Monday 13 June 2011

Cosmetic Bags as Gift with Purchase

Unilever brand Dove are running a free gift with purchase campaign in Australia.  Buy a Dove Bar and any other Dove product during the promotional period to enjoy the free gift offer.   
Dove Bar cosmetic bag gift with purchase offer
Promotional Cosmetic Campaign
To receive your free gift simply purchase both Dove products from any store in the participating shopping centre and show your receipt to the staff at the Dove Beauty Counter for verification.
Cosmetic Pouches are a mainstay Promotional Product and can also be used as packaging for gift sets.

Thursday 9 June 2011

Continental Cup-a-Soup Scarf Promotion

Continental are conducting a Gift with purchase campaign in New Zealand.  Purchase 4 Continental Cup-a-Soup products and pick up one of 12,500 Black Polar Fleece Scarves – valued around  US$ 10/pc.

Continental Cup-a-Soup New World Upper North Island Scarf Promotion
Promotional Scarves
Scarves are an excellent promotional gift as the Southern Hemisphere is in the midst of their winter season.  There are a lot more wearable promotional products that could be substituted for their next promotion such as....
  • Earmuffs
  • Gloves
  • Baseball Caps
  • Thick Socks
  • Thermal vests
Which other promotional products could be added to this type campaign?

Buying or Selling a Promotional Products company

Is your company is expanding or contracting - either way this blog could be for you.  Consolidation in the Promotional Products industry is strong at the moment and those standing still could be left behind.

Here are a few options you might like to consider...(we are happy to list anonymous Buy or Sell requests free of charge on this website.)

Sell my Promotional Products Company.
There are many Promotional Products companies with Economies to Scale out there.  It can really difficult for the smaller companies to compete given the changing field of play.  Bigger Promotional Products players are looking to keep growing and consolidating their positions.   Big clients are constantly putting new regulations (barriers to entry) into place.

Another key factor are Chinese Factories.  Many are are looking for Sales Representatives and strong players on the ground to get closer to their clients around the world.  Many are cash rich.  Local market knowledge is invaluable for them as they look to develop new markets and innovative products.

Acquire a Promotional Products Company in my country.
Expand your reach Geographically and cover the whole country.  This gets your company Press/Media and enhances your position on the radar.   Having an extra location allows you to close sales that you might not have been able to get in the past due to location & hand holding issues.

Acquire a Promotional Products Company in another country.
Benefit from Economies to Scale.   Leverage the design work and moulds you are creating for the FMCG's of this world and open new markets to maximise revenue.

Acquire a Pure Promotional Products Supplier.
A Buying Office in Hong Kong or China adds a lot of value to your business.  Maybe now is the time to set up in Asia and give your clients the opportunity to order from you on an FOB basis.  Having an operation in Asia will give clients the perception of lower costs and better control - the perception can become fact.   You could opt to set up own operations or partner with an existing player.  Setting up a Rep Office in China can be a nightmare with lots of hidden costs.

If you are not ready to buy or sell, consider long term strategic partnerships with other Promotional Products Agencies and Suppliers.  

How do you value a Promotional Products Company?

The Promotional Products business can be very cyclical and some businesses suffer/enjoy huge swings in fortune.  Big orders can hinge on a few cents profits and some sales people can make most of their revenue from just 1 customer (sometimes even 1 order).  

With this in mind it can be a struggle to value promotional products businesses.   Key indicators include..

Profit based Valution & 

Asset Based Valuations

  • What are the Current Profits or Losses.
  • Assets Current Staff & Clients
  • Other Assets & Debtors
  • Is the business being being split up
  • Does the business have goodwill
  • Is business is going into liquidation
  • Depth of the Business - overly reliant on 1 market/client?
  • What other factors should we add - leave comments...............

Wednesday 8 June 2011

Promo Gift. Non Woven Bag On-Pack.

Vico are offering a Non Woven Bag as an on pack gift with purchase for their Malt drinks in Malaysia.   

Non Woven bags are an excellent promotional gift to offer at supermarkets since they help replace plastic bags and offer long term brand advertising.

Tuesday 7 June 2011

Promotional Products Regulations

There are many regulations governing the sales of Promotional Products and it is important to keep updated on the latest for your market.  We are currently inviting Promotional Products Companies to tell us a little about their particular markets.

Bad for Health Just as Sin Tax is placed on products that are deemed to be bad for you, Governments have imposed bans on wide range of Promotional Products sectors - Tobacco was one of the biggest spenders in the past.   Now Alcohol companies and others are being Regulated.

Too Powerful.   Pharmaceuticals have also been increasingly targeted since gifts to Doctors were believed to unfairly sway them to choose one product over the other.   In many countries gifts are now limited to highly Utility Driven products.

Poorly/Perfectly Targetted  Children are very susceptible to free gifts.  FMCG companies have targetted them in the past to drive impulse purchase via gift with purchase and other mechanisms.   There are increasing controls on marketing to Children.

Not in Proportion  Some Countries regulate on the value of the product and associated gifts.

Too Expensive.   Places like California have placed blanket bans on usage of Promos by Govt. Agencies.  Given the massive budget deficit Government money needs to be tightly controlled, but this is pure Skapegoating the promotional products market over other types of advertising mediums.

Many more Regulations to cover in terms of safety and quality levels...

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