They are items offered free or at a reduced price, with, the purchase of another item. Many firms offer a related product free.

There are 2 options available for the use of premiums:


  1. A free premium provides consumers with an item at no cost, the item is included in the package of the purchase item.
  2. A self-liquidating premium requires a consumer to pay most of the cost of the item received as a premium. In this promotion offer the consumer is required to send a specified sum of money along with a proof of purchase to claim the premium.


Premiums have become very common today. Many companies are offering lots and lots of premiums. The main advantage of Premiums is that they offer not only that one product but also another product, which may influence the customer, a lot to buy the product. Especially if the other product is worth it.

Also new products are given free with established brands to stimulate trial of the new brand.


  • When attacked by Cavincare of Fairever fame, HLL adopted a defensive strategy by giving away one more Fair and Lovely free with every purchase of it (BOGOF). This is one of the many ways by which a marketer can piggyback on the brand’s standing in the market.


  • Ponds – buy Ponds cold cream 100ml and get a ponds body lotion 50ml pack free.

Buy Good Knight expert refill pack and get 3 Nyle shampoo sachets free.


  • Pepsodent toothpaste – buy 100gm and get 4 Clinic Plus sachets free.


  • With 2 Dove soaps get a Lakme Fair Perfect cream free.


  • Colgate toothpaste 200gm gives 500 ml Pepsi free


  • With every car financed, Tata Finance gave Tata finance credit card free, applicable only in Calcutta.


  • On using HSBC credit card you get around 25%off at select restaurants.


  • Buy Nivea cream (J. L. Morison (India) ltd.) 50ml and get Nivea soap worth Rs.22 free.


  • Buy Nivea body pure talc and get Colgate fresh energy gel toothpaste free.


  • Buy Nestle Cerelac 400gm get Johnson’s baby soap free.


  • Buy Nescafe classic 50gm and get Nestle Kitkat free (36gm)


  • Buy Servo engine oil and get Coca-Cola or Mazza free.


  • VLCC – With every spot reduction package for tummy/ thighs/ hips, free 5 kgs. weight loss.


  • Excalibur, on buying any two Excalibur shirts or trousers, a wristwatch worth Rs.350 free.
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