Postal Service to Compete for Direct Mail with Samples BusinessApril 9, 2010
The “Samples Showcase,” to be distributed nationally on a limited basis as well as in larger quantities to consumers in Charlotte, NC, and Pittsburgh, is a box of assorted beauty, health and snack food items from multiple consumer packaged goods companies. The boxes will be branded with the Postal Service logo and include the tagline, “A selection of free product samples.”
Another strategy behind the pilot test is making sure that direct mail is the sampling method of choice. The co-op box concept, which allows candy bars to be marketed with skin lotions, for example, is expected to make direct mail sampling more attractive because it allows multiple manufacturers to share in the marketing and postage costs of the program.
“Consumer packaged goods companies are always looking for new ways to build brand awareness for their products,” said Robert F. Bernstock, president, Mailing and Shipping Services. “One method they often turn to is providing trial-size samples to consumers. A large and growing industry, product sampling offers the Postal Service the potential for millions of dollars of added revenue.”
The Postal Service will conduct research to determine the cost-effectiveness of the program and the value it provides to manufacturers and consumers.
“Mail is the only medium that really enables marketers to do this,” said Bernstock. “It provides access to people’s homes, and it can be tracked to determine if the samples actually convert to sales.”
Earlier this month, Postmaster General John E. Potter outlined an aggressive plan of action that included cost cutting, increased productivity, and an array of legislative and regulatory changes necessary to maintain a viable Postal Service for decades to come. Potter also indicated the Postal Service will avail itself of opportunities under current law to increase revenue and enhance customer service.
The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.