Thursday, April 27, 2017

Attention Brand Managers!! Is there a Price to your Free Sample?




Trial generation through sampling is a widely employed strategy in FMCG industry. Though numerous factors contribute to the success of your sampling campaigns, have you ever wondered whether customers pay any attention to the MRP or perceived price of such free samples or in other words, is there a correlation between the sample price and the performance of a sampling initiative? We know price does sound like one of those remote variables with little or no consequence,  but here's something interesting we found.


We conducted a small study of 10 GT sampling campaigns closely similar to each other in terms of target market, brand value, campaign promotional efforts, product utility and mode of sampling. The only distinctive factor among these campaigns was the price of the product being sampled. We studied redemption rates, satisfaction percentage & general feedback to analyze whether there exist any relationship between Sample Price & Campaign Success Rate.

 So here’s what we found.

Although product samples are priced at zero for customers, surprisingly Price of a sample has a strong correlation with Sampling Campaign Success rate.

Customer Enthusiasm is observed to be much higher when the pack price is anything higher than Rs. 20. A jump in redemption rates was observed varying between 10-14%. Customers felt rather more incentivized for their effort while availing a pricey sample.

However, Customers also seemed to be far more critical for such expensive sample since they associate high perceived value. 65% of respondents agreed to have strong expectations from a sample priced over above Rs.50. They attach positive perceptional utility value to such samples even before trial and thus the zone of tolerance contracts.

A sample priced anywhere below Rs. 10 triggers a connotation of the sampling Brand as an unestablished one among at least 45% consumers. Consequently, consumer interest in trials significantly reduces.  In such cases even if the consumer takes off such product from store, there is high likelihood that it would not be experienced.


Recommendation & Conclusion

Price of sample since strongly correlated with the success ratio of sampling campaigns should be defined after a thoughtful consideration of the target markets. In our experience a FMCG product sample priced anywhere above Rs. 10 is certain to drive better results. For assistance on right sampling strategy to meet your market objective, Get in touch with our team of experts at +91 11 39586001.

15 comments:

sandhosh said...

Really Good blog post.provided a helpful information.keep updating...
Digital marketing company in Chennai

deeksha said...


Interesting blog post.This blog shows that you have a great future as a content writer.waiting for more updates...
Hadoop Training in Chennai

Alicia Thompson said...

Great article! I love that you've covered the topic of product samples. It especially important for review of Sleekwriters.org, as you always need to read the sample of the work before you can order it.

YLB CRYPTO said...

BEST GPU FOR MINING

Ranga Srini said...

Interesting information. Thanks for sharing
-Rangasri
Sharepoint Admin Training in Chennai | SAP SD Training in Chennai

preethi Shetty said...

Thanks for sharing the useful stuff, this will be a great asset for those who are in need. Thanks much for posting and please do keep on sharing...
Best Online Software Training Institute | Hadoop Training

spotify web player said...

Interesting post! This is really helpful for me. I like it! Thanks for sharing.
- spotify
- spotify web player hotkeys

Maha said...

Thank You for sharing your article

Hadoop training in Hyderabad

kiran mai said...

Nice Blog Very Useful.

AEM Online Training

vinod kumar said...

Really Good blog post.provided a helpful information.keep updating...

SAS BI TRAINING
DELL BOOMI TRAINING
ANAPLAN TRAINING
ORACLEWEBCENTER TRAINING
ORACLE ADF TRAINING
PTC WINDCHILL TRAINING

selenium training in hyderabad said...

Thanks for sharing such a valuable information best SAP S4 HANA Simple Finance Online Training in Hyderabad

Zdeněk Šrámek said...

Do not neglect the secondary market for console video games when looking for titles. You can find good condition used games at a number of sources. Online, they are available through individual resellers and auction's sites, both as single titles and in collections. Offline, you can buy them used from game stores, video and music stores and at flea markets. https://hackeroffice.com/

Sathyatech said...

Nice post... found useful info..


Software Training institute in hyderabad | Software Training courses in hyderabad

Unknown said...

Thanks for sharing such a valuable information sap institute in Hyderabad

jagadeesh said...

best article with nice information thank you
DevOps Training in Hyderabad
Salesforce Training in Hyderabad
SAP ABAP Online Training
SEO Training in Hyderabad