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Cutting-edge packaged goods marketers of all
types and sizes understand the power of premium-based, consumer
promotions that are offered at point-of-sale. Jell-O, Pillsbury,
General Mills, Eveready, and countless other brands regularly
utilize this powerful technique to motivate consumers in-store.
What Are Premium-Based
Promotions?
In-Pack Premium Offers—a free premium item, offered
inside every package.
On-Pack Premium Offers—a free premium item, physically
attached to the package, usually offered on-shelf.
Near-Pack Premium Offers—a free premium item, usually
offered in a free-standing, corrugated display near the on-shelf
product. This type of promotion often requires multiple product
purchases by the consumer in order to receive the free premium.
Container Premiums —a free premium, usually brand-related,
offered with the product housed inside. These are usually offered
as either near-packs or display-ready-palette promotions.
Where Are These
Promotions Done?
Grocery stores are probably the most frequent hosts for these
types of promotions.
Drug/discount stores welcome (and often require) "value-packs"
of one kind or another. In-pack and on-pack premium promotions
are an ideal way to add value and uniqueness to a brand for
this distribution channel.
Warehouse clubs often require exclusive brand
offerings...and premium promotions are an excellent way to meet
that need.
When Should
They Be Considered?
Great marketers use them to:
- Drive trial during brand launches or relaunches.
- Promote impulse/incremental sales of their
brand, in-store.
- Add seasonal appeal to non-seasonal brands.
- Promote new and/or alternative uses for their
brands.
- Encourage pantry loading—"FREE when
you buy 3."
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