Incentive marketing is a powerful and versatile strategy that has been transforming the way businesses engage with their target audience. By leveraging the innate desire for rewards and recognition, this innovative technique entices customers to take desired actions, driving results like never before.
The tough competition in the beverage industry pushes Milo to keep finding ways to sell its product in the market. We spotted its on-pack gift promotion in a Vietnam store recently. The brand incentivizes its customers with free custom design tumblers.
Milo is the world’s most trusted chocolate malt beverage. The brand is named after a legendary athlete from Croton. An Australian food scientist developed the drink to provide nutritious food for malnourished children during the global economic crisis.
What is Incentive Marketing?
Imagine this scenario: You’re a customer who is torn between two similar products. Both have their merits, but what sets them apart?
Suddenly, one of them offers you an exciting incentive, such as a discount, a limited-time bonus, or a chance to win a dream vacation. Which product would you choose? The answer is clear – incentives have the incredible power to sway decisions in your favour.
Incentive marketing is a strategy used to increase sales. The principle is very simple; buy our primary items, and we’ll give you something in return. This is definitely a win-win for both the brand and the customers.
However, this idea isn’t limited to buying particular products. This strategy can encourage the audience to sign up for an email list, stay loyal to a brand, or join a group. Incentive marketing is proven effective since everyone loves to receive gifts for doing simple favours.
What’s with Milo’s Incentive Marketing Campaign?
Milo stirs the interest of its Vietnamese customers with its exclusive on-pack gift ideas. The brand is giving away two sporty designed tumblers for customers who will avail of Milo’s 400-gram choco malt drink.
The first water bottle comes in green and has a soccer ball design, while the second one comes in orange and has a basketball design. Each promotional gift pack includes a 400-gram Milo powder and a custom water tumbler.
This incentive marketing appeals to parents and kid consumers because of the attractive design of the free merchandise. Moreover, the free items with purchase are undoubtedly useful as children can use them at home or school.
5 Benefits of Incentive Marketing with Promotional Merchandise
Businesses have a lot of marketing options to consider. But of all these strategies, incentive marketing is one of the proven effective for marketers. What makes this possible? And why does using promotional merchandise during this strategy work?
1. Increases brand awareness.
When customised accordingly, promotional merchandise can be an effective tool to increase brand awareness. It can help a business promote its brand with less effort. Likewise, customised merchandise can represent your brand in the long run.
2. Boosts customer loyalty.
Incentive marketing makes customers feel appreciated and rewarded for doing business with a brand. Similarly, getting more from spending less makes customers continue patronising a particular company over other brands.
Furthermore, incentives will encourage customers to adopt the same values integral to a brand. This promotes customer retention, as more customers will make repeat purchases.
3. It attracts new customers.
A promotional gift is undoubtedly an effective technique to gain new customers. If a customer is still on the fence about whether to buy from you or your competitor, offering free items makes a huge difference.
Your provided customer incentive can add value to your own product. Moreover, it can motivate them to keep doing business with your brand and encourage them to stick around.
4. Enhances employee engagement.
Running incentive marketing arguably helps drive more customers. As more people become curious about the ongoing campaign, they tend to ask more questions about it. They are more likely to connect and engage with your employees.
Through that, your brand, with the help of your employees can build good rapport to your target market.
5. It guarantees a return on investment.
Getting new customers and keeping regular shoppers means more sales. Exciting rewards from incentive marketing campaigns encourage customers to spend more on products and services. After all, this strategy is designed to urge shoppers to open their wallets and bring in revenue.
How to Choose the Right Promotional Merchandise?
1. Consider your audience.
This is the very first rule in running any kind of marketing. Identifying your audience will help you pick and decide the right promotional to use for your upcoming campaign. Determine what their preference/needs are, they location, and their general background.
2. Keep it relevant.
As mentioned above, you have to consider and identify your market first. Decide if your chosen items will be relevant for them and your planned incentive marketing campaign.
3. Make it memorable.
Offer something that your customers will never forget. Maybe it is something close to your brand. Something that replicates your business. Or anything that will be beneficial for your recipient.
4. Choose a high-quality item.
Last but definitely not least is finding an item that is high-quality. Because it will represent your brand, make sure it is something that your recipient will use in the long run. Remember most consumers are always after quality rather than price. So make it worthy of their penny.
Tips for Successful Incentive Marketing
Whichever intent you are creating incentives for, follow these best practices for the best chances of success:
1. Define your goals.
What is your goal in running an incentive marketing? Do you only want to raise brand awareness or increase sales? Identifying the main purpose of your campaign will help you keep on track.
2. Create a budget.
Of course, every marketing needs to have a budget to start. Thus, you have to allot and set a specific budget before running your promotion. In that way, you may prevent unprecedented problems regarding finances.
3. Choose the right distribution channels.
When we say channels, we refer to your way of reaching your customers. They include wholesalers, brick-and-mortar retailers, and online marketplaces.
What channel you choose determines how your products are handled, the speed at which they are delivered, and how successful you are at getting your goods into the hands of consumers. Therefore, you must choose your channel wisely.
4. Track your results.
You will find out if your marketing works if you are consistent in tracking your result. That’s why it is very important to set your objectives in the first place. It will be one of your criteria to tell whether your campaign works or not.
Milo is specifically crafted for children; thus, you will notice that most of the brand’s on-pack gift premiums target kids consumers.
Who wouldn’t want to receive this free item? Indeed, every customer would urge to avail of Milo products to get the freebie. Useful and obviously durable, this promotional lunch box is worthy of the customer’s money.
Kicked off last August 1, 2022, this in-store redemption gift program encourages customers to collect Milo Dynamic Universe cards to redeem fantastic sports gifts for their little champions.
This promotional gift pack was found in a supermarket in Vietnam. This cardboard gift pack contains the main product, the Milo powder, as well as the free gift, the black mug. The packaging is in the signature green colour of Milo.
With the football season underway, people are looking for a way to show off their passion for the sport. Milo has made this easier for little champions as it offers collectable cards, on-pack stickers and custom football bags in this latest in-store promotion.
Our team spotted Milo’s latest promotion in one of the stores we visited in Singapore and got intrigued alongside the store’s shoppers. These toys can be found as on-pack gifts in Milo 3-in-1 and Milo Gao Siew Dai.
Milo Philippines celebrated World Milk Day by encouraging the entire nation, especially kids, to do ten (10) million jump skips, thus, the #MILO10Mskips campaign is rolled out. Check out the promo here.
Milo combines the effectiveness of online marketing and in-store marketing strategies to promote their campaign, #CANGeneration. The use of a gift with purchase allows them to reach customers who are not familiar with their promotion.
We spotted this Milo packaging at a supermarket in Singapore. And what caught our attention is the fact that this box packaging can be repurposed and be turned into a toy!
More custom gift ideas to consider for your incentive marketing campaign.
If you’re looking for creative branded merchandise to stay ahead of the game, you would definitely love to consider these sports promotional can coolers!
Water bottles have become one of the staples in marketing. Check out these ten creative water bottle designs you may add to your list of promotional gifts.
Not just the coaster itself, its pouch is also designed to serve different purposes. When not in use, the pouch can serve as a flower pot or a tissue holder.
Looking for more promotional gift ideas for your business? Here are some creative ideas you may consider!
As mentioned earlier, incentive marketing comes in many forms — giving gifts, referrals, buy one get one, membership, raffle draws and rewards points, to name a few. But among all these, providing on-pack and gift with purchase ideas is one of the proven and tested ways to gain and keep clients.
Harness Our Creativity!
Are you convinced why you need to run incentive marketing for your business? If so, let our creative team assist you. The ODM Group and Mindsparkz work closely together to meet our customer’s needs. From product brainstorming to production, our team ensure that we are here every step of the way.
We produce various promotional product ideas, including branded corporate giveaways, Halloween promotional products, customized mini speakers, promotional desktop items, custom beer flight sets, and branded wine gifts. Aside from that, we also manufacture free-standing display units and custom POS displays. If you need any of these products, feel free to connect with our team today to get a quote!
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