weight of purchase
Freq of purchase
© dunnhumby 2012 | confidential
42
This woman already was already an occasional buyer of Brand X but she
bought more as a result (increased share of requirement)
This woman tried Brand X for the first time
(trialist) This woman gave Brand X a second chance (repeat buyer)
This woman usually bought whatever was on promotion but this time she purposefully looked
Brand X out(increased WOP & FOP)
In addition, we can tell what shifts in shopper behaviour have driven these extra sales
© dunnhumby 2012 | confidential
That means that we can give you some great insight on how your door-drop or direct mail campaign has worked
● how many sales it drove
● how it changed consumer behaviour
● whether it was successful in:
– driving sales uplift
– bringing in trialists
– reaching existing users
– encouraging repeat purchase
● how many coupons were redeemed and of these:
– how many were correct redemptions
– how many were mis-redemptions
© dunnhumby 2012 | confidential
And because our analysis is flexible we can also answer the more unusual questions that you might have
44
Are coupon redeemers more or less valuable than other customers?
Would 2x coupons in 1 mailer help drive repeat purchase?
Is one delivery mechanic more
effective than another?
Does one creative execution, or message, drive more sales than another?
Is one method of targeting more effective than another?
Does the presence of other media help make my door drop work harder?
© dunnhumby 2012 | confidential
To give you an example….
45
© dunnhumby 2012 | confidential
46
Brand X needed to halt declining sales and we could see that the door-drop generated an extra £53k sales
All numbers reported are % incremental to Control Group
This was a +17% uplift in sales from the Tesco Clubcard test group
+ 6p
+ 17%
Or, an extra 6p spent per household analysed,
£224,308…which translates to a lot of money when you apply this to all targeted, regardless of whether or not they shop at Tesco…
© dunnhumby 2012 | confidential
Digging a little deeper, we saw that….
47
This was due by: ● increases in customer penetration ● increases in market share
And that New Customers (trialists) were the driving force behind these gains
Clear differences were also seen between the different targeting & distribution methods tested, thus giving clear direction on how future campaigns should be planned
© dunnhumby 2012 | confidential
1. How many sales your door-drop or DM campaign drove (or its ROI)
2. If it achieved your objectives
3. How it changed consumer behaviour
4. What worked well & what didn’t
5. What issues you need to address going forward
So in summary, we can tell you
© dunnhumby 2012 | confidential
If you’d like to know more, please get in touch
Joanne HigginsonComms Strategy Consultant
DL: 020 8832 [email protected]
Francesca BakerComms Strategy Consultant
DL: 020 8832 [email protected]
© dunnhumby 2012 | confidential
Thank You
Global leading media and marketing services company 1
Founded in Europe in 1970 by AC Nielsen 2
Employ 7,000 people worldwide 3
Offices in US, Canada, Mexico, Germany, Italy, Spain, Poland & the UK 4
Work with over 4,500 UK brands 5
85% of all UK coupons pass through Valassis: 8 million each week 6
Invest £150,000 in UK quality checks each year 7
35% of UK clients have worked with Valassis for 15 years or more 8
Introduction to Valassis
Coupon Lifecycle
Traditional Paper Based Coupons Digital Innovation NFC
Coupon’s are Evolving
Shoppers increasingly use a mix of digital media to prepare the shopping trip
Mobile SMS Text
Email Mobile Apps
Social MediaWebsite
Consumer Choice is Widening
Near Field Communication (NFC)
• NFC is a short range wireless technology that exchanges data simply and securely between two electronic devices
• A simple wave or touch can establish an NFC connection between 2 devices that are within 4cms of one another
• NFC can be used with a variety of devices – but the main talking point at the moment is around its use in mobile phones
Near Field Communication
• Valassis managed 340 million coupon redemptions in 2011 - this is an increase of 22% over 2010 when the number was 277 million
• Volumes have grown 40% in two years and 60% in the last 5 years• This growth has come primarily from retailer issued coupons and vouchers which
grew 32% and 40% in 2010 and 2011 respectively• The GfK NOP research shows that 72% of consumers use coupons - this was an
increase of 11% compared to 2011 (61%)
More consumers are using coupons
Weighted base: 1717 adults who use coupons when supermarket shopping‘When compared to this time last year would you say you are using more, less or the same amount of coupons when you go supermarket shopping?’
22% of people are using coupons more than they were a year ago
• Redemptions of retailer issued coupons and vouchers grew by 66 million to almost 230 million coupons in 2011
• The reasons for this growth are:• Supermarkets are having to compete more aggressively than at any time in recent history, and
especially around key seasonal peaks, such as Christmas and Easter – to do this they are using money off vouchers
• Loyalty programmes continue to be popular with consumers and provide an effective vehicle for targeted own label and branded goods offers
• Redemptions of manufacturer coupons are broadly stable (40m in 2011) – • in recent years there has been a significant shift to using retailer loyalty programmes as
the distribution channel
• Newspaper subscription coupons continue to decline (23m in 2011) • there have been peaks and troughs in the last five years. In 2009 we saw the volumes as high as 40m,
almost 60% higher than the previous three years.
Coupon Trends
• The average coupon value grew from £0.90 in 2010 to £1.01 in 2011.• This average value excludes money off vouchers which can be used against total basket spend• The increase reflects the competitive environment where brands and retailers are needing to give more away in return
for loyalty
• Direct mail has the highest redemption rate of more than 6%, although this has declined since 2008, when it was just over 10%
• This redemption rate excludes some retailer loyalty mailing schemes where the redemption rate is significantly higher due to finely tuned targeting of the offers
• We suspect the decline is due to less emphasis on targeting than in previous years
• Coupons and vouchers distributed through magazines and newspapers, as might be expected, given the nature of their distribution, have the lowest redemption rates of around 0.5%
• This is compounded by reduction in daily newspaper sales and coverage
Coupon Trends
Average Redemption Rates by Distribution Media
The coupon market today - overall summary
• Consumers are using more coupons• Seen in both Valassis’ redemption data and by market research
- 40% growth in Valassis redemptions in three years• Consumers are looking to use coupons more than a year ago • Higher level and becoming less loyal to retailers
• Consumer confidence, although relatively high, is falling for all social grades• Confidence is related to social grade
- the higher the social grade, the more confident• The less affluent the group …
- the less confident they are- and the more their confidence has worsened
Weighted base: 219 adults
74% of wealthier AB shoppers plan to use money-off vouchers when Christmas shopping
Contrary to stereotypes, this research indicates that it is the wealthier AB consumers who are savvier shoppers
− 74% of this demographic plan to use money-off vouchers, compared to an average of 59% 66% of AB shoppers plan to use the favoured mechanic, ‘money off
product coupons’. Over 1 in 4 (26%) of AB shoppers are looking for more promotional offers than this time last
year. 42% of shoppers plan to shop in more stores to redeem all the store specific coupons and
vouchers that they have − This is most prominent among the 16 – 34 age group (59%), behaviour they are likely to
continue as they get older. 17% of shoppers will be more likely to use a different supermarket (i.e. not their main one), this
year than at the same time last year
Latest consumer insight from Valassis – GfkNOP research findings (Fieldwork conducted 18 th – 20th Nov 2011)
Coupon Trends
• 30% of consumers will shop away from their main supermarket this year, because other retailers are advertising better offers• On a similar survey before Christmas 2011, only 17% planned to ‘shop
away’ at Christmas• 36% of women will shop away from their main supermarket
• We appear to be seeing lower levels of loyalty, helped by, for example• ‘brand matching’ promotions• aggressive pricing in supermarkets
• 9% will not change their shopping behaviour• For 6% of consumers, offers in other supermarkets make no difference
Coupon Trends
Weighted base: 991 adults
78% of shoppers will use a promotional offer when doing their grocery shopping this Christmas.
54% of shoppers will use 3 or more mechanics when doing their Christmas grocery shopping.
The favoured mechanic to drive down costs when Christmas grocery shopping was ‘money off product coupons’, with 65% of shoppers planning to use these.
Latest consumer insight from Valassis – GfkNOP research findings (Fieldwork conducted 18 th – 20th Nov 2011)
Deal hungry consumers turn to promotions to drive down costs this Christmas
In summary
Almost 1 in 5 shoppers (18%) are worried about how much money they will spend on their Christmas grocery shopping
78% of shoppers will use a promotional offer when doing their Christmas grocery
shopping
The favoured mechanic was ‘money off products coupons’
− 65% of shoppers plan to use them when doing their Christmas grocery shopping
Wealthy AB consumers use vouchers more than the average consumer, 79% versus an average of 59%
As a result......... Worryingly for retailers, only 8% of shoppers would remain loyal to their
supermarket of choice if others retailers were offering better discounts
at Christmas.
Latest consumer insight from Valassis – GfkNOP research findings (Fieldwork conducted 18 th – 20th Nov 2011)
Multi Coupon Mailing Example
Bar Code Make Up
Issuer Number Campaign Number Coupon Value
Barcode Structure
Barcodes EAN13 PIN Codes
Pin Codes
You’re in good company at Valassis
Thank you
Coffee break…
The next session starts at 18.00pm
CCB Fastmap Ltd3rd Floor, Colonial Building59-61 Hatton GardenLondon EC1N 8LS0207 242 0702www.ccbfastmap.com
How marketing insight prior to a sampling campaign can enhance the look, feel and overall response
David Cole , Managing Director
david.cole@@fastmap.com
www.fastmap.com
Agenda
Introduction
Why test
How its done
Case studies
Who are fast.MAP?
fast.MAP are specialists in using online research for the Direct Marketing sector.
We help marketers dramatically improve the performance of their marketing through effective insight
Strong Alliances with Trade Bodies
DMA White Paper Tracking Studies
Research is widely reported
The Importance of Testing – Richard Benson
There are only two rules in direct marketing.
Rule 1: test everything. Rule 2: Refer to Rule 1
Secrets of Successful Direct Mail, 1989
Why do we Marketers get it wrong?
Marketing GAP
What shoppers do, and what marketers think that they do. Misunderstanding the ever changing attitudes to DM and Promotional Techniques leaves a huge gap in the armoury. The Marketing Gap survey updates you annually on the key issues you need to bear in mind the very next time you decide to go one way, rather than another
Marketing GAP
What shoppers do, and what marketers think that they do. Misunderstanding the ever changing attitudes to DM and Promotional Techniques leaves a huge gap in the armoury. The Marketing Gap survey updates you annually on the key issues you need to bear in mind the very next time you decide to go one way, rather than another
Why do we Marketers get it wrong?
•Skilled in marketing technique •Understand the brand
•Different demographics/outlook•Ever changing environment
Released October 3rd …
Some truths from this year’s GAP report
Marketers get it wrong …….2012 fast.MAP GAP Report
30% under- estimation
Marketers get it wrong …….2012 fast.MAP GAP Report
34% under- estimation
Marketers get it wrong …….2012 fast.MAP GAP Report
57% under- estimation
Marketers get it wrong …….2012 fast.MAP GAP Report
57% under- estimation
Marketers get it wrong …….2012 fast.MAP GAP Report
283% OVER-estimation
Decisions marketers have to make
Variable
Audience
Offer
Incentive
Endorsement
Outer envelope
PS
Payment term
Decisions marketers have to make
Variable How many Possible combinations
Audience 5 5
Offer 4
Incentive 4
Endorsement 3
Outer envelope 3
PS 4
Payment term 4
Decisions marketers have to make
Variable How many Possible combinations
Audience 5 5
Offer 4 20Incentive 4
Endorsement 3
Outer envelope 3
PS 4
Payment term 4
Decisions marketers have to make
Variable How many Possible combinations
Audience 5 5
Offer 4 20
Incentive 4 80Endorsement 3
Outer envelope 3
PS 4
Payment term 4
Decisions marketers have to make
Variable How many Possible combinations
Audience 5 5
Offer 4 20
Incentive 4 80
Endorsement 3 240
Outer envelope 3
PS 4
Payment term 4
Decisions marketers have to make
Variable How many Possible combinations
Audience 5 5
Offer 4 20
Incentive 4 80
Endorsement 3 240
Outer envelope 3 720PS 4
Payment term 4
Decisions marketers have to make
Variable How many Possible combinations
Audience 5 5
Offer 4 20
Incentive 4 80
Endorsement 3 240
Outer envelope 3 720
PS 4 2880Payment term 4
Decisions marketers have to make
Variable How many Possible combinations
Audience 5 5
Offer 4 20
Incentive 4 80
Endorsement 3 240
Outer envelope 3 720
PS 4 2880
Payment term 4 11,520
Traditional D.M. Testing
Control
GO LIVE ; INVOLVE CONSUMERS
Traditional D.M. Testing
100 days £25k to £35k GO LIVE ; INVOLVE CONSUMERS
Control
Control
What does a traditional Door Drop test tell you ?
1 Gross response - which pack/leaflet wins ? Y
What does a traditional Door Drop test tell you ?
1 Gross response - which pack/leaflet wins ? Y
2 What is the profile of respondents? N
3 What ask level / price would have worked the best? N
4 Which is the second favourite pack? N
5 Is the branding “on message”? N
6 How could the “winner” be improved? N
7 Which creative will attract continuous givers? N
8 Quantify the negative impact of powerful creative. N
9 At what stage in the process did respondents loose interest? Envelope, Letter, Offer…
N
10 Do different creatives require different channels? N
The result of traditional testing ……..
One pack fits all
Not cost effective to segment
Control pack is very difficult to beat
Few tests a year ( 2 or 3 )
Many new initiatives fail
Limited innovation
Therefore off line DM as a channel is not as effective as it might be.
Chris Combemale
Executive Director DMA
“The lengthy time is takes to learn and the cost of live testing has a negative impact on the effectiveness off line Direct Marketing. The advent of the internet (and specifically panel based research) means it is no longer necessary to wait months to discover which creative approach, envelope or incentive will work best..............
Chris Combemale
fast.MAP vs. Traditional Test – 2 creatives
Cost Time
Offline c£30k 100 days
Online c£3k 10 days
• 1/10th of Cost • 1/10th of the Time • 10 x the Insight
What can you test research?
Examples of how it works…
Testing Outer Envelope Headlines
Testing Outer Envelope Headlines
Attitudes and Experiences
Question 1 Volume PercentI consider myself a property entrepreneur and actively invest in different properties for financial gain
145 5%
Whilst I have not invested in property before (other than the property I live in) I could be interested in learning more 1,170 37%
I never have or wish to invest in property for financial gain 1,882 59%Overall 3,197 100%
Mail Pack Creative
Current Outer Envelope Headline – NOT the favourite.
Please indicate which of the following headlines would motivate you to open the envelope
Learn the secrets of successful property investment
Get the inside story on becoming a successfully property investor
Ever thought the people making money out of property know something you don’t? We’ll tell you what it is
Take the first step in becoming a property millionaire
Become a property millionaire 10%
Become an expert property investor
Make a mint in property
Current Outer Envelope Headline – NOT the favourite.
Please indicate which of the following headlines would motivate you to open the envelope
Learn the secrets of successful property investment 24%
Get the inside story on becoming a successfully property investor 19%
Ever thought the people making money out of property know something you don’t? We’ll tell you what it is
18%
Take the first step in becoming a property millionaire 13%
Become a property millionaire 10%
Become an expert property investor 9%
Make a mint in property 6%
Learn the secrets of successful property investment
52% increase in response
Result
Incentive Testing
Incentive testing
Incentive testing
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%1. Everybodys Grandparents
2. Comfortable People
3. Deal Seekers
4. Nice People
5. Stretched People
6. Unknown
Organic Hotel Green/Organic Vouchers £15 M&S Vouchers Green Box None
£15 M&S Vouchers
30%
25%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1. Everybodys Grandparents
2. Comfortable People
3. Deal Seekers
4. Nice People
5. Stretched People
6. Unknown
Organic Hotel Green/Organic Vouchers £30 M&S Vouchers Green Box None
The following incentives were randomly shown to the remaining panellists
28%
42%
30%
25%
£30 M&S Vouchers
Pre-testing sample response…
Major cereal brand were planning to distribute free products sample delivered to consumer’s doorstep.
Primary objective of research is to evaluate the preferred product so that sampling volumes could be planned.
Are you the main decision maker when it comes to your family shopping?
Who do you live with?
What brands of breakfast cereal do you regularly buy for your family?
If major cereal brand provided a free sample delivered to your home, which of these two cereals would you most want?
New Product
Existing Product
39%
If major cereal brand provided a free sample delivered to your home, which of these two cereals would you most want? Vs. Gender
New Product
Existing Product
If major cereal brand provided a free sample delivered to your home, which of these two cereals would you most want? Vs. Age
New Product
Existing Product
If major cereal brand provided a free sample delivered to your home, which of these two cereals would you most want? Vs. Household Structure
New Product
Existing Product
Existing Product
New Product
Please let us know whether you agree or disagree with the following statements? COMPARISON
I have seen this product advertised on TV recently 37% Other members of my family or household would be interested in this 50% 24%I chose this because clusters appeal to me 51% I selected this for me 54% 51%I would like to try this 64% 58%I like the colours and images on the box 65% 65%The flavour appeals to me 65% 55%I think the product looks tasty 70%
I chose this because flakes appeal to me 46%
I think the product is healthy 56%
I like cereals with fruit combinations 49%
Existing Product
New Product
Results
• Able to advise which product to stock
• Significant additional insight
Typical project schedule / timing – it’s fast……..
Task Week Timing
Project sign-off / Order confirmation approved
Week 1
0
Draft script prepared 2
Script approved (no more amends) 1
Test link created and approved (rapidly)
1.5
Survey live (for one week) 0.5
Online reporting available
Week 2
1
Results review conference call / Analysis briefing
2
Survey closed 2
Analysis undertaken Week 3
4
Analysis amends 1
Final thoughts…
The Importance of Testing – Richard Benson
There are only two rules in direct marketing.
Rule 1: test everything. Rule 2: Refer to Rule 1
Secrets of Successful Direct Mail, 1989
Chris Combemale
Executive Director DMA
“The lengthy time is takes to learn and the cost of live testing has a negative impact on the effectiveness off line Direct Marketing. The advent of the internet (and specifically panel based research) means it is no longer necessary to wait months to discover which creative approach, envelope or incentive will work best..............
Chris Combemale May 2011
Decisions marketers have to make
Variable How many Possible combinations
Audience 5 5
Offer 4 20
Incentive 4 80
Endorsement 3 240
Outer envelope 3 720
PS 4 2880
Payment term 4 11,520
Online research vs. Traditional Test (example – 2 creatives)
Cost Time
Offline £30k 100 days
Online £3k 10 days
• 1 / 10th of cost • 1 / 10th of the Time • 10 x the Insight
Thank you
In Home Sampling
Keeping the Consumer, Brand and Retailer Happy
Fresh Minds Research 2011
7%
72%
76%
77%
78%
83%
86%
0% 20% 40% 60% 80% 100%
Do not wish to receive any type of unaddressed comms.
Free samples of sweets and chocolate
Free samples of hygiene and beauty products
Free samples of new food or drink products
Buy one get one free offers for local shops and supermarkets
Free samples of household products
Redeemable coupons for discounts at local shops and supermarkets
Which of the following types of free samples and offers are you happy to have delivered to you through your letterbox?
Door drop vouchers/coupons save consumers money and encourage trial
Money-off vouchers/coupons are rated very positively by UK adults.
A money off voucher/coupon saves consumers money something very important for those with tight budgets. It also provides consumers with an incentive to try something new.
Door drop vouchers/coupons are considered a practical monetary offering, which if unwanted is not a problem – can either be disposed of or passed onto a friend.
Why do you like to receive door drop vouchers/coupons?
I like to try new things if I can received a discount then that’s better.
Male, 45-54 yrs
Allows me to try new things or get money off which provides an incentive to purchase.
Female, 35-44 yrs
Lets me try new products and saves me money in the current economic climate.
Female, 55-64 yrs
Money off coupons are a great way to save on shopping bills when you are on a tight budget.
. Female, 55-64 yrs
I like having free samples and money-off vouchers through my door, mail that is put to good use and not just chucked away..
Female, 25-34 yrs
I prefer this because I can look at it at my leisure, either use the coupons or pass them on to somebody who might, then recycle the leaflet in the bin provided.
Female, 35-44 yrs
[Base door drop voucher/coupon=1,197]
Opportunity to either save money on known product, or try something new at no or little cost.
Male, 65-74 yrs
[Base door drop free samples=1,257]
Having the chance to try products before you buy is appreciated by consumers; both an enjoyable and convenient experience.
UK adults enjoy having the opportunity to try familiar or new products at no expense to them. This is viewed positively at the moment where household budgets might be tighter than usual.
If respondents do not personally want the free sample, many say they will pass it onto a friend; thus it is not considered a waste of time or an annoyance.
Why do you like to receive door drop free samples?
I'd rather a free sample posted to me than given out on the street.
Male, 25-34 yrs
It’s nice to be able to try something out for free before you decide to buy it..
Female, 54-64 yrs
A free sample gives me a chance to try something new without buying it at the risk of not liking it. Male, 45-54 yrs
Because it is a nice gesture, everyone enjoys receiving something free, especially me because I am a student and I don't always have a lot of money.. Female, 18-24 yrs
As it is a free item you can try it at home and if it is not to your liking then no harm or cost has been undertaken by you.
. Male, 35-44 yrs
Encourages me to try something new that I would not normally try. I (like many others) am currently on a tight budget, and shop carefully.
Female, 35-44 yrs
It's a pleasant surprise and if it's something i can't use i'll pass it on to someone else.
Female, 55-64 yrs
Door drop free samples are enjoyed by UK adults; offering a great way to try familiar or new products
When asked what the best thing respondents have ever received through their mail box, answers mainly included...
A large proportion of UK adults state the best thing they have received through their letter box are free samples:
Chocolates and sweetsCerealCoffeePet foodStationaryBeauty productsHousehold products
Money off vouchers are also popular:
2 for 1 restaurant vouchers or discountsMoney off restaurants Discounts off takeawaysDiscounts and offers for local supermarkets
Door drop free samples Door drop money off coupons and offers
[Base=2,008]
A free sample of tea. It was a completely different type than I usually drink, and we really enjoyed it.
Male, 25-34 yrs
Sample of Sanex shower gel. I have bought it ever since!
Female, 35-44 yrs
Meal for two at local restaurant in Malvern where we had a wonderful meal.
Male, 55-64 yrs
Buy one get two free offers on items I like, plus useful information about future offers or reductions.
Male, 25-34 yrs
The Shopper Marketing MixHas the pendulum swung too far?
Mismatch between where shopping decisions
are made and allocation of promotional budget
Between one third and half of purchasing decisions are made prior to leaving home
Source: Brainjuicer / Valassis research June 2007
81% of consumers will open a promotion which comes through the letterbox
Source: Brainjuicer / Valassis research June 2007
Brand Equity
Greater latitude to build brand equity with the consumer
vs
Or to put it another way…
vs
A noisy promotional environment…. ….. or your undivided attention
Supporting the Retailer
Asda shoppers
Sainsburys shoppers
Tesco shoppers
Summary
Direct Marketing Supplier of the Year 2010, 2011 & 2012
The COGS – in association with Promotional Marketingand The Institute of Promotional Marketing
Gold DMA Award 2011 – Best Customer Acquisition
Silver DMA Award 2011 – Best Use of Door Drops
2012 – TNT Post elected to Presidency of European Letterbox Marketing Association
Thank you…… to all of today’s speakers:
Nick Wells, TNT Post
Jo Hyland, TNT Post
Beth Armstrong, Kellogg’s
Joanne Higginson, Dunnhumby
Ian Steen, Valassis
David Cole, Fast.map
Duncan Slater, Origin Creative (APS Group)
Stephen Shaw, Blippar
Mark Davies, TNT Post
Please join us for drinks & Canapés courtesy of
Please hand all completed evaluation forms to the registration desk.