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5 Reasons Why Premium Promotions Succeed
There are many factors that affect the success of a premium promotion. To maximize the effectiveness of your promotions, follow these five basic guidelines:
  • Offer premiums that enhance your brand, making it easier to prepare, use, store, serve, or transport.
  • Capitalize on the equity of your brand's logo, mascot, or promotional character by incorporating it into the premium item.
  • Avoid generic items that are readily available at retail. Consumers respond better to premiums that are uniquely suited to your brand.
  • Whenever possible, offer premiums that promote new or alternative uses for your brand, increasing brand consumption.
  • Develop premiums around your promotional objectives, and not vice versa!
 
 

A clever premium makes your brand shout, "Buy me!"

 

 

 

Why Use Premiums at Point-of-Sale
Shrewd marketers have learned that there are real bottom-line reasons for using consumer premiums at point-of-sale: in-packs, on-packs, near-packs.

We live in a time of immediate gratification. People are increasingly unwilling to wait for the promised reward implicit in many marketing programs. Thus, point-of-sale promotions have several advantages.

 
They add value to the brand. Whether it's a custom recipe box designed to look like the Velveeta® package (that holds brand-related recipes), or a special measuring cup packaged on top of the Woolite® bottle (that promotes brand use in the washing machine), premiums make brands fly off retailers' shelves.
 
They grab the consumer's attention and differentiate brands at point-of-sale. With all those other shelf-dwellers vying for the buyer's attention, a clever offer like the "Super Spatula" on-pack promo (see photo at left) makes the brand shout, "Buy me!" at point-of-sale.
 
They promote retailer cooperation for placing end-aisle displays in the store (ranked as the #1 vehicle for gaining consumers' attention in a recent Promo magazine survey). They also promote increased order size. Retailers welcome value-added promotions because they increase product movement through their stores. Discount chains and warehouse clubs are particularly fond of this type of promotional vehicle, and make buying decisions based on them. If you are finding it difficult to get your brands distributed through these channels, a premium offer may be just the vehicle you need in order to excite these buyers.
 
They promote multiple purchases of brand. Offering two or more of your products, packaged with a premium item, stimulates increased product movement. Additionally, a near-pack display, which offers a free premium with the purchase of one or more of your products, promotes impulse purchases and multi-brand trial by the consumer.
 
They create consumer goodwill as shoppers continue to use the premium long-term.
 

Promotional Focus:
Add Value, Don't Cheapen the Brand
The Donnelley Marketing, Inc. study cited on the front of this newsletter proves the importance of consumers' perceptions. They rated "value" as first in importance when choosing a brand.

Rather than risk cheapening your brand with a price/discount coupon offer, consider an in-pack, on-pack, or near-pack premium item, which adds value to your brand while positively influencing consumers at point-of-sale ... where buying decisions are made!

The very term "discount" has a negative connotation. It implies something less. Value-added premiums generate positive, long-lasting public acceptance from consumers who are seeking that elusive "value" . . . something that a discount coupon simply cannot achieve.
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