High Gas Prices Are an Opportunity for Marketers

A couple weeks back, Krispy Kreme CMO Dave Skena’s marketing team was sitting around waiting for their regular strategy meeting to start. Amid the banter, someone began grousing about the rising cost of gas. With the average price per gallon hovering a little above $4—but much higher in some states—that complaint has become a common one. Consider this: The most popular vehicle in America right now is the Ford F-series pickup, which has a 26-gallon tank. That means filling up your Ford in California, where gas is currently $5.70 a gallon, will set you back $148. So when Skena’s meeting finally got underway, it was quick work to cook up a new promotion for Krispy Kreme. Its "Beat the Pump" incentive (which taps into the company’s “strategic doughnut reserve,” a not-so-subtle riff on America’s national petroleum reserve) will, every Wednesday, sell a dozen doughnuts at the average national price for a gallon of regular gas. With a dozen glazed going for about $10.50 in New York, getting 12 doughnuts for $4.10 (the average price for a gallon of gas in the state) is effectively a 60% discount. “We know we can’t make gas prices go down,” Skena said, “but we feel like we can cut people a break. A lot of other brands realize the same thing.” Indeed, they do. In the weeks since gas prices peaked in March, a multitude of brands have launched promotions tied to petrol, effectively turning dire news into a timely marketing opportunity. Timing is everything Pennsylvania’s Giant Eagle supermarket chain has extended its Perks program until the end of 2022 in light of inflated pump prices. It allows shoppers to apply store points, which are earned by buying groceries, to get fuel discounts at GetGo stations. The Kroger chain has a similar program that lets shoppers earn “fuel points” through shopping. In early April, shortly after prices peaked, the Bojangles chicken chain launched its Million Dollar Gas Giveaway, which hands out a $10 gas card with the purchase of every family meal until the restaurant burns off $1 million. Sam’s Club, meanwhile, is offering a $45 gift card, redeemable at Sam’s Club Fuel Centers, to everyone who joins. “Motorists have become very price sensitive as [gas] prices have exploded,” said Patrick De Haan, analyst at fuel-price tracker GasBuddy. “That's why you're seeing a lot of marketing covering the high price of gasoline. It’s incredibly powerful, and a lot of these outlets know that this is striking a chord with consumers right now.” Even cannabis dispensaries have gotten into the act. In Michigan, Jars cannabis has partnered with Speedway Gas to give away $25 cards with the purchase of an eighth (3.5 grams) of its Hyman Bonzeen weed. Sobering prices at the pump, a Jars spokesperson told Adweek, are “posing a massive financial burden to our customers. We thought a gas card would be a great way to incentivize customers to come see us.” And they have. The spokesperson said some shoppers have tried to buy four packages at a time, but there’s a limit of two per day. That’s $50 in free gas, assuming you were going to stock up on 7 grams of weed anyway. Shared circumstances Obviously, the companies offering these promotions would like to be seen as generous friends to their shoppers. But there’s as much of a need on the part of the brands as the consumers. In Sam’s Club’s case, for example, the incentive leads customers straight to gas pumps the company already owns. Retail analyst Bruce Winder said it’s no coincidence that the brands offering gas incentives are retailers that rely, quite literally, on traffic. “With gas prices as high as they are, consumers may stay at home more and shop online,” Winder said. “Brick-and-mortar retailers need physical traffic to survive, and these promotions help by getting customers into stores.” The Jars spokesperson conceded that since weed can’t be shipped through the mail, “we do, unfortunately, still need that foot traffic or driving traffic to be staying afloat.” Another factor working in favor of these promotions, Winder said, is the fact that high gas prices are a shared national burden right now, so the appeal is both timely and broad. “Brands are offering something that is on the mind of virtually all consumers," he said. "Gas promotions generate more discussion, which gives these promotions more attention.”

CPG News

High Gas Prices Are Bad News for Everyone, but Also an Opportunity for Marketers

Brands turn troubling events into timely marketing

Robert Klara

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Robert Klara