Loading Up On Premiums
Everyone knows that free is a magic word, but sometimes it seems that everyone is giving something away. If marketers utilize the same premiums year after year, they can become known more for the goodies they give away than for the products they sell.
Gevalia Kaffe, a three-time Axel Andersson Grand Control award winner, is famous for giving away a free coffeemaker with a trial shipment of its European coffee. An interesting point is the realization that the premium is worth more than the initial payment a customer makes. In the long run, however, Gevalia ships bags of coffee to customers every six weeks; the lifetime value far outweighs an expensive premium.
While the coffeemaker has been pulling just fine, Gevalia knows that the concept of testing applies to all parts of your offer. One prominent disadvantage to offering the same premium is that eventually even the best goody can fatigue and diminish response. To combat this challenge, Gevalia is testing two different premiums and using its three-year control mailing (355GEVAKA0598C) as the backdrop.
The test premiums--a plush bath robe (355GEVAKA0598A) and a choice of a pump thermos or set of coffee canisters (355GEVAKA0598B) represent two philosophies in adding premiums to your offer. The bath robe is a non-related premium that may confuse what's being offered when pictured on the outer envelope. The thermos or canisters are more closely associated with the product but may not be as desirable. Gevalia has been using the canister premium since 1985, while the robe premium is the latest addition.
According to Pat Riso, manager of communications at parent company Kraft Foods, Gevalia has been mailing efforts with the robe premium for about a year. "We decided on the robe premium because it really is a luxury item, and it is consistent with Gevalia's brand imaging," says Riso. While unable to share response rates, Riso says that "it has been a successful program."
Foote Cone Belding Direct (New York), Gevalia's agency of record, has kept the basic elements of all three current mailings the same: a 5 1/2"x7 1/2" outer envelope illustrated with a photo of the premium on both sides, a color brochure tailored to each premium, an order form, a letter from Managing Director Arne Jurbrandt and a BRE.
Because two premiums often work better than one and because a deadline can help hasten response, both test mailings include a bonus gift of two free coffee mugs for timely orders. In the test mailings, the deadline appears on the order form, the letter and on both sides of the outer envelope. The control package features the deadline on the back of the order form only.
Changes also have been made in the copy of the test mailings' letters, as some of the history on Gevalia has been removed and replaced with descriptive copy about the experience.
The minor alterations from main control package to test efforts allow Gevalia to plumb for heightened response without scrapping the strong elements that make them superior in their marketing niche.