Bonus packs






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Introduction:

When an additional or extra number of items are placed in a special product package, it is called a bonus pack. Typical bonuses range from 20 percent to 100 percent of the normal number of units in a package. A 30 percent bonus is the most common.


For example:

when a consumer buys one Cetaphil moisturizing lotion and get a free moisturizing wash, it is a bonus pack promotion.


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Types of Bonus Packs(the major objectives):

Increasing the size or quantity of the package can lead to greater product use.
The manufacturers offer these types of bonus packs, because they may preempt the competition. a consumer with a large quantity of the merchandise on hand is less likely to switch to another brand, even when offered some type deal.

  • Increase usage of the product
  • Match or preempt competitive actions
  • Stockpile the product
  • Develop customer loyalty
  • Attract new users
  • Encourage brand switching



Promotion Ads:


















Benefits:

A firm's current customers often take advantage of a bonus pack offer.
Customers like bonus packs because they get additional product at the same price. For ongoing products with high competition, the bonus pack approach is one way to maintain brand loyalty and reduce brand switching at a minimal cost.

  • When customers stockpile a quantity of a particular brand, they are less likely to purchase from a competitor. Bonus packs reward customer loyalty by offering, in effect, free merchandise.
  • Bonus packs can lead to brand switching of the consumer has used the brand previously.
  • Bonus packs tend to be popular with manufacturers, retailers, and customers.


Problems:

Bonus packs rarely attract new customers because the consumer is less likely to have previously purchase the brand. obtaining an extra quantity does not reduce the purchase risk. In fact it adds to the risk, especially when the consumer does not like to waste a product by throwing it away if he or she is dissatisfied with the product.

Some marketing research indicates that consumers are skeptical of bonus pack offers. when the bonus is small (20%~40%), consumers often believe the price has not truly changed.

When the bonus is large, such as a two for the price of one sale,consumer tend to believe that the price was first increased to compensate for the additional quantity. Even though increasing the size of a bonus catches the consumer's attention, it may not convey the desired message.