Tie-Ins FAQ's
What's a Tie-In?
Tie-Ins come in all shapes and sizes. In general you are looking to team up with a partner or partners to increase sales of all partner products. You are usually looking to promote this Tie-In to the trade to increase orders. Tie-Ins are beneficial to the trade for a variety of reasons.
1. Partners share expenses
2. Retailers see cross category lift
3. Consumer benefit from promotional offer
Unilever to Test Mobile Coupons
In Trial at Supermarket, Cellphones Will Be the Medium for Discount Offers
Seeking to marry a ubiquitous device with a time-tested marketing technique in a sour economy, Unilever plans to begin a trial run Sunday of a new technology that lets consumers redeem digital coupons by having a supermarket cashier scan their cellphones.
The test, being conducted at a ShopRite store in Hillsborough, N.J., will include discount offers for some of the Anglo-Dutch packaged-goods company's most popular brands, including Breyers ice cream, Dove soap, Hellmann's mayonnaise and Lipton tea. Samplesaint, a Chicago mobile-technology firm, developed the system.
Rebates
- Attract attention.
- Offer a substantial discount without misredemption problems.
- Reward non-users of coupons.
Disadvantages of Rebates
- Affected by rising postage costs.
- Reward loyal users.
- May be less appealing to consumers who want immediate gratification.
When planning a rebate, marketers should consider the following:
- Removable proof-of-purchase.
- Offer length.
- Complexity (complex offers can depress redemption).
- Exposure vehicles (in-store, in-pack, on-pack, etc.).
- Percent reward.
- Copy.
- Slippage (rebates sent to consumers, but never cashed).
Source: PMA
Premiums
Advantages of Premiums
- Can be effective in achieving specific goals.
- Allow collection of names for marketing database.
- Provide brand equity support.
- Can be a motivating part of a loyalty program.
Disadvantages of Premiums
- Can be difficult to measure sales.
- May have residual inventories.
- May require special handling for inventory shortages.
- Can incur costs for damaged or defecting merchandise.
- May receive complaints from consumers who did not receive premium.
Considerations for Premiums
- A premium item should reinforce the brand's image.
- A premium offer should allow for various redemption methods.
- An item offered as a premium should be thoroughly tested (establishes liability parameters, provides inventory safeguards.)
- Marketers should be aware of a premium's exact size, weight and packaging details.
- Marketers should consider premium mailing options (determine best packaging, determine shipping method, set premium cost.)
- Marketers should consider domestic versus imported premiums. If imported, allow extra time for production and testing, dealing with customs brokers and securing lines of credit.
- A premium item should have carefully written ad copy which includes, "while supplies last," offer dates, complete item description, retail value claims, and mail-in address.
Step 5: Track Performance
Your coupons have been distributed. Using a formal process to track your promotion's performance lets you see the true value of your coupon promotion.
Step 4: Implementation
After going through all of the internal preparation and coupon creation, you're ready to make your coupon promotion happen. These are the functional parties to consider.
FSI's - A Recipe For Successful Coupon Promotions
Marketers obviously like couponing. In Supermarket News' 2005 Survey of Manufacturer Promotional Practices, more than two-thirds of the participants said they feel couponing is an effective promotional tool. Fast forward to 2010 and yes, things have changed but they are still a vital consumer and trade marketing tool. Read on.
