Many of us are probably familiar with on-pack and in-pack promotions, where the gifts are packaged together with the selling products. These gifts (e.g., foldable bags, water bottles, utensils, pouches) are usually more compact, lower in costs. Advantages are that consumers are able to instantly see what they are receiving, and they can take home the gifts conveniently.
Various types of on-pack and in-pack promotions we see in the markets:
In order to attract customers, marketers are also giving away High Value Premiums for their marketing promotions. This type of high-value gift promotions entices consumers to make purchases by offering gifts that are relatively pricier, and of higher perceived value, and of course, requires customers to spend more.
An example
of high value premium promotion below, where customers are encouraged to buy
across several brands under Nestle:
High
Value Premium Redemption promotion for Nestle brands products
Image credit: https://blu.com.sg/events/events/nestlecny2021
For higher value premium promotions, Gift Redemption has become a popular marketing concept for these promotional campaigns in recent years.
How Premium / Gift Redemption works?
1) Consumers are informed via the promotional campaigns on
the amount of purchase required in order to redeem the higher value gifts
2) After purchase, consumers submit the proof of purchase
for redemption
3) Collection or Delivery of redemption gifts to consumers.
The Heineken Party Kit redemption promotion below is one of such promotions.