1. A Different Road to
Brand Experience

2. Many thanks to our kind sponsors
For supporting and taking part at this evenings event

3. 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

4. Nick Wells
CEO
TNT Post UK

5. Firstly remember our strengths… DM & Door Drop
100%
100%
TV Press
90%
85% 85%
Internet
80% 74%
UK Media Reach (% population)
70% Radio
61%
60% OOH
49% Facebook
50% 46%
40%
30%
Twitter
20% 16%
10%
Pinterest
0.3%

6. Secondly remember our strengths…
Source: British Marketing Survey 2008-2011

7. Difference between spend and effect per
channel
Source: BCG Focus on the Future June 2012

8. But times are changing…

9. Multi-channel strategy drives above pure-
play online growth (US)
Source: BCG Focus on the Future June 2012

10. Multi-channel customers prove to
generate more revenues for each single
channel
Source: BCG Focus on the Future June 2012

11. Entertainer Case Study
To 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.
A clean test, where online sales from 2009 in the same areas can be
analysed versus 2010 sales

12. UK is the country with the largest %
internet contributions to GDP in 2010

13. Online retail is expected to account for
23% of total retail in 2016

14. 25% of people in the UK would give up sex
for the internet

15. Even Google use DM!

16. DSA – how it works

17. DSA Postal Process UK
Transport Transport
Collections Inward depot Outward depot 60 Royal Mail Delivery
IMC’s
300 vehicles 16 Letter sorters > 125 trucks per Up to 20m 95% next
day items per day day
8000 clients 2 Packet sorters
Collections 7 Depots Transport fleet 60 IMC’s RM delivery
97% handover quality

18. Mail market by competitor
R HE
OT

19. End to End – Why now?
Clients interested Market ready
Desire for alternative supplier UK is the 2nd largest postal market in terms of total
Reducing reliance on Royal Mail addressed mail volume in Europe
20% Increase
PRICES
Internal capabilities Regulatory
DSA volumes of 3.9 billion in 2011
Proven track record Z.G.P.P.
VAT resolution
Liverpool pilot since 2007 enables urban
in sight
Experience from EMN selection
countries
OFCOM
Margin support as new
pressure on DSA regulatory body

20. TNT Posties

21. “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

22. A different road to brand experience……..

23. Let the games commence…….
How well do you know your
Kellogg’s cereals?......

24. 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 TUM
•Changing people’s taste perceptions

25. Meet Jo…. What she can offer?

26. Two stage is the way forward…
• Day One –
Drop a bag through the
householders door
• Day Two –
Householder leaves bag outside
door before 9am
• TNT Network then deliver a
full size product
= 1 very happy consumer

27. Also = One happy client
Effective mechanic Many variants of product
Meet all budgets, requirements Tailored to client
and objectives objectives

28. What we did
• Targeting is key…..

29. Joanne Higginson
Comms Strategy Consultant
Brand Comms Department

30. • Did it work?
• Should you do it again?
• Do you need to do things
differently next time?
© dunnhumby 2011 | confidential

31. The starting point
Logistical info about the
The client’s ultimate business campaign, inc which postal
objectives sectors have been exposed to
the door-drop
© dunnhumby 2011 | confidential

32. We then look for the Tesco Clubcard holders amongst that group
© dunnhumby 2011 | confidential

33. 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

34. 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
© dunnhumby 2011 | confidential

35. So did we meet Kellogg’s objectives?.....
Online
Exposure ROI
Insight
Groups

36. What does the future hold for us?.....
Two more campaigns this year..possibly three

37. Brand Comms: Making advertising more effective
September 2012
© dunnhumby 2012 | confidential

38. What dunnhumby Brand Comms offers
We evaluate clients’ brand advertising using
behavioural data
….and this enables us to advise on
how to optimise & improve
future campaigns.
© dunnhumby 2012 | confidential

39. We combine various data-sets at a household level to give a 360°
view of the consumer
Shopping Media
Behaviour Exposure
Actual shopping
Campaign exposure
behaviour of
17m shoppers
Attitudinal
& claimed media
consumption
“Shopper Thoughts”
panel of 85k customers
© dunnhumby 2012 | confidential

40. To do this we use a test & control methodology as this allows us to
isolate the effect that the campaign is having
Step 1 – Isolate those exposed Step 2 – Build a control group Step 3 – track and evaluate
to the media or campaign of shoppers matched to the changes in sales etc of the
exposed group on brand and advertised product between
category purchase behaviour, the 2 groups
demographics and profiles
Vs.
   
© dunnhumby 2012 | confidential

41. So rather than measuring success by media currencies, we measure
it according to the objectives the campaign was intended to drive
Sales uplift generated Repeat purchase rates Brand switching
Market share / share of New customer Trial Weight of purchase
requirement
Loyalty Coupon redemption Freq of purchase
© dunnhumby 2012 | confidential

42. 42
In addition, we can tell what shifts in shopper behaviour have
driven these extra sales
This woman tried Brand X
for the first time
(trialist)
This woman gave Brand X a
second chance
(repeat buyer)
This woman usually bought
This woman already was already an whatever was on promotion but
occasional buyer of Brand X but she this time she purposefully looked
bought more as a result Brand X out
(increased share of requirement) (increased WOP & FOP)
© dunnhumby 2012 | confidential

43. 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

44. 44
And because our analysis is flexible we can also answer the more
unusual questions that you might have
Are coupon Does one creative
redeemers more execution, or
or less valuable message, drive
than other more sales than
customers? another?
Would 2x Does the presence
coupons in 1 of other media
mailer help help make my door
drive repeat drop work harder?
purchase?
Is one method Is one delivery
of targeting mechanic more
more effective effective than another?
than another?
© dunnhumby 2012 | confidential

45. 45
To give you an example….
© dunnhumby 2012 | confidential

46. 46
Brand X needed to halt declining sales and we could see that the
door-drop generated an extra £53k sales
This was a +17% uplift in sales
from the Tesco Clubcard test group + 17%
Or, an extra 6p spent per household
analysed, + 6p
£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
All numbers reported are % incremental to Control Group

47. 47
Digging a little deeper, we saw that….
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

48. So in summary, we can tell you
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
© dunnhumby 2012 | confidential

49. If you’d like to know more, please get in touch
Joanne Higginson Francesca Baker
Comms Strategy Consultant Comms Strategy Consultant
DL: 020 8832 7035 DL: 020 8832 7043
Joanne.Higginson@dunnhumby.com Francesca.Baker@dunnhumby.com
© dunnhumby 2012 | confidential

50. Thank You
© dunnhumby 2012 | confidential

53. Introduction to Valassis
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

54. Coupon Lifecycle

55. Coupon’s are Evolving
Traditional Paper Based Coupons Digital Innovation NFC

56. Shoppers increasingly use a mix of digital media to prepare the shopping trip
Consumer Choice is Widening
Mobile SMS Text
Email Mobile Apps
Social Media
Website

57. Near Field Communication
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

58. More consumers are using coupons
• 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%)

59. 22% of people are using coupons more than they were a year ago
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?’

60. Coupon Trends
• 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.

61. 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

62. Average Redemption Rates by Distribution Media

63. 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

64. Coupon Trends
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
Weighted base: 219 adults
Latest consumer insight from Valassis – GfkNOP research findings (Fieldwork conducted 18th – 20th Nov 2011)

65. 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

66. Deal hungry consumers turn to promotions to drive down costs
this Christmas
 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.
Weighted base: 991 adults
Latest consumer insight from Valassis – GfkNOP research findings (Fieldwork conducted 18th – 20th Nov 2011)

67. 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 18th – 20th Nov 2011)

68. Multi Coupon Mailing Example

69. Barcode Structure
Bar Code Make Up
Issuer Number Campaign Number Coupon Value

70. Pin Codes
Barcodes EAN13 PIN Codes

71. You’re in good company at Valassis

73. Thank you

74. Coffee break…
The next session starts at 18.00pm

75. 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
CCB Fastmap Ltd
3 rd Floor, Colonial Building
59-61 Hatton Garden
London EC1N 8LS
0207 242 0702
www.ccbfastmap.com

76. Agenda
 Introduction
 Why test
 How its done
 Case studies

77. 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

78. Strong Alliances with Trade Bodies

79. DMA White Paper Tracking Studies

80. Research is widely reported

81. 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

82. Why do we Marketers get it wrong?

83. 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

84. Marketing GAP Why do we Marketers get it wrong?
 What shoppers do, and•Skilled in marketing technique
what marketers think that they do.
•Understand the brand
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
Different demographics/outlook
•Ever changing environment

85. Released October 3rd …

86. Some truths from this year’s GAP report

87. Marketers get it wrong …….2012 fast.MAP GAP Report
30% under- estimation

88. Marketers get it wrong …….2012 fast.MAP GAP Report
34% under- estimation

89. Marketers get it wrong …….2012 fast.MAP GAP Report
57% under- estimation

90. Marketers get it wrong …….2012 fast.MAP GAP Report
57% under- estimation

91. Marketers get it wrong …….2012 fast.MAP GAP Report
283% OVER-estimation

92. Decisions marketers have to make
Variable
Audience
Offer
Incentive
Endorsement
Outer envelope
PS
Payment term

93. 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

94. Decisions marketers have to make
Variable How many Possible combinations
Audience 5 5
Offer 4 20
Incentive 4
Endorsement 3
Outer envelope 3
PS 4
Payment term 4

95. Decisions marketers have to make
Variable How many Possible combinations
Audience 5 5
Offer 4 20
Incentive 4 80
Endorsement 3
Outer envelope 3
PS 4
Payment term 4

96. 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

97. 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

98. 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

99. 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

100. Traditional D.M. Testing
Control
GO LIVE ; INVOLVE CONSUMERS

101. Traditional D.M. Testing
Control
Control
100 days
£25k to £35k GO LIVE ; INVOLVE CONSUMERS

102. What does a traditional Door Drop test tell you ?
1 Gross response - which pack/leaflet wins ? Y

103. 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? N
Envelope, Letter, Offer…
10 Do different creatives require different channels? N

104. 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.

105. 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

106. 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

107. What can you test research?

108. Examples of how it works…

109. Testing Outer Envelope Headlines

110. Testing Outer Envelope Headlines

111. Attitudes and Experiences
Question 1 Volume Percent
I consider myself a property entrepreneur and actively invest
145 5%
in different properties for financial gain
Whilst I have not invested in property before (other than the
1,170 37%
property I live in) I could be interested in learning more
I never have or wish to invest in property for financial gain 1,882 59%
Overall 3,197 100%

112. Mail Pack Creative

113. 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

114. 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 18%
don’t? We’ll tell you what it is
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%

115. Result
Learn the secrets of successful
property investment
52% increase in response

116. Incentive Testing

117. Incentive testing

118. Incentive testing

119. £15 M&S Vouchers
1. Everybodys Grandparents
45%
30% 40%
35%
30%
25%
6. Unknown 2. Comfortable People
20%
15%
10%
5%
0%
25%
5. Stretched People 3. Deal Seekers
4. Nice People
Organic Hotel Green/Organic Vouchers £15 M&S Vouchers Green Box None

120. £30 M&S Vouchers
The following incentives were randomly shown to the remaining panellists
1. Everybodys Grandparents
45%
40%
28% 30%
35%
30%
25%
6. Unknown 2. Comfortable People
20%
15%
10%
5%
0%
5. Stretched People 3. Deal Seekers
42% 25%
4. Nice People
Organic Hotel Green/Organic Vouchers £30 M&S Vouchers Green Box None

121. 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.

122. Are you the main decision maker when it comes to your
family shopping?

123. Who do you live with?

124. What brands of breakfast cereal do you regularly buy for your
family?

125. If major cereal brand provided a free sample delivered to your home,
which of these two cereals would you most want?
Existing Product
39%
New Product

126. 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

127. 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

128. 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

129. Existing New
Product Product

130. Please let us know whether you agree or disagree with the
following statements? COMPARISON
Existing New
Product Product
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%

131. Results
• Able to advise which product to stock
• Significant additional insight

132. Typical project schedule / timing – it’s fast……..
Task Week Timing
Project sign-off / Order confirmation 0
approved
Draft script prepared 2
Script approved (no more amends) Week 1 1
Test link created and approved 1.5
(rapidly)
Survey live (for one week) 0.5
Online reporting available 1
Results review conference call / Analysis Week 2 2
briefing
Survey closed 2
Analysis undertaken 4
Week 3
Analysis amends 1

133. Final thoughts…

134. 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

135. 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

136. 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

137. 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

138. Thank you

139. In Home Sampling

140. Keeping the Consumer, Brand and Retailer Happy

141. Fresh Minds Research 2011
Which of the following types of free samples and offers are
you happy to have delivered to you through your letterbox?
Redeemable coupons for discounts at local shops and supermarkets 86%
Free samples of household products 83%
Buy one get one free offers for local shops and supermarkets 78%
Free samples of new food or drink products 77%
Free samples of hygiene and beauty products 76%
Free samples of sweets and chocolate 72%
Do not wish to receive any type of unaddressed comms. 7%
0% 20% 40% 60% 80% 100%

142. Door drop vouchers/coupons save consumers money and encourage trial
Allows me to try new things Money off coupons are a great way to
Why do you like to receive door or get money off which
provides an incentive to
save on shopping bills when you are
on a tight budget.
drop vouchers/coupons? purchase.
Female, 35-44 yrs
.
Female, 55-64 yrs
Money-off vouchers/coupons are rated very I like to try new things if I
positively by UK adults. can received a discount
then that’s better. I like having free samples and money-
off vouchers through my door, mail
A money off voucher/coupon saves Male, 45-54 yrs
that is put to good use and not just
consumers money something very important chucked away.
for those with tight budgets. It also provides .
consumers with an incentive to try Lets me try new products
and saves me money in the Female, 25-34 yrs
something new. current economic climate.
Female, 55-64 yrs
Door drop vouchers/coupons are considered I prefer this because I can look at it at
a practical monetary offering, which if my leisure, either use the coupons or
unwanted is not a problem – can either be Opportunity to either save pass them on to somebody who
might, then recycle the leaflet in the
disposed of or passed onto a friend. money on known product,
or try something new at no bin provided.
or little cost.
Female, 35-44 yrs
Male, 65-74 yrs
[Base door drop voucher/coupon=1,197]

143. Door drop free samples are enjoyed by UK adults; offering a great way to try
familiar or new products
It’s nice to be able to try Because it is a nice gesture, everyone
Why do you like to receive door something out for free
before you decide to buy it..
enjoys receiving something free,
especially me because I am a student
drop free samples? Female, 54-64 yrs
and I don't always have a lot of
money.
.
Female, 18-24 yrs
Having the chance to try products before you I'd rather a free sample
buy is appreciated by consumers; both an posted to me than given
enjoyable and convenient experience. out on the street. As it is a free item you can try it at
home and if it is not to your liking then
Male, 25-34 yrs
no harm or cost has been undertaken
UK adults enjoy having the opportunity to try by you.
familiar or new products at no expense to
them. This is viewed positively at the moment A free sample gives me a .
chance to try something
where household budgets might be tighter new without buying it at the
Male, 35-44 yrs
than usual. risk of not liking it.
Male, 45-54 yrs
Encourages me to try something new
If respondents do not personally want the that I would not normally try. I (like
free sample, many say they will pass it onto a It's a pleasant surprise and many others) am currently on a tight
budget, and shop carefully.
friend; thus it is not considered a waste of if it's something i can't use
i'll pass it on to someone
time or an annoyance. else.
Female, 35-44 yrs
Female, 55-64 yrs
[Base door drop free samples=1,257]

144. When asked what the best thing respondents have ever received through their
mail box, answers mainly included...
Door drop free samples Door drop money off coupons and offers
A large proportion of UK adults state the best thing they Money off vouchers are also popular:
have received through their letter box are free samples:
2 for 1 restaurant vouchers or discounts
Chocolates and sweets Money off restaurants
Cereal Discounts off takeaways
Coffee Discounts and offers for local supermarkets
Pet food
Stationary
Beauty products
Household products
A free sample of tea. It was a Sample of Sanex shower gel. I Meal for two at local restaurant Buy one get two free offers on
completely different type than I have bought it ever since! in Malvern where we had a items I like, plus useful
usually drink, and we really wonderful meal. information about future offers
enjoyed it. or reductions.
Male, 25-34 yrs Female, 35-44 yrs Male, 55-64 yrs Male, 25-34 yrs
[Base=2,008]

145. The Shopper Marketing Mix
Has the pendulum swung too far?
Mismatch between where
shopping decisions
are made and allocation of
promotional budget

146. Between one third and half of purchasing
decisions are made prior to leaving home
Source: Brainjuicer / Valassis research June 2007

147. 81% of consumers will open a promotion which
comes through the letterbox
Source: Brainjuicer / Valassis research June 2007

148. Brand Equity
Greater latitude to build brand equity with the consumer
vs

149. Or to put it another way…
A noisy promotional environment…. ….. or your undivided attention
vs

150. Supporting the Retailer
Asda shoppers
Sainsburys shoppers
Tesco shoppers

151. Summary

152. Direct Marketing Supplier of the Year 2010, 2011 & 2012
The COGS – in association with Promotional Marketing
and 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

153. 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

154. Please join us for drinks & Canapés courtesy of
Please hand all completed evaluation forms to the registration desk.