Overview of Value-Added Packs

Value-Added packs can be an alternative to lowering the price on a product you want to promote. There are several types of added-value packs.


Bonus packs - bonus packs can preempt competitive events, increase consumption, prevent excessive competitive price discounting and encourage purchase in categories with low brand differentiation.

Advantages of Bonus Packs

  • Reward or retain current users.
  • Attract attention at point-of-purchase.
  • Offer price reduction.
  • Generate savings through potentially low and predictable costs.

Disadvantage of Bonus Packs

  • May reduce sales volume.
  • May have low appeal for non-users.
  • Can extend production lead time.
  • May generate retailer objections.

Source: PMA

On-pack and In-packs - Premiums or coupons inserted in or attached to a product.

Advantages of On-packs and In-packs

  • Can differentiate the product at point of sale.
  • May serve as a future reminder to buy.
  • Can allow costs to be determined in advance.

Disadvantages of On-pack and In-packs

  • Can be expensive to manufacture and distribute.
  • May be refused by the retailer.
  • Can be pilfered.

Source: PMA

Near-packs - near-packs are premiums, not attached to the product, that are offered with purchase.

Advantages of Near-packs

  • Allows retailer displays.
  • Can generate repeat purchase, especially if part of a set.
  • Can generate trial for other products.
  • Can allow costs to be determined in advance.

Disadvantages of Near-packs

  • Are disliked by many retailers.
  • May be displayed separately from product area.
  • Allow pilferage.
  • May be sold separately by retailers.

Source: PMA

Specialty containers - specialty containers are decorative and/or reusable containers.

Advantages of Specialty Containers

  • May encourage more product use.
  • May encourage future purchase, especially if part of a set.
  • Can allow costs to be determined in advance.

Disadvantages of Specialty Containers

  • May be refused by retailers.
  • Generate extra production and handling costs.
  • May require a stocking allowance.

Source: PMA

Price packs - has packaging which announces a temporary promotional price.

Advantages of Price Packs

  • Allows price differentiation at point-of-purchase.
  • Allows manufacturer to control liability.
  • Can be used to promote a particular size or flavor.

Disadvantages of Price Packs

  • Are regulated by the FTC. (Brand must have an established price, no more than 50% of annual volume can have price packs, only 3 price pack events per year are allows, there must be at least a 30-day period between each price pack.)
  • Have long lead times.
  • May downgrade a brand’s image.
  • Can be unpopular with the trade. (Generates a new SKU, but no new traffic.)

Source: PMA

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