Measurement & ROI Case Studies

1. Measurement & ROI Case Studies Case Study #1 (Measurement/ROI) PROBLEM A laundry brand set up an on-line (internet request) sampling program, where consumers could request samples on their website. The program research indicated that more than 60% of samples were given to consumers who had used the brand in the past six months. Since only 40% of samples reached new users and only 5% of them ended up buying the brand, it was impossible to pay out the cost of the event. LESSON LEARNED When participating in a request sampling program, brands should set up some way to disqualify current users (could possibly give a low value coupon instead). In measuring this event, the brand also needs to be aware that giving samples of product to current users will also their sales at retail level (even if only a one-use sample).

2. Case Study #2 (Measurement & ROI) PROBLEM A skin care brand sampled in a popular beauty magazine (via a small tipped-on sachet). The brand had no good way to measure results, since it was impossible to know who the consumers were that received the magazine. But since the brand was receiving a media discount on the sample placement, they assumed the sample was a good deal. Unfortunately when the brand did a post-calculation of the ROI and estimated the % of magazines that are actually read and how may consumers actually tried the sample, they found that it wasn’t a good program. The brand would have been better off to sample fewer consumers in a program with higher awareness and trial numbers. LESSON LEARNED If there’s no way to measure a sampling program, it’s not a good way to sample because the brand will never know if the sample made an impact to the business. Some realistic expectations must be made about any program involving product samples.

3. Case Study #3 (Measurement & ROI) PROBLEM A OTC brand had successfully sampled college students and young married couples for a number of years, as a strategy to capture new consumers. The brand did some analysis and determined that families with kids actually consume more product, so changed their strategy to sample with families with children. In measuring the program results, the brand found that the trial and purchase conversion numbers weren’t nearly as strong as the programs that previously targeted new users. LESSON LEARNED Brands often change targeting strategies to focus on high-consumption households; which might be appropriate for media or a coupon program. But for product sampling, the biggest opportunity often comes from consumers who are entering the category and are seeking out information about the brand (different marketing tools deliver different results).

4. Case Study #4 (Measurement & ROI) PROBLEM A shaving crème brand was interested in reaching college students and in targeting as many males, age 18-22, as possible. In considering sampling program options, they chose a program that supposedly would reach 75% of all college students. The brand participated in this program for four years in a row. LESSON LEARNED In analyzing the results, the market research indicated that results were strongest among students 18-20. Because the older students had been sampled on campus in previous years, the “pre” usage numbers were higher, which made achieving good trial & conversion numbers harder. The build in the older age group was so small that the event did not pay out for those students. Also, trying to reach a high percentage of consumers within a certain demographic will usually result in a high re-sample rate also (sample waste).

5. Case Study #5 (Measurement & ROI case study) PROBLEM A snack food brand was interested in sampling active young adults with their newest flavor. They considered sampling in a co-op program, where a bag of “goodies” was given to consumers upon checking into ski resorts. However they chose to do a solo execution, sponsoring an event with a ski resort who also promised some signage on various materials around the resort. The brand set up a two-leg study to measure “sample-only” one month and “sample-plus-media” the next month. The results indicated that there was no increased conversion in the second leg of market research and that the sponsorship/media did not deliver additional business. LESSON LEARNED Many times trial-alone will result in strong purchase conversion numbers and no other marketing activity is necessary. NOTE:Brands should do a small test to determine if “sample-only” will result in adequate trial/purchase numbers.

6. Case Study #6 (Measurement & ROI case study) PROBLEM A toothpaste brand was interested in sampling at large music events, reaching young adults. The agency put together a series of events that would reach the brands target, in markets of interest to the brand. The promotion agency estimated that the brand would reach 80% of those in attendance (average attendance of 15,000). After research was finalized, it was determined that the average consumer surveyed reported having received 2.5 samples (due to re-sampling). LESSON LEARNED Because the agency was over-zealous in trying to reach as many consumers as possible, the sample controls were not as good as they should have been. (When sampling a large event, it is unreasonable to expect that more than 50% of consumers will be sampled). Because of the high amount of sample waste involved, the event did not payout.

7. For more information, contact… Cindy Johnson Sampling Effectiveness Advisors P.O. Box 603 HEBRON, KY 41048 www.samplingeffectiveness.com (859) 586-8262 cindy@samplingeffectiveness.com