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Sunday, April 18, 2010

Free Samples? CPG riding on USPS "test"

United States Postal Services "USPS" is trying to battle competition and recession with trying to innovate into new business services and models. In the Indian context I have always believed that Indian Postal Service has a very large untapped potential because of the amazing reach that they have. Let us see if they can also innovate at "Bottom of the Pyramid" << cannot but regret the death of one of the finest thinkers of our times CK Prahalad >>

Here is what USPS is doing:

Free samples of CPG products, including candy and snacks, will be delivered direct to homes through a test program by the U.S. Postal Service (USPS) early next month.


Sample boxes will contain an assortment of 10 to 11 products from a range of CPG companies, it says. It will be distributed by letter carriers on a national, but limited basis in May, and in larger quantities to consumers in Charlotte, NC, and Pittsburgh, PA, the USPS says.

According to Robert Bernstock, president of mailing and shipping services, the product samples will be traced to determine whether sampling converts to sales.

Patricia Licata, senior public relations representative, says CPG companies will not be charged for their test participation, but will have to pay in the future.