Lacking the massive advertising arsenals of their wealthy and aggressive national counterparts, most small businesses need to optimize marketing opportunities whenever they can. That’s why point-of-purchase advertising, also known as POP, takes on such added significance to the smaller player.
For one thing, it’s the great equalizer. A mom-and-pop outfit can compete with the likes of Coca-Cola and Gillette without being washed away. More importantly, as traditional media sources like television decline in popularity and usage, in-store POP becomes a more logical place to capture the customer’s attention and the sale.
The POP checklist runs the gamut from the more expensive, permanent fixturing to the more compelling 3-D displays and back-lit signs. Not to mention the basic in-store posters and hanging signage.
It goes without saying that where POP displays its greatest show of strength is on the retail floor. Unfortunately, it is that same environment that is so heavily in control of the POP playbook. Remember that the retailer ultimately controls the look of the store and how the displays or merchandising materials will fit. If the retailer doesn’t like the look or the program, prepare to be rejected.
Incidentally, categories that tend to shine in the POP arena include entertainment (movie rental and music), cosmetics, home and garden and electronics. If you want to learn who does it well, those are the environments to watch.
To help identify the key factors that drive a successful POP program, I pulled from three of the best in the business. Andrew and Mitchell Edelman are the principals of Phoenix Display, a $75 million subsidiary of the Union Camp Co. with clients such as Anheuser-Busch, NFL Properties and K-mart.
Rob Chaput is vice president of marketing of Atlanta-based Lighthouse Marketing, with clients including Coca-Cola, Crystal Springs and Burger King.
Both companies specialize in the design, development and execution of in-store POP and merchandising programs. The following represent their basic rules and admonitions to be taken into account when entering the POP minefield.
? Get floor space. That’s the name of the game. If you build it or show it, they will buy. It’s not an easy task. In the case of floor and counter displays, marketers for the most part pay for the display space. Consider it a real estate rental fee.
? Make it dramatic. The display must be dynamic in every element. The offer must be clear and succinct. The “shelf impact” must be arresting. Entertainment marketers and film studios do this best by building on the basic excitement of the product and leveraging it with cross-promotions to other popular third-party brands, like fast food. The whole point is to gain promotional display space by generating “noise” in the store. What better way to do this than by creating strategic partnerships that will appeal to as many customers and prospects as possible?
? Marry product and display. The display only has three-tenths of a second to do its job, so product packaging and display must be intertwined. Tylenol and Duracell, as examples, are masters of that art.
? Include another element. You’ll get better sales movement if you can tie the POP to another marketing element, such as a freestanding insert or a direct-mail campaign. Any pre-sell element will boost recognition of the display and the product, which ultimately means an enhanced disposition to buy on the part of the shopper.
? Monitor the execution. Supervision by a retail services group is vital. Because most point-of-sale material is not managed properly, hiring a field management group to set up and maintain the display becomes a necessity.
? Time is important. Retailers generally allow a narrow window for set-up and tear-down of merchandising programs, so be prepared to move quickly. Have materials ready and set-up staff in place. For the important Christmas selling season, plan the program at least a year in advance, compared to three months for a regular, non-seasonal promotion.
? Seek non-traditional channels. Marketers generally focus their POP guns on high-volume channels like department stores, supermarkets, discount stores and category-busters like Home Depot and Toys R Us. But the smaller, less-visible specialty stores and boutiques such as salons, home-craft shops, liquor stores and independent bookstores, can be equally important POP environments.
? Hire an expert. The POP world is a dangerous place for the novice. First-time players are strongly advised to get help from a design agency or promotional display firm familiar with the POP territory.
? Know the buyer’s needs. Be willing to customize your POP program to match the requirements of the buyer. For the smaller, independent retailer, perks for the store manager might be an important element. For larger chains, merchandising support that will drive store sales is the only thing on the chain buyer’s mind.
? Be a trend watcher. Before designing the program, analyze the market and the customer. Keep an ear to the ground. Look for what turns them on.
Today’s consumers are more critical and demanding. They seek a genuine benefit from the purchase and not just a cheap thrill. And they’re constantly changing in terms of need, desire and loyalty to the brand. Current research indicates, for example, that the retail customer will only respond to a discount/price-off offer of 25 percent or more. Anything less will fail to arouse the interest.
The beauty of a POP program is that it’s capable of delivering an immediate sale at the most important point in the marketing cycle when the customer is about to decide. But to make it work, get help from a professional.
Lorraine Spurge is on vacation. Alf Nucifora is an Atlanta-based marketing consultant.
