On Pack Premium

Posted in Marketing and Strategy Terms, Total Reads: 385

Definition: On Pack Premium

In order to encourage impulse buying or purchase of a new product, Gift or discount coupons are attached to the packaging. It is often used for promotion of products. A premium attached to, or made part of, the exterior of a product's packaging. It helps to draw attention sometimes even to the top of the shelf. Helps to stimulates repeat purchase and trigger the target group to an initial purchase. For both young and old it acts as a strong seducer. Depending on the target group there are many alternatives: For example: Tattoo labels, Scratch ink and unique numbering, Stickers .

When the shopper sees "Free Gift Enclosed” from a product, it provides a compelling reason to pick a brand. Value-added instant gratification is given to the customer. Inspiring curiosity and making shopping fun is another objective of the brands. For example, Target segments like children exert great influence on their parents to purchase a product in order to get the temporary tattoos packaged with it.


Stands out at POS, provides high visibility.

Impulse purchases is promoted.

Act as a differentiator from the competitors.

Retailer excitement can be created for the brand.

Trail of a new product can be promoted.

No couponing cost.

Objective of the brand manager:

Understand the competitions.

Products market position and target segment.

Seasonal pattern of purchase and after sales promotions.

Effectiveness of the past promotions and problems.

Marketers steps to action:

Lead time is critical, so start early.

Committee should consist of members from production, sales & distribution, packaging, marketing departments to help in promotion

Specialized vendors should be contacted.

Budget needs to be determined.

Creative ideas regarding gifts needs to be designed.

Legal department should review the promotions.

Benchmarks and timetables needs to be set.

Integrate advertising or marketing agency.

Do a field test or regional roll out?

Look for production problems and bottlenecks by monitoring.

Assess and evaluate sales and logistics. Document comments and problems.



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