You've developed your product and tested it with focus groups. Your customer feedback on its effectiveness is fantastic.
You've also done your social media campaigns and spent most of what your budget allows for advertising and marketing.
You've poured all your time and resources into the product. Now it's time to watch it fly off the shelves.
When you decided to make the jump, and launch in retail outlets, you also decided to cut costs by letting your product go on a shelf.
Of course, it happens to be sitting right next to its competition.
Sure, you are cash-strapped, but was this really the best thing you could do for your product?
How long can you afford to not hit your sales goal numbers before your retail outlets drop your line?
Retail sales can be brutal, especially for new products.
The traditional assumption is that new product failure rates are around 80% (recent analysis changed this figure to about 50%).
Can you afford to not use every available resource to get noticed by your prospective customer? Will your product be one of those 1-in-2 statistics?
Find ahead several reasons why you might think you DON'T need POPs, and exactly why you should reconsider. POP stands are great to place your product rather than the cold, bare shelves.
You're looking at your budget, and the numbers don't add up. You don't believe you can stretch it any further.
One of the expenses you decided to hold back on was retail outlet merchandising. Your hunch might be in the right place, but it's also valid to ask yourself if your new product sales might hurt from it.
The correct implementation of POP's has been proven to dramatically boost product sales.
Stats show that POP's boost sales by up to 20%.
Carefully consider whether your new product will stay safe and selling if it's only placed on shelves.
You already know the numbers, and a POP display could only enhance your social media and feedback.
Besides, POP displays don't have to cost an arm and a leg: there are several ways of keeping manufacturing costs low. One of them is to order them with as much time in advance as possible.
This will help you reduce costs with the POP manufacturer, as well as give you additional flexibility with shipping options.
Another factor is the material the POP will be made of.
There are several options when you choose to go with either wood, metal, or cardboard, and they go through a range of possible costs. Take into consideration the costs as well as the material's yield.
The last consideration is the quantity of the POPs to be manufactured. Usually, the higher amount you order, the lower the price point, but it can depend on various factors.
Whichever approach you take, make sure you have everything you need to make an informed decision. Your POP manufacturer should provide you with details on all the possible scenarios so you can make the most cost-effective decision.
Placing your product within your customer's view is a sure way to get noticed.
While reaching 1,000 adults through a 30-second network television commercial costs $4.05 to $7.75, the cost per thousand for a store merchandiser or a sign with a one-year life is only 3 cents to 37 cents.1
Taking into consideration that 72% of the purchasing decision is made at the time of purchase, you need to make the most out of that retail moment.
Place your brand's message right there on the display and watch your brand grow.
A winning strategy for new product launches is to factor in the POP display. Launch time is the best moment to implement your best merchandising strategy and get your product some attention.
The POPAI 2014 Mass Merchant Shopper Engagement StudyPOPAI, sampled almost 3,000 United States mass merchant shoppers in three major mass merchant retail chains. The results from pre-/post- interviews and eye-tracking videos show a great difference between shoppers in the mass merchant channel and the grocery shoppers in the 2012 Shopper Engagement Study. Some key findings:
These insights suggest the importance and persuasive tendencies displays can have on shoppers' purchase decision. Read the entire report here: memberconnect.shopassociation.org |
You've been making stellar sales numbers online and you already have a dedicated client base. So, you've decided your product's next step is to start selling in retail stores.
Consider your product will now be in front of new customers—who have probably never heard of your brand or product before—and it will be right next to your well-known competition brand.
You have a huge opportunity to reach new customers you wouldn't have otherwise. In other words, it's an incredibly effective way to bring your brand's story to the hands—and hearts—of new customers.
These new, potential customers might already be wedded to a certain brand, so you need to attract them first in order to lure them to your product.
Ultimately, the goal is to sway the purchasing decision your way.
A consumer may make an unplanned purchase because something in the store, such as a point of purchase display, triggers a reminder that they need something.2
POP displays have a great record of doing just that.
They allow you to place your unique selling proposition right in front of your customers' eyes and showcase your product's features over the competitions.
As for your existing customers: it will let them find you that much easier. You can create a more tactile shopping experience on the retail floor, and have customers remain loyal to your product.
Large/heavy/big products always face a challenge when being displayed in retail stores.
Oftentimes this means that the product itself must be displayed and for practicality reasons, without any signs.
The problem is that this doesn't allow for all its features to be clearly communicated to your prospective buyer. Also, retail stores sometimes do a poor job of portraying them properly.
One of the main benefits of a POP is that it can be custom-designed to fit your product's specific dimensions.
It can emphasize the feature set that will persuade your customer into buying it. This way your product doesn't have to rely on it’s packaging alone.
Nowadays, a POP isn't limited to a cardboard box.
Freestanding floor POP displays are a popular option. They can take the shape of a shelf or pallet with signage that features your product's unique selling proposition.
They're also known to have the biggest effect over rack, shelf and counter displays.
There are ways to make a large POP more practical to ship.
One of these is going with a knockdown design. This keeps transportation costs to a minimum and makes for easy assembly.
Yes, most retail outlets are cluttered.
Depending on your product segment there can be a lot of competition and your product will be thrown right into it.
Possibly next to your competition's own POP displays.
To put things into context, the average Walmart supercenter carries an average of 140,000 different items. And they are all doing their best to influence their prospective buyer.
The truth is that you're fighting to get your customer's attention.
Consider that some 70 percent of retail purchases aren't decided until the customer actually is in the store, it's clear what impact something as simple as a POP display can have.3
But you already knew that when you decided to go into retail. This is where POP design and execution become crucial and they can have the biggest impact on your sales numbers.
Don't feel like you just need to copy someone else's POP display structure to compete. Take this opportunity to make your product shine in its own light.
You can choose to go with something unexpected for your segment.
Your responsibility is to conveying the unique advantages of your product over your competition.
If your POP display has already succeeded in making such an impression, it's possibly already conquering the retail floor battlefield.
So much that your brand name has the potential to be associated with the product's nature and function (think Jell-O for gelatin desserts).
You have an advantage few others will ever have when you don’t have direct competition.
It's fair to consider that finding your one-of-a-kind product among the shelves will be a challenge for your customers.
An inflatable or mobile POP was shown to increase the sale of specific products by 40% on average.5
Also, unexpected changes in the buying decision can happen right in the retail store. Your customers might get distracted, or they might decide to stop scouring the shelves for your item and rather get a substitute product.
A POP is a highly effective way to present your product's unique features to potential customers, and for them to learn to find your product faster.
If your value proposition is shown at eyesight, it can drastically increase your POP's effectiveness.
Also, it can help establish brand recognition. Your brand name and logo is on the display, and people who've never heard of you will stop by if your product promises to meet their specific needs.
A POP can be a great means of transmitting your brand's values to your customer.
Again, think outside the box, and appeal to your customers' other senses. Your brand is much more than the colors and typography you chose to use on your packaging. It involves everything surrounding it. It's a multi-sensorial experience.
68% of shoppers said in-store messages would sway their product purchasing decisions.4
We can see an example of this in Abercrombie and Fitch stores.
They spray the different fragrances they sell around the store. Whether customers like it or not really depends if they're the target customer (18 to 24-year-olds that fit in their clothes).
Nonetheless, it's highly effective in creating an immersive experience through using the sense of smell.
Also, consider the use of different textures, finishes, movement, and mood lighting.
POPs can portray the imagery and sensorial experience of using your product to your customer even before they purchase it.
The more effectively it's done, the better it will be at leaving a lasting mental image. This is the key to getting noticed and being remembered.
Fair enough.
Spending time and money on a single POP display could mean additional complexity to your merchandising strategy.
If your chosen display isn't ideal for your product, a couple store tests could tell you so.
What happens if your value proposition isn't worded effectively? Is the color scheme drawing enough attention? Is the POP's typography matching your brand's identity?
This is one of the reasons why working with a company that offers short run production of POPs can become a great asset.
Temporary P-O-P displays increase sales 23.8%6
It allows you to test several designs in a cost-effective way.
Another benefit is that you don't have to delay the production of the "perfect" POP.
Attention to detail is important, but not if it comes at the expense of keeping your POP from increasing your sales.
Short production runs are a cost-effective way to use an agile methodology for your merchandising and reap all the sales rewards.
All of the above are good reasons why you should choose to use a POP to launch your new product.
However, the main thing to consider is your bottom line: how much revenue can you actually get from investing in a POP display?
Many times, the limiting factor on how much you can afford to invest in a POP is determined by the product itself.
The main thing to consider is your bottom line: how much revenue can you actually get from investing in a POP display?
For example, an expensive metal POP might not be the best option for a product with a narrow profit margin.
Not even considering the POP-related sales boost. At the same time, it can make perfect sense for a product that has a higher retail value and profit.
Because of all these reasons, it's important to work with a company that has the experience.
They should be able to guide you in choosing the best strategy. They should also make sure that you are aware of all the costs involved in launching a POP run for your product.
There is plenty of research and case studies to back this up.
At Catalpha we make sure that your product's POP strategy is on-point. We're willing to help you make your product stand out and get the sales you need.
Our merchandising experts have worked with the largest retailers in the country in different market segments.
This gives us the confidence we can find the best POP solution set for your new product launch.
Now I'd like to hear from you.
Do you agree that POP displays are effective?
Or maybe you have a question?
Leave us a quick comment below.
Here are some additional blog posts that you might find interesting:
Everything You Need To Know About The Cost of Short Run POP Displays
How Much Do Point of Purchase (POP) Displays Cost?
10 Tips To Create Effective Custom Cardboard Point of Purchase Displays
References
1. “Consumer Product Marketing: The Role of Permanant Point-of-Purchase,” POPAI News, vol. 6, no. 2, 1982, p. 5.
2. "Consumer Behavior Shopping Habits," marketingteacher.com
3. "What Is a Retail Point-of-Purchase Display? ," thebalance.com
4. engageinstore.com, Adweek.com, signindustry.com Aisle Three 28
5. "POP Displays: What Are They And How Can They Affect Your Retail Store?," sparinc.com
6. "The 2016 P-O-P Trends Survey," Path To Purchase Institute, p.4.
Exapmles shown are not necessarly the work of catalpha.
Winning the In-Store Purchase Decision Game Whitepaper is courtesy of shopper-sense.com