It’s true that freebies and coupons prompt product trials, but measuring their effectiveness as a tool for generating repeat purchases is a difficult, and, at times, impossible, task.

Toronto-based Kraft Canada’s new Extra Rich Original Kraft BarBQ Sauce was involved in a national at-shelf 30-cent redemption couponing program this summer.

More than 700,000 coupons were distributed by Toronto-based actmedia across Canada.

About 2,000 stores got two coupon pads per week over a six-week period.

Joe Santos, product manager for Kraft barbecue sauces and coatings, says most of Kraft’s couponing programs achieve a 20% coupon redemption rate.

The timely summer couponing program for the new barbecue sauce did its job well and induced trial of the product, but Santos says the program will have little effect on repeat purchases.

Typically, Kraft offers coupons with new products or line extensions.

Santos says couponing is effective for trials in the short term, but repeat purchases depend on the quality of the product, not the coupon.

He says marketers often suggest sampling is more effective than couponing, but it is far too costly a tool to use on a national basis every time a product is launched or a line extended.

He says sampling often produces an impulse buy – more so than a coupon.

According to Santos, ideally, a marketer offers an in-store coupon coupled with a sample to promote a product and induce trial, but it is entirely dependent on a brand’s budget.

He says couponing and sampling together or separate are more effective than distributing free-standing insert incentive programs – which have a 2% to 5% redemption rate.

Santos laments that there is no way to measure before or after results from a couponing program, how many consumers repurchased Kraft barbecue sauce as a result of the coupon program.

He says coupon programs are an essential part of the marketing mix, especially when promoting a new product.

For example, when a brand extension is being launched, Kraft uses television spots and possibly print ads to create added awareness of the brand.

Santos says print ads are most often used when a 30-second spot is not long enough to convey a complex message such as a brand’s health benefits or recipes.

He says a coupon offers a lower price point which induces trial, so if consumers are already aware of the product, through advertising, and perceive it as good value, they are more likely to try the product.

According to Nielsen Marketing Research of Toronto, barbecue sauce sales reached about $28 million in sales in the past year.

Sampling and couponing programs can also be used to create opportunity for existing brands.

Kellogg Canada recently distributed unaddressed single serving individual packages of its Just Right cereal, which does not have a particularly strong shelf presence.

Kellogg would not release the number of samples distributed, but did say the sampling program was directed by Netmedia Enterprises of Toronto.

Carol Stewart, marketing director at Kellogg Canada, says the ready-to-eat cereal giant saw an opportunity to increase trial and awareness of the Just Right brand.

Stewart says when dealing in foods, it is important to get a product in the hands of consumers so they can ‘make up their minds based on taste.’

She says Kellogg’s believed there was potential for Just Right to gain new consumers through a sampling program.

Just Right just might gain a greater share of the ready-to-eat cereal category worth more than $667 million each year (according to Nielsen) if the program is successful.

Stewart says when consumers get free product or are offered in-store samples, the product is more likely to be tasted.

She says if the brand delivers on the consumer’s expectations, the consumer will buy the product.

Stewart says there are more ‘efficient’ methods of sampling.

She says event sampling is the most efficient as it offers a marketer a specific target audience where product can be distributed.

Unfortunately, this sampling method is largely based on time and the availability of events offering the appropriate target group.

Stewart says in-store sampling allows the marketer to see the results of a sampling program as it occurs.

‘[In-store sampling] guarantees that the product gets into the mouths of the consumer,’ she says.

According to Stewart, samples that are delivered door to door to target areas containing certain demographic groups offer no visible results.

She says there is no way to know if the consumer tried the product or whether she repurchased based on trial or previously established brand loyalty.

Geoff McCullough, national account manager at Netmedia Enterprises, says quite a number of companies are choosing to sample and that brand managers claim ‘there is no better way to get people to try a product than to put one in their hand.’

Netmedia, a distribution company, does sampling programs for other manufacturing mammoths such as General Mills Canada, Procter & Gamble and Kraft.

It is Netmedia’s job to determine target demographics with the manufacturer, and, through consulting a research house such as Compusearch Micromarketing Data & Systems, locate areas of various cities that match the target group.

Strategic alliances with transportation firms across the country allow Netmedia to accomplish the distribution.

McCullough says marketers also have the option to employ a number of research houses that can survey targeted areas after a sampling of a brand to determine if they have repurchased.

However, this is one more cost the manufacturer must bear.

One marketer says sampling at consumer shows can take an unusual twist depending on the target market and nature of the product being promoted.

Terry Glenister, director of sales and marketing at Hill’s Pet Nutrition Canada, which makes the Science Diet brand of pet food, says the products he promotes are specialized.

The Science Diet brand can only be bought through specialty pet food retailers or veterinary clinics. This limited distribution ties the brand to a specific consumer.

The consumer Hill’s targets is a highly educated pet owner who is more likely to be interested in good quality products and nutrition for her pet.

When products are launched, Hill’s will take samples to consumer shows, but, Glenister says, pet shows are quite rare – only two or three a year.

He says another problem with sampling specialty pet food is that each brand is formulated for a specific type of animal.

For example, Hill’s makes dog food specific to puppies, adult dogs or overweight dogs.

Glenister says widespread sampling of a new specialized product would likely be ineffective.

While Glenister admits trials can induce sales if the customer and pet are pleased with the performance and quality of the product, he says it is hard to measure the effectiveness of sampling at consumer shows.

The problem in sampling at consumer shows is that if Hill’s offers coupons and samples at specialty retailers and veterinary clinics and also takes the program to a consumer show, any measurement of the effectiveness of sampling at consumer shows or clinics and retailers is lost.

Glenister says rather than distribute free samples ‘to the masses’ at consumer shows at high costs when only 50% may be future consumers, Hill’s staff will conduct a short interview with potential consumers to determine whether they are within the target group.

If the consumer is likely to become a regular purchaser of Science Diet, Hill’s will offer samples and coupons for larger bags of pet food to encourage a repeat buy.

Glenister says while sampling is an important part of the marketing mix, there are other tools that get priority.

‘Product distribution is the most important thing,’ he says.

Educated veterinarians, retailers and consumers are the second most important marketing tool for the specialty pet food.

Glenister says those who sell Hill’s pet food have to know about its quality in order to recommend it to consumers.

He says it is important for consumers to understand that a $40 Science Diet bag of pet food, compared with a $20 grocery store brand of pet food of the same size, lasts longer and is more nutritious.

But he says sampling is a good opportunity to build business, especially when sampling a new product.

He agrees it is ‘almost impossible’ to determine the effectiveness of sampling at consumer shows.

The very nature of most sampling and couponing programs makes it hard to determine what lasting effect they have on consumers, but the jury says these programs get trials.

After all, what more can a marketer do to prove its product than to make it free or offer a more attractive price point?