Sara Lee Uses Promotional Risk Coverage to Launch Nationwide Free Bread Offer

 

Sara Lee was looking to increase household penetration and build brand awareness for its Soft and Smooth Bread brand.  And with the economy tight and food prices soaring, offering millions of consumers a coupon good for a free loaf seemed like a sure way to accomplish the goal.

At the same time, company executives were concerned about going over budget should redemption on the 20 million coupons distributed through newspapers exceed expectations.   The solution?  Promotional risk coverage from Promotional Currency.

Promotional Currency evaluated the free-offer promotion and odds of redemption, placed the promotional risk with an A+ insurance company, and was able to provide Sara Lee a fixed cost fee for the promotion.   Should more consumers redeem the free bread offer than anticipated, Promotional Currency will cover the cost.

“We run $1 off offers on a regular basis and don’t need promotional risk coverage for that,” notes Tara Eckler, who heads consumer promotions for the Sara Lee Brand. “But when we are offering a free loaf of bread in this economy, we sleep better at night knowing that we have the protection.

“For brands like Sara Lee, it really comes down to knowing what our budget is,” adds Eckler.  “Even if redemption comes in under expectations, promotional risk coverage enables us to know exactly what our costs are going to be and that is what it is all about.  In terms of this offer, we don’t have our redemption information in yet.   But the initial feedback we have received from certain accounts is that it is going very well.”