Food for Thought: The World of Edible Incentives

Because food stimulates the senses as no other product can, it provides an excellent way to convey your motivational message. This article explains why food remains a promotional favorite and tells how to use it for maximum impact.

FACTS ON FOOD

Despite food's growing popularity in incentive programs, holiday gift-giving is still the No. 1 market among business customers of specialty food companies. Leading suppliers of gift baskets and other gourmet treats rack up 90 percent of their sales between Thanksgiving and Christmas. In the $7 billion promotional products industry, food accounts for just 2 percent of overall volume. Still, the picture is changing as marketers discover new ways to use food for stimulating customers, employees, dealers, and distributors.

TYPES OF GIFTS AND AWARDS

Traditional food items in this market include meat, seafood, fruit, cheese, candy, cookies, and condiments. Recent additions to the list include spices, gourmet teas and coffees, ice cream, novelty items, and a host of ethnic foods. Marketers of food gifts are trying to broaden their market by offering exotic combinations of foods themed around such occasions as Halloween, the Super Bowl, or even personal milestones. Several suppliers, for instance, offer food assortments for expectant mothers.

Even within traditional categories, there's more to entice than ever before. Look through any high-end food catalog and you'll see combinations of filet mignon and lobster tails, tenderloin wrapped around sun-dried tomatoes, spiral-cut hams, stuffed Cornish hens--even ostrich steaks. Among baked goods, there are assortments of gourmet breads, pastries, and rich layered cakes.

PROS AND CONS OF FOOD

People have a primal connection with food, so its potential to soothe, reward, and delight goes far beyond its cost. Even people who feel guilty buying rich, fatty concoctions for themselves usually enjoy receiving them as a gift or as a reward for work well done. Food can be shared, so it makes a hit in office situations. For this reason, too, it can often be slipped through the door despite no-gift policies that many companies have adopted. Many suppliers offer custom assortments, so the chances are they can come up with a food gift or award to suit any promotional theme or match any recipient's lifestyle.

Although there is a misconception that once a food gift is eaten, its value as a gift or award is gone, in fact the opposite is true. Food's consumability can be a distinct advantage: it provides the opportunity to repeat the gift or award year after year, and the recipient's pleasurable memory of the food creates a desire to receive it again.

The down side of shipping perishables such as meat and produce is that you must take special care to ensure they arrive fresh.

TYPICAL APPLICATIONS

Every office worker has witnessed the delivery of gift baskets as the year-end holidays approached, but marketers should also consider the following uses of food:

• Sales incentives. Fresh gourmet steaks are probably the most popular sales award among foods. They are often given as a gesture of encouragement when salespeople reach intermediate plateaus in a long-term program.
  
  
• Program promotions. Food is often used to announce an incentive program. For instance, a team of maintenance workers might be introduced to a new safety program with a communal basket of food items.
  
  
• Employee recognition. The personal nature of food products makes them excellent choices for impromptu recognition awards or for marking such occasions as Secretaries Day.
  
  
• Consumer programs. Elaborate plateau programs aimed at consumers employ food items along with merchandise and gift certificates. Foods works especially well in programs with a home or garden theme.
  
  
• Ad specialties include novelty candies (i.e. giant chocolate bars) and food packages imprinted with your logo. These are extremely popular as trade show giveaways.

PRICE POINTS

The high end of food gifts and awards starts around $50, but complete fresh dinners, overflowing gift baskets, and gourmet specialties are generally in the $75-$175 range. If you're looking for a meaningful dealer incentive or executive gift, expect to spend in that range.

Midrange items, typically $25-$50 dollars, include fruit assortments, well-rounded gift baskets, candies, cakes, salty snacks, and basic servings of fresh meat and seafood. Shop around and you'll find a lot of worthy items in this price category, especially fruit and candy.

The low end, $5-$25, typically includes novelty candy, gift certificates, and simple assortments of meats, cheeses, and fruits. These are handy for ad specialties, low-level awards, and gifts for people who don't need too much impressing.

CRITICAL ISSUES

• Keep it fresh. Timing is the single most important issue when dealing with fresh food items, such as steaks or fruit. There's nothing worse than investing in a corporate gift of filet mignons, only to have the package rot away while the recipient is on vacation. Double-check your ship-to address, and make sure the recipient will be in when the package arrives. If the recipient is nearby, consider hand-delivering the package yourself. This always adds a personal touch. You can avoid potential problems by selecting nonperishables or by giving gift certificates.
  
  
• Go beyond the holidays. Consider giving food to mark personal events in your recipients' lives, such as weddings and births. The personal nature of food and the vast selection of theming possibilities give you a wonderful opportunity to score points with customers, middlemen, or employees.
  
  
• Add trophy value. Look for ways to get the most from your investment. Mixing durable imprinted items with edibles is one way to add value. Example: Include a cutting board with a cheese assortment. Often, the durable item can be imprinted with your company logo. If possible, enclose a handwritten card.
  
  
• Increase mileage. Gift-of-the-month programs are a logical way to ensure that you achieve multiple hits. They repeat your message over time, even though each shipment may be eaten quickly.
  
  
• Know your recipient. Whether you go with a custom basket or one of the many ready-made options, give careful thought to the lifestyle of the recipient. There's no excuse for sending meat to a vegetarian. And there are subtle things to keep in mind. For instance, among steak customers, women tend to favor filets, men New York strip or prime rib.
  
  
• Be creative. Today's gourmet food choices go way beyond meats, cheeses and citrus, and opportunities for customized assortments are endless. Even at lower price points, there's more selection than ever before.
  
  
• Consider gift certificates. Most of the leading purveyors of food items for the gift/incentive market include gift certificates as an option. If you're not sure of what your recipient wants, this may be the best option.

CASE HISTORIES

The following examples illustrate how food can be used effectively as gifts and awards:

Builder's Square and Weber ran a spring promotion to encourage grill sales for a two-week period. The program utilized TV and print advertising along with four-color posters and in-store table tents. Consumers who purchased a qualifying grill were awarded a customized Omaha Steaks gift certificate. Program administration and fulfillment was handled easily, and an increase beyond expectations of 300 grills was achieved.

Harry & David, seeking to prove the value of using their products as gifts, conducted a study of customers who'd spent more than $1,000 with the company. Two groups of 5,000 were selected. One was sent a box of chocolate truffles with a thank-you card, and the other wasn't. By tracking the orders, the company found there was a significant increase in business from the group that got the chocolates.

MTM Enterprises. The TV syndicator concocted a great ad specialty by customizing packages of M&Ms. The logo became, as you might guess, MTMs.

Best Buy/Frigidaire ran a one-month in-store promotion to increase sales of select freezer models. In-store signs were used as well as national newspaper advertising to promote the sale. Customers were awarded a package of Omaha Steaks for purchasing qualifying models. Freezer sales of select models were increased by 56 percent for the time period.

FINDING A SUPPLIER

Nearly every food company in the gift and award trade prints a catalog, and your best bet for shopping is to get as many as you can. These companies routinely exhibit at gift, gourmet food, and motivation trade shows, and directories from these shows usually contain comprehensive listings of suppliers. Industry associations can help with referrals. Use the following sources to start your search:

To find a supplier, go to #9520, Supplier Finder.

The Motivation Show Directory provides the most comprehensive listing of premium and incentive suppliers.

ASSOCIATIONS

TRADE SHOWS

For a list of Industry Events, go to #9510, Calendar of Industry Events.



PUBLICATIONS

For a list of relevant publications, go to the Industry Publications page.


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