An on-pack promotion is a shopper marketing tool which gives customers the chance to win a prize and advertises that opportunity on a product’s packaging.
On-pack promotions are frequently used by the food and drink sector, because they are an effective way to influence the consumer’s decision to buy, right at the point of purchase. They can help generate sales by raising the profile of a product or brand and by encouraging customer engagement.
With the restrictions on advertising HFSS (high fat/salt/sugar) and, more recently, less healthy food (LHF) products, on-pack promotions are extremely useful for drawing attention to products in store.
What is the point of an on-pack promotion?
An on-pack promotion is a marketing initiative that can be used to achieve a number of objectives. For example, you can use an on-pack promotion to:
- Drive direct sales by making your product stand out
- Grow your customer base by appealing to new customers
- Retain customers by rewarding brand loyalty
- Introduce new products or remind customers about existing ones
- Increase brand visibility and awareness
- Provide a point of differentiation for your product beyond price
- Gather information and generate insights about customers (without breaching data protection regulations)
In addition, an on-pack promotion has the benefit over other types of marketing in that when a shopper buys a product featuring an on-pack promotion, the promotion keeps on doing its job when they take it home.
What can people win in on-pack promotions?
People can win more or less anything in an on-pack promotion, but popular prizes include:
- Consumer electronics
- Games consoles and gaming equipment
- Limited edition merchandise
- Vouchers or cash
- Experiences or tickets
- Holidays or trips
- Discount coupons for trial or repeat purchases
What form do on-pack promotions take?
An on-pack promotion can use virtually any type of prize promotional mechanism. For example, it could be an instant win, a text to win or a prize draw.
QR codes, unique reference numbers or scratch panels can be printed on the product packaging. The text element can then direct customers to a dedicated microsite, where they can enter the promotion or claim their prize.
What are the constraints of on-pack promotions?
It can be challenging to make sufficient on-pack space available to communicate all the relevant information about the promotion to consumers.
Are on-pack promotions regulated?
Yes, on-pack promotions must comply with the CAP Code; the rules that govern all non-broadcast advertising in the UK, including prize promotions, which are administered and enforced by the Advertising Standards Authority (ASA).
What are the key points about on-pack promotions?
- On-pack promotions can drive sales, increase product and brand visibility, reward customer loyalty and collect customer data.
- The prizes in on-pack promotions can be anything, but are usually consumer goods, cash, experiences, holidays or coupons.
- All UK on-pack promotions must comply with the ASA’s CAP Code.
Prizeology specialises in running effective on-pack promotions that are fully compliant with the CAP Code.
