Big Marketers Smell Money in Scent Technology
By Stephanie Thompson
Advertising Age
October 31, 2006
It's time to lead consumers by the nose. So goes the thinking at majorpackage-goods marketers including Mars, PepsiCo, Kraft and Procter & Gamble, who hope scents will helpthem get attention among fragmented audiences.
Pepsi added the aroma of black-cherry vanilla soda to its recent magazine inserts for Diet Pepsi Jazz.
Scent technology
Mars has recently used scent technology to spread the aroma of chocolate around its M&M's World retailoutlets and put Pedigree dog-food-scented stickers in front of supermarkets and pet stores. Pepsi spread thesmell of black-cherry vanilla with People magazine inserts and store displays for Diet Pepsi Jazz. There'salso been a whiff of activity sniffed out at Kraft and P&G, but neither would comment.
Media executives like the smell of that, even though they've in the past had spotty success selling thetechnology to clients.
Most primal of senses
"Our olfactory sense is the most primal of all the senses and is extremely powerful, much more invasivethan reading or hearing something," said Jack Sullivan, senior VP and out-of-home media director forStarcom. "Why it's not used more often is beyond me." But he did offer some reasons: There's always thepossibility that an olfactory campaign might offend, and "huge concern over people with allergies."
Cost and implementation hurdles have prevented Connie Garrido, president of MindShare sibling Wow, from going forward with media plans that involved attaching scent to transit shelters and bathroom mirrors. That said, Ms. Garrido said the agency is increasingly investigating scent for clients as media buyingbecomes "far less one-dimensional."
David Van Epps, president-CEO of ScentAir, which has just signed on with music and broadcasting serviceMuzak to offer scent wherever there is sound and video, said he's seen "exponential interest" recently frommajor package-goods players for his products, which include retail displays with scented cartridgestriggered by motion sensors. But, he noted, there are hurdles.
Not always cost-effective
Even though the price has come down, it still isn't necessarily cost-effective to use scent technology for low-cost products such as bread or jam, where the sales lift would have to be incredibly high to ensuresuccessful profit margins. "For a consumer-package-good play to work, it must be for a product where thearoma is crucial to the positioning," Mr. Van Epps said. And it must be clear what exact product a scent inthe air is linked to; otherwise it can lift sales for the whole category rather than just the product that paid for it.
But the costs are improving. Tad Acker, president of display company Marins USA, said the units it sold toVerizon Wireless stores recently to waft chocolate scent for LG Chocolate phones were only $20 each, down from nearly $100 for such display pieces a few years ago.
The phones, according to Joe Fiamingo, manager-print and related services for Verizon Wireless in theNortheast, have been one of the most successful launches in Verizon history, and the scent played in thatsuccess. How much? "Enough for me to try it again."
Gail Stein, client communications director for Pepsi Beverages at OMD, would also be apt to use scentagain following the marketer's recent foray into fragrance. Though the costs limited Pepsi's efforts tosubscriber-only mailings of People in Los Angeles and New York, she said the tactic worked well atstopping the busy 30-something Jazz target in its tracks in buzz markets.
ScentAir Technologies Inc, founded in 2000, is the leading provider of aroma marketing solutions for brands and retailers. ScentAir enables businesses to create a unique in-store experience by engaging memory and emotions through patented scent delivery systems. Proven to enhance the appeal of any environment, these pioneering scent machines can be customized to reflect even the most challenging environment or brand. ScentAir is a privately held company located in Charlotte, NC.
For additional information contact Murray Dameron at 704-504-2320.
