3 ways to capitalize on sports-driven CPG demand
Sports events have a significant economic impact on a local, regional, or national level – depending on the size and scope
Visibility into demand-driving sports events is important for consumer packaged goods (CPG) companies because these events can have a significant impact on consumer purchasing behavior. Take for example, the direct spending these events generate, including spending by attendees on tickets, concessions, merchandise, and other goods and services related to the event.
Sports events also typically generate indirect spending, with businesses that benefit from the event's economic activity – such as local retailers, hotels, transportation providers, and restaurants – seeing increased demand as people come in for the game and foot traffic swells.
Leveraging sports event data, including televised sports games, is a valuable strategy for CPG companies looking to make data-driven business decisions. By analyzing data on event volume, predicted attendance, and viewership, CPG companies can gain valuable insights that can inform their decision-making and drive growth. Let’s explore how sports events typically impact demand for consumer packaged goods, and ways leaders in the CPG space are already using event data to uncover opportunities hiding in plain sight.
How sports events, including televised games, drive demand for fast-moving consumer goods
Sports events can have a significant impact on demand for consumer packaged goods, particularly fast-moving ones such as beverages and snack foods. These types of events tend to attract large crowds, many of whom are looking to purchase food and beverages while they are at the event. As a result, CPG companies often see a spike in demand for their products during and around sports events.
For example, a sports event such as a football game or a soccer match is likely to drive demand for beverages, particularly beer, as well as snacks such as chips, popcorn, and pretzels. Similarly, a marathon or other endurance event may drive demand for sports drinks and energy bars.
In addition to the demand generated by attendees at the event itself, sports events can also drive demand for CPG products through televised broadcasts of the event. Many people watch sports events on television, and the commercials and other promotions that air during these broadcasts can be great opportunities to capture mindshare of their consumers and ultimately drive interest in and demand for specific products – think Super Bowl ads.
3 ways to capitalize on sports-driven CPG demand:
1. Ramp up production to meet increased demand
If a fast-moving consumer goods (FMCG) company anticipates a significant increase in demand due to an upcoming sports event or season for a specific sport, it may need to ramp up production in order to meet this demand. This could involve hiring additional staff, increasing overtime, or ramping up production at its manufacturing facilities.
Additional steps CPGs can take to increase production to meet the expected increase in demand for their products as a result of a sports event include:
Increase capacity: Increase production capacity by investing in new equipment, hiring additional employees, or outsourcing production to a third party.
Identify bottlenecks in the production process: Once bottlenecks are identified, you can take steps to address them such as investing in new equipment, or training employees to increase efficiency.
Optimize the production schedule: Optimize your production schedule to maximize output and meet the expected increase in demand. This can include shifting production to off-peak hours, or adding additional shifts to the schedule.
2. Work closely with retail partners
In the event of an approaching high-volume sports event, CPG and FMCG companies should work closely with retailers to ensure their products are prominently displayed and well-stocked in stores during the event. This may involve cross-promotion, offering special promotions or incentives to retailers, as well as:
Collaborating on in-store displays and marketing: Create eye-catching in-store displays and marketing materials to draw attention to the products and encourage customers to purchase them.
Taking advantage of co-branding opportunities: Develop co-branded products or packaging with retail partners to create a unique offering that is only available at that retailer.
Keeping retailers fully stocked: Work with retail partners to ensure they have sufficient inventory on hand to meet the expected increase in demand. This can include sharing sales data and forecasting information to help retailers plan their inventory levels.
3. Promote your product with event-based marketing
FMCG companies have led the way in sports event-based marketing campaigns – such as Gatorade promoting its sports drinks around major sporting events like NBA and NFL games, the Super Bowl, and the World Series.
This can include advertising during the event, sponsoring teams or athlete endorsements, creating social media campaigns that tie in with the event, sponsoring the event, or advertising during televised broadcasts of the event. These are just a few ways to leverage occasion-based marketing around sports events to boost sales:
Create special edition packaging: Create special edition packaging for your products that features the event or team logo to create a sense of exclusivity and encourage more sales.
Leverage social media: Use social media platforms like Twitter, Facebook, and Instagram to promote products. This can include creating sponsored posts, using hashtags related to the sports event, and running social media ads.
Partner with sports teams or sponsorships: Partner with sports teams or events to create co-branded products or packaging, or to run promotions or sponsorships.
Start integrating local and televised sports games into your demand planning
Sports events are notorious for having a significant impact on demand for consumer packaged goods, particularly crowd-pleasing beverages and snacks. CPG and FMCG companies leverage event data to inform their decision-making so they can capitalize on this demand in a variety of ways – including by increasing production, promoting their products through targeted marketing, and collaborating with retailers. Claim your free PredictHQ account today to drive sales and growth during and around sports events.