In-pack vs on-pack QR codes
This is the most consequential decision in a QR program and it is usually made by whoever owns packaging artwork, in a meeting nobody from sales attends. Where the code sits determines who can physically reach it, and therefore who your reward budget actually pays.
An on-pack QR code is printed on the outside of the packaging and can be scanned by anyone who handles the pack, including distributors and counter staff. An in-pack code sits inside the primary pack or under a cap and can only be reached by the person who opens the product — which in trade categories is the tradesman who installs it. Placement therefore decides which channel tier receives the reward.
The four placements
| Placement | Reachable by | Unit cost | Integrity |
|---|---|---|---|
| On-pack, outer carton | Anyone in the chain | ₹0.15–0.30 | Low — harvestable before sale |
| Inside the outer carton | Whoever breaks bulk | ₹0.20–0.40 | Medium — usually the counter |
| In-pack / under cap | The person who opens the product | ₹0.30–0.80 | High |
| On the product itself | Unavoidably the end user | ₹0.40–1.50 | Highest — survives repacking |
Match the placement to the tier you are paying
There is no universally correct answer — there is only alignment or misalignment between placement and intent:
- Rewarding retailers and sub-dealers? On-pack or inside the outer carton is correct. You want the counter to scan.
- Rewarding electricians, plumbers, masons or installers? In-pack or under-cap. Anything visible before sale will be partly claimed by the counter, and you will spend the next year wondering why enrolment is high and field scanning is low.
- Rewarding end consumers? On-pack, prominently, with clear instructions. Consumers will not hunt for a code.
- Fighting counterfeits specifically? On-product marking, because it is the only placement that survives repacking into genuine cartons.
The repacking problem
Sophisticated counterfeiting in India rarely fabricates packaging from scratch. The efficient route is obtaining genuine cartons — from scrap, returns, or emptied boxes on sites — and refilling them with sub-specification product. Every on-pack code on such a carton is genuine and will verify.
This is why two-layer designs have become common: an on-pack code that proves the carton is real, plus an in-pack code that proves the contents are. The second layer is what a repacker cannot pass, because it is bound to what was packed rather than to the packaging.
What in-pack costs you operationally
It is not free, and pretending otherwise leads to unpleasant surprises in month three:
- A second print or insert operation on the line, with its own speed and reject implications.
- Members must open the pack to claim, which is fine for a plumber on a job and impossible for a retailer scanning stock on receipt.
- Returns handling gets harder — an opened pack is harder to return, so decide policy in advance.
- Quality assurance that the insert is actually present. A missing in-pack code generates the worst possible support call: a member who did everything right and got nothing.
Hybrid designs that work
- On-pack for the retailer, in-pack for the influencer. Two codes, two tiers, one transaction — and it removes the conflict where the counter suppresses a program that pays only the tradesman.
- On-pack code that reveals an in-pack code only after the retailer's scan, chaining the two tiers in sequence.
- Under-cap on consumables such as solvent cement, adhesive or lubricant, where the person opening the container is unambiguously the person you want to reward.
- Printed on the product for premium ranges where counterfeit exposure justifies the tooling cost.
Decide this before rates
Reward rates are calculated from margin and from expected scan volume, and expected scan volume depends entirely on who can reach the code. Setting rates first and placement afterwards is how brands end up funding a tier they never intended to pay. The rest of the sequence is in how to create a QR code loyalty program.
Frequently asked questions
What is the difference between in-pack and on-pack QR codes?
An on-pack code is printed on the outside of the packaging and can be scanned by anyone who handles it, including distributors and counter staff. An in-pack code sits inside the primary pack or under a cap and can only be reached by whoever opens the product, which in trade categories is the tradesman installing it.
Where should a QR code be placed to reward electricians and plumbers?
In-pack or under the cap, so it cannot be reached before the product is opened for use. Any code visible before sale will be partly claimed by counter staff, which produces the common pattern of high enrolment and low field scanning that brands struggle to explain.
How much does in-pack QR placement cost?
Roughly ₹0.30 to ₹0.80 per unit against ₹0.15 to ₹0.30 for a printed on-pack code, plus a second print or insert operation on the line with its own speed and reject implications. On-product marking runs ₹0.40 to ₹1.50 and is the only option that survives repacking.
Can a QR program use two codes?
Yes, and two-layer designs are increasingly common. An on-pack code proves the carton is genuine and can reward the retailer; an in-pack code proves the contents are genuine and rewards the tradesman. The second layer is what a counterfeiter who has obtained real cartons cannot pass.
What are the operational downsides of in-pack codes?
A second print or insert operation on the line, members having to open the pack to claim which does not suit retailers scanning stock on receipt, harder returns handling for opened packs, and the quality-assurance burden of ensuring the insert is actually present in every pack.
Should placement be decided before reward rates?
Yes. Rates are calculated from margin and expected scan volume, and expected scan volume depends entirely on who can physically reach the code. Deciding rates first and placement afterwards is how brands end up funding a channel tier they never intended to pay.