Big merit scholarships are typically offered to admits who are at the high end of the range for the college. From the applicant’s point of view, such colleges are usually “low match” or “safety” for admission. The scholarships themselves may be “reach” even if admission is “safety” (however, some scholarships are automatic for stats or NMF status, so they could be “safety” if the applicant meets those requirements).
Some highly selective colleges that may be considered “reach” for admission offer a few large merit scholarships, but those scholarships should be considered “super reach” if admission is already considered “reach”.