TITLE: A METHOD AND SYSTEM FOR DERIVING MARKET INFORMATION
FIELD OF THE INVENTION The present invention relates to a method and a system and for deriving market information, and in particular to a method and a system for deriving market information about a target group. The invention has been developed primarily for use in retail trade promotions and will be described hereinafter with reference to that application. However, the invention is not limited to this particular field of use and is also suitable for implementation in other market research applications.
BACKGROUND TO THE INVENTION Any discussion of the prior art throughout the specification should in no way be considered as an admission that such prior art is widely known or forms part of common general knowledge in the field. Consumers are familiar with promotional tokens offering savings or discounts redeemable at nominated locations. Consumers receive these tokens through a variety of means such as mail, inclusion in other media, email, SMS, and giveaways. Consumers also actively seek out tokens, for example by visiting websites offering downloadable tokens. Commonly observed promotional tokens include discount coupons, and offers printed on product packaging or supermarket receipts. Consumers are also familiar with lottery tokens that include the chance of a prize. These include instant win tokens and delayed win tokens. Inthe case ofthe former, consumers discover details of any prize awarded by the token at their own convenience. This is contrastable with the latter, wherein prize discovery is delayed pending external circumstances, such as a prize draw. Consumers find instant win tokens exciting because they involve a game of chance with the possibility of an unknown prize, and also because they provide an immediate result. Common examples of instant win tokens are scratch cards. These contain one or more panels wherein prize details are hidden by a type of ink material. The consumer scratches away the ink to reveal the prize information. Tokens of this kind are predominately used by lottery organisations. Scratch cards have been shown to effectively entice a wide variety of consumers. There are numerous alternate embodiments of instant win tokens that operate in a similar fashion to scratch cards. These include tokens wherein the prize is revealed by means such as immersion of the token in water, a geometric manipulation of the token, the removal of a perforated portion of the token, or removable of an adhesive cover. There are also numerous electronic equivalents available. Each embodiment has respective advantages and disadvantages in production costs, consumer appeal and efficiency. Instant win cards have been used, to some extent, in trade promotions by, for example, a retailer. The excitement factor of an instant win token is incorporated into a promotional token as a means of more effectively promoting the sale of additional goods and/or services by that retailer. This type of promotion involves few participants due to the logistics and commercial complications that arise even between two parties. Therefore, such promotions are typically one-off events that allow consumers to participate in a specific competition or sweepstake for prizes. Known promotions of this type are rudimentary and not adaptable for continued application on a wider scale. Moreover, the focus is on enticing business through interactive advertising, a result that is not necessarily justifiable over an extended period of promotion.
SUMMARY OF THE INVENTION It is an object of the present invention to overcome or ameliorate at least one of the disadvantages of the prior art, or to provide a useful alternative. According to a first aspect of the invention there is provided a method for deriving market information about a target group having at least one member, the method including the steps of: distributing through at least one predetermined distribution channel a plurality of promotional tokens to at least one member of the target group, the tokens carrying information indicative of an identifier and a token value; at least one token being redeemed by the respective member in a redemption transaction having a transaction value, the transaction value being dependant upon the token value; and being responsive to the identifier of the token being redeemed for deriving market information about the target group. Preferably, the tokens include a substrate for carrying the information. More preferably the substrate includes any one or more of: a physical substrate; an electronic substrate; and a substrate integrally formed of an independent substrate. Preferably, the token includes a concealment portion for visually concealing at least some of the information when the token is distributed. More preferably, the concealment portion includes any one or more of: a removable layer of ink or other material; a chemically reactive panel; an electrically rendered panel; a panel visually concealed by the geometric configuration of the token; and a panel visually concealed by the geometric configuration an item to which the token is applied. Preferably, the tokens include includes a game of chance for displaying at least some of the information. Preferably, each identifier is indicative of any one or more of: a mark attributable to the predetermined distribution channel through which the respective token is distributed; a serial number; a bar-code; a security number; a security display feature; a hidden identification feature; a date indicator; an expiry date; and an electronic certificate. Preferably, the method includes the steps of administering a set of rules governing the redemption of tokens. Preferably, the method includes the step of defining a proportional relationship between the token value and the transaction value that must be satisfied in a redemption transaction. In a preferred embodiment, the method includes the step of defining a predetermined class of redemption transactions in which the redemption of a token is allowable. Preferably, the method includes the step of defining a time period during which the redemption of a token is allowable. Preferably, each token value is zero or greater. More preferably, the token value is determined in accordance with a predetermined algorithm. Preferably, the tokens are distributed in a series. More preferably, the series includes a predetermined number of prize tiers, each token value corresponding to one of the prize tiers. The series preferably includes a predetermined number of tokens of each prize tier. In a preferred embodiment the series of tokens are distributed within a predetermined distribution period. Preferably, following the predetermined distribution period a subsequent series of the tokens are distributed within a subsequent distribution period. Preferably, the step of being responsive to the identifier of the token being redeemed for deriving market information about the target group includes the sub-step of collating any two or more of: the distribution channel of the respective token; the production cost of the respective token; the token value of that respective token; at least one characteristic of the respective redemption transaction; the transaction value of the respective redemption transaction; and at least one characteristic of the tokens distributed through each distribution channel. Preferably, the at least one characteristic of the redemption transaction includes one or more of: timestamp data; transaction value data; and site of redemption data Preferably, the at least one characteristic of the tokens includes one or more of: the number of tokens redeemed by the or each given party. the number of redeemed tokens per retailer per distribution channel. the number of tokens redeemed per prize tier. the token value redeemed per prize tier. Preferably, the token includes an information collection device for collecting information about the respective member. More preferably, the information collection device includes an encouragement mechanism for encouraging the respective member to provide the information. According to a second aspect of the invention, there is provided a system for deriving market information about a target group having at least one member, the system including: a plurality of promotional tokens for distribution to at least one member of the target group through at least one predetermined distribution channel, the tokens carrying information indicative of an identifier and a token value; at least one redemption station for allowing redemption of the token value as part of a redemption transaction having a transaction value; and a processor that is responsive to the identifier for deriving market information about the target group. According to a third aspect of the invention, there is provided a promotional token for distribution through a predetermined distribution channel to a member of a target group, the token including: a substrate for carrying information indicative of an identifier and a token value, the token value being redeemable by the member as part of a redemption transaction having a transaction value, the transaction value being dependant upon the token value; and a concealment portion for visually concealing at least some of the information when the token is distributed. According to a fourth aspect of the invention there is provided a method for conducting a retail trade promotion, the method including the steps of: selecting a plurality of distributors to distribute a plurality of promotional tokens; and selecting a plurality of retailers for allowing redemption of at least some of the tokens as part of redemption transactions for goods and/or services of the retailers. Preferably, each token is only redeemable against goods and/or services of some of the retailers.
BRIEF DESCRIPTION OF THE DRAWINGS A preferred embodiment of the invention will now be described, by way of example only, with reference to the accompanying drawings in which: Figure 1 shows a promotional token according to the invention; Figure 2 illustrates a front view of a specific example of the promotional token of Figure 2, shown with information concealed; Figure 3 is a front view of the token of Figure 2, shown with information revealed; Figure 4 is a rear view of the token of Figure 2; Figure 5 is a schematic representation of the usage of the token of Figure 1 or Figure 2. Figure 6 is schematic illustration of a trade promotion according to the invention; Figure 7 illustrates data obtained from the trade promotion of Figure 6; Figure 8 illustrates costs incurred by the promotion of Figure 6 in the circumstances set out by the data in Figure 7; and Figure 9 illustrates, for the trade promotion of Figure 6, the relationship between the revenues generated, and the costs involve to do so. PREFERRED EMBODIMENT OF THE INVENTION Figure 1 illustrates a promotional token, in the form of a scratch card 1, for distribution through a predetermined distribution channel 2 to a member 3 of a target group 4, as shown schematically in Figure 5. Card 1 includes a substrate, in the form of a substantially rectangular cardboard sheet 5 of similar dimensions to a standard business card. Sheet 5 is for carrying information 6 indicative of an identifier 7 and a token value 8. Card 1 is redeemable by member 3 as part of a redemption transaction having a transaction value, the transaction value being dependant upon the token value. Card 1 also includes a concealment portion 9 for visually concealing at least some of the information 6 when card 1 is distributed. Figures 2 to 5 depict a specific example of a promotional token based upon card
1, in the form of a scratch card 10. In other embodiments, alternate tokens are used, including those that take advantage of alternate substrates such as food packaging, print advertising, and various electronic substrates. Card 10 includes three concealment portions 9. Portions 9 include removable ink layers 11 to conceal some of the information 6 when card 10 is distributed. In other embodiments alternate concealment portions are used. In one embodiment a chemically reactive panel is used that requires the token to be immersed in water before the information is revealed. In another embodiment the information is concealed by the geometric configuration of the token. In some embodiments the token is applied to packaging material, and the geometric configuration of which conceals some of information 6. For example, the token is applied to a milk carton, with the concealed information being printed on an internal surface. In some embodiments wherein an electronic substrate is utilised, an electrically rendered panel conceals some of information 6. In some embodiments the electrically rendered panel includes a graphical representation of a scratch card that is subjected to virtual scratching. In the current embodiment, member reveals value 8 by applying a frictional force to panel 12 to remove layer 11. Preferably this is done using the peripheral edge of a coin or a similarly adapted object, but it is appreciated that a variety of means are used to achieve this objective. Value 8 is displayed through a game of chance 20 including a plurality of sub- values 21. If game 20 includes 3 identical sub-values 21, game 20 reveals a value 8 equal to that sub-value. If game 20 does not include 3 identical sub-values 21, game 20 reveals a token value of zero. Card 10 displays a value 8 of $20. i this embodiment value 8 is a dollar amount, in other embodiments it is a percentage discount. In other embodiments alternate games of chance are utilised, examples of which are found on various commercially available instant-win lottery tickets. The identifier of card 10 includes a serial number 22, an expiry date 24 and a security identification code 25. Code 25, including a number and bar code, is hidden by a portion 9 and is subject to a warning that card 10 is void when code 25 is revealed. Code 25 includes encrypted details of some aspects of information 6, preferably including the particulars of value 8. In other embodiments alternate identifiers are used, such as magnetic strips. In some embodiments where electronic substrates are used, the identifier includes an electronic certificate. In other embodiments a security display feature, such as a hologram, is utilised. In some embodiments a hidden identification feature is used, such as a RFID chip. Panel 26, also concealed by a portion 9, identifies goods and/or services for which the card 10 value is redeemable. Card 1 identifies the goods and services of a retailer trading under the brand of MYER Panel 26 is limiting to MYER stores located in the Australian state known as NSW. It should be noted that all references to brand names and trade marks are purely for descriptive purposes and do not in any way indicate a relationship, arrangement, or permission in place between the applicant and the owners of these brands or marks, h embodiments where a feature like panel 26 is not used, alternate means are engaged to identify the goods and/or services for which the token value is redeemable. In identifying goods and/or services, panel 26 inherently identifies at least one suitable redemption station, in the form of a retailer 27. For card 1 , the redemption station is a MYER store in NSW. The information 6 on card 10 also includes a plurality of conditions governing the redemption of value 8. These include general conditions 28, and a major condition 29. It is preferable for conditions 28 to include sufficient information required to understand how card 10 is to be used. Card 10 preferably includes a reference to a full set of rules that are obtainable via one or more in-store displays, websites, information leaflets or the like. This becomes particularly significant when card 10 is used in a promotion that involves a relatively large number of independent retailers 27 to ensure that the target group are well informed. The rationale for this is to make card 10, where possible, self-explanatory such that there is a reduced need to educate prospective members of a target group in relation to how the promotion works. Condition 29 defines a maximum proportion of a transaction value that is attributable to value 8, being 50% on card 10. This means that value 8, being $20 on card 1, is only redeemable in a redemption transaction of transaction value of $40 or greater. In other embodiments alternate proportional relationships are used. The rationale for this proportional relationship is to increase the amount of income that is derived by retailer 27 in redemption transactions, especially compared with the cost of allowing redemption transactions. It will be appreciated by those skilled in the art that the cost of allowing redemption transactions is a soft-dollar cost. Card 10 also includes an information collection device, in the form of an entry form 30. Entry form 30 is adapted to receive personal information about member 3. Card 10 includes advertising 31 of a major draw, and conditions 28 set out that form 30 must be completed to enter the major draw. The major draw therefore acts to encourage respective member 3 to participate in the redemption of the token with the retailer. In other embodiments alternate encouragement mechanisms are used. In cases where value 8 is revealed to be zero, or of a relatively low value, the major draw continues to serve a purpose in enticing business to the retailer identified by panel 26. In preferred embodiments, there is a requirement that a purchase of minimum predetermined standards be made from retailer 27 before the card is enterable in the major draw. For example, in one embodiment it is necessary for a cardholder to spend $50 at retailer 27 before the relevant card is entered in the major draw. Such an approach is advantageous because card 10 is capable of encouraging revenue generation for the retailer in circumstances where the soft-dollar cost - that is, the discount being offered from the normal sale price - of this encouragement is zero or relatively negligible. Even in those instances where the token value is large, the enticement of the major draw still applies. That is, all tokens, regardless of the respective token values, are able to be used by the corresponding members to enter the major draw. In some embodiments, only those tokens having a token value of zero or a relatively small amount, entitle the respective member to enter the major draw. In the present embodiment, the retailers fund the soft-dollar cost of any redemptions that are made at their respective sites. Upon consideration of value 8, panel 26, conditions 28, condition 29, and any other displayed rules that apply to the use of card 10, member 3 decides whether to redeem card 10 with retailer 27 for the goods and/or services identified by conditions 7. Where the perceived benefits of redemption are sufficiently enticing, member 3 redeems card 10 in a redemption transaction between member 3 and retailer 27. The redemption transaction has a transaction value, which is dependant upon value 8. One possible scenario for the use of card 10 is as follows. Card 10 is distributed to member 3 through a distribution channel 2. Member 3 scratches layer 11 on panel 12 to reveal game 20. Game 20 reveals a value 8 of $20. Member 3 then scratches layer 11 on panel 26 to reveal information 6 identifying the goods and services of MYER stores in NSW. Member 3 considers conditions 28 and 29, and decides to redeem card 10 at a MYER store in NSW, where member 3 enters into a redemption transaction to purchase a product for $100, of which $80 is paid in the conventional manner and $20 is paid by redemption of card 10. The member is now entered into the major draw by virtue of undertaking the redemption transaction. A method, in the form of a trade promotion 39, is used to derive market information about a target group 40, having at least one member. The method includes the step of distributing a plurality of tokens, in the form of a series 41 of scratch cards 42. The cards are distributed through at least one predetermined distribution channel 43 to at least one member of target group 40, the cards carrying information indicative of an identifier and a token value. At least one card 42 is redeemed by the respective member in a redemption transaction having a transaction value. The transaction value is dependant upon the token value. Promotion 39 further includes the step of being responsive to the identifier of the card being redeemed for deriving market information about target group 40. It will be appreciated that in a typical promotion of the embodiment, many such cards will be distributed through many distribution channels and will be respectively redeemable at many different retailers. For example, a three month promotion will often involve many millions of cards being distributed through four or more different distributors. The cards then being respectively redeemable at one of five or more different retailers. Moreover, the distribution of the token values is controlled to ensure that each of the distributors receives a relatively similar proportion of cards that are redeemable at each of the retailers, and with a similar distribution of token values relating to those retailers. In other embodiments, more or less than the abovementioned number of distributors and retailers are involved in a promotion. Target group 40 has a plurality of members. The make-up of target group 40 is selected with reference to the market information that is sought. In this embodiment, the members are general consumers. In some embodiments target group 40 is constituted of members meeting predefined criteria, such as age, sex, profession, geographic location and spending habits. An administrator 51 arranges for the production of the series 41 of cards 42. hi the present embodiment, cards 42 are of the form of card 10. In some embodiments series 41 is made up of a plurality of different types of token. Administrator 51 arranges for the cards 42 to be distributed to members through distribution channels 43 and is responsive to the identifier of each card 42 to maintain a record of the distribution channel 43 selected for each card 42. Distribution channels 43 are selected with reference to the composition of target group 40 as well as the market information that is sought. Possible distribution channels include shops, mail, email, location-based distribution, inclusion with products, internet based electronic coupons, pop-ups and other electronic delivery methods, and distribution in print media. For example, in one embodiment wherein market information is sought about people who attend a certain beach on a Tuesday, a plurality of cards 42 are distributed directly to people at that beach on a Tuesday, these people comprising the relevant target group 40. The distribution channel 43 in this case is a handout at that beach. In the present embodiment, particular attention is paid to distribution channels in the form of shops that distribute cards 42 to their customers, who, being consumers, are members of target group 40. The distribution takes place in accordance with instructions given by administrator 51; however, in other embodiments an alternate party determines the procedure for distribution. In this embodiment the cards are distributed free of charge to each member who makes a purchase from the relevant distributing shop. Preferably, distributing shops have a high volume of consumer traffic and a low average transaction value. This is preferable because high a volume of cards 42 are distributed in a relatively short period. Shops of this kind include fast food outlets, video hire stores, newsagencies and cinemas. Shops use their ability to distribute cards 42 to customers as a means of increasing consumer interest in the goods and/or services that are being offered for sale, and generating sales of those goods and/or services. In one embodiment, the distribution of a token by the shop is dependent upon a purchase being made by the customer that meets one or more designated standards. Examples of such standards include a minimum level of spend by the customer, or a requirement that a specified product is purchased by the customer. It will be appreciated that the standards are particularly tailored to coincide with specific promotional goals. For example, where a shop wishes to promote a particular service - perhaps a service that is not being adequately utilised by customers - the cards are only distributed to those customers who purchase that service. In some embodiments administrator 51 sets guidelines for suitable means by which shops regulate the distribution of cards. The rationale being to provide all the participants with an assurance of the wider scale predictability and reliability of the promotion. While this, in some case, reduces the flexibility available to the distributor, this is counteracted with increased benefits derived from improvements to the reputation of promotion 39. It will be appreciated that this is facilitated by the lottery-ticket style of cards 42 being enticing to consumers. Members of target group 40 that receive cards 42 through distribution channels 43 selectively reveal the token value other information. Each card has a panel similar to panel 26 of card 10, which is used to identify one of a group 60 of retailers 61. The respective member selectively redeems a token with the identified retailer 61 in accordance with restrictions appearing on card 42. It will be appreciated that, in this embodiment, members of group 40 reveal the value of card 10 as well as the goods and/or services to which card 10 is directed. This is advantageous because it provides a further dimension to the excitement factor of the promotion. When a redemption transaction takes place using one of cards 42, the details of the redemption transaction 62 are recorded. These details 62 include the transaction value, token value, time and location of transaction, and the required aspects of the unique identifier. Details 62 are sent to administrator 51 who is responsive to the identifier for deriving market information about the target group. This market information is predominately derived by collating the details of distribution and the details of the redemption transaction. In other embodiments alternate information is gathered and used. In this embodiment, details 62 are recorded in an electronic form by retailer 61 using a data system integrated into the original point of sale system maintained by retailer 61. In a preferred embodiment, cards 42 include, as a portion of their respective identifiers, a code similar to code 25 of card 10. This code includes encrypted details of the respective token value. When a card 42 is presented in a redemption transaction, retailer 61 reveals the code to visibly void the card. The code is then scanned along with goods and/or services in the conventional manner. This scanning will automatically check the validity of the presented card and, if vahd, apply the token value against the purchase value. Note, however, that such a system will make allowances for any relevant transaction conditions that apply. Upon completion of the transaction, details 62 are stored for subsequent transfer to administrator 51. It is appreciated that such integration is not possible in all embodiments. In embodiments where such integration is not achieved, retailer 61 manually communicates details 62 to administrator 51. hi some embodiments, this involves the retailer physically returning any redeemed cards to the administrator. Administrator 51 manipulates details 62 to derive market information about group 40. This information, in so far as statistically allowable, reveals the spending habits of group 40 generally, and more particularly the spending habits of members who were reached by certain distribution channels. The information is preferably used to improve future marketing strategies. For example, where it is discovered that members of group 40 that receive cards 42 through a certain shop tend to spend more with a given retailer 61, that retailer is able to choose subsequently to have more cards distributed at that shop. By way of another example, in some promotions it is discovered that the average redeemed token value for members of a particular sub-group of group 40 is lower than other sub-groups. That is, the redemptions occur on the basis of a relatively low incentive. This provides motivation for a retailer to take steps to more actively target such a sub-group. It will be appreciated that the additional cost to the retailer of gaining additional sales is considered in relation to such decisions. It is also noted that retailers prefer to contain soft-dollar discounts by targeting consumers that are shown to spend money in exchange for a relatively low incentive. Administrator 51 will be able to advise retailers 62 of the best ways to reach their most preferable customers. As a further example, it will be possible to identify localities wherein preferable customers tend to be situated, such that other forms of marketing (such as billboards and the like) are placed in the best locations. Series 41 is distributed over a predetermined distribution period, i this embodiment the distribution period is 3 months, however, in other embodiments alternate periods are used. Following the distribution period, a subsequent series is distributed over a subsequent distribution period. Preferably, use is made of the information derived over a given predetermined period to better tailor the promotion for specific retailers in subsequent predetermined distribution periods. This includes: • Adjusting distribution volumes through one or more of the distribution channels. • Adjusting token values. • Adjusting token distribution quantities per prize tier. There are costs involved in running the promotion of the preferred embodiment. Initially the issue is with the actual costs of involvement, as opposed to the soft-dollar costs encountered by the retailers in offering discounts upon a token being redeemed. Soft-dollar costs are more relevantly viewed in the light of the revenue they generate, and that will be discussed further below. The costs associated in promotion 39 are split roughly into three categories. The first category is the cost of producing the required tokens - which in the preferred embodiments are typically cards such as card 42. This cost is easily controlled and to some extent dependant on the exact embodiment of token used. It will be appreciated that some forms of token are cheaper to produce than others. Due to the benefits of having a relatively large-scale distribution, it is often preferable to contain production costs from a per-unit perspective. The second category of cost is administration costs. This includes the cost of implementation, administration, information collection and analysis and marketing of the promotion. The third category of cost relates to the major prize. Typically the major prize is a fixed amount awarded periodically and which is of sufficient quantum to encourage greater participation in the promotion by the consumers. In absolute commercial terms the major prize is not necessarily that large - for example, in the order of tens of thousands of dollars - but still large to the average consumer, those embodiments where the major draw is funded by the distributors and/or the retailers, the cost of the major draw is relatively insignificant as the number of those parties increase. In the presently preferred embodiment, there is a single major prize across the entirety of series 41. This is advantageous because there is a single incentive commonly put to members of target group or groups 40. The cost of such an incentive is preferably shared across the retailers. As mentioned above, as the number of retailers involved in the promotion increases, the per retailer cost decreases. However, in some embodiments, as the number of retailers increases, the per retailer cost is maintained and the quantum of the major prize is increased accordingly. In some embodiments there are multiple major prizes, these each being attributable to select participants in the promotion. For example, in one embodiment the major prize advertised on a given card is dependant on the respective distribution channel, whilst in another embodiment the major prize is dependant on the retailer at which the card is redeemable. Such embodiments are also adaptable to realise the benefits of growth incentives. The above costs are, for the embodiments described, relatively small when compared with the revenue generated for the retailers by the promotion. A graphical depiction of this is given in Figure 9, based on the cost distribution formula of the present preferred embodiment and an example retailer scenario. This is described in greater detail below. It will be appreciated that the cost of the promotion is also small relative to the costs of known promotional activities. Although there are positive effects from increasing the number of retailers and distributors, it is often preferable to set limitations on the number of retailers and distributors representative of each industry or sector. For example, restricting distribution fast food outlets to a particular chain, or setting a limit on the number of whitegoods retailers that participate in the promotion. Such restrictions are included to provide an increased commercial competitive advantage to those businesses involved in the promotion. Each retailer 61 has a predetermined number of cards 42 in series 41 that are attributable to that particular retailers goods and/or services. These are referred to as that retailer's attributable cards. Each retailer 61 selects the token vales of attributable cards, and the number of attributable cards of each token value that will be distributed. In this embodiment, the minimum total number of attributable cards for each retailer is subject to the policies of administrator 51. hi other embodiments alternate arrangements are made. Each token value corresponds to one of a predetermined number of prize tiers.
For example, in an embodiment where there are six prize tiers, each retailer 61 selects six token values to appear on attributable cards. Preferably, one of these values is zero. The administrator ensures that a predetermined proportion of cards 42 of each prize tier are distributed in series 41. Preferably this predetermined proportion extends to each retailer's attributable cards. This results in members of group 40 having a constant probability of receiving a card of a given prize tier. The rationale is to have a constant chance of receiving a prize of a given level of commercial value across the series, which will give consumers a feeling of predictability. It will be appreciated that this predictability will contribute to the popularity of the promotion. Although it is ultimately at the relevant retailer's discretion, it is preferable to have a higher token value corresponding to prize tiers of lesser probability, and vice versa. It is appreciated that a participant on either the distribution or retail end of the promotional spectrum could assume the role of administrator 51. Despite this, in preferred embodiments, administrator 51 is an independent and impartial party. Such an approach is advantageous for the effective administration, growth and marketing of the promotion itself. Importantly, unlike in known promotions, an independent administrator abolishes the need for retailers and distributors to communicate with each other to develop promotional arrangements. The administrator oversees the implementation of standard contractual terms and conditions between the administrator and the individual distributors, and between the administrator and the individual retailers. This obviates the need for a direct contractual relationship between the retailers and the distributors. This, in turn, allows the promotions of the preferred embodiments to be more readily scalable to include a greater number of retailers and distributors than was possible in known promotions. Further, issues of politics, loyalty, and conflict of interest are more easily avoided by using an independent administrator. An independent administrator is typically more able to market the promotion conducive to the best interests of all business involved. The administrator's business interests rely on bringing about the best possible promotional successes for retailers and distributors; these being the customers of an administrator. It is to this end that a success-fee based costing structure, which is outlined further below, is selected. The administrator's income stream is directly reliant on the number of revenue introducing transactions that occur at the retailers. If the promotion is not successful in increasing the business of retailers (and effectively distributors), the administrator's income is adversely affected. It will be further appreciated that the use of an independent administrator gives effect to a promotion that is not effort-intensive on the part of the parties promoting their businesses. A retailer does not need to concern themselves with the advertising and marketing of the promotion, nor do they have to conduct much research before becoming involved. The promotion is ready to go as soon as an interested retailer agrees to the relevant conditions, as set by the administrator. As for distributors, the promotion comes to them (at no or negligible cost in the described embodiments) and is immediately available to be used for their own competitive advantage. Consumer perception is important to the success of any trade promotion. In this embodiment the management of consumer perception is predominately the responsibility of the administrator. It will be appreciated that the promotion of the preferred embodiment is well adapted to encourage a good consumer perception. Past experience mandates that consumers are enticed by scratch cards in the form of lottery tickets. A reasonable proportion of this enticement is attributable to the perceived random nature of the prizes, hi the present promotion, there are two degrees of randomness and unpredictability: firstly the token value; secondly the location at which redemption is possible. Consumers effectively reveal two separate surprises on each card. This combines with the predictability of winning derived from the inclusion of a prize tier system to produce a promotion that is both exciting and reliable. It will, of course, be appreciated that the information printed on each card is not actually random in this embodiment, and predetermined in accordance with the policies in place within the promotion. In practice, a retailer is advised to conduct some research into the net effects of being involved with such a promotion. Of course, the greatest risk is involved in the first distribution periods, as there are a larger number of unknowns. When planning for a first distribution period, some initial settings are made by a retailer, these being: • How many tokens will be distributed. • Which distribution channels are to be used. Preferably, more than one channel is used to allow a greater level of analysis of the data collected by the promotion. • What the percentage distribution allocations will be across those channels. • The token value corresponding to each prize tier. • The token frequencies desired across each prize tier. In other embodiments, some or all of these factors are fixed by the administrator, or regulated within predefined ranges. Once these decisions are made, the retailer makes an assumption about certain variables, which typically include the redemption rates per prize tier and the average redemption transaction value which will be achieved from the promotion. These assumptions allow a prediction of likely revenues to be generated by the promotion and the likely cost of generating those revenues. As a form of risk avoidance, it is preferable to ensure sufficient safeguards, in the form of redemption rules and regulations, are in place as an inbuilt protection mechanism. These are able to be adjusted more accurately with experience. For example, in some embodiments, the token value does not exceed a predetermined percentage of the respective redemption transaction value. In otlier embodiments, the retailer is able to withdraw from the promotion at short notice. Following a first distribution period, there will be more accurate information to allow adjustment of the settings referred to above for a subsequent distribution period. During this subsequent period the retailer will then be able to more accurately predict the level of revenue generated in that period, and the costs incurred to do so. If, say, the cost of a promotion in the first period is too high, but the revenue levels are attractive, one or more of the characteristics of the initial promotion is adjusted to achieve the desired results in the subsequent period. Examples of changes to such characteristics include: weighting the frequencies toward the lower prize tiers; and lowering the token values for one or more of the prize tiers. Both these examples will reduce the soft dollar-costs of the promotion to the retailer. With this in mind, a simulation of the practical costs and benefits of a trade promotion 39 is described below with reference to a set of calculations and a numerical application of these calculations. The calculation instructions set out below are made with reference to a specific retailer 61, and to that retailer's attributable cards. It will be appreciated that these calculations are modifiable to relate to multiple retailers and token conditions. To begin, it is necessary to define the number of prize tiers available across the series. The prize tiers will be referred to as (ptl, pt2, pt3, .... , ptN), there being N prize tiers available. A frequency distribution (FD) must also be defined for each prize tier, referred to as FD(ptl, pt2, pt3, .... , ptN). The number of attributable cards that are distributed within the series must be defined. This will be referred to as #Dtotal. It will be assumed that all cards are distributed, but allowances for this assumption can be incorporated in the later step of selecting redemption probabilities. The effect of redemption related conditions must also be taken into consideration, i this embodiment, the token value must not exceed a predetermined percentage of the transaction value, which was 50% on the above card 10. For the sake of the current exercise it this percentage shall be referred to as max%. An average transaction value for the relevant retailer 61 is then defined, the value typically being determined with reference to actual average spend levels for that retailer. The average transaction value is referred to as ATV. The next step is to allocate token values to correspond to each prize tier. These will be referred to as (rvl, rv2, rv3, ... , rvN), corresponding to (ptl, pt2, pt3, ptN), and it follows that FD(rvl, rv2, rv3, ... , rvN) = FDφtl, p 2, pt3, .... , ptN). In this embodiment token values are dollar amounts. In other embodiments alternate forms of token value are used, such as percentage discounts. It is preferable for the token values to be inversely proportional to the frequency of each prize tier - the highest token value corresponding to the prize tier with the lowest frequency. In a preferred embodiment, the highest token value is equal to the ATV, however, it is appreciated that the actual token values will be selected with reference to promotional policies and objectives of the relevant retailer 61. With the quantum of the token values (rvl , rv2, rv3, ... , rvN) in mind, a hypothetical redemption probability RP is selected for each token value, to give RP(rvl, rv2, rv3, ... , rvN). These will correspond to identical redemption probabilities for the respective prize tiers, that is RP(rvl, rv2, rv3, ... , rvN) = RP(ptl, pt2, pt3, ... , ptN). Hypothetical redemption probabilities are preferably selected with reference to consumer survey information, past experience and promotional expectations. The redemption probabilities are generally directly proportional to the quantum of token value - the highest probability corresponding to the highest token value. As foreshadowed, a shght across the board reduction in redemption probabilities can account for incomplete distribution. Applying FD(rvl, rv2, rv3, ... , rvN) to #Dtotal gives the number of cards distributed #D of each token value, being #D(rvl, rv2, rv3, ... , rvN), noting that SUM(#D(rvl, rv2, rv3, ... , rvN)) = #Dtotal. The next step is to apply RP(rvl, rv2, rv3, ... , rvN) to #D(rvl, rv2, rv3, ... , rvN), which will provide the number of cards redeemed #R of each token value: #R(rvl, rv2, rv3, ... , rvN). Multiplying #R(rvl, rv2, rv3, ... , rvN) by the quantum of each token value provides the dollar amount redeemed $R for cards of each token value: $R(rvl, rv2, rv3, ... , rvN). Summing these provides the total dollar amount redeemed $Rtotal. To calculate the revenue brought in $IN, two calculations are made. The first calculation involves multiplying #R(rvl , rv2, rv3, ... , rvN) by ATV. The second calculation involves dividing $R(rvl . rv2, rv3, ... , rvN) by max%. The highest entry corresponding to each token value is taken to give $IN(rvl, rv2, rv3, ... , rvN). The sum of these entries will provide the total revenue brought in by the system, this being $INtotal. 5 It will be appreciated that entries from the first calculation will be used where a token value is less than the ATV whilst entries from the second calculation will be used where a token value is greater than the ATV. This is because of the rule whereby the token value must not exceed the max% of the transaction value. It will be further appreciated that, in embodiments where alternate rules apply, the calculations for $IN l o will have to be modified. In considering the efficiency of the system in a given scenario, it is valuable to analyse the relationship between $INtotal and $Rtotal. This shows how much revenue the system has brought in compared to how much it has cost in soft dollar discounts. These amounts are also used to calculate the average revenue per redemption and the
15 average discount per redemption. Calculating the cost of the system will depend on the arrangements in place between the retailers 61, distribution channels 43 and administrator 51. In some embodiments, the retailers and/or the distributors meet the cost of producing the cards, whilst in other embodiments the administrator meets this cost. In one embodiment the
20 retailers pay a flat per-redemption success fee to the administrator. This approach is advantageous because the retailers and the administrator share the risk of the system. In another embodiment the administrator charges a fee based on a proportion of the $INtotal. By this approach, the administrator benefits most from large purchases, which is somewhat inconsistent with the profit margin realities of certain retailers. In
25 another embodiment the administrator charges a mark-up on the cost of token production, this mark-up being met by the retailers. This approach is beneficial due to reduced accounting administration. In some embodiments where a major prize draw is used the administrator covers the cost of the major prize. In other embodiments the cost of the major prize is shared in a predetermined proportion between the retailers.
30 This predetermined proportion is preferably based on the proportion of cards in a series that are attributable to each retailer. In some embodiments administrator 51 charges retailers 61 for collating data and displaying the market information, hi some embodiments this is a flat rate, in otlier embodiments it is charged on a usage basis. It will be appreciated that in other embodiments alternate pricing arrangements are used. Figures 7 and 8 display sample data for one retailer involved in a promotion of the preferred embodiment. This data is obtained using the above calculations. It will be appreciated that, in this embodiment, the one retailer is one of six retailers involved in the one promotion. Invariably, each of the retailers will have settings that are at least slightly different from each other. This does not affect any other retailer, nor does it in any way compromise the promotion as a whole. It is not possible for a retailer to accurately determine what settings are used by any other retailers and, as such, confidentiality of this commercially sensitive information is maintained. In this example, administrator 51 arranges for the distribution of a series of 6 million tokens, in the form of cards 10. There are six retailers 61 who have arranged to have tokens in this series 41. Of the 6 million cards, 1 million are attributable to a specific retailer 61 with an ATV of $100. As was the case with card 10, cards 42 in the present series 41 have a max% of 50%; that is, the token value must not account for more than 50% of the transaction value. In this example, prize tier 1 has a token value of $0. There is a major prize draw of $50,000. Members must make a purchase at retailer 61 to enter this draw.
Therefore, although the token value is $0 on some tickets, there is still some scope for redemption, albeit slight. In this embodiment, the administrator 51 charges the retailers 61 aflat rate success fee of $1 per redeemed token. The retailers pay for the production of the cards, at a cost of $0.33 per token. The retailers also each pay a share of the major prize value. Figure 7 shows the relationships between redemptions and revenue for the considered retailer 61, and Figure 8 shows the costs incurred by that retailer in being involved with promotion 39. Figure 9 graphically represents the relationships between costs, revenue and redemptions. The costs do not include costs of redemptions, as these are soft dollar discounts. In this example, the average revenue per redemption is approximately $100 and the average token value per redemption is approximately $8. As a result, redemptions account only for an 8% reduction of revenue generated. It will be appreciated that further information analysis is possible in a more fully described manifestation of the promotion. For example, using the unique identifiers, the above amounts are split up depending on distribution channel. It is demonstrated by the results generated, and it will be appreciated by those skilled in the art, that the present embodiment allows valuable market information to be derived about a target group through a trade promotion. More importantly, it is shown that the trade promotion in question is readily justifiable on account of the revenue it shall raise. The derivation of market information and the use of such information to better tailor future use of the trade promotion each help justify the use of a trade promotion of this type on a larger scale and on a continuing basis. Further, it will be appreciated that promotions using such tokens are scalable to include a relatively large number of parties, especially when compared with the prior art. The above calculations involve a number of assumptions including: • The average transaction value for a redemption transaction. • The redemption rate per prize tier of token value.
For a given promotion the above assumptions are made either in total, or on a per distribution channel basis. In the first instance - that is, prior to a promotion of the preferred embodiment being performed - the assumptions are typically based upon educated estimates. If the promotion has been previously used, there will be data available to assist in adjusting the settings and in making the above assumptions. As part of entering into an agreement with an administrator 51 , a retailer 61 typically agrees on matters such as the number of cards, number of prize tiers that shall be used, token values corresponding to selected prize tiers, distribution across the tiers, the distribution channels, and a predetermined distribution period through which the cards are to be distributed. After each predetermined distribution period, and following the capture of the relevant data by administrator 51 , information becomes available to facilitate better predictions for subsequent promotions carried out in respective predetermined distribution periods. Moreover, the retailer is provided with a greater degree of choice about what outcome it wishes to seek from the subsequent promotion - in the form of the levels of revenue, and the cost of obtaining that revenue - as well as being provided with a promotion that allows direct measurement of its success in attracting business to the retailer. In summary, the above embodiment provides a method of "direct response" marketing or promotion that allows retailers to more accurately tailor the promotion to meet their desired outcomes. The promotion in the first distribution period will inherently be like traditional marketing, in that it is largely an untested campaign. However, in subsequent distribution periods the retailer is able to develop a more direct link or correlation between the promotion, the sales, and the revenue that is derived through participation in the promotion, h this embodiment, the more direct link is possible due to the nature of the token, the method of distribution, and the capture and analysis of information is possible. The analysis is undertaken by the administrator 51, and provided to the retailer and/or the distributor, as agreed between the relevant parties. In some embodiments, the administrator earns a fee for undertaking and providing that analysis. The major advantages of the preferred embodiments include: • Biased toward increasing revenue generation for both the distributors and the retailers. • Provide an opportunity for direct response marketing, in that following from prior promotions, a retailer is able to more accurately influence not only the levels of revenues directly attributable to the next promotion, but also the incentives required and costs associated with gaining those revenues. • Scaleable to include a great number of distributors and/or retailers. • Offers the consumer the opportunity for a heightened experience when purchasing goods and/or services from a distributor. • Minimal upfront cost to retailers and distributors. • Avoids the need for individual organisations - that is, individual distributors and retailers - to negotiate ad hoc co-branded marketing promotions. That is, standardised terms and conditions and contractual arrangements are possible. • Provides a long-term iterative form of advertising that is able to be accurately refined over time to improve the underlying economics for participating retailers. • Through use of a simple token, the administrator is able to capture and analyse data about the paths followed by those of the tokens that are redeemed. This data then being available for sharing with one or more of the retailers and/or one or more of the distributors. Typically, the distributors are those vending relatively high volume, but relatively small purchase size products and/or services. In such businesses, the offer of a token as a reward for a purchase is seen as a sufficiently significant differentiator in the eyes of potential customers. Examples of distributors in this embodiment are fast food outlets, petrol stations, liquor retailers, convenience stores, coffee shops, and others. Typically also, the retailers are generally biased toward the sale of a lesser number of relatively higher value items. Examples of retailers in this embodiment are retailers of whitegoods, retailers of other electrical appliances such as televisions, sound systems and the like, department stores, specialty stores, and others. Although the invention has been described with reference to a specific example, it will be appreciated by those skilled in the art that the invention may be embodied in many other forms.