How to create value through strategic product sample promotions : A L'Oréal case study

Abstract: The Swedish beauty industry face challenges with product samples as a promotion technique. The lack of a defined strategy results in a random distribution, which leads to weak ROI. However, product samples could be used proactively as a strategic marketing tool creating long-term brand value. This thesis provides a framework for L’Oréal to fulfill their objectives of using product samples – from strategy formation to tactical practice. Davies’s (1992) model “Using promotions as part of a strategic plan” is used as a sorting mechanism. We created a three-step process based on the model as a structure for this thesis: strategy preparation, strategy implementation, and strategy follow-up. Qualitative interviews and a quantitative survey proved that different product sample types require different strategies depending on the aim of the promotion. As a complement, targeted product samples via GlossyBox enabled L’Oréal to gain market insight and use product samples more strategically.