Effective Year-End Promotion Scheme Ideas for FMCG Companies

Year-end is a critical time for businesses, especially in the fast-moving consumer goods (FMCG) industry. During this season, consumer behavior shifts, opportunities for promotion are abundant, and brands must balance boosting sales with showing appreciation for partners and customers. Let’s dive into the key trends driving consumer behavior at this time, opportunities that can be leveraged, and effective promotional schemes that have proven successful in the past.

Consumer Behavior Trends at the End of the Year

As the year comes to a close, consumer behavior undergoes a significant shift, driven by both psychological and external factors tied to the festive season.

Increased Spending During the Holidays & Bulk Buying

The holiday season brings a spirit of generosity, festivity, and social gatherings that translates into higher consumer spending across various categories, especially gifts, food, beverages, and personal care items.

According to a 2022 report by Deloitte, holiday retail sales typically grow by 5-6% year-over-year, with FMCG products being a significant contributor to this surge. Consumers are not only purchasing for personal use but also buying gifts for friends, family, and colleagues. The atmosphere of gift-giving boosts overall spending, as buyers aim to share the festive mood.

To prepare for these events, consumers tend to buy in bulk, especially for food, drinks, and household supplies. A 2023 study by Statista revealed that over 40% of consumers engage in bulk buying during the holiday season, ensuring they have enough stock for multiple gatherings.

Search for Value and Discounts

Despite the increase in overall spending, consumers remain price-conscious and actively seek out deals during the holidays.

Consumers are particularly drawn to flash sales, buy-one-get-one-free (BOGO) offers, and bundle deals, making this an ideal time for FMCG companies to implement these tactics. By offering promotions that promise greater value, brands can win over budget-conscious shoppers without sacrificing profitability.

Urgency and Flash Sales

The rise of e-commerce and digital advertising has amplified the effectiveness of flash sales during the holiday season. Fear of missing out (FOMO) plays a significant role in consumer decision-making, especially when limited-time offers are involved.

FMCG brands can capitalize on this by offering time-limited discounts or exclusive deals, spurring impulse buys and quick conversions.

Emotional Connection and Brand Loyalty

The end of the year is also a time for reflection and nostalgia. Consumers often gravitate towards brands that evoke positive emotions, memories, or family traditions.

FMCG brands that tap into these sentiments through marketing campaigns—such as holiday-themed packaging or ads centered around family gatherings—can strengthen brand loyalty.

For example, Coca-Cola’s long-running Christmas campaigns featuring Santa Claus foster an emotional connection with consumers, encouraging repeat purchases.

Year-End Opportunities to Boost Sales & Branding 

The year-end period is one of the most crucial times for fast-moving consumer goods (FMCG) companies. It’s a season brimming with opportunities to not only drive sales but also build brand recognition and nurture key relationships with partners.

As consumers gear up for major holidays, their purchasing behavior aligns with celebration, gift-giving, and social events, creating the perfect setting for brands to capitalize on these sentiments.

Here are some key events to consider:

• Christmas – Christmas is a peak time for shopping in many Western countries and is becoming increasingly important worldwide. During this season, people are busy buying gifts, food, and personal care items for themselves and others.FMCG brands can take advantage of this by offering Christmas-themed promotions, such as limited-edition products, festive packaging, and special holiday bundles that cater to the gift-giving spirit.
• New Year’s Eve/Day – New Year’s celebrations revolve around parties, family gatherings, and setting resolutions. Shoppers often look for products that enhance their celebrations, like drinks and snacks, as well as health-related items to support their New Year’s resolutions. FMCG brands can promote their products as ideal for New Year’s Eve festivities or as tools to help customers start the year off on a healthier note.
• Lunar New Year (Tết) – In many Asian cultures, Lunar New Year is a major holiday characterized by bulk buying and gifting. FMCG companies can create holiday gift sets, especially using red and gold packaging, which are considered lucky colors. Marketing strategies that highlight traditional values, family, and prosperity can resonate well with consumers during this time.
• Thanksgiving (U.S. market) – Thanksgiving kicks off the holiday shopping season in the U.S. and is an excellent opportunity for FMCG brands, particularly in food and beverages, to promote products for festive meals. Promotions such as “buy-one-get-one-free” deals on holiday meal essentials or bundled meal kits can attract shoppers looking to prepare for their Thanksgiving feasts.
• Black Friday & Cyber Monday – These major retail events at the end of November present significant opportunities for FMCG brands to launch large-scale promotions both online and in stores. Offering discounts, special product launches, and flash sales during this period can lead to substantial increases in sales volume.

Effective Year-End Promotion Scheme Ideas for FMCG Companies

Let’s explore some effective promotion strategies FMCG companies can leverage.

1. Gift-With-Purchase (GWP) and Promotional Gifts

The gift-with-purchase strategy is a proven method for boosting sales, enhancing customer loyalty, and increasing basket size. Consumers love the idea of getting something extra when they make a purchase. This strategy works well for FMCG brands, especially those selling household products, food and beverages, or personal care items.

How It Works: When a consumer purchases a specific product or reaches a particular spend threshold, they receive a free gift. The gift could be a miniature version of the product, a related item (like a branded tote bag, cup, or accessories), or even a completely different product category.

Example: Colgate, the dental care brand, often uses this tactic during the holiday season. In their year-end campaigns, customers buying Colgate toothpaste or a toothbrush bundle were offered free samples of mouthwash or dental floss. This not only added value but also encouraged customers to try new products from their range.

Benefits of GWP in FMCG:

• GWP promotions typically encourage higher spending as consumers aim to qualify for the free gift.
• By offering branded gifts, companies create a memorable brand experience. These gifts can serve as lasting reminders of the brand in consumers’ homes.
• GWP provides an easy way for consumers to try new products without committing to a full purchase.

2. Bundle Offers and Hampers

Bundling complementary products or creating themed hampers can drive sales, particularly when customers are in gift-buying mode. FMCG companies can curate hampers featuring their best-selling products and present them as perfect gifts for friends, family, or colleagues.

How It Works: Create bundles that include a variety of related products—think a snack pack featuring chips, dips, and beverages or a personal care bundle with shampoo, conditioner, and shower gel. Hampers can also be customized to target specific consumer segments, such as a “Christmas Family Feast” bundle with festive snacks and beverages for families.

Example: Procter & Gamble (P&G) launched their “P&G Christmas Bundle” during a year-end promotion campaign in Southeast Asia. The bundles included household essentials like detergents, shampoos, and toothpaste, all packed in festive, limited-edition packaging. This was a hit among consumers who saw it as a convenient and thoughtful gift option.

Benefits of Bundle Offers:

• By packaging several items together, consumers are likely to spend more than they would on a single product.
• Bundles and hampers take the guesswork out of gifting, which makes them an attractive option during the holidays.
• Bundling different products can introduce customers to other items in the brand’s portfolio, driving future sales.

3. Limited Edition Packaging

Consumers are naturally drawn to unique, limited-edition items. This concept can easily be applied to FMCG products during the year-end season. FMCG brands can create special holiday-themed packaging for their products, making them feel more festive and exclusive.

How It Works: Design packaging that reflects the season—think Christmas colors, New Year’s motifs, or even celebratory themes. Limited-edition packaging creates a sense of urgency as it signals that the product will only be available for a limited time.

Example: Coca-Cola is famous for its limited-edition holiday packaging. Every year, they release cans and bottles featuring their iconic Santa Claus imagery or festive snowflakes. Consumers associate these limited-edition bottles with the holiday season, and many even collect them as memorabilia.

Benefits of Limited-Edition Packaging:

• The scarcity factor associated with limited-edition products motivates consumers to buy before they miss out.
• Holiday-themed packaging creates a positive emotional connection with the brand, making the products more giftable and festive.
• Consumers who love collecting limited-edition items are likely to remain loyal to the brand, year after year.

4. Holiday Sweepstakes and Contests

Year-end promotions are a great time to engage consumers with contests and sweepstakes. Consumers enjoy the excitement of entering a contest, especially if there’s a chance to win big prizes during the holiday season.

How It Works: Create a promotion where consumers can enter a contest by purchasing a product or submitting a receipt. To encourage social sharing, you can ask customers to post a photo of their purchase with a branded hashtag. Sweepstakes could offer exciting prizes like holiday trips, gift cards, or even a year’s supply of FMCG products.

Example: Nestlé launched its “12 Days of Christmas” sweepstakes, where customers could enter by purchasing any Nestlé product and submitting their receipt online. Prizes ranged from holiday-themed gifts like gourmet food hampers to grand prizes like a holiday vacation package. This not only drove sales but also significantly boosted their brand’s online engagement.

Benefits of Sweepstakes:

• Contests and sweepstakes encourage consumers to interact with your brand, both online and offline.
• Promotions tied to product purchases can directly drive sales as customers are incentivized to buy more for additional contest entries.
• Exciting sweepstakes create a sense of buzz and anticipation around your brand, especially when linked to holidays or special events.

5. Loyalty Programs and Discounts for Repeat Purchases

Year-end sales are not just about attracting new customers but also rewarding loyal ones. By creating a year-end loyalty program or offering discounts for repeat purchases, FMCG companies can ensure customer retention beyond the holiday season.

How It Works: Offer loyalty points or discounts for customers who make multiple purchases during the holiday period. For instance, a “Buy 3, Get 1 Free” offer or a points-based system where customers can redeem rewards after a certain number of purchases.

Example: Unilever launched a holiday-themed loyalty program, where customers who purchased their personal care products earned points that could be redeemed for discounts or holiday-themed rewards. This encouraged customers to keep buying throughout the holiday season and increased the chances of repeat purchases in the new year.

Benefits of Loyalty Programs:

• Rewarding repeat customers makes them feel valued and increases their likelihood of staying loyal to the brand.
• Offering discounts for repeat purchases encourages customers to buy more during the holiday season, boosting overall sales.
• A well-executed loyalty program can create long-term relationships with customers, ensuring continued business throughout the year.

6. Charitable Partnerships and Cause-Related Marketing

During the holiday season, consumers are often more willing to support brands that give back to the community. FMCG companies can tap into this sentiment by partnering with charities or launching cause-related marketing campaigns.

How It Works: Launch a promotion where a portion of the sales goes to a charitable cause, or collaborate with a non-profit organization to create co-branded products or events. This not only drives sales but also boosts the company’s social responsibility image.

Example: Ben & Jerry’s partnered with local food banks during the holidays, donating a portion of each sale to feed families in need. They also launched limited-edition ice cream flavors, with proceeds going directly to charitable causes.

Benefits of Charitable Campaigns:

• Consumers are more likely to support brands that give back, especially during the holiday season.
• Cause-related marketing creates an emotional bond between consumers and the brand, fostering long-term loyalty.
• By aligning with a charitable cause, brands can differentiate themselves and attract customers who want to support a good cause while shopping.

Partner with The ODM Group for Your Year-End Promotional Campaigns

Looking for innovative, effective ways to execute your year-end promotions? The ODM Group specializes in creating unique promotional products, branded merchandise, and packaging solutions tailored to your brand’s needs.

With a deep understanding of FMCG markets and a wealth of experience, we provide customized promotional ideas that resonate with your audience. Whether it’s gift-with-purchase items, limited-edition packaging, or promotional gifts, our team is here to help bring your year-end campaign to life.

Contact The ODM Group today to boost your brand’s visibility and impact during the most important shopping season of the year!

---

The ODM Group – Promotional Gift Ideas | Custom Merchandise | Marketing Solution Agency

Contact: info@theodmgroup.com

WhatsApp: +84 39 569 3780

LinkedIn: https://www.linkedin.com/company/odm-group/