Snoopy premiums

Kraft Canada has taken the idea of cereal premiums to a whole new level. This fall the Toronto-based packaged goods firm gave away music CDs attached to boxes of 12 Post cereals, such as Shredded Wheat and Banana Nut Crunch. But not just any old CD.

Kraft Canada has taken the idea of cereal premiums to a whole new level. This fall the Toronto-based packaged goods firm gave away music CDs attached to boxes of 12 Post cereals, such as Shredded Wheat and Banana Nut Crunch. But not just any old CD.

These ones came equipped with an interactive feature called Listen & Link, a program developed specifically for promotional CDs by integrated

marketing firm Sugo Music, of Foster City, Calif.

Scott Kellner, CEO of Tambourine, the parent company of Sugo Music, explains that there were in total three CDs produced for Kraft. Each featured classical music and ‘sounds of nature’ and included a call-to-action directing consumers to use the CD on their computers. Once they did, hyperlinks invited them to Kraft’s Web site to download recipes, sign up for an e-mail newsletter, and get information on the brand’s custom pub what’s cooking. During the presentation, a flashing movie in the bottom corner of the screen advertised various cereals.

Here’s the good part: Sugo can actually track how many consumers use the CD on a computer, as well as what links they use to visit the brand’s Web site. Music to the ears of any ROI-driven marketer, no doubt.

Results of the Kraft program were unavailable, but according to Kellner, Forrester Research reports that on average 87% of shoppers who bring home the promotional disk use it at least once, while 60% use it even more. ‘Not only do you have a high engagement rate, there’s also a stickiness to it,’ says Kellner.

Costs vary from US$1 to US$8 per unit depending on factors such as the music used, packaging style and number of CDs purchased. And of course, the depth of the program also plays a part. Kellner says it all depends on a company’s business objectives, but the CDs can fulfil a range of needs from simply acting as a premium to beat competitors on the shelf, to behaving as an internal marketing piece or a vehicle to reach new customer segments.

U.S.-based Kraft Foods has some innovative marketing tricks up its sleeve too. The company recently signed a deal with A&E and TiVo revolving around the network’s Hollywood Home Movies, which premiered Sunday Nov. 21. Part of a holiday campaign that Kraft developed in conjunction with its media AOR Media Vest USA, the deal will see ‘custom vignettes’ featuring Kraft product run throughout the program. Viewers will also be able to access the company’s Web site where they can take part in a trivia quiz.