Sampling, Coupons and Other Free
Stuff: What is the Industry Up To?
Tess Boley Cruz, PhD
Parasto Jouharzadeh, MPH
The TIME Project - University of Southern California
National Conference on Tobacco or Health, Boston, 2003
Why Offer Free Samples?
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Cigarettes enjoy the
most brand loyalty of
all consumer products*
Competition for
starters is important*
Takes about 200
cigarettes (10 packs)
to develop brand
loyalty in young
smokers**
*Pollay RW, Tobacco Control 2003, Vol. 9
**Young & Rubicam, Mangini Document No. RJR472678
Sports Illustrated 2002
Tobacco marketing expenditures
FTC Reports
Public Entertmnt
Cigarettes
2000
$309.6 M
Spit Tobacco
1999
$ 22.1 M
Sampling
$ 22.3 M
$ 17.8 M
Coupons
$705.3 M
$ 24.2 M
Specialty Item //
Bearing Names
Sports
$264.8 M
$ 3.2 M
N/A
$ 23.4 M
Steps to Sell New Brands to Potential Users
1.
2.
3.
4.
Market Research: Who
Might Buy, What They
Value, Where They Are
Reach Specific Audience
Segments, in Conducive
Environments with Tailored
Messages
Offer Free Samples, Lower
Prices, Buy-1-Get-1-Free,
Free Gifts with
Sales/Coupons
Take Customers Through
Awareness, Trial, Adoption,
Maintenance
Market Research
TAYLOR SHAIN, for Lorillard, April 10, 1985. Bates# 85003058/3075
Where to Sample?
In Conducive Environments Like
Rodeos, Races, Fraternities, Bars
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
Generate New
Interest
Build Awareness
Distinguish Brand
from Competitors
Build Loyalty
Low Profile
Judgment Impaired
Adult-Only Facilities
at Events
“AOF” is a facility or
restricted area for Adults
„Anything can happen!
„ Samples, Coupons,
Games and Sign-ups
„In 2003: 41 Announced
by USST, 1 Basic, 1
Marlboro
„
PRCA Rancho Mission Viejo 2002
USST at
Supercross
Motorcycle
Races:
Brandsponsored
Booths at
Corporatesponsored
Events
USST Promotions at College Fraternities
with coupons, samples and/or sign -ups
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Sigma Alpha
Epsilon
Alpha Gamma
Rho
Sigma Chi
Others
37 USST
Parties
Announced in
2003 in CA
Tobacco-Sponsored Bar Night Campaigns
Create Sampling Opportunities
Camel Exotic Pleasures –
Introducing Exotic Flavors
Marlboro Racing School,
Marlboro Ranch Parties
Kool Spades Tournament
USST Country Bars
327 Bar Nights in 2003 in CA
• 235 USST
• 77 Marlboro
• 15 Kool
What to Offer?
New Products or Brand Extensions
USST’s Vision:
„ Create new brands,
sampling and
promotions, build
product awareness,
expand the marketplace
„ Market at events
“aligned with the
adventurous lifestyle
valued by many of our
adult consumers”
Source: www.ussmokeless.com, 10/03
Steps to Maximum Profit
Convenience Store News 2003
Camel’s New Flavor Trials
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Camel Bar Nights
Precede Introduction of
New Products
Give-Away Free Samples
Smooth Taste!
Sign Up Potential
Smokers for Direct Mail
Test Liberally with Alcohol
and a Party Message
Introduce, Later, in
Convenience Stores
American Spirit Samples
Promoted on Internet:
www.nascigs.com
„
„
„
„
Free Sample Carton
For Completing
Survey
Must be 21 or older
Call 1 (800) 872-6460
Direct Mail
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The Aftermath of Bar
and Fraternity Parties,
Sampling Booths and
Smoker Surveys
24% of Direct Mail
Materials in 2002 Had
Coupons
Get the smoker
started then follow up
with compelling
materials
Brand Loyalty: Happy Birthday Card From Marlboro, October 2003
Outside
With $2.50 tucked
coupon inside
The TIME Project - USC
New in 2002:
Brand Loyalty
Programs
via E-Mail
Exclusive Savings
from Camel
Want pleasure to burn
but don’t have money
to burn?
*
Watch your mailbox
for savings!
Free Stuff –
Encourages Trial and
Brand Loyalty
Direct Mail Surveys –
To Maintain Customers & Stay Current
Sampling Summary
„
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Under the radar
screen
Very targeted
channels & audiences
Very tailored products
& messages
Invisible to outsiders
Difficult but important
to resist
Thank You!
To the staff and volunteers of the 70+
tobacco control projects in California that
have helped us gather information each
year about the tobacco industry.
To Contact Us:
Tess Cruz,PhD, MPH
- 457
- 6647
tesscruz@usc.edu, 626
Parasto Jouharzadeh, MPH
Pjouharz@hsc.usc.edu, (626)457
- 6643
The TIME Project
University of Southern California
With support from CDHS/TCS Prop 99 #00
- 91890