In-or On-package Premiums

Examples of In-or On-package Premiums in the following topics:

• Premiums

  • In 1937, the coupons were printed on the outside of packages, and later the Betty Crocker points program produced a popular reward catalog from which customers could pick rewards using their points.
  • One of the first loyalty marketing programs ever offered was a premium in which proof of purchase was redeemed for prizes or gifts.
  • In the United States, each year over $4.5 billion is spent on premiums.
  • Premiums fall into one of two categories: free premiums which only require the purchase of the product and self-liquidating premiums which require consumers to pay all, or some, of the price of the premium.
  • In-or On-package Premiums are usually small gifts, such as toys in cereal boxes.

• Packaging Strategies

  • Toys are advertised in shops and on product packaging.
  • The educational benefits of toys are also explained on packaging for the benefit of parents and should be made explicit. .
  • It creates an image of the brand that can be the on-shelf purchase trigger or at-home touch point for consumers across a range of products and categories.
  • Color is just one cue that can give taste and fragrance perceptions – in chips, green says cheese and onion, while blue says salt and vinegar.
  • How can I offer them even more to justify the price/a premium?

• Packaging Considerations

  • Andes mints are just one example of excessive packaging used to misrepresent the amount of product inherent in a package, making the package appear to have more product than it actually does.
  • Note, in this picture, the extra paperboard is added to exaggerate the size of the package.
  • Alternatively, development of a package (or component) can be a separate process, but must be linked closely with the product to be packaged.
  • Package design may take place within a company or with various degrees of external packaging engineering: independent contractors, consultants, vendor evaluations, independent laboratories, contract packagers, or total outsourcing.
  • Packaging plays an important part in preventing loss or damage to the packaged-product (contents).

• The Purposes of Packaging

  • The role of packaging in marketing has become quite significant as it is one of the ways companies can get consumers to notice products.
  • For example, in a typical supermarket a shopper passes about 600 items per minute, or one item every tenth of a second.
  • Considering the importance placed on the package, it is not surprising that a great deal of research is spent on motivational research, color testing, psychological manipulation, and so forth, in order to ascertain how the majority of consumers will react to a new package.
  • Information transmission: Packages and labels communicate how to use, transport, recycle, or dispose of the package or product.
  • Modified atmospheres or controlled atmospheres are also maintained in some food packages.

• Problems with Packaging

  • Packaging is a crucial element in the marketing of a product, as it is essentially the casing that the produt comes in.
  • Packaging needs to provide a certain amount of information to the consumer, depending on the type of product.
  • There are many cases in which marketers use pictures in packaging that do not represent the actual product.
  • In addition, some store brands or other small brands try to imitate the way big brands package their products.
  • Often, products will have words such as "fat free", "low-fat", or "organic" on the labels.

• Design and Feature Set

  • Premium features and design may help differentiate a product to earn it share or a price premium in the marketplace.
  • Customer demand for particular features or functionality can result in products tailored to very specific, niche markets.
  • However, manufacturers must be cognizant of feature creep, which is the ongoing expansion or addition of new features in a product.
  • Although providing consumers more useful or desirable products and increasing sales are priorities for most businesses, extra features going beyond product function can result in over-complication.
  • On the other hand, the manufacturer must deal with ignoring older versions at the cost of being perceived by the market as stagnant or dated.

• Objectives of a Sales Promotion

  • Sales promotion is one of the many tools used in a retailer's promotional mix.
  • Sales promotional tactics include contests, coupons, freebies, loss leaders, point-of-purchase displays, premiums, prizes, product samples, and rebates.
  • Reward programs focus on customer retention and repeat purchases, awarding customers points, miles, or credits for purchases and future redemptions.
  • Other promotional tools include coupon booklets, mobile couponing, on-shelf couponing, as well as product signage and packaging, which are strategically placed to encourage immediate customer sales.
  • Training programs - Training instructing dealer employees in selling the brand's product.

• Sales Promotion

  • A successful sales promotion is meant to prompt a targeted consumer group to show interest in the product or service, try it or ideally buy it.
  • Commonplace techniques include price deals that offer a temporary price reduction while cents-off deals offer a brand at a lower price, usual as a percentage marked on the package.
  • The purchase of a product can also enter a buyer in a contests, sweepstakes, or online games.
  • For example "buy one, get one free, three for two, buy quantity and receive a lower price or percentage discounts on specific days of the week.
  • Rebates -mail in or online redemption offers customers money back on products or services

• Global Considerations in Branding and Packaging

  • When branding and packaging for international products, careful consideration must be placed on factors such as language, colors, customs, aesthetics and placement.
  • For example, in Egypt, the country's national color of green is considered unacceptable for packaging, because religious leaders once wore it.
  • In Japan, black and white are colors of mourning and should not be used on a product's package.
  • The ability to identify which elements or moments of an ad are contributing to that success is how economies of scale are maximized.
  • Discuss how language, colors, customs, aesthetics, and placement affect global branding and packaging in products

• Channel Partnering

  • Co-branding is an arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer.
  • The typical co-branding agreement involves two or more companies acting in cooperation to associate any of various logos, color schemes, or brand identifiers to a specific product that is contractually designated for this purpose.
  • The object is to combine the strength of two brands, in order to increase the premium consumers are willing to pay, make the product or service more resistant to copying by private label manufacturers, or to combine the different perceived properties associated with these brands with a single product.
  • The value can also be added by developing a specific application for the product designed for the customers' needs that is then resold as a new package.
  • Don't keep the partner in the dark; make them one of the first to hear about new product releases and other important information.