Why Premiums Work at Retail

Posted on by Chief Marketer Staff

Premiums and incentives are a sure-fire way to gain attention at retail — via online promos, in-pack, as handouts or as mail-in rebate rewards.

The incentives come in all flavors, varieties and price points. Right now, gift certificates for a night out at the movies or the latest DVD are a few options moving product as consumers cut back on entertainment spending.

For example, Hostess got together with Dream Works Animation to promote the DVD release of “Madagascar: Escape 2 Africa” with an on-pack sweeps offering the chance to win a trip to San Diego for an animal adventure. People registered online to win a five-day trip for four.

Kellogg is running an on-pack promo for its Yogos snacks. Customers who buy the products have a chance to instantly win a Yogo Bucks gift card. Kellogg is giving away 25 $100 gift cards as grand prizes. Other winners will receive gift cards with smaller values. In all, Kellogg is handing out nearly 50,000 gift cards through the promotion

Saputo’s also recently ran an on-pack promo for its Frigo Cheese Head brand. That promo, tied to “High School Musical 3,” gives people who purchase two of the cheeses and send in the proofs of purchase an exclusive poster of the film with signatures from the cast members. The promo appears on more than 125 million individual wrappers.

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