A free goods promotion is a deviation from straight price cut. The promotion offer to trade is in the form of extra quantity of purchased product “free”. For example, the manufacturer offers one case of free goods with the purchase of 12 cases of the product. There may or may not be any limit on the quantity of the purchase during the promotion period. If the retailer purchases 36 cases of the product, then he gets 3 cases of the same product free.
Free goods deal often encourages resellers to stock more during the promotion period. For the manufacturer, it is an excellent promotion because it costs less than it otherwise appears.
- Buy 24 Close Up toothpaste and get 1 free.
- Buy Cadbury’s products worth Rs.3000/- and get 30 any chocolates worth Rs.5 free.
- Buy a box of Munch and get 1 Munch free.
- Buy 3 Good Knight Liquid packs and get 1 free.
- Buy 3 Mortein coils and get 1 free.