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Tuesday, March 27, 2007

Guerilla Sampling Success?



CASE STUDY: Promote a new coffee beverage using earned media and Internet marketing techniques.

PROBLEM:
In the early spring of 2006, we were approached by a successful beverage industry entrepreneur. He had created a concentrated espresso product. To use it you just needed to add milk (cow, soy or rice). Heat – or chill it over ice. And serve. It came in four flavors: vanilla, mocha, caramel and espresso blend with a touch of sugar. Initial research showed that the market wanted a product like this as lattes are expensive, difficult to make at home, and are the most widely purchased product in coffee shops.

The founder’s background driving beverage consumption for leading international brands was an important advantage as we sought to gain attention among Internet-savvy consumers and food and beverage editors.

SOLUTION:
Using our trademark-protected framework – Organize, Strategize, Publicize, Capitalize – we mapped out a strategy to put the product into the hands of food and beverage editors in the founder’s hometown – Los Angeles. That effort was unsuccessful. New product ideas pour into newsrooms daily; there are not enough resources to vet them all. We narrowed our focus to the editors in Glendale, a Los Angeles suburb, where the founder was raised. And while we were able to capture the attention of two reporters there (one, the Glendale editor of the Los Angeles Times), we could never get them to agree to do a story.

We moved up the coast to San Francisco, following on an angle that the product’s long shelf life and fresh-brewed taste would be perfect for offices – especially those in Silicon Valley – a place known for long work hours and bad office coffee. The San Jose Mercury News bought off on the angle and assigned a reporter to the story. While we waited for the Mercury News, we pushed north to Seattle – by-passing Portland media altogether. We believed that if the product idea made the news outside of the Portland market – the company’s home base and an internationally recognized coffee capital – we’d gain the respect of hometown aficionados and critics more easily.

We began our efforts in the early spring. By mid-summer it was apparent that reporters were not interested in hot beverage stories – no matter how novel. The summer heat – the second hottest on record in North America – led us to switch our pitch to “Iced Lattes.” It was an earnest approach, but a late one, as many monthlies are put to bed months in advance of publication. Major daily newspapers also plan their editorial content weeks in advance. Increasingly, we found ourselves at one dead end after another. We had feedback from editors and consumers claiming that they enjoyed the product – its flavor and convenience being the most notable adjectives shared. But, without wider editorial coverage, coupled with consumer purchases in stores where the product was already stocked – grocery chain buyers saw no reason to take a chance on the product.

The founder believed that without consumer awareness, the product would not move. We agreed. Although, we has a suspicion that the product required a paradigm shift in how people enjoyed their morning coffee that it would take longer then we had allotted to spur consumer demand. As of this writing, that theory appears to be correct.

Permit us a little diversion here. Lattés are not convenience products. Consumers expect them to cost more in terms of ingredients and time for preparation. In addition, sipping lattés is a social activity – most frequently done in coffee shops. It might be an oversimplification, but coffee enjoyment is a singular pursuit. Latté enjoyment is a social pursuit. Research supports this view. According to Marketresearch.com, in 2003 lattes made up 42 percent of all drinks sold at coffee houses, with brewed coffee a distant second at 16 percent. It’s possible that in the consumers’ minds they equate lattés with group or public consumption. Concentrated lattés made at home don’t have the same “feel” to the consumer.

When you think back to ads in the 1970s and 1980s, coffee ads focused on the personal pleasure one received from drinking fresh-brewed coffee at home (e.g., “The best part of waking up is Folgers in your cup.”). Compare this to ads for Nescafe International Coffees, which always featured two or more people enjoying the diversion on special occasions.

In the workplace, the consumer needs at least a refrigerator and a microwave to store the milk and the open product (it’s refrigeration shelf-life is about 60 days) and to prepare the product hot. Plain coffee requires no refrigeration and only a hot pot or microwave to heat water plus either a coffee filter or a French press. Clean up is minimal.

RESULTS:
With editors and reporters at major dailies and relevant monthlies rejecting coverage – or postponing intended coverage – we turned to venues on the Web. Weblogs written by coffee aficionados were a primary target. Sites that were written by tastemakers were another (e.g., CelebrityCafe.com, PortlandPicks.com, DailyCandy.com, etc.).

We posted an offer for free samples on about a dozen sites. The reaction to the offer was immediate. Within 48 hours we received more than 50 requests for samples from all over the country. Within two weeks we had well over 100 requests. And, on it went. And while the numbers were small, we did prove the power of guerilla sampling. We received feedback from almost all of the people who received the product and were able to post those testimonials on the site.

This effort continues as we write, so stay tuned for the further results as they become available.

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Nathaniel Clevenger Bio

Nathaniel “Than” Clevenger, Principal/CEO
503.449.1029 (USA), email:than@why3.com, Skype: nathaniel.clevenger

Than Clevenger is a twenty-year veteran marketing and communications strategist with significant experience in developing communications and marketing programs in the construction, commercial finance and real estate development industries. Than has held senior positions for two of the largest marketing and communications agencies in the world, Hill and Knowlton Public Affairs Worldwide Company and Fleishman Hillard. He has created, developed and launched award-winning consumer and B2B brands in global markets and has expertise in promoting construction technologies, residential and commercial development projects, and consumer goods and services.

He has served as an outsource Chief Marketing Officer (CMO)and/or strategic marketing advisor to commercial and residential real estate projects throughout the U.S. and Canada One of his projects, a $250 million commercial development, was named as one of the top ten projects in the nation in 2005. The project was constructed by one of the oldest design/build contractors in North America. He is currently serving as CMO for what will be one of the first LEED-ND communities in the world. He is also serving as the consulting CMO to the fastest concrete batch plant productions system company in the world based in Nova Scotia, Canada. During the mid-90's Than co-founded what became one of the largest real estate finance companies in the Mid-Atlantic U.S.

Relevant recent clients include Opus Development (Minneapolis), Swinteron Builders (San Francisco), Vidabode Group (Amherst, Nova Scotia), Thimble Creek Development Corporation (Oregon City, Oregon) and Housing Northwest, an affordable housing non-profit with $200 million under management.

Than formed 3 after leaving Fleishman Hillard—currently the largest public relations firm in the world—as a vice president and co-chair of one of Fleishman’s global vertical marketing teams. Prior to joining Fleishman Hillard, A seasoned manager and leader, Than served in senior staff positions with The Democratic National Committee (52nd Presidential Inaugural Committee), The Canzeri Company (the Rockefeller Family's public relations and public affairs firm) and Hill and Knowlton Public Affairs Worldwide Company (currently the second largest public relations and public affairs firm in the world) in both the D.C. and New York offices. In his early 20’s, he worked for the legendary public relations strategist, Frank Mankiewicz; former Nancy Reagan press secretary, Elaine Crispin; and Reagan advance man, Joe Canzeri. He also worked with and for Marilyn Funderburk, a former White House deputy social secretary.

Current and former clients include CEO's and senior executives in large, privately-held corporations, Fortune 500 and multinational corporations, foreign heads of state, trade association directors and senior executives at large non-profit foundations. Organizations, companies and leaders with whom Than has worked include: Sir Robert Maxwell, The Honorable Clark Clifford, Jerry Tarkanian, The White House Chief of Protocol, the last Miss U.S.S.R., the Emir and Royal Family of Kuwait, the former heads of state of Morocco, Finland, Brazil, The Republic of Turkey, North Yemen and the current head of state of Angola; as well as the CEO's of Gulfstream Aerospace, NBC, Lockheed Martin, The American Red Cross, The American Task Force for Bosnia, UNICEF, The United States Olympic Committee, Reading is Fundamental, the Recording Industry Association of America, Deloitte and Touche, Enterprise Ireland (the seed capital investment agency of the Republic of Ireland), Preston Gates and Ellis, Swinerton Builders and responDesign (an interactive video game publisher) to name a few.

He has written speeches and or correspondence for a variety of leaders including former President Bill Clinton; former President George H.W. Bush; IMF Chairman, Michel Camdessus; comedian, Bill Cosby; former District of Columbia Mayor's, Sharon Pratt Kelley and Marion Barry Jr.; various U.S. Olympians and U.S. Olympic officials, including gold medal skater, Bonnie Blair and gold medal boxer, Riddick Bowe as well as sports commentators Bob Costas and Greg Gumbel. He also served as protocol and event manager for the opening ceremonies of the Korean War Veteran's Memorial in Washington, D.C., and as a spokesperson for one of Washington, D.C.'s mayoral inauguration events.

Than is an advisor to several Northwest-based non-profits and was recently listed in Strathmore's Who's Who in American Business, 2004 Edition, He is a member of the Multnomah Athletic Club in Portland, Oregon, and is a native of the Hampton Roads area of southeastern Virginia (formerly and historically known as Tidewater) Given the time, Than enjoys competitive sailing, painting, and military history. He is a graduate of George Mason University in Fairfax, Virginia, and currently resides in Portland, Oregon with his wife, Sydney, a Portland native and writer, and their three children, Jack, Steele Elizabeth and Gus Henry.

For more information on Than, please visit his personal website at www.why3.com.