Case Study: How to Run Contests or Sweepstakes for CPG

Sweepstakes for CPG is a great way to increase brand awareness and drive traffic to your website or retail store. They can also help generate leads and sales. However, there are a few things you should consider before running sweepstakes for CPG.

In this article, we will discuss the benefits of sweepstakes for CPG, as well as the general process of running them. We will discuss the example of Verano Mágico for Coca-Cola Puerto Rico, (Coca-Cola’s Magical Summer) a sweepstakes CPG administered by Sweeppea, and also answer some common questions about sweepstakes for CPG.

Benefits of Running Sweepstakes for CPG

Sweepstakes are one of the most popular consumer engagement strategies for driving CPG brand awareness and sales. It’s a type of gamification that aims to get consumers interested in winning something for free. These CPG marketing initiatives benefit from utilizing social media to connect with their target audience alongside other omnichannel strategies to optimize visibility.
Some of the benefits of sweepstakes for CPG include:

Build Awareness

Sweepstakes are fantastic methods to get your consumers interested in your business. They provide people with a reason to interact with your company and go down your marketing funnel. They also help you leverage word of mouth when your promotion is tied to appealing prices.

It aids in the expansion of your brand’s visibility and accessibility. Word-of-mouth marketing is one of the most successful types of marketing, so getting individuals to talk about your company is a fantastic method to create a buzz that potential customers can trust.

Data Collection

First-party collection efforts like sweepstakes allow you to establish a presence on and offline, depending on your consumers’ preferred channels. While many customers are cautious, and rightfully so, about disclosing their personal information to win anything amazing, they’re considerably more forthcoming than they were previously.

You may also gather personal information, such as a phone number, address, and email address, from your contest participants. Ask them some personality-based questions about your industry, goods, or business to add more data to your data collection. This is very useful for retargeting campaigns.

Nurture Your Leads & Create Loyalty

You could have a million-name list of past, present, and future consumer data, but it may be hard to find your way through the sea of consumer choices. This is why developing strong connections with your audience is so important.

Sweepstakes are a great method to differentiate your brand from your competitors. Sweepstakes let you breathe new life into dormant connections and create new ones. It takes you out of the ordinary buying cycle and provides your company with alternative methods to connect with its audience.

There is such a thing as promotional fatigue. When a company always runs the same sort of promotions, their audiences are at risk of promotional fatigue which can affect sales. That’s why it’s important to spice up your marketing tactics to keep your consumers engaged and shopping.

The beauty of digital promotional platforms is you have complete control over the way your message is delivered. Whether your consumer prefers email, visits frequently, or is a social media junkie, you may develop a contest or sweepstakes that addresses their needs and makes them feel seen and heard.

In this case study, Coca-Cola used a hybrid promotional model. They promoted their sweepstakes both through digital media as well as traditional media through QR codes. QR codes help you gather participant data efficiently for offline marketing efforts.

Process of Running Sweepstakes for CPG

Now that we’ve discussed some of the benefits of sweepstakes for CPG, let’s talk about the process of running one. There are a few key steps you’ll need to take to run successful sweepstakes for CPG.

Planning: The first step is to plan your sweepstakes. You’ll need to decide on a prize, create rules and regulations, and set up a system for collecting entries. You have to keep in mind the caveats of running the promotion per state. Not all states have the same rules and regulations for sweepstakes.

Promotion: Once you’ve created your sweepstakes, you’ll need to promote them. This can be done through social media, your website, or other marketing channels.

Selection: Once the sweepstakes have ended, you’ll need to randomly select a winner.
Notification: The final step is to notify the winner and provide them with instructions on how to claim their prize. This process also requires a 1099-MISC form for the IRS if the price exceeds $600.

Sweeppea Can Help You Run Sweepstakes for CPG

Sweepstakes for CPG need a thorough understanding of both state and federal laws. Hiring specialists in numerous disciplines will take time and money. We understand you want to run your sweepstakes as soon as possible so you can get started earning profits and consumer data. This is when having expert help with your sweeps and contests makes sense, such as hiring Sweeppea.

The legal knowledge and experience of a sweepstakes company can help you run a successful legally compliant promotion. We also provide a self-service platform that can make running numerous promotions simple.

A third party will have the knowledge and time to devote to developing the finest practices and compliance with laws and regulations for contests and sweepstakes in the US, Canada, and Puerto Rico. Having a third party on board relieves much of the management responsibilities involved in running a sweepstakes promotion, allowing you to focus on more important aspects of your business.

Sweeppea is a contest and sweepstakes management firm. We’ve worked on many successful sweepstakes for some of the most well-known businesses, with over ten years of experience.

Successful Sweepstakes for CPG: Verano Magico for Coca-Cola Puerto Rico

Entry Methods

During the Sweepstakes Period, select individuals may participate in the Sweepstakes by utilizing one of the following methods (“Entry Methods”):

  • WEBSITE ENTRY: By visiting the Website, Entrants will be instructed to complete and submit the Sweepstakes entry form. Each completed and valid entry form will generate one (1) Sweepstakes entry during the Sweepstakes Period. After completing and submitting the Sweepstakes entry form, the entrant will automatically be taken to the “Spin the Wheel” Website, where the Entrant will be provided the opportunity to play (“Game Play”).
  • QR CODE ENTRY: Using a mobile phone capable of scanning QR codes, scan the QR Code offered in the sweepstakes-related promotional materials, available through participating businesses, to receive a link to the website instantly. The participant fill out and submit the sweepstakes entry form to enter. The entrant will be led to the virtual “Spin the Wheel” website (game) automatically after completing and submitting the sweepstakes entry form.

Entry Period

The Verano Mágico 2022 Sweepstakes and Instant Win Game begins on June 20, 2022, and and ends on July 31, 2022…

Eligibility

The Sweepstakes is open to natural individuals who are legal residents of the Commonwealth of Puerto Rico and who are at least 21 years old as of the start date.

Persons in any of the following categories are not eligible to participate, enter, or win a Prize:

  • Employees or agents of Coca-Cola Puerto Rico Bottlers, The Coca-Cola Company, Standout Graphix, Momares, LLC., and their respective parent companies, affiliates, divisions, or independent contractors
  • Suppliers, distributors, or retailers of Sponsor’s products
  • Individuals engaged in the development of, the production, or distribution of materials for this Sweepstakes

Winner and Prizes

Game Prizes come with rules, limitations, Prize provider participation, and expiration dates that are outlined in the Prize. The Approximate Retail Value (“ARV”) of all the Game Prizes is $8,650,451.70.

Grand prize promotional image from Caribbean Cinema Puerto Rico’s Facebook Watch promotion:

Verano Mágico Promotional Examples

From Caribbean Cinemas Puerto Rico’s Facebook Watch promotion:

Coca-Cola added promotional QR codes for a scan-to-win sweepstakes marketing strategy.

QR Code Examples from Caribbean Cinema’s Promotional Video

Example of Abbreviated Rules in the Sweepstakes Promotional Video

Firehouse Subs Verano Mágico Facebook Promotion

CPG Sweepstakes Promotional Material examples from Firehouse Subs

Results

Although we are not privy to the exact sales numbers, the client mentioned that Coca-Cola’s Magic Summer sweepstakes generated thousands of participants and produced hundreds in partner product sales through the redemption of the Prizes (product discounts) offered.

Conclusion

Sweepstakes can be a great way to increase awareness and excitement around your CPG. With the help of a sweepstakes company, like Sweeppea, you can run successful sweepstakes.

For more information on how Sweeppea can help you with your next seasonal CPG sweepstakes, email us or call us at 305–505–5393.

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