On-Pack Promotions – Do They Really Work?

Published: 15th February 2012
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On-pack promotions are great for the consumer because they provide a little something of extra value. A competition tempts the consumer to buy with the chance of winning a prize whilst a money-off coupon gives an instant benefit of a lower denomination. But do they benefit the brand-owner?

Ask yourself this; what do we do when we see a buy-one, get-one free offer on a product you regularly buy? Maybe it’s the same brand, maybe it’s an alternative brand.

One thing is for sure, if you can afford to do so, you’re most likely to stock up and not come back for more for a good long while. There’s no doubt that this kind of promotion works well for FMCG’s and consumer goods and helps product to fly-off the shelf creating a short-term spike in sales. It is also a great way to influence consumers buying behaviour by tempting them to switch brands on that occasion. However, the only real long-term effect this would have is to shift stock and erode profit margins.

So what about the value of on-pack promotions?

Everyone is looking to get the best deal and ideally, they want a bargain, benefit or promise of a future offer.

  • SMS text-to-win competitions are a great way to sell your brand at the full retail price and promote brand values.

  • Web based competitions help to drive traffic to your site and gives the chance for the brand-owner to provide details of the benefits and ethics of a brand and perhaps even cross-promote other products within a range.

  • Coupons and money-off vouchers are even simpler way of attracting consumers to your product and help to encourage repeat purchase. Coupons can be a great way of building brand loyalty and consumer awareness. According to a recent update by Coupon Clearing Bureau, on-pack promotions are top of class when it comes to coupon redemption rates. The report (published in March, 2011) further states that household products, food and toiletries receive the highest redemption rates when it comes to coupon promotions.

Return on investment:

What’s most important about on-pack promotions is that they allow the brand-owner to measure the success of a promotion and see the return-on-investment. This not only helps to measure the success of an existing campaign but may also be taken into account on the next occasion budget approvals are put forward for a campaign.

An on-pack promotional device such as a leaflet labeladds value to a product and may include a variety of information such as unique random numbering for competitions, pull-out portions such as vouchers and coupons or even an insert such as a trial sachet.

It’s a commonly stated statistic that around 1/3rd of all purchasing decisions can be influenced in some way whilst in-store. Running an on-pack promotion should be viewed as adding value and not just cost to a product. Produced and measured in the right manner, on-pack promotions can help to boost sales, strengthen brand values and nurture long-term relationships with consumers.

Fix-a-Form International operates via the globe’s largest network of promotional label and leaflet label printing specialists. Experts in helping countless brands run successful on-pack promotions and on-pack campaigns. To find out how Fix-a-Form leaflet labels can help enhance your brand or product, contact Fix-a-Form International today or follow the link to find your local label manufacturer.

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