sample showcase presentation

8/7/2019 Sample Showcase Presentation

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Contract Pricing ProcessStatus ReportDeliver your product and message directlyto the consumer where it matters -@Home!

Sample Showcase

Cut Through the Clutter

1August 2010


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Agenda

1. Benefits of Sampling and the Direct Mail Platform

2. Sample Showcase Test & Results

3. National Roll-Out Timeline and Opportunities

2Copyright 2010 USPS. All rights reserved. CONFIDENTIAL AND RESTRICTED


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Sampling allows consumer packaged goods companies (CPGs) to reach their customersdirectly, with a strong conversion rate for relatively low cost.

Sampling Market Overview

Sampling is a nearly $4 billion dollar business CPGs prefer consumers sampling their products at home USPS facilitates targeted home delivery of product samples in cost-effective manner

Post Foods Facebook Survey

Consumer surveys revealthat sampling a product

tends to convert peopleinto buyers



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Have purchased after trying asample

Would consider changingbrands if they like the sample

Became aware ofa productthrough a sample

Were very or extremely

likely to buy the product aftersampling

92%

84%

75%

63%

The case for product sampling is clear. It converts consumers to brand buyers. 92% ofconsumers have reported purchasing a product after trying a sample.

Source: All About Sampling & Demonstrations, Art Averbook, Russ Brown and John Karolefski, PMA Promotion Marketing Association

Companies recognize the value of sampling, which is growing at over 7% CAGR thehighest among promotional tactics.

Sampling Works



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Direct Mail Delivers

Sample Showcase compares favorably with traditional offline approaches along key

targeting and delivery factors.

Average 23%across all brands in

May 2010 test mailing

Limited tracking available; runsapproximately 10%as industry

standard

Targeting

Information

Efficiency

BrandMessage

Conversion*

BreakingThrough

SAMPLE SHOWCASEOTHER SAMPLING:In-Store, Event, etc

Combination ofself-selection(online) & demographically

targeted lists

Neighborhood clusters; event orstore demographics

Real-time, actionable consumerfeedback (pre & post) and

destination confirmation

Consumer response rate hoversat 3%, ifexecuted; post-program

reports onlyOne item per household; no waste

or duplication, the brand is incontrol

Freebie mentality, consumerstake what they can get

Uncluttered time @ home whereits tried and used

Unrequestedwhile running for thetrain, shopping, reading

Multiple points ofcontact formoreexposure; opt-in names can beadded to a brand database

One-time shot; difficult toreconnect or re-market to that

household

The result? A lower cost per converted consumer!

* Results for StartSamplings solo e-sampling programs.



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Agenda






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USPS and Start Sampling launched Sample Showcase with May 2010 test market

New sampling vehicle is nationally distributed, highly targeted, multiple-sample mailer Full national roll-out scheduled Fall 2010

7

Introducing the Sample Showcase!

SampleShowcase

Branded; high-end materials

and participants

The box wasdesigned to fit

in mostmailboxes, butcarriers will beasked to leave

the SampleShowcase at

the doorwheneverpossible.

USPS Co-Branding

evokes trustand visibility

8 12productstargeted

right to theCEO of the

home

Copyright 2010 USPS. All rights reserved. CONFIDENTIAL AND RESTRICTED


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8

Sample Showcase - Inside the Box

Illustrative

Each Sample Showcase is committed to complementary, high-quality, name-brand

product samples targeting the same consumers

Will your brand be next?Copyright 2010 USPS. All rights reserved. CONFIDENTIAL AND RESTRICTED


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9

StartSampling is a leading product sampling company. Their infrastructure is unique inthat it creates a one-stop shop that enables brands to sample their products either

online or offline including the websites of major retailers and mysampleshowcase.com.

9

Our Fulfillment Partner: StartSampling

StartSampling Background

Operations

Performed nearly 3,000 on-line samplingevents; operating for over ten years

60+ full-time professional employees +fulfillment staff, 3 locations

Scaleable infrastructure using Oracle, FirstLogic, Sun, Dell, Exodus, etc

120,000 sq/ft fulfillment warehouse; fully AIBapproved and DEA / FDA registered

Preferred partner with major CPGs & retailers

such as Walmart, CVS, Sams Club, Kroger andother key retailers.

People

In-house, experienced staff including: research,design, web development, mail design &fulfillment

Employees come from CPG and marketresearch backgrounds

Example of Current Clients & Partners


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May 2010 Test Mailing

May 2010 test market distribution: 200,000 total households, of which 180,000 were

targeted* and 20,000 opted-in

Launch Date: May 04, 2010

Markets: Primary: Charlotte, Pittsburgh

18

0,000

Secondary: Nationwide 20,000

Target: Suburban moms, $50k+ income


*The Consumer Datafile is sourced frommultiple sources including: Voter registration and voter contributions history file Directory Assistance data captured at the regional phone switches Warranty cards with selfreported information Auto Registrations Homeowner Transaction Data

Each record is validated against multiple sources, including Acxiom InfoBase, before it is included as a confirmed source. Inaddition, NCOA updating is performed and the data is corrected when a new source is introduced. This is also done every

45-90 days thereafter


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11

Test Market Participants

Account Brand Product

6. J&J Splenda Splenda with Fiber

7. McCormick Grill Mates Montreal Steak

8. Nestle Nestle Coffee Strips

9. J&JShower toShower

Sport and ShimmerPowder

10. P&G SecretClinical StrengthDeodorant

11. J&J Bengay Moist Heat Pads

Account Brand Product

1. Hershey Reeses Dark

2. Mars DoveSilky Chocolate / PeanutButter

3. J&J Aveeno Body Wash

4. J&J AveenoHair Shampoo &Conditioner

5. J&J AveenoPositively AgelessMoisturizer

Illustrative

Sample Showcase mailings include only high-quality, name-brand product samples



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Program Parameters

Products Sampled

3 Confection Products

4 Food and BeverageProducts

4 Personal Care Items

3Health and BeautyProducts

Distribution Quantity

200,000 SampleShowcase Boxes mailedto three markets:

Pittsburgh: 90,000 Charlotte: 90,000 National: 20,000

Pittsburgh and Charlotterecipients chosen based onlist purchased byStartSampling, cleansed byHarte-Hanks and mailed bythe USPS.

On-line market composedofopt-in consumers,qualified based on pre-determined criteria: over18, female, have a child athome, with reported income

over $50,000.

Surveys Administered

Four surveys wereadministered:


1. Quick Survey: Qualify on-line registrants.

2.

Pre-Survey: Understandsampling history andproduct awarenessbaseline.

3. Box Survey: Gaugeperceptions ofbox and

likeliness to recommend.

4. Product Survey: Findwhich products consumerssampled, measuresatisfaction, purchase sincesampling, and likelihood to

recommend.


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13

Measuring Results

Each Sample Showcase event will have multiple rounds of consumer surveys intended

to understand the impact of the event on brands and the perception of recipients.

Consumer participation in these surveys has been exceptional and provides robust datafor analysis (see May 2010 participation rates below).

Measure Results

Sample Showcase Research MeasurementMay 2010

Measurement*

Box Survey(An online consumer survey completed byrecipients immediately after receipt of theSample Showcase)

Consumer reaction to theSample Showcase and itscontents

N = 25,418

Product & Conversion Survey(An online consumer survey completed byconsumers 6-8 weeks post-trial)

Post-trial brand awareness,lift, purchase intent, andword of mouth

N = 6,306

Pre-Sample Survey

(An online consumer survey completed byrecipients prior to receipt of the SampleShowcase)

Pre-trial brand awareness& prior purchase N = 25,376

* 200,000 Sample Showcase recipients


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Key Results

1 million (923,695): The number of people Sample Showcase recipients told about

the Sample Showcase program and products based off Top-2-Box

recommendation ratings and average number of people told.

Three-Quarters of a million (724,566): The estimated number of products boughtsince consumers received their Sample Showcase kit.

23%: Average conversion rate across all products (purchases since sampling)

Twenty-four percentage points: The total percentage point increase in top-boxpurchase intent with the products included in the Sample Showcase from the pre-

survey to the product survey.



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Online registrants: generally discovered program through socialnetworking sites, friends or family, or message board-posted links

General recipients (list targeted): usually first heard of program throughpostcard sent by USPS

Pre-Survey

Box-Survey


Summary of Findings

How recipients firstheard about the

Sample Showcase

Successful targeting

Four in five box recipients identified themselves as CEO of the mail, or

the person who receives and sorts print messaging entering thehousehold

Mailer design

success

Nearly all participants felt it was very easy to receive the box and easy to open Nine in ten consumers agreed: the box was for someone like them, and they

felt as ifthey were opening a gift

Engagement withproducts

Two-thirds opened the Sample Showcase immediately upon receipt Vast majority felt mix ofproducts was appealing and relevant

Follow on buzz 95%were Definitely/Very Likely to recommend Sample Showcase to friends or

family


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Product-Survey


Summary of Findings, continued

86%ofconsumers had tried the samples themselves or planned to soon One in five gave at least one of the samples to someone else either in their

household or outside

Strong trial

23%average purchase since receiving Sample Showcase across all

products Past six month purchases increased across all products on average,

nearly six percentage points

Competitiveconversion

77% ofrespondents were definitely/very likely to recommend the productsincluded in the Sample Showcase box, on average

85% expressed Top-2-Box satisfaction ratings with the products included inthe Sample Showcase

Brandawareness

andengagement

All respondents (with the exception of6 people) expressed interest inreceiving additional Sample Showcase kits in the future

Desire forcontinuedinteraction


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Consumer Engagement

Then a confirmationprocess matches theconsumer to the survey

Consumer registration and feedback facilitated through a Sample Showcase website

Full consumer insight from survey results provided to each participating brand

Consumers are directed to go towww.mysampleshowcase.comand tell us what they thought ofthe box and the products

* A portion ofeach event will be sent to consumers who self-select the Sample Showcase. The remainder ofunits will be

sent to highly targeted lists based on strict demographic criteria.



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The Power of Social Media

Based on all respondents answering this Pre-Survey question Q1 Phase 1 N=19,509 Phase 2 N=6,945

Phase 1=All On-line Respondents Phase 2=Direct Mail Markets (Pittsburgh and Charlotte)

Consumersparticipating in Phase 1of the pre-survey study,learned of the SampleShowcase program

through a Socialnetworking site,friend/family member,or a link that wasposted on-line, 30%,25% and 22%respectively.

Phase 2 pre-surveyconsumers learnedabout this program viathe Postcard theyreceived in the mail.This postcard containeda code consumers couldenter to access the

survey.18Copyright 2010 USPS. All rights reserved. CONFIDENTIAL AND RESTRICTED

Test Market Results


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Test Market Results, continued

Overwhelming reaction: consumers are trying products and telling others about them

Result: buzz well beyond the initial recipients

19

*Sample of comments posted online by Sample Showcase recipients


The Power of Social Media


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CEO of the Mail

Based on all respondents answering this Pre-Survey and Box-Survey question Pre-Survey Q2 N=26,454 Box-Survey Q1 of the study N=25,418

For the majority, consumers

participating in this programexpressed that they were the

CEO of their mail. Meaning they

received the mail, and sorted it

out.




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Strong Sampling Participation

Based on all respondents answering this Pre-Survey question Q3 Phase 1 N=19,509 Phase 2 N=6,945

Phase 1=All On-line Respondents Phase 2=Direct Mail Markets (Pittsburgh and Charlotte)

In the pre-survey it wasimportant to understand if

consumers had received a free

sample in the past 6 months,

and by which method did they

receive this sample.

Phase 1 consumers were morelikely to express than Phase 2

consumers that they have

received a sample in some way

in the past 6 months, 97% vs.

80%.

The most common method inreceiving samples is by ordering

them on-line.




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Method of Sample Showcase Delivery

Based on all respondents answering these Box survey questions Q2 and 3 of the study N=25,418

Most Sample Showcase Boxes (across all markets)were delivered directly into the consumers

mailbox/mail slot.

98% of these consumers, on average, felt that it wasvery easy to receive the box.

2% - Felt it was neither easy nor difficult Only 12 respondents total (or 0.05%) felt it was

very difficult for them.

Q: How was the Sample Showcase Box

delivered to you?

90%

4% 3% 1%

Box

l i

i o

il

ox/ma il

lot

Not

omeone

ha d ought it into

my home

hen I

i

t

aw i t

Box wa s leftat my

door

Box wa s left

between my screen

door an ddoor




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Initial Reaction to the Sample Showcase

Based on all respondents answering this Box survey question Q5 of the study N=25,418

Most consumers (62%)opened the sampleshowcase box immediately.

Nearly one-quarter (24%)

took all of the samples outof the box to see what wasthere.

GREAT




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Descriptions of Initial Reactions to the

Sample Showcase


Consumers were asked toselect the statements theyfelt best described their

initial reactions to theSample Showcase Box.Consumers were shownboth positive and lessthan favorablestatements.

Less than one percent of

the total samplepopulation selected thoseless than favorablestatements.

Across all consumers whoparticipated in the Boxsurvey, most expressed

positive reactions to theSample Showcase Box. 24Copyright 2010 USPS. All rights reserved. CONFIDENTIAL AND RESTRICTED



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Consumers LOV

ED

the Sample Showcase


Consumers were verypleased with the SampleShowcase Box.

Nine in ten consumerscompletely/somewhatagreed with thestatements: The product mix was

appealing The box was for someone

like me

The products wererelevant The box was easy to

open The products were easy

to use I felt like I was opening a

gift I was very excited to

receive the box The box is a good fit with 25Copyright 2010 USPS. All rights reserved. CONFIDENTIAL AND RESTRICTED



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Creating Brand Loyalty


Four out of five

consumers indicated thathaving multiple productsin the Sample ShowcaseBox made them feelmore favorable abouteach product.

Only 12% of consumers

had no real feeling goodor bad.




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Sample Satisfaction

Based on all respondents answering this Product survey question Q9 of the study Base sizes vary by product as it was only asked of people to tried the sample

On average, 85% of respondents expressed Top-2-Box Satisfaction ratings with the productsincluded in the Sample Showcase kit.




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Purchase Since Sampling

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 inthe Sample Showcase since receiving it.




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Future Product Purchase

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 withthe products included in the Sample Showcase kit in the product survey. This represents anincrease of twenty-two percentage points from the average purchase intent rating from thepre-survey to the product survey.




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Strong Likelihood to Recommend

Based on all respondents answering this Box survey question Q8 and 9 of the study N=25,418

95% of consumers expressed they weredefinitely/very likely to recommend theSample Showcase Box program to theirfriends or family.

Most consumers (40%) indicated theywould recommend the Sample Showcase to4 to 6 people.

23% - 1 to 3 people 40% - 4 to 6 people 17% - 7 to 10 people 20% - 11 or more people




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Recommend by Product Sampled

Based on all respondents answering this Product survey question Q14 Base sizes vary by product. Note: Product Survey respondents were only asked this question if they indicated trial in Q2

On average, nearly four in five respondents (77%) expressed they were definitely/verylikely to recommend the samples included in the sample showcase box. Based on this data,and the data collected at the Box survey asking consumers to quantify how many peoplethey think they would tell about this program, we can project that nearly one million(923,695) people beyond those that received a kit were told about the kit and the productsit contained.




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Future Program Interest

Based on all respondents answering this Product survey question Q16, 17, and 18 of the study N=6,306

All respondents (withthe exception of 6people) expressedinterest in receivingadditional SampleShowcase kits in thefuture.

When asked if they hadto go to the Post Officeto pick up their SampleShowcase box, two-

thirds (62%) expressedthat this wouldnt be aproblem.

32% - A bitinconvenient but Idbe able to make itwork.

5% - I would not goto the Post Office to

pick up the SampleShowcase box.

Q:As the Sample Showcase program continues to grow,there may be a time when a Sample Showcase box mightnot be able to be safely left at your home should you notbe there when the Post Office attempts to deliver the mailthat day. Should this occur, how convenient would it be foryou to drop by your localPost Office to pick up the SampleShowcase box?




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Agenda






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Q4 2010 Suburban moms, $50k+ income

Q1 2011 New Year / New Start

Q2 2011 Heart Health / Healthy Living

Q2 2011 Lawn & Garden / Spring Cleaning

Q2 2011 Summer Fun / Mothers Day

Q3 2011 Back to School

Q4 2011 Fall / Holiday

2012 Up to 12 events (call for details)

Innovative programs scheduled in fall 2010 and throughout 2011

More events will be launched in 201

2, focusing on key consumer targets andmarketing events

2011 & 2012 Events

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Timing Target / Theme*

* Schedule subject to change



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Quantity: Each event will be 500,000 1 million units*

Target: Female, $50K + income, presence ofchildren in the household

Markets: Selection of top 50 DMAs as well as national for online requests

Selection: Combination ofcarefully selected mailing lists (push) combined withheavily screened self-selection (pull) by engaged and interested consumers

Contents: Only high-quality product samples accepted. Bounce backs and marketingmaterials (coupons) may accompany the sample

Timing: Samples and materials due approximately three to fourweeks prior to maildate. Details will be provided. Allowmore time ifsamples need pre-assembly prior to

insertion.

Research: Pre and Post research results will be published

Fees: Fees start at ~$0.30 / sample based on size, weight and dimension

36

Facts & Specifications

Below are a few key details for participation in upcoming Sample Showcase.

* Partial quantities starting at 500,000 will be considered ifspace and timing allow



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Key Criteria

Company criteria:

Minimum sample volume capacity: brands must be able to commit sufficient volume CPG classification: current boxes will only focus on core CPG clients not financial

institutions, media companies, etc.

Solid business foundation: company should have at least 3 years of solid financialperformance, with a strong book of business and promising growth potential

Reproduction of full product experience: for the sake of Sample Showcase, a sample is

defined as a miniaturization of an actual retail product, providing the user with an experienceequivalent to that of the full-sized, commercially available product

Example: small perfume bottle strongly preferred to scratch-and-sniff tester cards

Minimum sample price and value: the average sample in 2011 boxes should provide $0.40in revenue. All samples must have the perception of a premium product.

Meet USPS guidelines: samples must not have objectionable, controversial or other non-mailable content

Avoid product conflicts: samples should be chosen to avoid overlapping products in keycategories; USPS HQ team will coordinate sales parties to avoid conflicts



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A pay-per-sample pricing schedule will be based on the size ofsamples included in the SampleShowcase. Start Sampling and USPS have suggested the following schedule:

One Item

Two items

(price perunit)*

Three or moreitems

(price per unit)*

NFM $0.50 $0.48 $0.46

Flat $0.40 $0.38 $0.36

Letter $0.30 $0.28 $0.26

* Note: multi-unit pricing valid formultiple items (brands) in the same release, ora commitment ofonebrand across multiple releases. However, each participant would be required to commit aminimumnumber ofsamples per brand, per release; for example, in a 1 million box release, a company wouldnot receive a volume-discounted quote by offering 100,000 samples each of ten separate brands.

The budget above outlines the general schedule that Start Sampling will follow in determining samplepricing. However, a surcharge may apply for oversized or overweight items. Budget estimates arebased on samples weighing two ounces. Please add about $0.01 per unit foran insert or couponaccompanying the sample (to be pre-folded to carton dimensions and space allotment). Void fill,packing material, sample production, and printing ofcoupons or inserts, if required, would be atadditional cost, but are available upon request.

Interested parties must send 5 samples to Start Sampling for final pricing

Pricing Schedule



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To inquire about participation in Sample Showcase, please contact either yourStartSampling or USPS representative and send 2-5 samples to the location listed below.

Getting Started

39

Marc McCrery, United States Postal Service

[email protected]

Office: (202) 268-2704

For consideration and fees, send 2-5 complete samples to:StartSampling, Inc.195 Elk Trail Road

Carol Stream, IL 60188(630) 868-2000

Attn: Sample Showcase Estimation

A StartSampling, Inc. representative will contact you withmore information

Michael Weiss, StartSampling, Inc.

[email protected]

Office: (630) 868-2026



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Appendix: Product Survey Demographics


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Appendix: Product Survey Demographics


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Appendix: Survey Specifications

Quick Survey

Only consumers who learned of theSample Showcase via on-line wereinvited to participate in the QuickSurvey to understand if they meet thequalifications to participate and receivethe Sample Showcase Box.

(Consumers needed to be: over 18,female, have a child at home, andhave reported income over $50,000 toqualify for the box.)

Box Survey

The box survey was offered to allmarkets and was posted directly onthe Sample showcase website.Consumers could come to the SampleShowcase website, provide their firstname, last name and partial address to

be confirmed as a true participant inthe Sample Showcase program. Onceidentified as a true participant,consumers were then directed to theBox Survey to provide their experiencewith the Box.

Product Survey

The product survey was offered to allmarkets via two avenues:1.Directly on the Sample Showcasewebsite2.Via an email that was sent toconsumers who agreed to be contactedand asked questions regarding theirexperience with the Sample Showcaseprogram.

Pre-Survey

There were two phases to the Pre-Survey. Phase 1 was offered toconsumers who qualified On-line.Phase 2 was offered to thoseconsumers in the Pittsburgh andCharlotte markets who were mailed aPost-Card containing a code they coulduse to access the survey.

42C i ht 2010 USPS All i ht d CONFIDENTIAL AND RESTRICTED

sample showcase presentation

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