consultimi.com.au/promotrack

consultimi.com.au/promotrack

Every couple of years we speak to a ton of Aussies (802) and Kiwis (505) covering all walks of life. We ask them about current events, the economy, trends, preferences, and their ever-changing shopping behaviours.

​

Building PromoTrack is a massive undertaking that takes us over 2 months. We combine survey data, case studies, choice-based store shelf experiments, concept testing, and mine our enormous database of over 34,000 programs. We also lean on our agency and brand partners for input to make sure we answering the questions of the day.

​

A MASSIVE THANK YOU TO EVERYONE INVOLVED.

PROMOTRACK™ EXISTS…

consultimi.com.au/promotrack

…SO BRANDS MAKE MORE MONEY BY STEALING SHARE, IMPROVING ROI, AND DELIGHTING THE SHOPPER

…SO YOU CAN BE THE EXPERT IN THE ROOM WITH DATA TO BACK IT UP

…TO OPTIMISE BUDGETS AND SIGNIFICANTLY IMPROVE THE POTENTIAL FOR SUCCESS

CONTENTS

PROMOTRACK™

BE THE EXPERT IN THE ROOM

54 | PRIZING

​

78 | MECHANICS & RETAIL REQUIREMENTS

​

89 | SOCIAL, DIGITAL & GAMIFIED

​

92 | COMMS BEST PRACTICE

9. | WHAT DOES A GREAT PROMO LOOK LIKE?

​

20 | PROMO 101

​

35 | PROMOTIONS AND THE COST OF LIVING

​

45 | MYTH BUSTING BY THE NUMBERS

RESEARCHED PROMOTIONS ARE 57% MORE LIKELY TO DELIVER A POSITIVE ROI VS. PROMOTIONS THAT RELY ON GUT-FEEL*

*IMI’s database of tracked promotions:

Unresearched: 49% have a +ROI

Researched: 77% have a +ROI

Test 6 concepts | N=300 | 5 Days | $8,940

INSIGHTS AROUND PROMOTIONS IS ONLY A SMALL PART OF WHAT WE DO, BUT HERE’S HOW WE CAN HELP

CONSULTING

• Send us your concepts
• Data and experience-led consulting
• 24–48-hour turnaround
• 5–10-page report

PromoMap™

BEST PRACTICE

• 2 hours
• Promo Best Practice and how that relates to your category/clients
• Case studies and current data
• 52 years of data-led knowledge transferred to you

PromoTrack™ Workshop

RESEARCH

• Tailored to your brand and category
• Test up to 6 concepts
• 5-day turnaround
• Clear Go/No Go recommendations
• Incremental volume potential
• Full diagnostics
• Benchmarked
• N=300 category non-rejecters

Flagpole™ for Promos

$925 PER CONCEPT

$1,950 + TRAVEL

$8,940

HOW DO IMI TEST PROMOTIONS?

consultimi.com.au/promotrack

As a progressive agency we have evolved concept testing to meet the needs of clients within the reality of modern-day marketing. Initially developed for the beverage, confectionary, FMCG, and fast-food categories, Flagpole™ started as our mission to build the ultimate concept test (better, faster, cheaper) for promotions, NPD, comms/creative, packaging, and price.

Perfect for early-stage ideation to eliminate ideas that have no chance of success and prioritise / optimise / progress ideas that do. Action Standards for your category, your markets, your brands, your targets.

Better – standardised but flexible: define your audience & segments, key questions, analysis & reporting. Suitable for testing new Products, Promotions, Packaging, and Positioning.

Smarter - Uses technology and experience to address common problems in concept testing and deliver more clarity than traditional methods can provide.

Faster – Report delivered 5 business days after the receipt of final concepts (includes translation where required)

Incredibly affordable - 75% less cost than traditional quantitative research. Without compromise.

MEASURING SUCCESS USING IMI’S FLAGPOLE

Can the promo drive incremental users base by stealing share or driving consideration/choice of your brand?

Ability to exceed shoppers' expectations of the brand

Better than other promos (cut through)

Driver / Barrier analysis on every element of the promotion (speaks to optimisation, as well as messaging/comms hierarchy)

​

Diagnostics revolving around simple, relevant, compelling:

• Easy to understand
• Prizes that are of interest and have a purpose (utility)
• Uniqueness
• Mechanic - Easy to participate
• Retail - Doesn’t ask me to buy too much
• Brand - Would feel better about Brand

All relative to IMI’s database of over 34,000 concepts, 71 countries, and 26 categories. We know how to measure for success.

Dev and the Team at IMI are an invaluable partner for 31^ST & our client partners.  Their unique insights & IP underpin 31^ST’s best in class campaigns for our clients including Mars, Sanitarium, Goodman Fielder, Bega & Campari.

If a brand is about to spend tens of thousands on running a promotion, it makes sense to know if it’s going to be well received before it hits the shelves! IMI’s Flagpole concept testing is a flexible, cost-effective tool that re-assures promoters (and their customers) that the campaign is on the right track. Over the last two years, Hive Marketing Group has pre-market tested concepts for many brands including Gatorade, Lipton Iced Tea, Pepsi and Asahi Lifestyle Beverages.

At Raydar NZ we are always looking for ways to help our clients exceed their goals. Leveraging insight and best practice through IMI’s extensive research we avoid the pitfalls of ‘gut feel’ and build on proven purchase driving practices. This doesn’t mean innovation suffers; concept testing like IMI’s Flagpole™ allows us to continue pushing creative boundaries and deliver the disruption that we know is key to success. As advocates of IMI, we appreciate staying current and effective in a fast-changing market.

THE LAST FEW YEARS: ADVANCED MODELLING, CREATIVE EFFECTIVENESS, PROMOS, TRACKING, TVC/SCRIPT TESTING, CONCEPT/NPD, CONSULTING

WHAT DOES GREAT LOOK LIKE?

1

Salt on the rim of a margarita?

Yep 42%

Nope 28%

Margaritas? Gross. 31%

IMI SUBSCRIBE TO THE EHRENBERG BASS THEORY OF ‘HOW BRANDS GROW’

​

IN ALMOST EVERY CATEGORY, >50% OF THE VOLUME UPLIFT DURING A PROMOTIONAL CAMPAIGN WILL BE DRIVEN BY PEOPLE WHO RARELY, OR NEVER SHOP THE BRAND.

​

PLAN ACCORDINGLY.

WHAT DOES “GREAT” LOOK LIKE?

IMI’s database of over 34,000 concepts

• The Top 11,000 have a purchase requirement of ONE
• The Top 7,000 have a frequency prize
• The Top 1,900 are instant wins
• The Top 10 are being run for the 10th or more time. #1 is in its 40th year.
• The Top 9 all have a physical mechanic (peel and reveal, a talking can/bottle etc.)
• The best ‘Game of Skill’ is in the bottom 0.5% of the database
• The best ‘Upload and Tag’ is in the bottom 0.1% of the database

THE BEST OF THE BEST…

1. …change behaviour of shoppers that do not usually purchase the brand (light category, and competitor brand users).
2. …are on-pack. This is the primary source of awareness and comprehension for FMCG and alcohol category promotions. Being on, or a close to pack as possible, is critical.
3. …are simple. Simple promotions get more traction because they are easily comprehended. And without comprehension there is no participation.
4. …have a frequency prize layer. Promotions with a frequency layer are 8 times more likely to deliver a positive ROI. It is this frequency layer that is responsible for driving perceived chance of winning – a critical lever among light and non-users - and repeat participation.
5. …are instant win. Instant win + low purchase requirement + easy entry mechanic is best in class.
6. …if account specific, are risk-managed (insured). Risk-managed promotions help stretch budgets and achieve a ‘big’ headline. Done properly, shoppers find risk-manager promotions highly motivating.

THE (LITERAL) BEST AND WORST OF 34,212* CONCEPTS TESTED GLOBALLY

consultimi.com.au/promotrack

*As of June 26, 2025

#34,212: Dress Like a Coke and Share on Socials

We spoke to 350 Genz Z + Millennial respondents… not one said they’d participate.

Difficult mechanic. Poor prizing. Low perceived chance of winning.

#1: Tim Horton’s Roll Up the Rim to Win

Running for its 40^th year in 2025.

Physical Mechanic. Simple. Astronomical perceived chance of winning. True instant win. A cultural phenomenon.

WHY IS ‘TIM HORTON’S ROLL UP THE RIM TO WIN’ SO POWERFUL

consultimi.com.au/promotrack

*As of June 26, 2025

#1 in IMI’s Database: Tim Horton’s Roll Up the Rim to Win*

• Prizes that people want (high utility).
• Incredibly high perceived chance of winning. Tons of frequency prizes (stronger driver than the larger prizes).
• Fun, physical, gamified mechanic.
• True instant win (you find out in/on pack and know what you’ve won).
• High perceived chance of winning + instant (win or lose) = repeat purchasing.
• High perceived chance of winning + instant (win or lose) = low and infrequent customers = high incremental volume.
• Running for its 40^th year. This means tremendous media efficiencies in terms of driving awareness and comprehension. The media is now just a reminder, not an education piece. Repeating capitalises on residual equity from the prior year.

CASE STUDY: THE POWER OF REPEATING A PROMOTION

CASE STUDY: AN ICONIC AUSSIE PROMOTION RELATIVELY UNCHANGED

PROMO 101

2

Pineapple on a pizza?

Yep 66%

Nope 33%

Pizza? Gross. 2%

CATEGORIES MOST SUSCEPTIBLE TO SWITCHING

Alcohol and Pet Food are the toughest categories to entice people to switch. We know that promotions can and do work in these, so it is a case of being more pragmatic around building optimal promotions that can pique interest of switchers.

ENCOURAGING FEATURES OF A PROMOTION

The drivers of participation follow 3 main themes:

1. Relevant and compelling prizes
2. A fair chance of winning (facilitated by having lots of prizes)
3. No making it unreasonably difficult to enter (straight forward mechanic)

*. 47% would refuse to participate IF THEY HAD TO DOWNLOAD AN APP.

Aus N=802

NZ N=505

START WITH CONCEPT STRENGTH. DON’T SPEND $1 OR 1 MINUTE ON A FLAWED IDEA.

THE RISK OF NOT TESTING YOUR IDEAS – RED BULL NEVER STOOD A CHANCE

81%

80%

77%

85%

69%

52%

Correct Purchase Requirement*

Correct Prize (Any)*

Correct Mechanic*

92%

11%

Interested in this prize

*The above represents the “4s Comprehension Test”: Unaided, how much does a shopper understand after a 4s exposure?

Both promotions did a fantastic job of communicating the 3 core drivers:

1. What can I win?
2. How do I win/enter?
3. What do I have to buy?

​

BUT! Prize appeal is nothing short of disastrous for the Red Bull promotion – something that would have been picked up in concept testing.

THIS PROMOTION SHOULD NEVER HAVE LEFT THE IDEATION STAGE

consultimi.com.au/promotrack

11%*

Gen Z + Millennial's that liked or loved the prize. Action Standard is 61%.

5

Shares on social media using the hashtag.

LOW

Potential for uplift in volume (IMI’s Flagpole).

1,700

Entries. Competitor brand averaged 33,500 across their 2 promotions during a similar period and same channel.

% AGREE THAT “THIS IS A GREAT PRIZE” (AMONG CATEGORY SHOPPERS)?

consultimi.com.au/promotrack

$100 Frequency / $10,000 Grand

89%

$50 Frequency (Instant)

86%

Sherrin Match Ball

36%

WHY DO BRANDS RUN PROMOS?

• To say something about the brand or create content
• To enhance retail relationships or get store position
• Drive sales/volume

​

There are trade offs, limitations, pros and cons to each. Be realistic about what your promotion / goal can and can not achieve.

1. BRAND/CONTENT

Expect low participation overall. Unlikely to drive an increase in volume.

Expect participation almost exclusively from Loyals.

Unlikely to produce a positive ROI.

Consider investment vs. content generated.

2. RETAILER (ACCT SPECIFIC)

Requires a right-sized investment due to the smaller exposure to shoppers and media inefficiencies.

Consider a risk-managed (insured) promotions to stretch budgets.

Unlikely to be on-pack, so consider other mechanics that will help offset this (not being on-pack is extremely problematic).

3. DRIVE VOLUME

Best when run nationally (most efficient). Design for your not-best customer.

Must be on-pack in some way. POS is also critical.

Through the line is optimal so incremental shoppers become aware.

The optimal prize spend it probably less than you think. The frequency prize is more important than you think.

PROMOTIONS CAN AND SHOULD:

1. Drive volume and share by stealing from the competition;

2. Build brand (more than brand advertising), particularly among light category users and those loyal to other brands, and;

3. Make the retailer happy by driving AWOP on non-discounted items and giving the shopper a positive experience.

PROMOS DRIVE BRAND. A LOT.

Little headroom for improvement

Some headroom for improvement

A lot of headroom for improvement

*Large National Promotion run in Aus, 2021. N=3,000 Diary study (spoke to the same respondents throughout).

Promotions have an incredible ability to drive brand love, usually more than any brand campaign ever could. Look how Avoiders change attitude as they move through the promo campaign from Aware 🡪 Participate 🡪 Winning.

What about a $25 GROCERY GIFT CARD?

68%

Interested in this prize

PRIZES DON’T NEED TO BE OVERLY FITTED TO THE BRAND HERITAGE

We mocked up a 2 promotions. One to demonstrate “Lavazza have Italian heritage” by giving away 3 Vespas. The other, Buy any Lavazza product and find out instantly if you’ve won a $25 Grocery Gift Card.

consultimi.com.au/promotrack

An account-specific promotion probably means that the promotion:

1. Will not feature on-pack due to budget/logistic constraints.
2. Will require a smaller budget to remain feasible. Some supermarket brands have a minimum spend on prize pool – there is no data support this required spend

​

This means that:

1. Media effectiveness will be lower, placing greater pressure on trade compliance and retailer support.
2. The promotion is less likely to be seen at-shelf (POS is critical), meaning lower ability to steal share and drive sales volume.
3. The promotion is less likely to be entered. How can we encourage participation in the moment or remind the shopper later?
4. Budgets need to be right-sized and objectives need to be realistic.

ACCOUNT SPECIFIC PROMOTIONS

THE (UNFORTUNATE) REALITY OF NOT BEING ON-PACK…

70% of Aussie shoppers will first learn of a FMCG promotion while standing at the shelf. This is 73% in NZ.

​

When shopping for alcohol, these figures are 67% & 68%, respectively.

​

This puts tremendous pressure on account specific promotions, as it is near impossible to use on-pack. So, we must be near pack AND somehow remind people to enter post-shop to avoid slippage.

​

For off-pack, ~80% fail to enter because they forget, don’t have the details in front of them, or simply lose momentum. And slippage is NOT your friend. People that enter an instant win, on average will go on to enter another 1.8 times (2.8 total). Driving ENTRY, not just purchase, is how you build volume.

A SIMULATED STORE SHELF EXPERIMENT (CHOICE BASED CONJOINT) SHOWS AN 18x DIFFERENTIAL BETWEEN BEING ON-PACK VS. NOT

IMI built a store shelf simulation for both the chips category and the beer category (2 separate experiments) where respondents could add items (priced) to their basket and go through a checkout. All respondents performed this shopping task, giving us a baseline volume share for each brand (A).

Later in the survey, half of respondents saw a shelf with one brand having an on-pack consumer promo (B2). The other half were simply told about the promotion on Brand X, but there was no on-pack (B1). The research question: how does visibility of promo impact choice?

​

The corresponding change in share was 18x higher for brands with on-pack. This was true for all brands in both beer and chips categories.

SEEING THIS IN-STORE WOULD MAKE ME MORE LIKELY TO CONSIDER PURCHASING WW

consultimi.com.au/promotrack

RETAIL MEDIA

+11%

RETAIL MEDIA w PROMO

+26%

Retail media can guide people to the shelf, but being seen at shelf is the most critical component of changing behaviour.

​

Entering is the second most critical component to a successful promotion. If not on-pack, the POS must do the heavy lifting, with the challenge being, how do we get people to enter now, or be able to remind them later (when unpacking the groceries).

​

Auto-entering when using a rewards card or Flybuys is not the answer. In a recent FMCG promo, 97% of “entrants” did not even know they’d entered.

This is certainly not a new thing, but increasingly we hear of promotions not being green-lit by the supermarkets because the prize pool isn’t large enough (typically $100k+). This is not only problematic for ROI, but almost always unnecessary (beyond the point of diminishing returns). It is a sub-optimal spend of prize budget, arbitrary (in no way based in science), and usually in no one’s best interest.

“SUPERMARKET X WANTS ME TO SPEND $200K ON MY PRIZE POOL…”

FACT 1:

Size of Prize Pool is NOT a primary driver. It is 5th most important.

​

Supermarkets should be asking their brands to run tighter, smaller promotions, more often. Bigger is not better.

FACT 2:

1,000 x $50 vouchers is just as compelling as 1,000 x $500 vouchers.

FACT 3:

People focus on smaller, more attainable frequency prizes. Instant + Frequency prizes is more likely to drive repeat purchasing of the brand (which drives AWOP).

FACT 4:

Promotions are part of the value equation, and right now shoppers are screaming out for value.

​

Supermarkets should be facilitating more promotions that adhere to best practice, not arbitrary guidelines that lock smaller brands out.

RUNNING A PROMOTION TO DRIVE VOLUME

88%

77%

81%

Would have a fair chance of winning

Would make my day

Would try again if I didn’t win

Number of times entered in a 6-week period

4.4

44%

Very Likely to Participate

93%

Easy to participate

In-market, a great volume building promotion will drive Light and Non-Users, which is where much of the incremental volume comes from. This is the most extreme example in IMI’s database: 12% of participants do not purchase at Tim Horton’s outside of the promotion window, and 16% rarely purchase (up from 7%).

CONCEPT RESULTS (EXCEPTIONAL)

TRACKING RESULTS

1. The prize is not of interest to people outside of loyal and heavy brand users/shoppers

2. People like the prize but do not believe they have a fair chance of winning

3. The framework makes it difficult for people to participate – either having to buy too much, or having to do too much to enter

4. People simply never become aware of the promotion

5. The offer is too complicated, leading to low comprehension
6. The competition discounts

consultimi.com.au/promotrack

WHEN PROMOTIONS FAIL, IT’S USUALLY BECAUSE…

PROMOTIONS & THE COST OF LIVING

3

Would you like fries with that?

Yep 87%

Nope 11%

Fries? Gross. 2%

APPETITE REMAINS HIGH IN 2025 AS HOUSEHOLDS STRUGGLE TO KEEP UP

3 in 10 say they are seeking out promotions the more often – double that of 2021 and equal to 2023

Do you look for promotions (where you have the chance to win something) being offered prior to purchasing them more often, less often or the same as you used to?

5 in 10 say brands should be offering the same or more promotions than they are currently

Do you think that the products that you find in the supermarket should be offering more, less or the same number of competitions and promotions as they are currently?

1 in 5 say they are noticing fewer promotions / competitions lately

Have you noticed more, less or the same number of competitions and promotions lately?

2021

2021

Aus N=802

NZ N=505

APPETITE REMAINS HIGH IN 2025 AS HOUSEHOLDS STRUGGLE TO KEEP UP

3 in 10 say they are seeking out promotions the more often – double that of 2021 and equal to 2023

5 in 10 say products should be offering the same or more promotions than they are currently

1 in 5 say they are noticing fewer promotions / competitions lately

2021

2021

Do you look for promotions (where you have the chance to win something) being offered prior to purchasing them more often, less often or the same as you used to?

Do you think that the products that you find in the supermarket should be offering more, less or the same number of competitions and promotions as they are currently?

Have you noticed more, less or the same number of competitions and promotions lately?

Aus N=802

NZ N=505

With interest rates and inflationary pressures continuing, 56% still say they are worse off than 2023. 7 out of 10 also feel the economy is contracting and 45% expect their household's financial condition to worsen.

HOUSEHOLD FINANCIAL POSITION & OUTLOOK

Compared to a year ago, how has your household’s financial condition changed? (% Worsened)

And in 2024, how do you feel your household's financial condition might change?

56% Say Worsened in the last 12 months

Do you think the Australian economy currently is...?

Growing

Stable

Contracting

7 in 10 believe the economy is still contracting

Only 13% think we’ve turned a corner

Aus N=802

NZ N=505

PRICE CONSCIOUSNESS HAS EXPLODED

66% say they are more price conscious when supermarket shopping (64% in 2024). 48% at the bottle shop. 58% for fast food.

Recently, have become more price conscious, less price conscious or are the same, when it comes to purchasing items at the XYZ?

Price Consciousness drives appetite for promotions

Aus N=802

NZ N=505

PRICE CONSCIOUSNESS HAS EXPLODED

68% of Kiwis say they are more price conscious at the supermarket. 45% at the bottle shop. 57% for fast food.

Recently, have become more price conscious, less price conscious or are the same, when it comes to purchasing items at the supermarket?

Price Consciousness drives appetite for promotions

Aus N=802

NZ N=505

WHAT’S CHANGED? “DOING LESS OF…”

Aus N=802

NZ N=505

UNAIDED: “HOW WILL INFLATION IMPACT YOU?”

In their own words …

​

Going to the movies, Dining out at restaurants, Attending concerts or events, Finding free or low-cost activities to do for entertainment

​

Buying cheaper groceries or shopping at discount stores, Cutting back on junk food or unhealthy snacks, Cooking at home instead of eating out

​

Avoiding impulse purchases or unnecessary expenses, Cutting back on non-essential items or luxury goods, Using coupons or looking for deals to save money

​

Cutting back on shopping for new clothes, Avoiding luxury or designer brands, Purchasing clothes only when necessary

Taking fewer vacations or trips, Staying closer to home for weekend getaways

​

Limiting driving or finding ways to carpool, Purchasing a more fuel-efficient car, Taking public transportation instead of driving

Aus N=802

NZ N=505

In a tumultuous economy brands traditionally ran from promotions, but it seems they learned from covid and realise that THE consumers’ appetite increases when there is uncertainty. Why? Because promotions are part of the consumers’ value equation.

​

1. Shoppers are seeking out promotions more vs. in good times

2. Shoppers are participating at a higher frequency (Plexus entry data, Australia and New Zealand)

3. Shoppers are more willing to switch brands if they are running a promotion

4. Shoppers are seeking more value - promotions play a role in ‘more’

NOW IS A GREAT TIME TO PROMOTE

Asian Market Collapse

.COM

GFC

Clean Floors

# of registered promotions

In 2025 we still have significantly MORE PEOPLE wanting to participate MORE OFTEN in promotions. In 2020-2022 there were fewer promotions being offered but that’s now changing, albeit with far more promotions being account-specific.

PARTICIPATION IN THE LAST 12 MONTHS HAS BOUNCED

NZ 54%

BY THE NUMBERS:

MYTH BUSTING

4

Milk in your coffee?

Yep 85%

Nope 7%

Coffee? Gross. 8%

consultimi.com.au/promotrack

WHAT THE DATA TELLS US

• On-pack is 18x more likely to drive a positive ROI in FMCG, P&C and alcohol

• 70% of Aussie grocery shoppers first become aware of a promotion while standing at the shelf – 73% in NZ. This is 67% for alcohol.

• A good frequency prize predicts around 65% of participation while a good grand prize only predicts 35%.

• Account-specific promos are between 20% and 45% less efficient vs. National promos.

• Simple promotions perform better because of higher comprehension.

• Promotions do more for brand love than brand advertising does.

• For most brand and categories, there is rarely a benefit to exceeding a $100k prize pool.

• Insured promotions (risk managed) work just as well as conventional promotions.

• Instant win is by far the strongest mechanic. “In 25 Words” and “Upload to Social Media” are by far the worst.

• Uploading a receipt is a significant barrier. Avoid unless necessary.

• Giving away 10,000 cheeseburgers is (still) more likely to drive volume than $1,000,000 in cash.

CASE STUDY (CEREAL): THE TRUE SOURCE OF VOLUME IS PROBABLY NOT YOUR BEST CUSTOMER

April – July 2019

WITH PROMO

+6.1% Volume

83% of participants were Loyal / Current.

​

BUT – 81.2% were “buying anyway”.

​

Very little incremental benefit in a non-expandable category.

​

​

​

17% did not usually shop the brand or category

​

​

​

29.5% of incremental came from Loyals and Currents.

​

​

​

​

​

​

70.5% came from people that do not usually shop the brand or category.

This means that in relative

terms…

FALSE: WE NEED TO AVOID FRAUDULENT ENTRIES AT ALL COSTS

The primary goal of the mechanic should be to facilitate as many entries as possible by being as easy as possible… particularly for the competitor’s best customer, and light category users.

​

The primary goal of the mechanic should never be to mitigate fraudulent entries (unless required by the insurer in the case of a risk-managed promotion).

Being difficult to enter is the #1 reason people drop out

% people DROPPED OUT AFTER reaching the microsite (same promo)

TRUE: THE SMALLER THE PURCHASE REQUIREMENT, THE MORE VOLUME YOU WILL SELL

“Buy 2 packs” runs a very real risk of only appealing to those who are buying anyway – best customers – while making a trial barrier to those that may have otherwise considered.

​

​

Below shows a total sales uplift of just 0.4% over the promo weeks and 10 weeks post (combined) – a result completely hidden if only considering the promo period in isolation. This example comes from the cereal category but is typical of a ‘forced frequency’ retail requirement.

FALSE: IF WE ASK FOR “BUY 2 TO ENTER” WE WILL SELL MORE VOLUME

FALSE: “THAT DOESN’T APPLY TO ME… I’M IN AN EXPANDABLE CATEGORY”

Even in a highly expandable category, a purchase requirement of >1 will skew participation to the heaviest current buyers while making the promotion inaccessible to almost everyone else. The cons outweigh the (perceived) pros.

How likely would you be to buy a Kit Kat for a chance to win the following prize? VERY/SOMEWHAT LIKELY

WHO’S THINKING WHAT?

IN MOST CATEGORIES, SHOPPERS WANT TO SEE TRADITIONAL BUY–ENTER–WIN PROMOTIONS

Beer drinkers are a prime example - given the choice between a traditional promo, in-store instant win with merch, or every store has a winner, they overwhelmingly choose traditional promotions over merchandise or ‘win in this store – one to win’.

Aus N=802

NZ N=505

THE #1 DRIVER:

THE PRIZE

5

Maccas or HJ’s?

Maccas 46%

HJ’s 41%

Gross. 13%

THE SECRET SAUCE

consultimi.com.au/promotrack

DON’T UNDERESTIMATE THE IMPORTANCE OF THE FREQUENCY PRIZE

Aus N=802

NZ N=505

The frequency prize attracts lighter users and drives repeat amongst everyone. Remember, the frequency prize is (at least) as important than the grand prize. In most FMCG categories, liking the smaller prizes predicts nearly twice as much variance in why people enter more than once.

​

The optimal prize pool differs by category and share, but it is typically 3-5 Grand Prizes + “Hundreds to be Won” Frequency Prizes. The grand prize grabs everyone’s attention and works well for heavier users.

OPTIMAL PRIZE STRUCTURE, AND HOW THIS DRIVES COMPREHENSION

consultimi.com.au/promotrack

www.example.com

THE GRAND PRIZE

Grand Prizing has always fallen into 3 (boringly predictable) categories – cash, cars and holidays. But it is important to remember:

​

Getting the “boring 3” right is not as simple as it might seem, and;

Other prizes can work just as well, if not better. Particularly as the economic landscape changes and value prizes increase in popularity (win free groceries for a year, free fuel, tech etc.)

THE GRAND PRIZE IS YOUR HEAD-TURNER… BUT NEVER AT THE EXPENSE OF COMMUNICATING THE FREQUENCY PRIZES

CASE STUDY: SMALLER > BIGGER

17%

91%

30%

78%

63%

71%

Would have a fair chance of winning

Would make my day

Would try again if I didn’t win

Number of times entered in an 8-week period

3.3

1.4

13%

29%

Very Likely to Participate

The PARTICIPATION profile also shows that smaller, more frequent prizes are more likely to drive incremental volume

x 10,000

$1,000,000

Aus 2023 N=1,200

SPORTING PARTNERSHIPS ARE TOUGH TO GET RIGHT AND THERE IS NO ONE SIZE FITS ALL.

​

THEME YOUR PROMO AND CELEBRATE PARTNERSHIPS, BUT DON’T OVERLY-FIT THE PRIZE.

For a product that you need or want, how likely would you be to purchase a brand that you do not normally buy or buy infrequently if it offered you the chance to win the following themed prize? VERY/SOMEWHAT LIKELY

Aus N=802

NZ N=505

THEMES

For a product that you need or want, how likely would you be to purchase a brand that you do not normally buy or buy infrequently if it offered you the chance to win the following themed prize? VERY/SOMEWHAT LIKELY

Aus N=802

Significantly Over /Under

Index Relative to Total Sample (95% Confidence Interval)

AUS TOP 15 PRIZE THEMES BY AGE AND GENDER

For a product that you need or want, how likely would you be to purchase a brand that you do not normally buy or buy infrequently if it offered you the chance to win the following themed prize? VERY/SOMEWHAT LIKELY

NZ N=505

Significantly Over /Under

Index Relative to Total Sample (95% Confidence Interval)

NZ TOP 15 PRIZE THEMES BY AGE AND GENDER

OPTIMAL SPEND ON GRAND PRIZING

How likely would you be to purchase a brand that you do not normally buy or buy infrequently if it offered you the chance to win the following prize? SUMMARY OF DEFINITELY LIKELY / VERY LIKELY

No statistical difference between a $10k and $20k holiday package

A $5k prize is “good enough” from a shopper’s perspective’, and perceived chance of winning then becomes a consideration. It is probable that 2 x $5k is a better investment than 1 x $10k (and so on).

*Prizes tested monadically to avoid comparison / context biases

HOW MANY GRAND PRIZES?

How likely would you be to purchase a brand that you do not normally buy or buy infrequently if it offered you the chance to win the following prize? SUMMARY OF DEFINITELY LIKELY / VERY LIKELY

*Prizes tested monadically to avoid comparison / context biases

The big , and consistent learnings over the last 25 years are:

3 is better than 1

​

The point of diminishing return kicks in around 3 to 5

​

Going beyond 5 is a waste of budget

THE DIMINISHING POINT OF RETURN ON CASH PRIZING COMES EARLIER THAN YOU MIGHT THINK

How likely would you be to purchase a brand that you do not normally buy or buy infrequently if it offered you the chance to win the following prize? SUMMARY OF DEFINITELY LIKELY / VERY LIKELY

*Prizes tested monadically to avoid comparison / context biases

In most categories, there is only marginal incremental benefit to going beyond a cash grand prize of $5,000.

UTILITY = RELEVANCE = BREADTH

PRIZES DON’T NEED TO BE SEXY

How likely would you be to purchase a brand that you do not normally buy or buy infrequently if it offered you the chance to win the following prize? SUMMARY OF DEFINITELY LIKELY / VERY LIKELY

*Prizes tested monadically to avoid comparison / context biases

Bills are boring, but they can drive volume more than Netflix or coffee.

PRIZES MUST DESIRABLE AND ATTAINABLE

How likely would you be to purchase a brand that you do not normally buy or buy infrequently if it offered you the chance to win the following prize? SUMMARY OF DEFINITELY LIKELY / VERY LIKELY

*Prizes tested monadically to avoid comparison / context biases

Being desirable OR attainable does not work.

​

The balancing act between prize and number of prizes is critical.

THE PRIZE IS ONLY A PRIZE IF IT’S WORTH REDEEMING

If you were to win a $[X] digital Mastercard instantly, how likely would you be to redeem the $[X] prize? % WOULD DEFINITELY REDEEM

*Prizes tested monadically to avoid comparison / context biases

Either the prize needs to increase, or redemption needs to be made a lot easier (cash in pack?)

WHERE FREEDOM OF CHOICE MEETS BREADTH

How likely would you be to purchase a brand that you do not normally buy or buy infrequently if it offered you the chance to win the following prize? SUMMARY OF DEFINITELY LIKELY / VERY LIKELY

*Prizes tested monadically to avoid comparison / context biases

Prizes that allow for freedom of choice always outperform niche / cool

PEOPLE DON’T WANT TO TRAVEL AS FAR AS YOU THINK

How likely would you be to purchase a brand that you do not normally buy or buy infrequently if it offered you the chance to win the following prize? SUMMARY OF DEFINITELY LIKELY / VERY LIKELY

*Prizes tested monadically to avoid comparison / context biases

(68% in 2019)

2 key takeaways:

People are happy holidaying in their own country.

​

The US is a reg flag (in more ways than one).

MONEY CAN’T BUY EXPERIENCES ARE VERY (VERY) NICHE

How likely would you be to purchase a brand that you do not normally buy or buy infrequently if it offered you the chance to win the following prize? SUMMARY OF DEFINITELY LIKELY / VERY LIKELY

*Prizes tested monadically to avoid comparison / context biases

If the #1 goal is to drive breadth, forget about money can’t buy experiences, or prizes that are more about brand alignment.

PRIZES ARE LIKE HAMBURGERS… THE MORE YOU LUMP ON, THE FEWER PEOPLE WILL WANT TO EAT IT. THIS IS A BIG REASON WHY MONEY-CAN’T-BUY EXPERIENCES RARELY WORK.

For a product that you need or want, how likely would you be to purchase a brand that you do not normally buy or buy infrequently if it offered you the chance to win the following prize? VERY/SOMEWHAT LIKELY

Aus N=802

NZ N=505

BEING OVERLY PRESCRIPTIVE WILL NARROW APPEAL OF ANY PROMOTION

BEING OVERLY PRESCRIPTIVE WILL NARROW APPEAL OF ANY PROMOTION

How many people would love to win trip to their choice of: Bluesfest in Canada, Coachella in California, or CMA Fest in Nashville valued at $10,000?

43%

A PRIZE NOT WORTH KEEPING IS NOT A PRIZE

Would KEEP

AU 2024 62%

AU 2025 62%

NZ 2025 60%

Would KEEP

AU 2024 58%

AU 2025 36%

NZ 2025 40%

Would KEEP

​

100%

Would KEEP

AU 2024 37%

AU 2025 45%

NZ 2025 41%

Would KEEP

AU 2024 24%

AU 2025 21%

NZ 2025 23%

Would KEEP

AU 2024 16%

AU 2025 13%

NZ 2025 11%

A DISCOUNT IS NOT A PRIZE

Would DEFINITELY USE this

Would LOVE TO WIN this

20% OFF

50% OFF

70% OFF

8%

8%

12%

12%

22%

17%

FREE NIGHT

66%

62%

For a product that you need or want, how likely would you be to purchase a brand that you do not normally buy or buy infrequently if it offered you the chance to win the following prize? VERY/SOMEWHAT LIKELY

Asking for a minimum spend with a sure way to induce significant, of not universal, slippage (redemption is rarely above 0.2%). Conditional offers are not viewed as a prize, and will change behaviour. They are also a net-detractor to brand love scores.

CONDITIONAL OFFERS ARE NOT A PRIZE

^{$20 Voucher is far better than $75 off when spending $300+}

FREE

^{$15 Voucher is far better than $65 off when spending $250+}

^{$10 Voucher is far better than $50 off when spending $400+}

^{$10 Voucher is far better than $50 off when spending $200+}

^{$25 Voucher is no different than offering $100 off when spending $1000+}

THE MECHANIC & RETAIL REQUIREMENTS

6

Beach or Rainforest?

Beach 71%

Rainforest 29%

MECHANIC, PURCHASE REQUIREMENT, AND REMOVING BARRIERS

consultimi.com.au/promotrack

THE POWER OF VARIOUS RETAIL MECHANICS

What effect do the following offers have on your likelihood of switching brands when purchasing a product you need or want? % MORE LIKELY TO BUY

GETTING OUT OF THE WAY – KEEP THE MECHANIC SIMPLE (AND FAST)

What effect do the following offers have on your likelihood of switching brands when purchasing a product you need or want? % MORE LIKELY TO BUY

PEOPLE GRAVITATE TOWARD INSTANT AND EFFORTLESS

The ability of instant to drive not only breadth but also repeat entries also goes to the heart of why a frequency prize layer is so important.

​

Sweepstake (prize drawn at end) is more typical of grand prizing. This is certainly an attention grabber, but not the primary driver of repeat. Giving Grand away weekly is a good option.

​

There is no such thing as a good Game of Skill. The best in IMI’s database sits in the bottom 0.1%

Immediate and Effortless Promotions Preferred by all demos in both Australia and NZ.

PEOPLE GRAVITATE TOWARD INSTANT AND EFFORTLESS

When it comes to entering a promotion which of the following are you open to? SUMMARY OF TOP 2 PIECE OF CAKE THIS IS EASY / NOT MY PREFERRED METHOD, BUT STILL OK

INSTANT/EASY

DELAYED/EFFORT

CASE STUDY: HOW DO SHOPPERS PERCEIVE RISK MANAGED PROMOTIONS?

How would you feel about the following promotion if you saw it on a bread brand that you buy?

*Prizes tested monadically to avoid comparison / context biases

IMI produced 3 different promotions and tested monadically.

The insured version wins on every metric:

• Most attention grabbing
• Most impactful
• Most attainable
• Most fun

RMP’s are a great way of stretching budgets, getting a big headline, and driving volume. Shoppers do not comprehend nor care that they are insured, and neither should marketers.

QR CODES ARE COMPLETELY OK AS A MECHANIC (THANK YOU COVID). ON-PACK MAKES THE MOST SENSE TO PEOPLE.

Which would be your preference?

It’s incredible to think back to 2019 where only 11% were OK with using a QR code to enter a promotion.

And now, even though 27%/23% say they prefer a URL, outright rejection is only 13% (skews 65+).

To enter a competition, which of the following would you be open to?

GAMES OF SKILL AND CONTRIBUTE ON SOCIALS HORRENDOUSLY BAD. SO WHY DO

BRANDS RUN THEM?

Consumers gravitate toward offers that provide immediate gratification as well as offers that do not require too much work. Games of Skill and Contribute on Socials are the antithesis of this. They also minimise perceived chance of winning.

​

When it comes to writing 25 words or less or having to upload an image, shoppers do not think they have the skill necessary to have ‘the best entry’. They result in extremely low participation in an arena where mass acceptance is required in order to be successful.

​

Games of Skill were typically used because they don’t require a permit or T&C’s. This stems from a misconception that the cost and time to attain T&C’s is prohibitive. This is no longer true. We’re fans of what Plexus have done with Promo Wizard to make T&C’s fast, easy and low cost, so here’s a little plug for them (no vested interested from IMI – we just love that they facilitate better promotions). Hopefully it means you never have to run another game of skill again!

consultimi.com.au/promotrack

DEAL BREAKERS: PERSONAL INFORMATION

% “Sharing this information when entering a promotion is a deal breaker”

In total, 66% of shoppers “Have gone to enter a promotion but stopped once I realized how much personal information I needed to give”.

​

This is universal with almost no age skew.

DEAL BREAKERS: TOO MUCH PERSONAL INFORMATION

% “Sharing this information when entering a promotion is a deal breaker”

Some information is expected, but if there’s a whiff of, “you’re going in our database”, drop-out increases exponentially.

​

People would rather give an email address than a phone number. Why? 58% say, “I can unsubscribe/mark as junk”.

SOCIAL, DIGITAL & GAMIFIED MECHANICS

7

Pie or sausage roll?

Pie 74%

Sauso 22%

Gross 4%

SOCIAL-BASED PROMOS LESS PREFERRED OVERALL AND WILL NOT DRIVE INCREMENTAL VOLUME

% Agree with “Looks like a good Promotion”

Participation Profiles (Sum to 100%)

GAMIFICATION

COMMUNICATING THE OFFER: WHAT TO SCREAM AND�WHERE TO SCREAM IT

8

Bunnings sausage or fine dining?

Bunnings snag 27%

Fine Dining 24%

Why can’t I have both? 49%

THE FREQUENCY PRIZE IS ALMOST ALWAYS YOUR UNSUNG HERO

The message hierarchy can be one of the most counterintuitive components of a promotion. Often the frequency prize layer is undervalued and underrepresented in all comms.

​

The Grand Prize is your attention grabber… but it the frequency prize is what drives lighter users and encourages repeat purchasing among all users. It is typical that ~65% of participation can be explained the frequency prize – not the grand prize.

The below North American brand focused entirely on communicating the Grand Prize of $1,000,000. 50% of Canadians knew about it! But the frequency prize (only communicated in-store) was 230% better at driving participation.

MESSAGING HIERARCHY SHOULD LOOK LIKE…

“COOL BIG PRIZE” and “TONS OF SMALLER PRIZES” perform different roles and talk to different people. Both are critically important. “Cool Big Prize” is important for cut through and works well for the heavier brand user. “Tons of Smaller Prizes” ensures the lighter category user and competitor brand user think they have a fair chance of winning. It also encourages everyone to repeat-enter throughout the promo period.

WHAT TO SCREAM: THE 3 KEY DRIVERS

In most categories you have ~4 seconds after grabbing their attention. In that time, the most impactful comms leaves the shopper thinking 3 things:

If you’re thinking, “that’s a tough ask, all in 4 seconds”, you’d be right. This is why simple promotions perform better than complicated ones. Comprehension of core drivers = more participants. Period.

CASE STUDY: SIMPLE = COMPREHENSION = IMPACT

600 respondents were asked: “We are going to show a typical display that you may see in a supermarket. You will only see the image for 4s, after which you’ll be asked to recall 3 things: what you must buy, what prize/s are on offer, and how you enter/find out if you’ve won”. For Take Time Back, only 8% were able to successfully recall the biggest driver of participation – the prize. Compare that to 80%, and the upside to being simple becomes apparent.

*The above represents the “4s Comprehension Test”: Unaided, how much does a shopper understand after a 4s exposure?

AFTER A 4s EXPOSURE TO POS, % ABLE TO CORRECTLY RECALL…

consultimi.com.au/promotrack

100%

98%

91%

PURCHASE

REQUIREMENT

94%

89%

91%

THE PRIZE

66%

72%

67%

THE MECHANIC

GRAND: 87%

FREQ: 37%

GRAND: 20%

FREQ: 91%

CASE STUDY: THE NAME MATTERS. A LOT.

For most shoppers, the only thing they will ever see is the promo name. A simple promo design leads to simple messaging. And high comprehension A simple headline that explains at least some of the drivers will go a long way to building that comprehension.

This highly unsexy case study shows what happened when Canada Post changed the name of a successful promotion in search of being more creative. Equity was lost, comprehension dropped by 2/3rds, and the sales impact was 86% lower than in Year 1.

CASE STUDY:

BEST OF THE BEST

The strongest name in our database of over 34,000 programs is WIN $50 INSTANTLY INSIDE THIS PACK.

​

From top to bottom this is a case study in Best Practice, but starting with the name, it was almost impossible for the shopper not to grasp

1. The prize (highly compelling + high perceived chance of winning)
2. Instant (call to action + driver of repeat)
3. Inside this pack (call to action)

BIG THANKS