Targeted Direct Marketing Leaflets Drive Sales

SMART-Drop
SMART-Drop marketing
using targeted direct promotional
advertising leaflets
to specific household types
around specific priority outlets
© 2012 Tel: 01483 20 20 55 e: rick.pullan@tbda.co.uk

SMART-Drop Summary - why do it?
3 key benefits of SMART-Drop advertising for
today’s marketing mix strategy
– Cost effective method to increase sales through a target
retailer without discounting at till
– Shopper marketing out of store versus in store media
– Complements shopper marketing in store spend with
out of store targeted media

SMART-Drop
Solves 4 key questions &
challenges
1. How are you adding value to your price platform to
strengthen your competitive edge?
2. How are you promoting new interest and sales at
normal price, in both regional and account sweet
spots?
3. How are you building residual revenue from
promotional advertising?
4. How are you influencing the customer journey
through joined up marketing that builds your opted in
customer database for future low cost interaction?

SMART-Drop
SMART-Drop Targeting benefit
Conventional targeting (red)
by traditional post code
sector of 2.5-3K
households provides an
overall index for each of
those sectors
SMART-Drop targeting
(red) provides far greater
selectivity (average 150-
200 target household
‘clusters’)
i.e. the right target household clusters around target stores

SMART-Drop
SMART-Drop traction 1
– Voucher redemption PLUS advertising effect = TOTAL SALES
EFFECT
– Voucher redemption 1%-3.5%
– Advertising effect 2-12 times (experience and market feedback,
depends on timing, product proposition)
– So 1 in 50 to 1 in 3 households will buy
– SMART-Drop marketing is better – tighter targeting, less
wastage (vs traditional door drop model) with themed occasion
we’d judge advertising effect 6 x voucher redemption, between
1 in 5 and 1 in 15 households smart dropped buying
– Single brand payback - £20K for 200-250K A5 leaflet ads; 13K
to 50K buying households ; £80K for 1.1m A5 leaflets; 73K to
220K households buying

SMART-Drop SMART-Drop traction 2
Multi brand examples of payback:
– £36K = 200K A4 leaflet ads; 13-40K buying hholds
(£12K for each of 3 brands)
– £57K = 500K leaflet ads; 33K to 100K buying hholds
– £87K = 1 million A4 leaflet ads; 66K to 200K buying hholds
– £162K = 2 million A4 leaflet ads: 132k to 400K buying hholds
– £234K = 3 million A4 leaflet ads: 200K to 600K hholds buying

SMART-Drop
A promotion – a leaflet, envelope, sample,
popped through the letterbox of carefully
selected households (type and area)
Remember what door drops are…
Remember what door drop marketing is…
It is advertising, targeted promotional advertising
If good,
it will change consumer behaviour
Because it is ‘out of store’ before in store rush / no time

SMART-Drop
SMART-Drop engages and intrigues more
than other Channels in Terms of Recall
33%
36%
40%
51%
51%
59%
60%
88%
Radio
Internet ads
Posters
Mail Direct
Newspaper/magazine ads
TV ads
Mail to occupier
Leaflets through door
Source: ITV/DMA research 2010

SMART-Drop The reality is that SMART-
Drop is the only marketing
medium left where you
fully control the targeting
to achieve mass
awareness amongst your
target consumers for
response and sales…
through specific retailer
outlets e.g.

SMART-Drop
Objective – to drive sustainable sales
growth in key stockists (increase hhold
pen/trial & purchase frequency).
Activity - Promotional advertising
leaflets were door-dropped to
households targeted through Mosaic
profiling and postal sector ranking in
catchment areas of test Waitrose
stores. Different voucher
combinations & leaflet quantities were
tested (1 x 30p, 2 x 30p, 1 x 50p, 2 x
50p: 10-20K leaflets per store). Total
sales were measured in test stores
versus control stores for the both the
promotional period and a significant
post promotional period to measure
residual sales.
Results – varied by store from 8.3%-
54.3% growth in the promotional
period and, more importantly, 16%-
50.3% in the residual period. This is
very successful. The brand now has a
powerful promotional formula to drive
sales growth during the year.
"TBDA delivered an
extremely effective
campaign, which was well
targeted, planned and
implemented. Moreover,
an identification of key
learnings combined with
a thorough cost benefit
analysis has enabled us to
plan for future activity with
a high degree of
confidence as to its
success.“
Nick Munby, Marketing
Manager, Daniels Chilled
Foods
Year 1-
Waitrose
Proven by NCGS Management
Accountants to create net extra profit

SMART-Drop
Free to brand owners
10 critical tips for creating successful door drop marketing:
Tip 1 – why do it (3 key benefits: media, trade/consumer, digital)
Tip 2 – internal positioning – choose right vocabulary
Tip 3 – targeting, who & why & where & when & how?
Tip 4 – what, ‘the message’, left-brain-right-brain?
Tip 5 – response, what do you want?
Tip 6 – shape, tactile (shaped leaflets, up to 6 x more response)
Tip 7 – online, new, use the leverage (e.g. QR codes)
Tip 8 – measure TOTAL sales (up to 8 x voucher % response)
Tip 9 – brief the supply chain to minimise ‘out of stocks’
Tip 10 – respect the environment (recycled or sustainable paper)
Extra free – once is not enough, strategic not tactical

SMART-Drop
Emotive copy, 2 x time release vouchers for purchase urgency,
digital online link – all 10 tips encapsulated
Year 2 - Waitrose

SMART-Drop
Year 3 – Sainsbury’s
(in Tesco catchment areas!)

SMART-Drop
Other FMCG case studies
Two coupon values were tested, 50p off and a free jar
(like a free sample). There were sales uplifts versus the
control stores of between 16% and 270% over run rate
There was a 32% increase in Amoy sales in the
3 TV regions compared to the total country
Door-drop leaflets were distributed together with single
serve samples.
In one area we tested TV (broadcast advertising) with
Door-drop leaflets (direct advertising) and in another
area Door-drop leaflets alone.
The former generated an extra 28% sales, the latter an
extra 26% sales versus the ‘control’ stores,

SMART-Drop Customer / shopper marketing
conundrum
In store
– Pos
– Till leaflets
– Posters
– Current dynamic –
people living in
smartphone!!
Out of store
– Store Magazine
– Door drop multi
brand
leaflets/coupons
(not occasion based)
Engaging consumer needs combination of both
PLUS occasion based emotional intrigue /identity with ‘occasion’ ,
for example…

SMART-Drop Occasion marketing examples
Sunday lunch
Alfresco
Barbecue
Girls night in
Entertaining etc.

SMART-Drop Occasion based targeted
marketing - Summary 1
– SMART-Drop MARKETING & ADVERTISING
– Focus on retailer of choice
– Target households around that retailer
– Engagement & Traction metric
– More consumers using ‘occasion’
– Sense of urgency stimuli (voucher)
– (Online involvement integration)

SMART-Drop
.
Which retailers do you want?
Which households do you want?
(Mosaic types)
Impulse is strong because higher
margin - local purchase to trusted
local outlet (national strategy, local
implementation, pick all locals off)
Just down our street/road = local
Occasion based targeted
marketing - Summary 2

SMART-Drop
Conclusion - consumers still want traditional dm,
despite what marketers think
353
marketers
1140
adults

Targeted Direct Marketing Leaflets Drive Sales

Targeted Direct Marketing Leaflets Drive Sales

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