These days it’s not enough just to have a great product. With an ever-growing number of cosmetic offerings to choose from, consumers now expect to test products through samples before committing to a purchase. Particularly in the case of new product launches, samples now play a key role in the leading players’ sales and marketing strategies. For many companies, sampling is the initial phase of a powerful sales and marketing “one-two punch.” Samples make an essential first impression in the minds of increasingly savvy consumers who have a limited amount of time to shop around.

“Everyone wants to try before they buy, especially cosmetics, because of their personal nature,” explained Leslie Shiro, director of sales promotion at Shiseido’s U.S. division in New York, NY. “Choosing a color cosmetic or skin care item is really an individual decision.”

The way many marketers see things, personalized sampling campaigns are well worth the investment if they result in increased purchases. “We definitely see a connection between samples and sales,” continued Ms. Shiro. “All of our sampling efforts show increases in sales. Although these results can be hard to quantify, we receive direct feedback on samples from our beauty consultants,” she said.

A recent sampling campaign at Shiseido focuses on the company’s multi-impression six-piece lipstick sample, which features six color dots on a paper sample vehicle designed to make an instant impact. Shiseido’s six new lipstick shades are part of the company’s recently launched Shiseido The Makeup line, which also includes foundation, skin care and fragrances.

Considering their proven connection to purchases, it’s little wonder samples have become a vehicle for sales and marketing. “Over the years sampling has become, more and more, the rule rather than the exception,” explained Douglas Renna, director and general manager for Cosmetic Sampling Technologies, Inc., a Happauge, NY-based sample manufacturer. “Customers need to try, feel and smell products prior to making a purchase. This is primarily because of the abundance of product choices.”

packaging with a punch
Packaging continues to play an important role in helping samples gain recognition in a product-packed marketplace. “Marketers are always looking for unique packaging in order to stand out,” said Francesca Fazzolari, president of James Alexander, a sampling company based in Blairstown, NJ. “Packaging sells cosmetic products and this is a trend that will continue. That’s why we think it’s well worth our time to pursue this market.”

As a newcomer in the field of cosmetic sampling, James Alexander specializes in filling and sealing crushable glass ampoules for diagnostic, pharmaceutical and industrial applications. Due to its heavy focus on glass, the company has only recently made a foray into the cosmetic end of the market with a new plastic dispensing system designed to look like glass.

Making an impact through sample packaging is also a key focus at Shiseido, which offers samples in paper, standard size (7ml) and replica formats. “We are offering more replica samples now than in the past. These samples are an extension of our full size products, which are renowned for their artistry. Replica samples are a means of gaining brand recognition as well as increasing the aesthetic value and appeal of the sample,” observed Ms. Shiro.

New advances in the functionality of sample packaging are also underway. At Lancôme, headquartered in Paris, France, the company’s Re Surface retinol concentrate wrinkle corrector is packaged in an airtight aluminum tube. The packaging helps to maintain optimal freshness, ensure maximum product effectiveness and guard the active retinol (vitamin A) against oxidizing on contact with light and air, according to the company.

a sample is the best ad of all
Beyond heightened competition in the marketplace, sampling activity is also being driven by an overall acknowledgement of its effectiveness as a hands-on advertising method. For many marketers, samples have become a powerful form of advertising. “There has been a progression over the last five years from strictly sampling fragrance items to a broader reach into treatment and cosmetic products,” explained Mark Rosso, vice president of Le Papillon, a New Brunswick, NJ-based sample manufacturer. “Growth will continue as marketers realize that samples sell product. Consumers are becoming more sophisticated and expect to try newer products before making purchasing decisions.” For this reason, according to Mr. Rosso, a container that offers three to four uses is the right amount to influence the consumer to buy.

If more product is what it takes to make a sale, then cosmetic companies seem willing to meet that demand. “We’ve seen marketers become more aggressive in their efforts to gain conversion of their samples,” commented Tamara Sciera, director of marketing for Marietta Corporation, a Cortland, NY-based trial-size manufacturer.

Ms. Sciera noted that one major hair care brand utilized full 1.0-oz. bottles of product to attract consumers. This was a significant departure from previous approaches where unit-of-use packets were the standard. “This is a result of a need to stand out among the many brands offered in highly competitive categories,” she said.

For some suppliers, multiple-use sampling is leading to the use of full-size flexible packaging as a replacement for jar and bottle formats. “We have seen companies moving toward flexible packaging that is resealable with a zipper or a restickable tape. Samples—and flexible packaging—are not just for one-time use anymore,” commented Michael Drab, marketing services manager for Amgraph Packaging, a flexible packaging and printing converter in Versailles, CT.

Shiseido’s six color lipstick sample is also evidence of the trend toward more elaborate samples. “At Shiseido and across the industry, we are seeing increasingly complex sampling formats,” said the company’s Ms. Shiro. “For instance our foundation sample includes two or three shades rather than simply one. We try to offer as much variety as possible. Our philosophy is the more we can put on a sample, the better.” She added that the company has also seen a move toward larger samples and has slightly increased the size of one of its replica samples from 7ml to 8ml.

sticking with a good thing
Marketers not only use samples to attract new customers; they are also effective in introducing existing customers to new products within a particular brand or family. “Getting something for nothing is always a good thing, but getting free samples when purchasing a product extends potential sales due to the fact that the consumer already has brand loyalty. The sample is money well spent for a loyal customer,” opined Cosmetic Sampling Technologies’ Mr. Renna. He noted that the loyal consumer already believes in the brand; therefore, new products along the same line are a natural transition for them.

In an effort to introduce consumers to new product offerings within a particular brand or group, some marketers are turning to perforated multi-pack samples that include a variety of products. “Sampling programs are becoming more elaborate,” confirmed Mr. Renna. “It’s not unusual to have several products sampled in one package with high-end graphics and finishing. As an integrated sampling and printing company, this trend gives us an advantage for these programs.”

Along with variety-pack sample programs comes a push for more demanding graphics. “In addition to multiple sample packs in one batch, we are seeing UPCs being printed on sample packs for retail sale and even on larger sized flexible packaging. We are sometimes asked to make a duplicate sample of an item, one for promotion and one for retail sale,” said Amgraph’s Mr. Drab. The company is able to print lithography using process colors and in-line lacquering, as well as extrusion and adhesive laminate structures. Mr. Drab added that while in the past samples featured only a white substrate with printed text, today’s sophisticated printing technology can render images of faces, jars and bottles. “Because there are more samples out there, marketers are using high-end technical graphics to stand out in the crowd,” he said.

at what cost?
On the flip side of this trend is continued concern from marketers regarding escalating costs. Consolidation among cosmetic companies has resulted in efforts toward group purchases to create synergies and cost savings between brands and regions. Global purchase commitments, multi-year rebate programs and supplier partnerships are more common today than just five years ago.

“While some marketers are more daring and use novel sampling devices with a strong impact that are often more expensive in order to grow or capture marketshare from their competitors, many other companies are buying safe, cost-effective and proven sampling devices,” said Sven Dobler, president of Farmingdale, NY-based sample manufacturer Orlandi. In the end, Mr. Dobler said, while a new sampling device may be tried, its success and survival will be based on the sales it can generate versus the additional advertising cost to generate that sale. “For that reason,” he continued, “scented labels that experienced an intense trial period some years ago, have today disappeared again from many marketing budgets or are used only for very targeted applications.”

So while marketers are working hard to differentiate themselves from the competition, they must also set their sights on a specific target—reducing the cost of promotional programs in order to maintain brand positioning.

“Several years ago, marketers were taking a shotgun approach to targeting consumers,” offered Marietta’s Ms. Sciera. “This involved larger sampling campaigns that contained multiple uses of product distributed to mass numbers of potential consumers. Today, marketers are much more targeted in their approach to sampling. With the advent of technology and data sources, marketers can use a rifle approach to target potential consumers and maximize their promotional budgets.”

In addition to cost savings recent marketing efforts have also focused on speed. “The most effective marketing campaigns are the ‘flash marketings,’” opined Margery Woodin, vice president of marketing and sales for Identipak, Inc., a sample specialist in McAllen, TX. “Used mostly by mass marketers of personal care products, flash marketing combines three crucial elements: timing, volume and impact. Within a period of one week, a full blown campaign is launched and finished. All the elements have to be in place—TV, radio, print advertisement and distribution of samples. The idea is to flood consumers the week of the campaign with all the means available to entice them to try the product. A minimum of two million samples are distributed in this type of campaign,” she revealed.

Such highly targeted marketing efforts are expected to drive growth in the samples market. “Demand for samples will grow moderately as the population and potential consumer base grows,” Orlandi’s Mr. Dobler commented. “Within the sampling market, however, the pronounced growth will come from sampling devices that can target specific consumers better and therefore translate into a better cost/benefit experience for the marketer. During the next five years, personalized direct mail sampling at home that makes use of ever-increasing and more precise databases that track consumer spending and interests will fare better that those that depend on indiscriminate exposure or traditional in-store hand outs,” he added.

Shiseido is also incorporating an increasingly personalized marketing ap- proach. “We place a lot of emphasis on how the sample is presented and the context in which it is placed. The container that holds the sample is very important as well because it relates to the value we place on our products,” said Ms. Shiro. She went on to explain that the company’s marketing strategy stresses the total sampling experience, including its consultative aspect, so that when a customer receives a sample it is accompanied by usage information and followed up on. Shiseido continues to evaluate mass marketing vehicles such as mailings and magazine insertions, Ms. Shiro added, but stresses contact with the consumer. “We want to have customers come in for a face-to-face follow up as well. The last thing we want is for our samples to be indiscriminately handed out,” she said.

Other marketers are taking a less targeted approach by offering something for everyone through the use of mass distribution channels and more flexible, durable packaging materials. “The major change in cosmetic sampling programs in recent years has been the distribution and offering of free samples through the internet,” said Identipak’s Ms. Woodin. “The recent development of better film barriers has also allowed many marketers to switch from glass or polyester-based miniatures to pouches. Pouches are easier to distribute, more affordable and can be developed faster, allowing marketers to launch more versatile campaigns for a larger target market while at the same time adjusting to the buying trends of the seasons easily.”

Along with a shift toward pouches, suppliers are also noticing an increased use of die-cutting technology to make samples as appealing to consumers as possible. “We are seeing the use of a lot of die-cutting to make samples look like jars and bottles,” said Amgraph’s Mr. Drab. “Some of these samples are designed for magazine use, some for mailers and some for store displays—each has different requirements.”
Identipak offers customers a small rendition of their actual containers with its die-cut pouches. “Package engineers are working harder and harder in creating containers that are trendy and more appealing to consumers,” said Ms. Woodin. “Switching from a conventional pouch to a die cut pouch allows consumers to not only try the product but to familiarize themselves with the container, generating a double impact with just one sample,” she said.

Clear packaging is also being used to make samples more aesthetically pleasing. “Samples have evolved from once predominantly white background packaging structures to see-though substrates,” said Amgraph’s Mr. Drab. “We have seen marketers move toward clear substrates so they can show off the various colors of their products. Now we are seeing demand for clear packaging for cosmetic samples,” he explained.

toward the future
Which sampling categories have the largest potential? According to Cosmetic Sampling Technologies’ Mr. Renna, “Skin care and color have had, and will have, continued growth. This is due to the baby boomers turning 50. Fragrance will have a new resurgence in the coming year. The use of fragrance tends to be trendy, and I think we’ll see this trend return in full force,” he added.

Home ambiance and air care applications are other opportunities for growth in the fragrance category. Mr. Dobler of Orlandi described explosive growth in the area of scented candles, scented paper sachets, scented drawerliners, scented stationery, car and air fresheners—all products that have expanded the market for fragrance. “Consumers wear less fragrance on their skin, but like to create moods and ambiance by enveloping themselves in fragrance at home, in the car or at work. Aromatherapy is only one of many aspects of this trend,” Mr. Dobler commented.

Improvements in sampling technology are expected to translate into growth for all types of products. “Sampling in all categories works extremely well now that there is an increased emphasis on color sampling,” said Shiseido’s Ms. Shiro. The company expects to see continued demand for samples, particularly in light of new programs highlighting the visual impact and long-term usability of the container that houses the sample, she said.

Turning to the skin care and makeup categories, Mr. Rosso of Le Papillon characterized these areas as having the largest growth potential in the cosmetic market. “New products are more sophisticated and consumers, through sample trial, will see the benefits and buy the product. Fragrances will continue to see growth in sampling as again, marketers allocate a higher portion of their budget to tools that will actually sell products—and samples sell products. Another area is the development of samples for the internet. This is in its infancy and we are working on developing products for this specific market.”

The promise of the worldwide web comes just in time for some companies concerned about mature market conditions for hair care, color cosmetics, fine fragrance and skin care. “True growth only comes from successful and innovative products that expand the end-use market by drawing in new customers,” warned Orlandi’s Mr. Dobler. “The rest is growth by capturing market share from competitors and very frequently from their own existing and older brands and product lines. Products are introduced just to maintain and replace products that are further along in its life cycle,” he said.

Just the same, with new avenues for growth on the horizon, suppliers remain optimistic about the future role sampling will play across all categories as marketers relaunch and restage existing brands to keep a fresh approach to their brands. “Certain categories such as fragrance and color cosmetics have naturally occurring growth from new products as a result of the introduction of new colors and fragrances each season,” Ms. Sciera of Marietta said. “These categories tend to follow fashion and are often introduced in the fall and spring seasons.”

As the demand for new products continues, so will the demand for samples. The higher rates of conversion associated with consumers who experience a sample should continue to drive the need for samples in the future. “There will always be a component of novelty associated with sampling growth; however, for an idea to be novel it doesn’t always have to be new,” Ms. Sciera pointed out. “With new consumers coming into the market each day, marketers are returning to approaches that have been successful in the past. Just because a concept has been in the market for some time, doesn’t mean it isn’t still effective,” she said.