Fortress Hong Kong, a retailer in consumer electronics and appliances, is currently offering a great range of promotional gifts to kick start sales for the new year.
For every purchase of a large household appliance like a washing machine or an oven, customers are given options to redeem electronic items for extra cash. For example, adding an extra HKD$89 (USD$11.50) to get a Hairdryer. This marketing strategy is similar to the Purchase with Purchase Promotions.
- Snoopy Towel
- Campbell cleaning set
- Monopoly game and gift set
This promo attracts not only adults but also the children with the Monopoly set and other licensed gifts. We love that they are using the localised board game – Monopoly set with all the Hong Kong streets.
What are Redemption Promotional Products?
In marketing, redemption promotional products are items that are offered for a specified time only. They can be offered free in exchange for fulfilling certain conditions. For example, it could be a free custom board game when customers buy a certain amount, as in the above example.
The redemption gift can also be offered at a much lower price. For instance, “buy XXX amount of beauty products and pay an additional amount to obtain the special gift.” Another way to offer the gift for half of its original price to entice customers.
Also considered as a loyalty reward, redemption promotional products offer so many benefits for a brand. But how do you redeem promotional gifts?
How to Redeem Redemption Promotional Products?
Traditionally, redemption promotional gifts are redeemed by filling out forms or presenting a coupon and receipts. The gift could be delivered straight to the customer’s home or, in the case of in-store campaigns, it can be obtained inside the store.
Nowadays, redeeming a promotional gift can be done online. The use of QR codes has made it easy for customers to access a company’s website and fill in web forms. Social media also plays a significant part in promoting redemption rewards and expediting the redemption process. Normally, you would see brand campaigns detailing the mechanics to obtain their gifts on their social media pages. There you can also see the link to, say, a landing page dedicated to their redemption campaign, or an online form. Customers would usually provide their name, address, phone number, OR number, store branch, and date of purchase, and sometimes the product model.
One important aspect of gift redemption is time. The gifts are offered for a limited period only. This creates urgency and prompts consumers to fulfill the conditions before they run out of time.
Suppliers will send customers a reply to confirm that their information has been successfully processed.
But, as a brand, should you offer redemption promotional gifts? What are the benefits. To help you better understand how this promotion works, here are some real-life examples from different global brands.
Redemption Promotional Products: Inspiring Real-Life Examples
Carlsberg offered a host of cool promotional gifts last year as part of their campaign. The gifts include a scooter, a portable wireless speaker, and a wireless charger. Customers will have to collect bottle caps of any bottle of Carlsberg Smooth Draught, Carlsberg, Carlsberg Light, and Carlsberg Alcohol-Free Beer at Restaurants and Bars in Hong Kong in order to obtain the gifts. The promotion ran from July to 13th Aug 2020.
They incorporated a QR code into their poster so that customers can easily access the mechanics. What is great about this campaign is that each person can redeem a maximum of three premiums per single transaction.
For this campaign, UK-based kitchenware company, Swan, partnered with Moneyback to create a seamless redemption in-store giveaway campaign. Money Back is an app that allows shoppers to get and save points, which they can use as vouchers or gift checks, and other exciting perks.
The mechanics: purchase $60 worth of products to earn 1 e-stamp. Purchase $360 worth of products on Friday, Saturday, and Sunday to get double e-stamps. The issuance of stamps started January 1, 2020, and product redemption lasted until February 6, 2020.
Aside from the practical gifts, their marketing mix (which includes the use of POS displays and value card app) has greatly improved their sales, not to mention, customer experience.
“Nothing Beats” Gatorade when it comes to their redemption campaign. Back in 2019, the last “normal” year for all of us, the popular energy drink offered cool items that anyone can use outdoors. The redemption promotional gifts include a branded tent, a baseball cap, a drawstring bag, an umbrella, and a $500 worth of shopping voucher.
All customers need to do is to collect the wrappers and exchange them for any of the featured items. For instance, 2 wrappers for a baseball cap, 8 wrappers for a UV umbrella, and 20 wrappers for an outdoor tent. As a brand that is popular among athletes and people with an active lifestyle, the products are just perfect.
Vietnam is a haven for coffee lovers. Coffee shops line busy streets and the smell of roasted coffee beans waft through the air. With that said, competition is tough. So Highland’s Coffee, a coffee chain in Vietnam thought of a way to increase the foot traffic to their store by offering redemption promotional products.
The strategy involves the use of scratch cards that can be exchanged for prizes when certain letter combinations are achieved. The redemption gifts range from free drinks to helmets, gift vouchers, porcelain mugs, to free trips.
Wellcome X Angry Bird Collaboration
Hong Kong supermarket chain, Wellcome, previously partnered with Angry Bird to reward shoppers with a cuddly plush pillow. Back in 2012, Angry Birds, a game app, took the world by storm. Its popularity spawned cute merchandise that flew off the shelves. It even inspired a movie in 2016.
Leveraging the popularity of the gaming app, Wellcome offered an Angry Bird plush toy collection that proved to be a hit among younger consumers. Shoppers need to collect 60 Happy Stamps to get one of these Angry Birds for free. To collect points faster, customers can purchase Bonus Buy items to get 1 Bonus Happy Stamp or Spend HKD 350 on Saturday and Sunday and earn Double Happy Stamps.
Why Offering Redemption Promotional Products Works?
Redemption gifts are a great way to:
- Increase Loyalty
- Reward Customers
- Push Sales Up
- Avoid Getting Caught with Excess Stocks
- Promote New Products
- Promote Events
- Market Movies
- Increase Repeat Purchases
What are My Redemption Promotional Product Options?
Kitchen Items: We noticed that kitchen items are some of the very popular redemption giveaways. Masterchef and Wellcome are just some of the companies that had previous success in utilizing kitchen items for their redemption campaigns. As they are usually a bit expensive, they are just ideal for redemption. Our recommendation, this cast-iron cookware set. If you are interested in making this a part of your FMCG Marketing merchandise, contact us with product code ODM-2975.
Mugs: Our all-time favorite! Mugs offer great flexibility in design and functionality. Perfect for cafes, coffee and breakfast products, and beer brands.
Games and Toys: Board games and novelty toys are also great ideas. The key is to make them very eye-catching and intriguing. Baby toys are also great offers, especially those BPA-free and eco-friendly ones. Giant versions of board games like these garden games would no doubt gain attention:
Bags: Like mugs, they are classic and very flexible when it comes to style and functionality. There are so many types ofo bags to offer such as shopping, tote, backpack, drawstring, and pouch bags. You can make them as simple or as high-end as your marketing budget and imagination allows!
Picnic Sets: These are ideal for companies that target families and the younger generation such as drinks, appliances, and FMCG companies. Here’s some great examples:
Where does ODM come in? If you need help with creating effective and high-quality promotional products, then contact our team. With more than a decade of experience in the industry, our product designers and merchandisers can help you create unique merchandise for your promotions and business.
We have factories in China, Hong Kong, and Vietnam and we work closely with our suppliers. You can expect us to deliver top-notch services such as product sourcing, designing, manufacturing, and quality control. Get in touch with our team today!
After more inspiring ideas? Do check out these blogs.