New Ways To

Measure Events

Product A Case Study

 Program Overview

• OgilvyAction managed the execution of

8,461 retail sampling events across the
nation between October 26th and
December 29th.
• OgilvyAction also performed quality
control visits at 20% of total sampling
events.
• This case study examines the impact that
these efforts had on the Product A brand,
consumer, and sales – tying all measures
together to estimate ROI.

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 Data Sources

• Event reports from in-store sampling

• Quality Control (QC) reports
– 1,723 QC visits
– 1,020 demos present during time of visit
• In-store consumer surveys during QC
– 2,817
• SHOPPER Analytics TM

– 29 stores
– 470 pre/post surveys of same shopper
• Scan Data received from specific accounts
• Coupon redemption from Product A Manufacturer
– Does not include Holiday redemption figures

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 Consumer Survey Data
• Trial occurred most often with Product A and Product B users, with
Product C users ranking 3rd in current brand of choice.
• Trends across time remained fairly consistent. Results likely
reflect actual brand market share.

Consumer Brand of Choice (by Week)

Maxw ell House Folgers Eight O'Clock
Starbucks Dunkin Donuts Choc Full O'Nuts
Store Brand Other
60%

50% 51%
Growing gap in Product
40% A preference over
32%
29% 34% Product B from Week 5
30% 26% on could indicate
29% 26%
26% 27%
20% 20%
gaining traction in
17% market/retail.
13% 13%
10% 9%
6% 8%
2% 4%
0% 1% 0%
Week 1-2 Week 3 Week 4 Week 5-6 Week 7-8

N=2,817. See appendix for supporting data.

 Consumer Survey Data
• 51% of Product B users rate the Product A sample as “Better” than Product B.
• Over half of Product D, Product E and Store Brand consumers rated the
sample as “Better” than their current brand.
• consumers of Product C and Product F, the only 2 chain brands, were least
likely to rate the sample “Better” than their current brand.

How does the sample compare to your current brand?

Better Sam e as/No difference Worse

80%
65%
60% 52% 55%
51% 50% 48% 49%
46% 45% 45%
41% 41% 40% 37%
40% 31% 30%
21% 18%
20% 11%
9%
5% 5% 5%
2%
0%
Maxw ell Folgers Eight O'Clock Starbucks Dunkin Choc Full Store Brand Other
House Donuts O'Nuts
Usual Coffee Brand

Majority rate sample better Majority rate sample same/worse

N=2,817. See appendix for supporting data.

 Demo Impact on Shopper Decisions
• The findings showed that stores with demos increased the number
of Product A purchasers by 33% (versus 0% in stores without
demos).
Intended Purchase Actual Purchase

30% 27%
23%
20% 20% 0% change
20%

12% 12%
Shoppers at stores 10% 8% 8% 8% 8%
10%
8%
7% 7%
with NO DEMOS 3% 3%
5%
2% 2% 2% 2% 2% 2%
0% 0% 0% 0% 0%
0%
N = 60 Bulk Chock Dunkin Eight Folger's Hill Bros. Maxw ell Millstone MJB Other Seattle's Starbucks Store Yuban
Full Donuts O'Clock House Best Brand
O'Nuts

Intended Purchase Actual Purchase

32%

30%
33% increase
24%
20% 18%
20%

Shoppers at stores 11% 10%

WITH DEMOS 10% 8% 7%
6% 5%
9% 8%
7%
7%
5% 4%
2% 1% 3.2% 2% 3% 0% 2%
2%
0% 0.2% 0% 0%
0%
N = 410 Bulk Chock Dunkin Eight Folger's Hill Bros. Maxw ell Millstone MJB Other Seattle's Starbucks Store Yuban
Full Donuts O'Clock House Best Brand
O'Nuts

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 Demo Impact on Shopper Decisions
• However, when customers are segmented by whether each saw a demo and
if each had a sample, the increases spike to 46% and 72% respectively.
Intended Purchase Actual Purchase
50%

40% 38%

46% increase
30% 26%

19%
Shoppers that 20% 15%

SAW DEMO 10% 6% 6% 5% 4% 5%

10% 10% 10%
8% 9% 9%

2% 1% 3% 4% 4% 3% 3%
0% 1% 1% 1% 1% 0%
0%
N = 186 Bulk Chock Dunkin Eight Folger's Hill Bros. Maxw ell Millstone MJB Other Seattle's Starbucks Store Yuban
Full Donuts O'Clock House Best Brand
O'Nuts

Intended Purchase Actual Purchase

50%
43%

40%
72% increase
33% increase

30% 25%
19%
Shoppers that 20%
14%
HAD SAMPLE 10% 8%
5% 5% 5% 6% 8% 8% 9% 8% 10% 9%

3% 1% 3% 4% 3% 3%
0% 1% 0% 1% 1%
0%
N = 79 Chock Dunkin Eight Folger's Hill Bros. Maxw ell Millstone MJB Other Seattle's Starbucks Store Yuban
Full Donuts O'Clock House Best Brand
O'Nuts

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 Coupon Redemption

• Using actual coupon redemption numbers (reported through 1/2/08), actual

purchases are on pace to exceed the amount reported by demo agencies
(291,186 vs. 259,783).
• These redemption numbers are 57% above original forecast.

Potential new
Current Forecast based
Actual Forecasted Budget Actual on reults
Offer Description Issue Date Exp Date Circ Cum Qty Fcst Qty CB % Cum % Fcst %
1 COUP - REGULAR - 10 12 07 10/12/2007 1/31/2008 3,200,000 174,670 291,186 5.80 5.46 9.10
MH TOLL BOOTH SAMPLING 11/23/2007 1/31/2008 9,998 506 621 5.83 5.06 6.21
MH MALL SAMPLING 11/23/2007 2/29/2008 15,500 706 1,482 6.02 4.55 9.56

* Redemption numbers provided by Product A. Circulation number may to include more

coupons than those only handled by OgilvyAction.

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 Return On Investment Funnel
• Compiling relevant data from retail sampling, in-store surveys, and SHOPPER Analytics,
the following ROI funnel has been used to estimate short-term program payout.

Product A Retail Sampling

Projected Totals Program Estimated Rates
Awareness / Mass
Communication Sample Distribution
1,903,725
Low End Reasonable High End
71 – 74%
Reciprocals from consumer
New Prospects surveys and SHOPPER Analytics
Non-Product A Users study

1,351,645 1,380,201
1,408,757
18 – 21%
Avg of Non-Product A users
Trial
Coupon Redeemers purchasing Product A in
SHOPPER Analytics study;
242,296 262,238 295,839 adjusted to and consistent with
coupon redemption numbers to
date
42 – 45%
Conversion Avg range of consumers
Repeat Buyers (2x) preferring Product A to their
current brand, from consumer
102,184 114,074 133,127 surveys

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 ROI – Payout Estimate
• The Product A Retail Sampling program stands to generate a 14%
return on investment (revenue only) within 2 purchase cycles.
• This short-term payout summary uses the base initial purchasers
generated at sampling events, along with a select group making 2
additional purchases at regular retail price.

Payout Estimate - Product A Retail Sampling

Low Reasonable High
A. Base Conversations 242,296 262,238 295,839
B. Avg Retail Cost $5.99 $6.99 $7.99
(Adjusted for $1 Off Coupon)
C. One-Time Purchase Value $1,451,353 $1,833,044 $2,363,754
(Sales $ during demos)

D. Incremental/Repeat Purchasers 102,184 114,074 133,127

(% of Base Conversions purchasing again)
E. Incremental/Repeat Value $1,428,532 $1,822,903 $2,393,623
(Assumes 2 additional purchases @ reg retail price)

F. Total Annual Value $2,879,885 $3,655,946 $4,757,377

(Base + repeat)
G. ROI (Revenue)
0.90 1.14 1.49
(based on $3.19MM investment)

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