Inaugural ShipShapes Direct Mail Piece Delivers Unprecedented 8.5% Response Rate

Krispy Kreme first marketer to benefit from use of Customized MarketMail

PARK FOREST, Ill. - Oct. 13, 2003 - Responses to the first ever Customized MarketMail (CMM) direct mail campaign were more than 5 times higher than industry averages. Krispy Kreme in Los Angeles was the first marketer to take advantage of this new classification of mail recently approved by the United States Postal Service (USPS) and achieved an unprecedented 8.5 percent response rate from consumers. Krispy Kreme worked with ShipShapes, the sole producer of the patent-pending direct mail product, to create a high gloss, non-rectangular box of Krispy Kreme doughnuts mailer that could be sent to consumers without a package, carton or envelope. The mailing targeted 10,000 Orange County residents and encouraged customers to redeem their Krispy Kreme ShipShapes at a local Krispy Kreme for a special offer "buy a dozen donuts and get another dozen for a dime."

"For a mailing to prospective Krispy Kreme customers, this was an extremely successful campaign," said Lisa Ducore, vice president of marketing for Great Circle Family Foods.

Marketers typically expect a 0.5 percent response rate when mailing direct mail pieces to prospects and a 1.5 percent response rate when targeting current customers according to the Direct Marketing Association.

"The unique look and shape of this mailing definitely caught the attention of prospective customers," added Ducore. Additionally, the premium look of ShipShapes represented our brand very nicely."

ShipShapes are printed on the best paper stock and a plastic specifically engineered to accept ink while providing a finish with a high gloss. They are designed to flex without creasing and retain their shape after coming out of the mailbox. Costs vary based on the quantity and mailing list distribution, but generally range between $1 and $3 per item, including postage and drop ship costs.

"We are very excited by the response rates of the Krispy Kreme promotion. We've always anticipated much higher response rate because ShipShapes stand out among traditional mail. It validates that ShipShapes offers a creative way for businesses to get in front of its customers," says Tom Becker, ShipShapes president and CMM pioneer.

After a one-year review process, the Postal Rate Commission approved the concept of CMM in June 2003 and it was approved this week by the Board of Governors to enact it. Prior to this new classification, the USPS would permit mailing of an actual product, but prohibited direct mail in anything other than the standard flat, rectangular shape.

"In the battle for audience attention, Customized MarketMail allows business mailers to differentiate their products in the mailstream," says Nick Barranca, vice president of Product Development for the Postal Service. "Within certain size, weight, and thickness limitations, Customized MarketMail can be virtually any shape and design the mailer desires. CMM will let advertisers put their creativity to work, designing their mail pieces to deliver high impact, demand attention, and generate greater response rates."

Beyond the new dimensional qualities, ShipShapes also provides magnets and other small devices to increase the chance that the recipient will keep and display the colorful items once in hand.

About ShipShapes

ShipShapes, a division of Imageworks Manufacturing, is the sole producer of a patent-pending direct mail product that meets the criteria for Customized MarketMail (CMM), a new classification of mail approved by the United States Postal Service. Imageworks Manufacturing is a 38-year-old producer of metal and plastic products based in Park Forest, Ill.

For more information about ShipShapes, visit http://www.ShipShapes.net.

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