Market Logic, Costa Mesa, CA, this week released a new product that aims to help manufacturers distribute sampling products more effectively and increase their return on investment.
Market Logic, the direct marketing subsidiary of Catalina Marketing Corp., St. Petersburg, FL, said the new product, Sample Logic, uses targeted customer data based on purchasing behavior to deliver trial-size products. Sample Logic collects customer information from frequent shopper cards, the company said.
The product allows manufacturers to tap into a network of retailers' databases, match consumers' purchasing history with the brand objective and deliver trial sample products to them.
“Instead of the packaged goods manufacturer having to use his own sales force to sell these programs one at a time, we've syndicated a retailer network where we can take their products with their objectives and make it completely turnkey for the manufacturer,” said Mike Starkey, executive vice president at Market Logic.
Starkey said retailers also would benefit from the product because it could drive traffic to their stores and increase sales.
Market Logic has worked on targeted sampling campaigns with 35 U.S. grocery and drug retail chains and has made initial contact with those retailers about the program, Starkey said. So far, 20 have signed up, accounting for 6,000 stores, he said.
Manufacturers, meanwhile, would be able to use the product to target consumers who, based on their purchasing history, are more likely to buy their product after receiving a sample, Starkey said.
“Untargeted sampling is just highly ineffective because of high distribution costs,” Starkey said, “so what we allow them to do is instead of throwing, for example, 50 million samples on people's driveways, we could pick the 5 million who are most likely to use their products based on what they're actually doing at the store.”
The frequent shopper cards provide opt-out alternatives to consumers with privacy concerns, Starkey said. The cards give them the option, for instance, of getting the card and point-of-sale discounts while opting out of receiving direct mail solicitations, he said.