This deck evaluates the place Point of Purchase has in the advertising and marketing world. It explains that, at the time, Brick and Mortar stores such as Costco, Walgreens, and Safeway, have more foot traffic than traditional media such as television and radio.
2. Customer Service
We Provide Objectives
Define POP and the options
Investigate POP strategies
Explore the qualities of POP
Identify current trends
Consider integration of POP into a media plan
Look out for our red-light specials!
2
3. Brandhood
New
Wink Product
Hoodwink, a body care line, has introduced a new deodorant. Utilizing
different advertising media, such as television and magazines, Hoodwink’s
goal has been to gain a maximum number of general impressions, in hopes
of converting impressions to sales. But the sales for the new deodorant still
―stink.‖ Hoodwink is looking to revise their media plan, and is considering
using point of purchase.
Should Hoodwink use POP to reach their target and improve sales?
“If you choose to ignore the retail environment where the brand and the
potential purchaser come together, you're going to get into real trouble real
quickly. The potential purchaser will buy an alternative product so you've lost
twice and you didn't get the sale.”
– Tom Harris, CEO, Point of Purchase Advertising International
Source: NZ Marketing Magazine 3
4. Shopping Starts
What should Hoodwink consider before
choosing POP?
Here
Time to shop...
4
5. What is POP?
All POP contain three essential elements
1. An insight that illuminates how consumer behavior can be
influenced
2. Involves reaching and connecting with consumers when
they're in the shopping mindset, whether within or outside of
the retail environment itself
3. Is a joint effort between manufacturers and retailers
Source: NZ Marketing Magazine
Aisle One 5
6. What is POP?
Point-Of-Purchase
Look, Touch, Buy
Promotional materials
placed at the contact
sales point to attract
user interest or call
attention to a special
offer.
Source: Marketing News
Aisle One
6
7. What is POP?
In-Store Media
All About the customer experience
Anything in the retail
environment that
communicates to a shopper
with the intent to result in a
purchase.
Source: Journal of Advertising Research
Aisle One
7
8. What is POP?
On-Store Media
Capturing the consumer’s attention
A type of advertising that reaches the
customer while they are directly outside
the store, to entice them to enter.
On-store media is advertising displayed on
the exterior of the store, such as window
displays or outside fixtures.
Aisle One
8
9. What is POP?
Point-of-Purchase, In-Store Media, & On-Store Media
Collectively referred to as POP
“POP advertising creates an impression just as an ad or TV
spot does; but its primary goal is to create immediate action
– to make the consumer act impulsively.”
– Chase Rogers
Reaching the consumer while they are
in a ―shopping‖ state of mind.
Source: Marketing News
Aisle One 9
11. What are options?
the
POP can take the form of cardboard displays, coupons,
printed ads, video screens, and any number of other
creative innovations that persuade a consumer to buy a
product while they are near the point of purchase.
Aisle Two
11
12. What are options?
the
Microsoft’s Mediacart Emergence in Supermarkets
Microsoft has transformed grocery shopping to suit the busy, tech-savvy
consumer. Customers who are enrolled within a store’s loyalty card program
will have a greater advantage over non-loyal consumers. The Mediacart is
currently undergoing pilot studies within specific areas of the U.S.
Benefits
Facilitates communication
Time Saving
Store map and GPS with radio-frequency identification
Source: Digital Signage Today, Fox News, Mediacart.com
Aisle Two 12
13. What are options?
the
Microsoft’s Mediacart Emergence in Supermarkets
Facilitates communication
Customer can check prices on items.
Consumer can request immediate further information provided by the
manufacturer.
Video advertisements are delivered based on cart location, demographic of the
consumer, and/or prior shopping history
Advertisers can measure the effectiveness of their ad by immediate ROI
Time Saving
Grocery List can be uploaded to the loyalty card website.
The cart checks off items that are scanned into the cart.
Allows customers to scan and pay for their items without waiting
in the checkout line
Source: Digital Signage Today, Fox News, Mediacart.com
Aisle Two 13
14. What are options?
the
Microsoft’s Mediacart Emergence in
Supermarkets
Store map and GPS with radio-frequency
identification
Helps shoppers find specific products in the
store
Reminds consumer if they have forgotten an
item on their shopping list
Records data to help the continual investigation
of consumer behavior and purchase patterns
Delivers an ad to encourage brand switching or
brand/product awareness
Source: Digital Signage Today, Fox News, Mediacart.com
Aisle Two
14
15. What are options?
the
Wal-Mart TV Network
Fifth largest television network in the U.S., with an estimated 130
million viewers every four weeks.
In-store video network that is ―shopper intelligent.‖
Uses precise targeting through customization and displays
advertisements from Wal-Mart’s suppliers, customized to store
departments, aisles, day, and time of day.
Helpful product information, not repurposed ads from TV, with optimal
placement in store.
Planning to employ response measurement, learning, and message to
increase effectiveness and ROI, so data will be analyzed on an on-going
basis.
Source: www.mediaweek.com, walmartstores.com
Aisle Two 15
16. What are options?
the
Wal-Mart TV Network
How effective is it?
Shoppers watch Wal-Mart TV for an average of seven minutes per store visit.
66.4% unaided brand recall for five test ads on Wal-Mart TV; 24% is the industry
average for in-home TV ads. (AC Nielsen)
Costs of a basic advertising package (Advertising Age)
Three 30 second spots every two hours, five 10 minute spots every two hours
Costs $274,000 for a 4 week flight; based on 129 million impressions and CPM
cost of $2.28
Source: www.mediaweek.com, walmartstores.com
Aisle Two 16
17. What are options?
the
Wal-Mart TV Network
This means...
Customized messages targeted to consumers at the point of decision.
“Improving the shopping experience for
our customers and driving results for our
supplier partners.”
– Stephen Quinn, chief marketing officer
of Wal-Mart Stores, US
Source: www.mediaweek.com, walmartstores.com
Aisle Two
17
18. What are options?
the
Dynamic Digital Signage
Dynamic digital signage is a rapidly expanding medium that can now be
applied to full-sized windows with an array of multiple projectors
achieving crisp image resolution. This digital medium offers easy
installation, continual status monitoring, and quick content updates.
Source: WindowGain.com
Aisle Two 18
19. What are options?
the
Dynamic Digital Signage
Benefits
Content is networked for immediate content updates, scheduling
messages into dayparts, and monitoring status
Offers a variety of content formats including HD video, flash animations,
high-resolution still photos, live news feeds, or sports tickers, etc.
Unlike LED displays, image quality is maintained even when viewed up
close
The image to appears as part of the building architecture
materials are mobile and allow for installation and removal within days
Source: WindowGain.com
Aisle Two 19
20. What are options?
the
Online POP
Refers customers to other products, or suggests complementary items to
shoppers.
Recommendations made by a website, based on the consumer’s shopping click
trail, past purchases, and popular items.
Websites such as Amazon, E-bay, Nordstrom, and many others offer the consumer
suggestions about which other items to purchase, in the hopes that they will reach
the customer at a relevant time with the correct message, and make the extra
sale.
Source: ae.com, amazon.com
Aisle Two 20
21. What are options?
the
Ads projected onto shop windows in the Netherlands
Brands T-mobile, Intersport
How Video Projector
Purpose Pilot study of a new on-store window display strategy
24, 000 Shopper observations & 1,562 Interviews Later...
85% believed the content enhanced the store’s image
64% recalled at least one message
57% felt they had learned something from the displays
33% entered the store because of the window messages.
Source: AudioVisual (AV) Magazine, Research by 3M and The Point of Purchase Advertising Institute (POPAI)
Aisle Two
21
22. What are options?
the
Interactive Video Display in London
Brand Estee Lauder Skin Care for Men
How Radio Frequency Identification (RFID) and software
measures and tracks consumer interactions
Purpose
Videos appear on the display screens as customers pick
up certain products
Distributes specific targeted messages
Captures attention: has achieved 800 customer
interactions in the first two days of trading
Software records which products are of most interest to
consumers
Source: Digital Signage Today
Aisle Two
22
23. What are options?
the
Lifesize Holographic Virtual Assistant in Australia
Brand Audi Dealership
How 3M’s Vikiti 10mm rear projection
film and a video projector
Purpose
Facilitates communication,
entertainment, and enriched customer
experience
Promotes client as a progressive and
innovative brand
Source: Digital Signage Today
Aisle Two 23
24. What are options?
the
Electronic Paper (e-paper) in Singapore
Benefits
Thin, light and flexible like paper
Low power consumption, can be run from batteries
Flicker-free image maintains visibility when bent or touched
Crisp graphics compete with LCD and OLED displays
Purpose
Will be applied to POP displays in the near future
Can record and playback media content
Connectivity to store network enables stores edit the
message easily for promotions
Source: The Business Times
Aisle Two
24
25. What are options?
the
Apple emergence in International Mass Supermarket
Chains in Brazil
Apple products are highly desirable to Brazil consumers. Currently, the brand
does not operate an official Apple store in Brazil. Pao de Acucar and Extra
stores, two mass supermarket chains in Brazil, have special Apple kiosks
where consumers can purchase, finance, and engage in Apple seminars to
learn how to utilize Apple products.
Supermarkets and In-store Media in India
The retail atmosphere of supermarkets is a relatively new concept for India as a country.
These retail stores are integrating their own high-tech audio and video equipment to deliver
advertisements to their captive audiences while they are at the point of purchase. Advertisers
will still be able to target their consumer depending on where they are in the store. Each
department will carry their own content under the store network. One of the most important
goals is to differentiate your brand and not create general noise that could confuse or annoy
the consumer.
Source: Visual—media.com, Marketing News
Aisle Two 25
28. How does POP
work?
POP is based on shopper behavior
Shopping While in a store, a consumer becomes a declared shopper.
Relevant Buying messages in a store become relevant to a shopper.
Decisions 70% of purchase decisions are made in-store.
Messages 68% of shoppers said in-store messages would sway their
product purchasing decisions.
Information Knowledge-seeking consumers have increased capability to
access information.
Customized POP tailors to shoppers searching for information.
Buying behavior is influenced by messages in stores.
Source: engageinstore.com, Adweek.com, signindustry.com
Aisle Three
28
30. When does POP
Seasons
work?
Seasonal changes Changing POP to match with seasons and supply.
Attention Increased attention on displayed items increases sales.
Case Study The University Co-Op displays featured items on a ―wall‖
located at the entrance of the store, which gains the customer’s focus
upon entering the store, and helps to increase sales on the displayed
merchandise. The ―wall‖ items are changed frequently, depending on
holidays, sports, and seasons. The ―wall‖ can also be used to showcase
sale items or special offerings.
Calling attention to seasonal items helps improve sales.
Source: Interview, George Mitchell; thelast4feet.com, NZ Marketing Magazine
Aisle Four
30
31. When does POP
Impulse Buying
work?
Depends on the item POP works well with impulse items, such as drinks
and candy. Stores place magazines and small impulse buys by the cash
registers, knowing that customers will make a last minute decision to
purchase an item. The results can be measured with sales.
Purchase Decisions 75% of purchasing decisions are made within the last
4 feet. 46% of shoppers change their choice of purchase within the last four
feet.
Open to Suggestion Only 17% of shoppers use a shopping list, meaning
they are entering stores ready to make quick decisions.
POP entices shoppers to make impulse decisions.
Source: Interview, George Mitchell; thelast4feet.com, NZ Marketing Magazine
Aisle Four
31
32. Clearance
Quick Facts About the POP Industry...
History Stores emerged as a mass commercial medium in the 19th
century, since newspapers and magazines were only read by the
literate minority. With in-store media, stores could easily
communicate with immigrants and the illiterate. It developed into a
competitive tool, with different stores showcasing their goods
through windows, displays, and other methods.
Success Using the store itself as a communications medium was
powerful. It was engaging and it was ultimately more successful than
any other communications medium deployed by retailers before or
since.
Source: In-Store Digital Media: How to reestablish Retail’s Role as a Mass Consumer Medium 32
33. Clearance
Quick Facts About the POP Industry...
Spending $17.6 billion was spent on POP in 2005, a 5.8%
increase over 2004.
Allocation Only 16% of an average marketing budget is
allocated to point of purchase.
Sales for Stores Studies have found that in-store
advertising leads to sales increases of 2% to 15% in
supermarkets and 5% to 13% in convenience stores.
Source: Delloitte/GMA Draft Study, finda.co.nz, 2006 Entertainment, Media & Advertising Market Research Handbook 33
35. What are POP’s
strengths?
Messages in Context
Placement that Influences Placing merchandise in close proximity of
the POP allows shoppers to make the connection and can better
influence the purchase decision.
Relevant Gives shoppers a relevant ad message in the right place at
the right time.
Connections Helps brands connect with consumers close to the sale.
Enhance Enhances shopping experience, consumers are getting a
message they want to see.
Aisle
Source: retailcustomerexperience.com, Brandweek.com, Adweek.com, 2006 Entertainment, Media & Advertising Research Handbook
Five
35
36. What are POP’s
strengths?
Consumer Behavior
Target the Market Technology gives the
ability to tailor POP to exact shopping
behaviors and needs:
• Align length of media spots to
complement shopping traffic
• Target customers of specific
merchandise
• Can be customized to specific day-
parts, store situations, seasonal needs, or
other demands
Aisle
Source: retailcustomerexperience.com, Brandweek.com, Adweek.com, 2006 Entertainment, Media & Advertising Research Handbook
Five
36
37. What are POP’s
strengths?
Price Tags
Low Cost Floor ads in stores
can reach 40% of the US
population in two days, at a cost
of $.54 per thousand,
compared to $17.74 CPM for TV,
and $2.05 CPM for outdoor. The
floor ads also have been shown
to increase purchases or
purchase intent by just over
20%.
Aisle
Source: retailcustomerexperience.com, Brandweek.com, Adweek.com, 2006 Entertainment, Media & Advertising Research Handbook
Five
37
38. What are POP’s
strengths?
Return on Investment
Success measured in sales
45.3% of manufacturers find
the ROI of POP 50%-74%
better than traditional
marketing.
POP reaches shoppers
with the right message
in the right context for
low cost, increasing
probability of purchase.
Source: Reveries.com
Aisle Five
38
40. What are POP’s
weaknesses?
The Flip Side
Marketing Mix One small part of the promotion area of marketing mix.
Uses of POP Basically only good for impulse purchases, information, and brand
awareness, while commercial media is a high-quality platform for branding and long-
range buying.
Integration Needs to become better integrated with brand’s existing personality.
“...while its TV ads may successfully convey the [brand] concept to consumers,
they are subsequently swayed at the point of purchase to opt for retailers
offering cheaper brands...”
– Alex Brownsell, Marketing Magazine, February 2009
Brands cannot be built or rely on POP alone.
Source: retailcustomerexperience.com, 2006 Marketing, Media & Advertising Research Handbook, sciencedaily.com
Aisle Six
40
41. Price Check on
AisleSix
Measurability , a Weakness Examined
Currently hard to exactly measure the audience for each POP.
Example – RFID (Radio Frequency Identification)
Goliath Solutions is a marketing intelligence company developing a way to
track consumer response to in-store promotional displays, signs, and
merchandising fixtures.
How does it work? Uses RFID Technology to track displays within a retail
store and combines the information with store sales data.
“Store-level information about what is up and where it is in the store
allows unprecedented accountability for achieving program potential.
Over the past year, our in-store execution has grown to nearly double the
industry average.”
– David Van Howe, Vice President of Purchasing for Walgreens
Source: earthtimes.com 41
43. What are POP’s
opportunities?
Positive Direction
Growth POP is growing faster than internet advertising—doubling since 2004 and on
pace for an annual growth rate of 21% through 2010.
Partnerships Opportunity for partnerships with TV networks with celebrity
endorsements.
Technology Advancements in technology can target consumers more than ever
before.
Higher Recall Human memory is far more likely to recall an item upon seeing it again
in the store.
More revenue Chance for stores to generate revenue from ad space in store.
Example: The Co-Op is allowing new dorms to have ad space on their televisions.
Trends With the continued trend of media fragmentation and growth of DVRs, ad
dollars that have historically gone to TV buys will end up in the in-store media space.
There is room for exploration in POP.
Aisle
Source: Adage.com, Adweek.com, Forbes.com, 2006 Marketing, Media & Advertising Research Handbook, allbusiness.com
Seven
43
45. What are POP’s
threats?
Clutter in stores
Clutter As the retail environment becomes barraged with visual displays
and the like, consumers will resent or become desensitized to
marketing efforts.
Not in sync Ads and displays shown need to be in sync with the store
options and environment.
“The more consumers become exposed to everyday technology,
the more conditioned they become. If we are not careful, digital
media will become the new cardboard.”
– Simon Smith, creative director at 141 red.
POP exists in a cluttered ad environment.
Source: Journal of Advertising Research, Marketing Week
Aisle Eight 45
47. Why choose POP?
Current Trends in Traditional Media
Consumer in charge New technology has put the consumer in control of
when, where, and how they receive commercial messaging.
Lost ads DVR use has grown 35.7% in one year. 50% of ad content is lost when
DVR playback is within three days.
Fragmentation Audiences have become fragmented by the addition of
hundreds of new media options.
No ―mass‖ media No single TV show, newspaper, magazine, or website offers
such widespread access to consumers today.
More targeting Shift to more focus on online ads reflects marketers’ desire for
greater targeting and interaction with customers.
Too many traditional media options make it harder to reach consumers.
Source: Nielsen.com, Brandweek.com, retailcustomerexperience.com
Aisle Nine 47
48. Why choose POP?
What POP can offer
―Mass‖ media Retail environments are the one medium that can still aggregate a
mass audience. Weekly Impressions of TV Shows and Retail Stores
50,000,000
45,000,000
Weekly Audience
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Source: Marketing News
Aisle Nine 48
49. Why choose POP?
What POP can offer...
Uses Insights Aligns media with consumers’ habits.
Shopping Aid Shoppers find POP helpful in the buying
process.
Connects Appropriate and consumer-oriented advertising
connects with consumer at the point of purchase.
Improves Sales Encourage an average of 6.5% brand
sales lift.
POP reaches consumers more effectively.
Source: Brandweek, retailcustomerexperience.com, Marketing News
Aisle Nine
49
50. Chat at the Register
Cashier: George Mitchell, President & CEO of the
University Co-Op
The University Co-Op uses a variety of POP materials in the store, including
displays and televisions.
POP is a very important part of the Co-Op and increases sales, but very
little money is actually spent on it, making it extremely cost effective.
The success of a POP display depends on the product it is selling.
Sales are the primary method for measuring effectiveness of POP.
Manufacturers are cutting back on free POP displays because of the
economy, but the idea of POP is not going away.
A new insight is viewing the brand itself as a POP, as people like to buy
specifically from the Co-Op and will travel miles to shop at the original store.
50
51. ReviewCart SMIT Advertising can
have a variety of
effects, only with POP
do you know that effect
is purchase.
Reaching the consumer while they are in a "shopping" state of mind.
Options are numerous.
Buying behavior is influenced by messages in stores.
Calling attention to seasonal items helps improve sales.
POP entices shoppers to make impulse decisions.
POP reaches shoppers with the right message in the right context for low cost,
increasing probability of purchase.
Brands cannot be built or rely on POP alone.
There is room for exploration in POP.
POP exists in a cluttered ad environment.
Too many traditional media options make it harder to reach consumers.
POP reaches consumers more effectively.
Source: Simon Young, ―Point of Purchase/In-Store Media‖ NZ Marketing Magazine 51
52. Checkout hood
Wink
What is Hoodwink’s Choice?
In the competitive marketplace, Hoodwink has been having
trouble connecting with consumers. With the number of
messages the average person receives during the day,
Hoodwink needs to put their message in the right place at the
right time.
With a well-planned strategy, including commercial media to
build brand personality and loyalty, getting a message to the
buyer at the point of purchase will give Hoodwink an advantage
in the buying process.
Source: thoughtequity.com 52
54. NewComing Soon
Items
As technology advances, POP is becoming more
and more digital and targeted.
Store is used as a new media channel.
Source: Interview, George Mitchell; 2006 Entertainment, Media & Advertising Market Research Handbook 54
55. THANK Y O U
Come back soon!
Brought to you by Team Hungry Hippos
56. POINT O F
PURCHASE
Advertising
Capturing a shopper’s mind, heart, and wallet.
Brought to you by Team Hungry Hippos
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