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2006 IM Sales Presentation

The power of in-store POP

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2006 IM Sales Presentation

  1. 1. The Power Of P.O.P. “ Serving as the last three feet of the marketing plan, P-O-P advertising is the only mass medium executed at the critical point where products, consumers and the money to purchase the product all meet at the same time. It is no coincidence that with 74 percent of all purchase decisions in mass merchandisers made in store, an increasing number of brand marketers and retailers invest in this medium.” Source: POPAI
  2. 2. Here’s The Good News… <ul><li>“ Point-of-Purchase information has a greater influence on final purchase decisions for apparel, food and consumer electronics than any other means of product communication.” </li></ul>“ Media Influence on Purchase Decisions,” In-Store Marketing Institute November 2005
  3. 3. Purchase Decisions Source: Decision Analyst December 2005 This information is based on the three industries (apparel, consumer electronics and grocery items) where P-O-P shows the greatest influence on purchase decisions.
  4. 4. Percentage Of Effectiveness <ul><li>Percentage of Effectiveness by Medium </li></ul><ul><li>Word of Mouth 63% </li></ul><ul><li>Sampling 45% </li></ul><ul><li>In-Store/On Premise 32% </li></ul><ul><li>Mass Media 27% </li></ul><ul><li>(TV, radio, newspaper, magazine, billboard) </li></ul><ul><li>Interactive TV 24% </li></ul><ul><li>Sponsorship 23% </li></ul><ul><li>Non-mainstream media 18% </li></ul><ul><li>Public Relations 15% </li></ul><ul><li>Product Placement 12% </li></ul><ul><li>Online 10% </li></ul><ul><li>Direct Mail 7% </li></ul>“ MediaVest,” Engagement Study September 2003 This information is based on results from ALL industries including the automobile and health products industries where word of mouth and sampling (test driving) result in higher effectiveness.
  5. 5. Effectiveness By Type
  6. 6. P.O.P. vs. T.V . <ul><li>No longer can “in-home only” media plans deliver an advertiser’s message effectively or efficiently… </li></ul><ul><li>“ the money is shifting, little by little…out of traditional media and into alternative media and new media” </li></ul><ul><li>Bill Cella </li></ul><ul><li>Chairman & CEO </li></ul><ul><li>Magna Global Media </li></ul>
  7. 7. Here’s Why… <ul><li>There are no longer only three major networks. </li></ul><ul><li>Satellite TV, Pay-Per-View programs, video-on-demand, DVD’s, TiVo and video games are reducing commercial viewership. </li></ul><ul><li>The number of commercials viewers are exposed to have increased dramatically. </li></ul>
  8. 8. Gone From Home (GFH) <ul><li>Americans are leading an ever-increasing on-the-go lifestyle. </li></ul><ul><li>There are more vehicles per household today then there were 25 years ago. </li></ul><ul><li>People are gone from home 60% more than they were 25 years ago. </li></ul><ul><li>Dining out expenditures have increased 40% since 1995. </li></ul><ul><li>88% of all purchase decisions are made during the GFH space of 7 AM and 7 PM. </li></ul>
  9. 9. Here’s The Bad News … <ul><li>Less than 50% of point-of-purchase displays actually get set up. </li></ul>Source: POPAI
  10. 10. <ul><li>EXECUTION!!! </li></ul>The solution is…
  11. 11. The LAMA!!! <ul><li>The #1 benefit the LAMA has to offer over its competition is its ease of compliance. </li></ul>EXECUTION = SALES
  12. 12. LAMA Stories Hewlett Packard – Camera Sales Objective – HP partnered with Wal-Mart to drive camera sales. This 2 hour promotion in 2800 stores was designed to have children’s pictures taken with Shrek characters using HP cameras. This 6’ x 6.5” Wall LAMA was put up at 2:00 PM and taken down at 4:00 PM. Results – Created lines around the store and resulted in a significant increase in camera sales plus awareness of the camera department at Wal-Mart. Saved HP $100K in shipping charges compared to corrugated alternative. Proctor & Gamble – Charmin Mega Roll Objective – Another Wal-Mart program created to launch awareness of the new king size tissue rolls with click on dispenser attachment. Results – Demonstrated increase in unit sales and new product knowledge. Def Jam Records – Maria Carey Objective – To create awareness for soon-to-be-released Maria Carey CD. Two LAMA programs tied together with a Mini CD holder plus a Big 4 lama with CD tray for display and take away. Results – TBD
  13. 13. P-O-P Budgets <ul><li>Results from the annual Retail Marketer Survey: </li></ul><ul><li>47% off all respondents said P-O-P displays, which tied Internet Marketing for the top two spots among selected tactics, was the area of their marketing budgets that received the greatest emphasis. Only 15.2% reported an increase in TV advertising, and just 12.5% reported an increase in radio ads. </li></ul>“ The 2006 P-O-P Trends Report,” In-Store Marketing Institute December 2005
  14. 14. Annual Spending Source: Veronis Suhler Stevenson January 2005
  15. 15. <ul><li>More and more decisions are being made in store </li></ul><ul><li>P-O-P has proven effectiveness </li></ul><ul><li>Budgets are increasing </li></ul><ul><li>The Lama is an easy way to EXECUTE point-of-purchase promotions! </li></ul>The Point Is…
  16. 16. The Solution Is… <ul><li>More and more decisions are being made in store </li></ul><ul><li>P-O-P has proven effectiveness </li></ul><ul><li>Budgets are increasing </li></ul><ul><li>The Lama is an easy way to EXECUTE point-of-purchase promotions! </li></ul>

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The power of in-store POP

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