CPG channel strategy: why location and occasion matter

For consumer packaged goods (CPG) brands, location is about more than where a product is sold. A useful starting point for channel strategy is to consider where your target audience already spends time, what they need in that moment, and how your product fits the consumption occasion.

The opportunity is not simply to add another sales channel. It is to connect the right product, pack and occasion with an existing consumer need.

What does location mean for CPG channel strategy?

Location? Location. Location! What started as a mantra for real estate also offers a useful perspective on category and channel thinking.

Years ago, reading Anyone Can Do It by Sahar Hashemi and Bobby Hashemi, the founders of Coffee Republic, one of the key messages I took away was this: find the place where your target audience already congregates and where a need already exists. Then focus on doing a better job of meeting that demand than the alternatives.

For category and channel teams, that means looking beyond the outlet itself. Who is there? What are they trying to do? What would make a product relevant at that particular time?

MOMA: the right breakfast in the right commuter location

This always reminds me of when I first discovered MOMA’s Bircher muesli: pots of delicious overnight oats sold from small carts in busy commuter stations.

It was not just about being in the station. They were in exactly the right place, by the platforms, at exactly the right moment, the morning rush hour. For commuters like me who wanted a healthier, tastier breakfast to eat on the train, the fit was just perfect.

I loved those pots so much that, as their popularity and the queues grew, I actually started getting up earlier to reach Waterloo in time to beat the queue and get my breakfast fix.

That is a personal example of how compelling a product can become when it ticks several boxes at once: the food you want, in a convenient format, in the place where you need it, at the time you want to eat it.

Why the consumption occasion matters, not just the purchase

In a category workshop, we discussed sampling. Not simply the traditional “here, taste my product” approach, but using small or different pack formats to get products into consumers’ hands in the right place, at the right time.

Being present at the moment of consumption, rather than only at the moment of purchase, can offer more than an additional revenue stream. It can give consumers a reason to reappraise a brand and consider how it fits into their lives.

The distinction matters: a channel tells you where a product is sold; a consumption occasion helps explain when, how and why someone might use it. Considering both can open up different questions about distribution, pack format and sampling.

Could an airline snack create an emotional connection?

This also makes me think of airlines and the option of a drink with olives or pretzels, such as those from Olly’s. When the location and occasion work together, could the experience do more than introduce a product?

My hypothesis is that, after the hassle of getting to an airport, passing through security and boarding, a drink and olives might mark a moment to pause and relax.

Perhaps some consumers would want to recreate that feeling at home, for example after a stressful commute, especially if the brand reinforced the connection along the path to purchase. This is a hypothesis to explore, rather than evidence of a measured change in purchasing behaviour.

How to apply this thinking to your CPG channel strategy

When assessing a potential channel or sampling opportunity, I would start with five questions:

1. Audience: Where does your target consumer already spend time?
2. Need: What are they trying to satisfy in that setting?
3. Occasion: When and how will they consume the product, and how close is that moment to purchase?
4. Format: What pack size or format would make the product convenient and relevant?
5. Brand connection: What perception or feeling could the experience create, and how could you test whether it carries into future purchases?

The point is not to be everywhere. It is to identify the places and moments where your brand has a meaningful role, then explore whether the opportunity works for consumers and for the business.

This is one of the things I love about my job: connecting disparate worlds, finding parallels and common principles, and turning them into ideas that can transform category thinking.

For your next category workshop, ask: where could our product meet an existing need at the moment it matters most?

Frequently asked questions about CPG channel strategy

What role does location play in CPG channel strategy?

Location connects a product with consumers where an existing need occurs. Channel decisions should consider the audience, timing, pack format and consumption occasion, not just the outlet.

What is the difference between a purchase occasion and a consumption occasion?

A purchase occasion is when someone buys a product; a consumption occasion is when and how they use it. A commuter might buy breakfast at a station and eat it on the train.

How can CPG brands assess a new channel opportunity?

Start with the target audience, their need in that setting, the consumption occasion, the appropriate pack format and the brand connection you want to test.