Seasonal Marketing Magic: How CPG Companies Leverage Sweepstakes and Gift with Purchase Programs
Consumer Packaged Goods (CPG) companies are masters in the art of marketing, and when it comes to leveraging the power of seasons and holidays, they know how to excel. Two standout strategies in the CPG playbook include sweepstakes and gift with purchase promotions. In this article, we'll explore how CPG companies utilize these tactics to create excitement, boost sales, and foster brand loyalty during various seasons and holidays.
The Seasonal Shift in Consumer Behavior
Throughout the year, consumer preferences and purchasing habits evolve, driven by the changing seasons and the emergence of holidays and special occasions. CPG companies keenly observe and adapt to these shifts, recognizing the opportunities they bring.
During different seasons and holidays, people are often in a festive and giving mood, looking for special treats and value-added offers. This is where sweepstakes and gift with purchase promotions come into play as highly effective tools to capture consumer attention.
Sweepstakes: The Thrill of Winning
Sweepstakes are a classic promotional tactic that taps into the innate human desire for excitement and winning something valuable. CPG companies craft enticing sweepstakes campaigns that align with the upcoming season or holiday. Here's how they do it:
Holiday-Themed Prizes
During holidays like Thanksgiving or Christmas, CPG companies may offer sweepstakes with grand prizes such as all-inclusive family vacations, holiday shopping sprees, or high-end kitchen appliances. These prizes resonate with the season and are designed to create a buzz.
For example, this radio show is celebrating “Christmas in July” by giving away a 7-night holiday cruise. When listeners hear the word of the day, they can call in for a chance to win this prize that will help them to celebrate the holidays.
Interactive Promotions
To engage consumers, CPG companies often design sweepstakes that require participation, like submitting a holiday-themed recipe or sharing a family tradition. This interactive element not only enhances the consumer experience but also generates user-generated content for marketing purposes.
McCormick & Company is a food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavoring products. They launched a sweepstakes where consumers could submit a recipe to their website for a chance to win $50,000. This sweepstakes enabled consumers to meaningfully interact with the brand beyond simply submitting their name and email.
Limited-Time Offers
Sweepstakes are often time-bound, aligning with the season's duration. This urgency encourages quick participation, as consumers don't want to miss out on the opportunity to win.
Ontario Lottery & Gaming ran a Big Holiday Bonanza sweepstakes for a chance to win $250,000. This offer only ran from December 1-14, making it a limited-time offer only for the holidays.
Cross-Promotions
CPG companies may collaborate with other brands to create sweepstakes that offer a range of prizes, enhancing the overall value proposition. For instance, a holiday-themed sweepstakes might include products from multiple companies, increasing the excitement and reach.
Gift with Purchase Promotions: Added Value for Consumers
Gift with purchase (GWP) promotions are another tried-and-true strategy in the CPG industry's seasonal marketing playbook. These promotions offer consumers an additional product or gift when they make a qualifying purchase. Here's how CPG companies use GWPs effectively:
Holiday-Themed Gifts
During the holiday season, CPG companies often offer festive, themed gifts as part of their GWPs. For example, a cosmetic brand might provide a free holiday-themed makeup bag with the purchase of a specific beauty product.
For example, Sephora offers a free mini fragrance with every purchase worth $35 or more during the holiday season, encouraging customers to purchase gifts for others so they can receive a gift for themselves.
Limited-Edition Products
To drive demand and exclusivity, CPG companies may introduce limited-edition products or packaging tied to a season or holiday. Customers receive these exclusive items as part of the GWP, encouraging them to make a purchase.
Starbucks famously releases their limited-edition holiday drinks each fall and winter season. On top of that, they typically launch a buy one, get one free offer which draws consumers to purchase holiday drinks to share with friends, family or colleagues.
Tiered Offers
Some CPG companies structure their GWP promotions in tiers, offering different gifts with different levels of spending. This strategy incentivizes customers to spend more to unlock higher-value gifts.
Cross-Promotions
CPG companies may partner with complementary brands to offer joint GWPs. For instance, a coffee company might collaborate with a biscuit brand to provide a free pack of biscuits with the purchase of coffee.
Reyes Coca-Cola Bottling LLC partnered with 3 tier logic to launch their regional ‘Buy $20, Get $5 Holiday Walmart’ gift with purchase promotion. When consumers purchased $20 worth of qualifying Coca-Cola products in one transaction from Walmart, they were eligible to receive a $5 Walmart digital gift card.
Online and In-Store Options
CPG companies ensure that GWPs are available both online and in physical stores, catering to the preferences of different consumer segments.
Barnes & Noble seasonally offers a $10 gift card when consumers spend $100 or more on gift cards, both in store and online. This is an easy way for the bookstore to reward shoppers for spending more.
The Impact on Brand Loyalty and Sales
These seasonal sweepstakes and GWP promotions are not just about short-term sales spikes. They have a profound impact on brand loyalty and customer retention. When consumers have positive experiences, receive value-added gifts, or win exciting prizes, they are more likely to develop a strong affinity for the brand.
Additionally, these promotions encourage repeat business. Customers may come back for more purchases to qualify for additional gifts or to participate in future sweepstakes. This creates a cycle of engagement that extends beyond the initial promotional period.
Improve Consumer Engagement with Seasonal Marketing
CPG companies are experts in the art of seasonal marketing, leveraging sweepstakes and gift with purchase promotions to connect with consumers on a deeper level. By aligning these promotions with the seasons and holidays, CPG companies create excitement, boost sales, and build lasting brand loyalty. Whether it's the thrill of winning a dream vacation or the delight of receiving a special holiday gift, these strategies keep consumers engaged and eager to be part of the brand's seasonal magic. As consumers continue to seek memorable experiences and added value, sweepstakes and GWP promotions remain powerful tools in the CPG industry's seasonal marketing arsenal.
3 tier logic’s OCR technology on PLATFORM³ leverages purchase validation and analytics to connect with consumers through short-term marketing promotions like sweepstakes and gift with purchase programs, as well as full-scale loyalty programs. Modules like Dynamic Messaging, Points & Gamification, and Data Capture & Analytics give marketers the tools they need to tell their stories and build customer loyalty. To learn more, chat with an expert today.
