{"id":1203,"date":"2022-06-06T12:00:00","date_gmt":"2022-06-06T12:00:00","guid":{"rendered":"https:\/\/pdisoftwareprd.wpengine.com\/?p=1203"},"modified":"2024-01-02T12:59:39","modified_gmt":"2024-01-02T17:59:39","slug":"cpg-marketing-c-stores","status":"publish","type":"post","link":"https:\/\/pditechnologies.com\/blog\/cpg-marketing-c-stores\/","title":{"rendered":"CPG Marketing: Why C-Store Is the Right Channel to Reach Your Shoppers"},"content":{"rendered":"\n<p>In-store sales at convenience stores have been steadily climbing for the past twenty years \u2014 with no sign of slowing down.<\/p>\n\n\n\n<p>And on top of that, the pandemic shifted many trends in c-store\u2019s favor to become an even stronger growth opportunity for <a href=\"https:\/\/pditechnologies.com\/consumer-packaged-goods\/\" target=\"_blank\" rel=\"noreferrer noopener\">consumer packaged goods (CPG) brands<\/a>. <\/p>\n\n\n\n<div class=\"mbm-card wp-block-mbm-card has-background has-gray-alt-1-background-color has-border border-radius__4 padding__sm padding__sm-sm padding__md-md padding__lg-md\">\n<h2 class=\"has-text-align-center has-delta-font-size wp-block-heading\">What is CPG marketing?<\/h2>\n\n\n\n<p class=\"has-text-align-center\">Consumer Packaged Goods, or CPG, brands use marketing strategies to generate brand awareness and loyalty among consumers. CPGs have a great opportunity to focus their marketing efforts in retail convenience stores to capitalize on consumer demand. It&#8217;s also a highly efficient channel to <a href=\"https:\/\/pditechnologies.com\/resources\/article\/how-to-test-a-product-before-launch\/\" target=\"_blank\" rel=\"noreferrer noopener\">test new products<\/a> and get data-driven insights.<br><br>Today\u2019s consumers \u2013 especially millennials \u2013 are buying more food on-the-go. Snacks, drinks, and readily prepared meals are in high demand and convenience stores provide the efficiency that consumers are looking for more than ever.<\/p>\n<\/div>\n\n\n\n<section class=\"wp-block-mbm-container alignwide\" style=\"padding-top:16px;padding-bottom:16px\"><div class=\"mbm-container\"><\/div><\/section>\n\n\n\n<p>So without further ado, here are four key reasons c-store is the right channel to reach your shoppers.<\/p>\n\n\n\n<div class=\"mbm-spacer mbm-spacer__16 wp-block-mbm-responsive-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-c-store-shoppers-are-loyal\">1. C-store shoppers are loyal<\/h3>\n\n\n\n<p>Loyalty makes sense in the c-store channel where high-frequency, habitual shopping trips are the norm. Many shoppers will stop at the same c-store every morning to grab the same CPG products for the day.<\/p>\n\n\n\n<p>And when you combine this type of shopping with easy-to-use rewards programs, the results are impressive. Brand loyalty engagement in the c-store channel, for example, is up thanks in large part to strategic moves by retailers to modernize their loyalty programs over the last few years.<\/p>\n\n\n\n<div class=\"mbm-spacer mbm-spacer__8 wp-block-mbm-responsive-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-what-this-means-for-cpg-brands\">What this means for CPG brands:<\/h4>\n\n\n\n<p>Brands in the CPG industry can piggyback on c-store loyalty by partnering with stores to offer rewards. It\u2019s an age-old but effective strategy for brands because it provides access to a valuable, built-in audience. Loyalty members, after all, spend 29% more per visit than non-members.<\/p>\n\n\n\n<p>Case in point: Red Bull, Coca Cola, Nabisco and Frito Lay\u2019s partnership with Yesway (a convenience store chain with 402 stores scattered across the Midwest and Southern U.S.) These brands all work with Yesway to create and fund promotional offers within the retailer\u2019s loyalty program. Examples include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Purchase any six 20-ounce Coke products and get a seventh for free.<\/li>\n\n\n\n<li>Buy two Red Bull drinks to get 3 cents off per gallon.<\/li>\n\n\n\n<li>Buy any King Size Oreo, Nutter Butter or Chips Ahoy to get 3 cents off per gallon.<\/li>\n<\/ul>\n\n\n\n<p>(By the way, if your brand is looking to run these types of promotions, PDI\u2019s <a href=\"https:\/\/pditechnologies.com\/engage-customers\/offer-network\/\" target=\"_blank\" rel=\"noreferrer noopener\">Offer Network<\/a> of over 60,000 c-stores can help!)<\/p>\n\n\n\n<div class=\"mbm-spacer mbm-spacer__16 wp-block-mbm-responsive-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-convenience-is-one-of-the-few-channels-with-rising-in-store-sales-despite-the-shift-to-e-commerce\">2. Convenience is one of the few channels with rising in-store sales, despite the shift to e-commerce<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"624\" height=\"345\" src=\"https:\/\/pditechnologies.com\/wp-content\/uploads\/2022\/08\/c-stores-set-survive-e-commerce-takeover-chart.jpg\" alt=\"Chart showing c-store wallet share\" class=\"wp-image-1205\" style=\"width:650px\" srcset=\"https:\/\/pditechnologies.com\/wp-content\/uploads\/2022\/08\/c-stores-set-survive-e-commerce-takeover-chart.jpg 624w, https:\/\/pditechnologies.com\/wp-content\/uploads\/2022\/08\/c-stores-set-survive-e-commerce-takeover-chart-300x166.jpg 300w\" sizes=\"auto, (max-width: 624px) 100vw, 624px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>As you can see above, c-stores are weathering the consumer shift to e-commerce quite well compared to grocery. In fact, over the past 20 years, in-store sales at convenience stores have risen <a rel=\"noreferrer noopener\" href=\"https:\/\/www.nacsmagazine.com\/issues\/june-2021\/what%E2%80%99s-now-what%E2%80%99s-next\" target=\"_blank\">152%<\/a>, defying the slowdown seen across the rest of brick and mortar retail. Even last year, in 2020, in-store sales grew <a rel=\"noreferrer noopener\" href=\"https:\/\/www.nacsmagazine.com\/issues\/june-2021\/big-pivot\" target=\"_blank\">1.5%<\/a>, driven largely by bigger basket sizes.<\/p>\n\n\n\n<p>Why is this happening? Because c-store shopping trips are driven by immediate needs. In fact, <a href=\"https:\/\/csnews.com\/cross-channel-shopping-insights-are-focus-new-tech-partnership\" target=\"_blank\" rel=\"noreferrer noopener\">83%<\/a> of items purchased in a c-store are consumed within the hour. And that\u2019s something that can\u2019t be replaced by e-commerce (not yet at least!).<\/p>\n\n\n\n<p><a href=\"https:\/\/www.nacsmagazine.com\/issues\/june-2021\/source\" target=\"_blank\" rel=\"noreferrer noopener\">Leroy Kelsey<\/a>, director of research at NACS explains it like this: \u201cBeing the closest in the community, we sell time, and the demand to connect the consumer with products in almost real time will continue.\u201d<\/p>\n\n\n\n<div class=\"mbm-spacer mbm-spacer__8 wp-block-mbm-responsive-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-what-this-means-for-cpg-brands-1\">What this means for CPG brands:<\/h4>\n\n\n\n<p>First, brands need to meet customers where they are. And when it comes to in-store shopping, that\u2019s increasingly a convenience store \u2014 44% of consumers say they\u2019re shopping at c-stores more often than they used to.<\/p>\n\n\n\n<p>Second, in-store shopping provides fertile ground for impulse buys. Sure, you can buy a chocolate bar online. But as <a href=\"https:\/\/www.adweek.com\/commerce\/can-cpg-brands-recreate-in-store-impulse-buying-online\/\" target=\"_blank\" rel=\"noreferrer noopener\">Adweek points out<\/a>, \u201cthe instant gratification and immediate consumption accompanying an impulse purchase isn\u2019t possible when buying from your living room couch.\u201d<\/p>\n\n\n\n<div class=\"mbm-spacer mbm-spacer__16 wp-block-mbm-responsive-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-millennials-are-flocking-to-c-store\">3. Millennials are flocking to c-store<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"624\" height=\"308\" src=\"https:\/\/pditechnologies.com\/wp-content\/uploads\/2022\/08\/millenials-flocking-to-c-stores-chart.jpg\" alt=\"chart showing frequency millennials visit c-stores\" class=\"wp-image-1206\" style=\"width:650px;height:303px\" srcset=\"https:\/\/pditechnologies.com\/wp-content\/uploads\/2022\/08\/millenials-flocking-to-c-stores-chart.jpg 624w, https:\/\/pditechnologies.com\/wp-content\/uploads\/2022\/08\/millenials-flocking-to-c-stores-chart-300x148.jpg 300w\" sizes=\"auto, (max-width: 624px) 100vw, 624px\" \/><\/figure>\n\n\n\n<div class=\"mbm-spacer mbm-spacer__16 wp-block-mbm-responsive-spacer\"><\/div>\n\n\n\n<p>There are 83 million millennials (now 25 \u2013 40 years old) in the U.S. with a lifetime spending power of roughly $10 trillion. And c-stores have emerged as a natural fit for this generation who tends to shop for immediate needs more frequently than their predecessors.<\/p>\n\n\n\n<p>In fact, compared to other generations, millennials spend less money on food at home, making fewer trips to the grocery store but more trips to the convenience store. As such, they now account for more than one-third of all c-store shoppers, with <a href=\"https:\/\/www.statista.com\/statistics\/858179\/convenience-store-purchase-frequency-by-generation-us\/\" target=\"_blank\" rel=\"noreferrer noopener\">35%<\/a> visiting a convenience store daily and <a href=\"https:\/\/www.statista.com\/statistics\/858179\/convenience-store-purchase-frequency-by-generation-us\/\" target=\"_blank\" rel=\"noreferrer noopener\">72%<\/a> visiting 2-3 times a week.<\/p>\n\n\n\n<div class=\"mbm-spacer mbm-spacer__8 wp-block-mbm-responsive-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-what-this-means-for-cpg-brands-2\">What this means for CPG brands:<\/h4>\n\n\n\n<p>The physical trips made by millennials are heavily influenced by digital. <a href=\"https:\/\/www.retaildive.com\/ex\/mobilecommercedaily\/smartphones-influence-84-pc-of-millennials-shopping-in-stores-report\" target=\"_blank\" rel=\"noreferrer noopener\">84%<\/a> of millennials, for example, use their phones in-store for shopping assistance. This is a rich opportunity to focus on the digital channel for building robust <a href=\"https:\/\/pditechnologies.com\/resources\/article\/cpg-brand-marketing\/\" target=\"_blank\" rel=\"noreferrer noopener\">CPG marketing strategies<\/a>.<\/p>\n\n\n\n<p>So if your brand is trying to reach millennial c-store shoppers, a mobile campaign can be highly effective. For example, we recently worked with a popular candy brand that was looking for new ways to reach millennials while driving awareness, trial and sales across multiple brands in the convenience channel.<\/p>\n\n\n\n<p>The brand leveraged PDI\u2019s offer network (Koupon\u2019s offer network at the time) to launch a campaign across our partner channels, including T-Mobile Tuesdays, GasBuddy, OnStar, Facebook and retailer-owned channels like app and SMS.<\/p>\n\n\n\n<p>The campaign exceeded expectations, driving 19% year-over-year unit sales growth for the brand. The brand also witnessed a 6.3% lift in spend per basket when shoppers redeemed the offer.<\/p>\n\n\n\n<div class=\"mbm-spacer mbm-spacer__16 wp-block-mbm-responsive-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-mobile-offers-work-well-with-c-store-s-on-the-go-shoppers\">4. Mobile offers work well with c-store\u2019s on-the-go shoppers<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"564\" height=\"507\" src=\"https:\/\/pditechnologies.com\/wp-content\/uploads\/2022\/08\/c-store-cpg-brands-collage.jpg\" alt=\"consumer packaged good cpg brand collage\" class=\"wp-image-1204\" style=\"width:564px;height:507px\" srcset=\"https:\/\/pditechnologies.com\/wp-content\/uploads\/2022\/08\/c-store-cpg-brands-collage.jpg 564w, https:\/\/pditechnologies.com\/wp-content\/uploads\/2022\/08\/c-store-cpg-brands-collage-300x270.jpg 300w\" sizes=\"auto, (max-width: 564px) 100vw, 564px\" \/><\/figure>\n\n\n\n<p>C-store shoppers are busy running from one place to the next. And like the name of the channel suggests, consumers are there for convenience.<\/p>\n\n\n\n<p>Not surprisingly, the speed and frictionless experience of mobile coupons are well suited to this type of shopper. PDI\u2019s average redemption rate on mobile coupons continues to be 10x greater than traditional paper coupons.<\/p>\n\n\n\n<div class=\"mbm-spacer mbm-spacer__8 wp-block-mbm-responsive-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-what-this-means-for-cpg-brands-3\">What this means for CPG brands:<\/h4>\n\n\n\n<p>Brands can use targeted mobile offers to reach busy c-store customers in real time. Here are some best practices we\u2019ve learned to maximize your results:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Coupons that deliver a free product perform the best, followed closely by Buy-One-Get-One offers. At PDI we understand that marketing budgets don\u2019t always allow for a free offer, so we recommend BOGO offers.<\/li>\n\n\n\n<li>The majority of customers (65%) redeem an offer within 5 minutes of seeing it.<\/li>\n\n\n\n<li>After comparing offer view and redemption patterns across our more than 28,000 c-store clients, we found that engagement peaks on Fridays and during the evening commute.<\/li>\n<\/ul>\n\n\n\n<p>All of this boils down to sending the right offer to the right customer at the right time. And brands who apply this strategy will win shoppers in c-store every time.<\/p>\n\n\n\n<div class=\"mbm-spacer mbm-spacer__16 wp-block-mbm-responsive-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-marketing-a-cpg-brand-see-how-pdi-helps-cpg-brands-reach-more-shoppers\">Marketing a CPG brand? See how PDI helps CPG brands reach more shoppers<\/h3>\n\n\n\n<p>We get it. The c-store channel isn\u2019t always easy to navigate \u2014 it\u2019s large and fragmented. But with c-store sales reaching $256 billion last year alone, the growth potential for CPG brands is staggering.<\/p>\n\n\n\n<p>Here\u2019s how PDI gets results for CPG brands in c-stores:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>We connect brands with retailers, using our network of over 60,000 c-store locations.<\/li>\n\n\n\n<li>We help brands reach and engage c-store shoppers with targeted digital promotions that drive store trips, increase basket size, and grow sales.<\/li>\n\n\n\n<li>We help brands secure new distribution across our network using digital promotion campaigns proven to drive product trials and awareness.<\/li>\n\n\n\n<li>We help simplify execution. Our team takes care of everything from selling campaigns to retailers to execution, fulfillment, and everything in between. This includes: offer sell-in, offer setup, coordination and logistics, offer distribution, authentication, fraud prevention, digital advertising support, fulfillment, and post-campaign analysis.<\/li>\n\n\n\n<li>We help CPG companies make data-informed decisions by evaluating consumer patterns across products, stores, and channels. And we\u2019ll help you use these consumer insights to adjust and launch data-driven strategies.<\/li>\n<\/ul>\n\n\n\n<p>You can thrive in today\u2019s digital economy. <a href=\"https:\/\/pditechnologies.com\/contact-us\/\">Contact us today<\/a>, to learn how we can help you transform your business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Four reasons why c-stores continue to prove themselves as the right channel for CPGs to reach their shoppers<\/p>\n","protected":false},"author":25,"featured_media":1633,"comment_status":"closed","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"_eb_attr":"","_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","inline_featured_image":false,"footnotes":""},"categories":[10],"tags":[155,21,159,158],"pdi_resource_tier":[151],"class_list":["post-1203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-consumer-packaged-goods-cpg","tag-loyalty","tag-retail-offers-and-promotion","tag-shopper-insights"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v25.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CPG Marketing: What It Means and Why Your Brand Needs It | PDI<\/title>\n<meta name=\"description\" content=\"Understand what CPG brand marketing is and the 4 reasons why c-stores are the best channel for CPGs to focus marketing efforts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pditechnologies.com\/blog\/cpg-marketing-c-stores\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CPG Marketing: Why C-Store Is the Right Channel to Reach Your Shoppers\" \/>\n<meta property=\"og:description\" content=\"Understand what CPG brand marketing is and the 4 reasons why c-stores are the best channel for CPGs to focus marketing efforts.\" \/>\n<meta property=\"og:url\" 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