A part of the promotional puzzle
How much do on-pack promotions cost?
When do you run an on-pack promotion?
How does an on-pack promotion work?
According to a study by In-Store Marketing Institute, 7 of 10 purchasing decisions are made at the shelf - captivating shoppers in-store becomes all the more important to improve sales in-store.
Supermarket shelves are lined with hundreds of different brands, to stand out among dozens of competitors in their category and aisle, some brands have found ways to highlight their products in-store and right in front of shoppers.
One such way is through on-pack promotions, and by adding something ‘extra’ to a brand’s usual packaging, adding more ‘value’ to the product offering, incentivising purchases and driving sales.
On-pack promotions are a way for brands to add on value to a product, usually something like a sample, competition, or a prize draw advertised on the packaging of a product.
On-pack promotions are usually done in conjunction with a marketing campaign to improve engagement for that campaign, but also, to simply improve sales in stores.
For example, a brand may run a ‘gift with purchase’ campaign. This can be either a physical item that is attached to and comes free with the purchase of a certain product, or redeemable via a specially built promotional website, to redeem a free product or voucher alongside their initial purchase. Or straightforward cashback or rebate, linked to purchase, with payouts made securely and automatically.
There are also competitions such as prize draws or instant winning moments (aka sweepstake promotions), which customers can participate in. Some brands may print unique codes on their on-pack promotions and those codes can then be entered into a promotional website where a code is selected at random as a winner in a ‘winning moment’, allowing brands to hold giveaways and prize promotions.
There are several kinds of promotions and ways to make use of an on-pack promotion, but ultimately, it is used to generate awareness and sales by including something extra onto the product that other brands are not.
The great part about on-pack promotions is that it’s right in front of customers when they’re in store.
It directly reaches shoppers and target audiences, helping a brand stand out among its competitors on-shelf. However, with online shopping becoming more prevalent, this benefit of being in-store is lost to many online customers.
Whilst on some shopping services, product photos are updated to display on-pack promotions, it’s not always a guarantee, which is why on-pack promotions are only a small part of the larger picture and marketing funnel.
On-pack promotions require additional support, with a need for a larger marketing campaign to generate and maintain awareness. This support can come in many forms, from organic and paid social media advertising to TV and billboard campaigns - varying depending on the budget for the brand.
To ensure an on-pack promotion is successful, spending and budget are a huge consideration. Brands need to break even in cost for the on-pack promotion and any marketing supporting it to see any further success.
It’s critical to consider several factors, including how much the prizes for an on-pack promotion will cost, and how much it may be to have POS display materials in store, alongside any OOH and digital marketing efforts.
A consistent consideration of the cost will ensure an on-pack promotional campaign is successful in generating sales during the campaign. Beyond that, also increases audience share and awareness for a brand.
On-pack promotions can vary massively in cost, depending on several factors including the types and number of prizes being offered; the level of marketing support both in-store, OOH, and online; and much more.
Brands can either work to build these on-pack promotions end-to-end in-house, or they can use a platform to build and host on-pack promotional campaigns or work directly with a promo-management agency to bring an on-pack promotion to life.
Companies like Promotions Interactive are agencies who can manage promotions either as a direct partner to a brand, or with a chosen marketing agency to assist the brand in areas that require a promo-management agency’s specialist skill, particularly across digital. Whereas, an end-to-end cloud platform like PromoNow empowers and informs promotional management by the brand, but provides said brands with tools, and dedicated PromoNow Experts to get everything built and deployed, saving time and money. Other agency stakeholders such as creative, legal, and fulfilment interact with PromoNow doing their bit - meaning everyone plays to their strengths to build an effective promotional experience from an idea to on-pack, to prize distribution - with improved transparency to the brand, faster timelines, and of course, cost savings
The cost of on-pack promotions will vary greatly, also depending on the frequency a brand hosts on-pack promotions. Some companies opt to host on-pack promotions every couple of years and see success from these promotions for a long time, whereas others create on-pack promotions often and across a range of their products if they own several brands. It’s also relatively common for some companies to work on an ‘always-on’ basis - keeping on-pack promotions live to improve their sales, awareness and engagement with shoppers and consumers.
There is no ‘one time’ an on-pack should or shouldn’t run but there are occasions where there’s a strategic advantage to running an on-pack promotion.
For example, if it’s Halloween, the confectionary aisle of a store may receive more foot-traffic. For this reason, brands classed as ‘confectionary’ may find running an on-pack promotion at this time would prove more advantageous than any other particular time or occasion in the year.
Seasonal events like Christmas, Winter holidays, Valentine’s, Easter, and more, all provide a basis for brands to launch a clear point of connection with shoppers in their on-pack promotions.
Outside of annual holidays and festivals, there are numerous other occasions where an on-pack promotion could be an effective marketing strategy to deploy. For example, many brands deploy on-pack promotions in conjunction with sporting events and fixtures to appeal to sports fans. Just last year, for the Paris Olympics, several brands were launching on-pack promotions in store with a clear reference to the Olympics to leverage the occasion to appeal to shoppers. Brands who partnered with Team GB for the Olympics were able to directly reference the Olympics. However, several large-scale events like the Olympics are very protective of their IP and branding, which means for on-pack promotions, companies will sometimes have to be purposefully vague about the wording of references made in their promotional materials.
Companies need to first find a point and need to launch an on-pack promotion.
As discussed previously, this point could be an aforementioned holiday or season, but it could also be from a brand collaboration that a company wants to announce or a new product launch to be announced, which can be supported by an on-pack promotion to improve and increase sales.
Then it comes to creating a campaign that’ll excite and engage shoppers. Whilst a giveaway in and of itself can be effective, adding levels of gamification adds an element of interactivity and engagement which makes the promotion all the more appealing to consumers.
When it comes to building and planning for a promotion, we have a thorough guide available, outlining the various promotional mechanics brands can choose, sourcing prizes, engaging audiences, legalities, regulations, and more.
In summary, when an on-pack promotion has been planned, to execute it, an internal or external team works on the visuals, including the actual promotional packs and complimentary marketing materials. Then, an expert agency or in-house team, powered by a promotional platform, will handle the technical side, which not only involves the development of a promotion page or website but also ensures any digital for the on-pack promotion is secure enough to prevent fraudulent activities and safeguard consumer data.
Once all the promotional elements have been readied and tested, the campaign will be ready to go live. The timeline for on-pack promotions varies, but most often, it is immovable once promotional packs with open and closing dates have been printed.
To find out how your brand can run an on-pack promotion with an end-to-end platform. Speak to one of our experts at no cost. Consider using the PromoNow platform. Speak with a platform consultant at +44 (0)20 380 555 38 or email [email protected] to learn more.
PromoNow is a managed end-to-end cloud platform empowering brand owners with rapid, scalable and secure solutions for any promotional activation.
