Purchase with Purchase Promotions.

Purchase with Purchase (PWP) Promotions are a great alternative to the more traditional Gift with Purchase (GWP).    Some key points of concern for companies using this mechanism are:

• Financial - Clients are paying to purchase the additional item.  In most cases the promotion can pay for itself and the brand who offer this sell the add on product (thereby covering the costs of the promotion).
• Quality – given that clients are often paying an extra US$1 + for this promotional add on, the brand can really innovate and do something more high end.   Take the example of this Heineken or Sasa Promotional Product Campaign.  If the marketing department opted for free gift with purchase the budget may not have stretched much further than a keyring.
• POS – this type of promotion needs to be well coordinated with the retailer.  Most importantly, the PWP will probably be larger than a GWP, so needs a Point of Sales Display or Stand.   This can really help strengthening overall product placement in stores.
• Risk – a word of warning…   The key risk with this promotional campaign is that if the Gift with Purchase is not well planned and exectuted, the brand gets stuck with expensive stocks.  Careful planning is key.
• Sales – this promo can drive sales in same way as Gift with Purchase, but given the mechanism can create quite a bit more buzz.