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Lesson 3. Framing Your Thinking > Recommendations and Summaries - Pg. 11

Framing Your Thinking The purpose of the recommended national sampling initiative is to broaden Acme trial and purchase. We will accomplish this by mailing samples to an additional 20 percent of national households, bringing the total Acme sampling effort to 30 percent of U.S. households over 18 months. In line with the test market, sampling will principally be a mailed effort. Beyond the sampling, consistent with our test market plan, we will execute a 25¢ freestanding coupon insert in newspapers three weeks after sam- pling, in order to encourage consumer purchase while providing a focal point for retail support. Rationale 11 Year-two sampling substantially builds the business. Specifically, since the second wave of sampling in the test market, business results have been strong with shipments and share up 26 percent and 22 percent re- spectively, vs. year-one base. Sampling effectiveness research showed significant increases in trial and purchase behind test market year- two sampling. Specifically, past three months' usage and purchase were significantly up among sampled vs. nonsampled households, as shown. Sampled Households Past 4 weeks brand usage Past 3 months brand usage Past 3 months brand purchase 15% 23% 19% Nonsampled Households 9% 13% 12% The Promotion Department sampling payout model confirmed Acme year-two sampling is a financially sound initiative. Specifically, the model projected the year-two sampling to generate a volume increase of 18 percent over year one and payout in 12 months, based on the purchase levels seen in the sampling effectiveness research. Next Steps With management approval for the national execution of the year-two sampling effort, we will proceed on the following timing: