Using a fulfillment warehouse to offer Free products can be profitable. Just ask the Egg Farmers of Canada or BzzAgent, a word-of-mouth media firm based in Boston, MA. They each take a unique and highly strategic approach to product give-aways. And they get results.

Word-of-mouth is the latest buzz amongst marketers and BzzAgent (www.bzzagent.com) operates at the forefront of this trend. Essentially, BzzAgent supplies everyday consumers with an opportunity to experience new products and share their honest opinions with friends, family members – and the brand, itself.

Here’s how it works. At BzzAgent’s website, consumers sign on to be an agent. They provide demographic information which is used to determine which word-of-mouth campaigns they are best suited for and the agent chooses which ones they actually want to do. Then the product is delivered to them. Dare Marketing manages the Canadian warehousing and fulfillment for BzzAgent.

Dare receives the products for each campaign by the case load. They then source and determine the best packaging and fulfillment process for each – a breakable bottle requires a different process than a durable good. Once all is ready, they deliver the product to the agent so the person can form his own honest opinion about it, and then relay that opinion to others. This word-of-mouth system increases the buzz around products. It is estimated that as few as 5000 agents may ultimately reach as many as 237,000 consumers.

While BzzAgent wants to get the right people chatting about a product, the Egg Farmers of Canada’s objective is to increase the consumption of shell eggs. Representing the 1100 egg producers in Canada, their key message is that eggs provide lasting energy. One of their most effective marketing tactics has been to provide microwave egg cookers to consumers. Through direct mailings, magazines, and on their eggs.ca website, microwave egg cookers are offered to Canadians for a shipping and handling cost of $5.99. The price is a bit of a qualifier. It ensures that the cookers are ordered by those who will crack eggs into them. To date, over 15,000 Canadians are satisfied customers. Dare manages the complete fulfillment warehouse process. They warehouse the cookers, receive the order, process payment, package and mail the cookers to the consumer.

There are many product give-aways but few that are highly targeted and strategically managed for real results. BzzAgent and the Egg Farmers of Canada, along with their fulfillment warehouse partner, Dare Marketing, delivers products to the right people at the right time – for exceptional results.

Canada Running Series (CRS), founded in Toronto in 1990, organizes runs across Canada from Quebec to British Columbia for recreational runners as well as world-class competitors. As Canada’s premier running series, they offer sponsors a highly focused and integrated avenue to the mid-and-upscale ‘healthy lifestyles’ market. In their multi-pronged marketing strategy, direct mail plays a key role.

In 2006, CRS rallied over 30,000 runners to participate in their eight events. A portion of the registration fee for each participant goes to charity as well as 100% of monies that runners pledge during the online registration process. CRS events raised $1.3 million for 50 charities in 2006.

But just as important as the revenue generated for their partner charities is the public recognition the charity receives through the runs’ marketing campaigns. Princess Margaret Hospital, the Leukemia and Lymphoma Society of Canada and The Toronto Zoo are just a few of the charities that have had their profile raised through CRS events. This publicity, in turn, helps the charities in their other fundraising efforts.

CRS uses Internet and email marketing, advertising, direct mail and public relations to promote their events. While electronic media is important, (90% of their registration now takes place online), direct mail continues to be a measurable contributor to their marketing mix. Twice a year, Dare Marketing cleans the CRS database of 15,000 prospective participants and mails brochures to promote upcoming races. In the spring they promote their fall events. Their winter mailing focuses on the spring events.

Each time CRS mails to their database there is a noticeable increase in registration. This is not surprising. Canada Post’s research shows that 97% of Canadians will open direct mail if they have asked for it and 95% if they know who it is from. CRS scores well on both fronts. Add to this the fact that 63% of Canadians read direct mail as soon as it arrives and we have an explanation for the success of direct mail for the Canada Running Series.

The experience of Canada Running Series shows that direct mail continues to have an important place in the marketing mix – even during this age of the Internet. Customers can sit down and mull over the tangible, in-your-hand direct mail brochure in a way that they don’t with websites. For the Canada Running Series, direct mail drives prospects to their website where they become customers.

As the casual hamburger, Sunday prime rib, Sloppy Joe or exquisite bourguignon, beef serves up great times, anytime. It is versatile, delicious and one of the principal meats in European and North American cuisine. We love our beef. But as our understanding of health and nutrition changes, so must our understanding of beef and the way we cook it.

The Beef Information Centre makes it easy for consumers, chefs and health care professionals to understand the dietary importance of beef and enjoy it as part of a healthy lifestyle. Working with Dare Marketing as their fulfillment and call centre partner, the Beef Information Centre provides answers to questions and distributes information to increase awareness of beef’s nutritional value and make its preparation easy and delicious.

As the Beef Information Centre’s representative by phone, Dare Marketing has encountered some interesting requests. They have talked new cooks through their first roast beef dinner and instructed novices on simple kitchen safety techniques such as refrigeration. Dare Marketing’s call centre and fulfillment departments have supported the Beef Information Centre’s mandate to promote better health with reliable information and great recipes for almost ten years.

Dare warehouses a variety of resource materials for the Beef Information Centre. In a typical year, Dare manages four point-of-sale campaigns by distributing retail kits on a national basis. They support foodservice professionals and consumers with regular mailings of posters, buying guides, seasonal recipe booklets and even a HeartSmart recipe collection by Bonnie Stern. For retailers, chefs and nutritionists there are guides, fact sheets and manuals. Dozens of brochures and booklets communicate the Beef Information Centre’s message.

The friendliness of Dare’s call centre representatives and accuracy of the fulfillment department are fundamental to the success of the Beef Information Centre. The Centre relies on Dare for quality customer service, accurate data collection, the timely fulfillment of resources to consumers and professionals and information-rich reports. Regular communication ensures that Dare is constantly supporting the Centre’s objectives.

Canadian beef is amongst the best in the world. With Dare Marketing as their partner, the Beef Information Centre educates consumers and professionals. They get the word out that beef is nutritious and delicious. And they do so efficiently and cost-effectively.

Retail is a competitive world. Increasing sales while minimizing costs and logistics is a challenge. Schlage, a division of Ingersoll Rand Security Technologies, found their solution with a “mail-in gift with purchase” program. And by outsourcing the rebate program management process to Dare Marketing, costs were well managed and logistics were not a challenge at all.

Schlage locks are sold at retailers across Canada. There are many possible ways to drive retail sales including offering uniquely bundled Schlage products. However, these options need long lead times, can cause inventory management issues and demand inventory participation by the retailer. Thanks to rebate program management outsourcing, the ‘gift with purchase’ solution is a more simple and cost-effective promotional option. In 2005 Ingersoll Rand offered the Digital Camera giveaway. Following on its success, they offered the Schlage “Night at the Movies” gift in 2006. Both programs ran for two to three months and each was successful in cost effectively increasing sales.

There are many steps in the rebate program management process. It begins with literature fulfillment to sales representatives and retailers. Before the campaign even appears to consumers, kits must be assembled and sent to sales managers according to their need – one manager may need nine kits and another only two. Its totally individual.

Once the campaign is underway, communications with consumers begins by phone and mail. Both are managed by Dare Marketing. Dare responds to consumer questions about the gift offer on a dedicated Ingersoll Rand telephone line. Dare staff review mail-in coupons to ensure that they are complete and valid. They then mail out the gift and automatically update a database of the consumers responding to the campaign. Dare Marketing reports on the campaign’s progress to Ingersoll Rand every Monday morning.

By partnering with Dare Marketing, the Schlage division of Ingersoll Rand increased sales while minimizing cost and demand on internal resources. Rebate program management – with its many details including kit assembly, telephone support and fulfillment – is a marketing strategy for which outsourcing should be considered.

Greg Muzzatti has always been intrigued by unique and useful gadgets. Once discovered, his friends would hear about them in short order.

In 2003, Greg took that enthusiasm and channeled it into a new business: Tesco Sales, the eclectic sales company. In the first year, profits were $0. But, undaunted, he has grown it to profitability and beyond his initial capacity. “I couldn’t expand without renting a full facility,” he explains. “Unless, of course, I had access to someone else’s facility and expertise in order fulfillment.” And that’s when he turned to Dare Marketing.

Selecting an order fulfillment partner
Order fulfillment is the warehousing, picking, packing and shipping of product. You can handle order fulfillment yourself or outsource it to an order fulfillment specialist. By outsourcing, order fulfillment becomes a direct expense on each item rather than an overhead expense for the business.

Greg’s greatest problem was in Canada. In the US, there are many order fulfillment services. In Canada, he really had to do some order fulfillment research. “I either had to drop Canadian business or find an order fulfillment service in Canada that would do the work for me. I spoke with a few companies but Dare Marketing was really set up for order fulfillment. I got answers quickly without a lot of complication. They seemed streamlined and ready to get started in short order.”

Quality Order Fulfillment
In the Fall of 2007, Tesco sent Dare Marketing their first order.

Fulfillment was smoothly completed on time and the successful partnership begun. The two companies communicate well. Immediately after Tesco takes an order, fulfillment is begun by Dare Marketing.

Located on the east coast, Greg hasn’t met anyone from Dare face to face nor has he been to their facility but he still enjoys consistent, quality order fulfillment for himself and his customers. “I always speak with the same person who also seems to pick and pack my products. She knows my products and my order fulfillment preferences. I don’t have to repeat myself. It’s almost as if she’s my own employee.”

“Business is good,” says Greg. And it still has potential for growth. I would like to triple my business and the only way I can is to work with an order fulfillment service like Dare Marketing and find additional ways to automate and streamline operations.”

Need further information on order fulfillment?  Contact Dare Marketing for help.