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Get an edge over the competition at the Retail Merchandising Showcase at GLAS

To get an insight into the minds of shoppers in your stores, visit our Retail Merchandising Showcase, in partnership with Shop Equipment Ltd, at the GLAS trade event at Citywest on July 20th
To get an insight into the minds of shoppers in your stores, visit our Retail Merchandising Showcase, in partnership with Shop Equipment Ltd, at the GLAS trade event at Citywest on July 20th

Investing in quality Point-of-Purchase (P-O-P) merchandising display equipment as a brand owner and retailer can lead to an increase in interaction from consumers and ultimately sales

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6 July 2017 | 0

Quality retail merchandising is essential to drive strong growth in sales and profit margins. Investing in quality Point-of-Purchase (P-O-P) merchandising display equipment as a brand owner and retailer can lead to an increase in interaction from consumers and ultimately sales

At our GLAS 2017 Retail Merchandising Showcase, in partnership with Shop Equipment Ltd., we show off the best from the retail merchandising world.

Participants in the Retail Merchandising Showcase at GLAS include: Westland, Whelehan Crop Protection, Unichem, Deker Horticulture, NAD, GardenFx, Norman Emerson, Hygeia and more.

One of the biggest challenges however to face marketers and merchandisers is understanding the effect of all types of P-O-P on consumers and how they affect the decision making of a customer.

Point-of-Purchase Advertising International (POPAI) UK & Ireland met this challenge head on and carried out their research over three years. Using ClipCam technology on 1,718 shoppers, they video recorded over seven million customer interactions with P-O-P displays.

These interactions were then used to calculate a performance ratio for each type of P-O-P display advertising.

The report started in Asda and Co-Op stores and then later included Tesco. While the report was carried out in a grocery retail setting, the findings are transferrable to any sector as it investigates our actions as customers and how we react with different types of P-O-P advertising.

These findings present retailers, merchandisers and garden centres owners alike a key opportunity to target their customers effectively through tried and tested merchandising methods.

The four key ratios that the report investigated are as follows:

Impact – A measure of the number of shoppers who look at a display as a ratio of the total number of shoppers who have an opportunity to pass and see it.

Engagement – A measure of the number of people who look at a display and then go on to interact with the display or product prior to making a purchase decision.

Conversion – The ratio of shoppers who look at a display, engage with it and go on to purchase the product by putting it in their basket.

Loss conversion – A critical measure of the extent to which a shopper looks and engages with a product or display – but then returns the products to the display and does not make a purchase.

The research states that “P-O-P effectiveness is specific to the application, product and brand.” It does, however, also state that P-O-P displays featuring or simulating movement have greater Impact with shoppers.

“Researchers are also keen to reinforce the long held view that retailers have a crucial role to play in helping to influence the effectiveness of P-O-P displays.

“The focus by many retailers on achieving uniformity of display in-store is seen as potentially damaging – turning displays into just another standardised fixture that delivers little, if any, impact – restricting opportunities for Conversion.” according to the report.

Messaging in merchandising, can have a significant impact on all aspects of the decision-making process in-store.

It is imperative therefore that merchandisers and retailers utlise the correct language; fine-tuned to target specific audiences with a definitive promotion or call-to-action.

“Most shoppers appeared to be attracted to displays that show messaging focused on promoting new products, value, or savings and have 5.17% impact ratio.

“This seemingly clear driver for shoppers however becomes less clear when analysed on the basis of which type of message actually engages shopper. Price reduction of 36.9% and quantity discount/ multi-buy of 34.5% all delivered a lower engagement ratio than P-O-P displays which focused on promoting extra free product – 50%, competitions – 50%, and discount vouchers – 41.7%.”, said the report.

Highlighting that the use of price promotion does not automatically translate to a more engaging proposition for shoppers but rather, ending alternatives to price could actually prove more beneficial.

Shoppers are being faced with a growing number of different P-O-P mechanics when they shop modern retailers and are becoming increasingly aware of the volume of communication messages that are being targeted at them.

For many, the increase in the amount of messages being pushed in store can lead to a mental state where they are actively choosing to deselect or filter out much of the communication that exists in-store, only engaging with brands, promotions and messages that they view as personally relevant, meaningful and of value

Is there really a perfect formula for deciding the best combination of display type and message to unlock sales conversion? Sadly, this answer is no.

However the study shows that some forms of display are highly effective – in-store demonstrations for example. Though these can be expensive, in-store demonstrations and product sampling through retail teams or field marketing personnel topped the league table for impact and engagement ratio.

Within the store, visibility counts for a lot. During the shopping mission, the mere presence of well-constructed and implemented P-O-P packs a punch; get shoppers to look and compare visual cues to ones already held in the shopper’s memory.

Typically, this process can take a little as 50 milliseconds. To do this the display needs to stand out from the crowd, to ‘promote’ itself from the background products. Size, position, colour, shape and movement can all help achieve this.

No single display type or message combination will work for every product. But from the list of P-O-P displays and messages that grocery retail marketers can choose from, the study provides some useful indicators to help improve in-store performance, particularly in relation to maximising impact.

The study has also reinforced the so-called three golden rules of display – Location, Location, Location. Marketers have acknowledged the importance of obtaining the right location for P-O-P displays in-store for some time.

Put simply, you can have the best P-O-P in the world with the best offer in the store, but if it is located at the back of the store with low traffic flow, next to the toilets, you’ll only get a great response from the elderly and incontinent.

While this study examined retail grocery shoppers, the facts are transferrable. Whether you are a retailer or merchandiser the findings contained in this report are invaluable to the horticulture trade.

To get an insight into the minds of shoppers in your stores giving you an edge over the competition visit our Retail Merchandising Showcase, in partnership with Shop Equipment Ltd, at the GLAS trade event at Citywest on July 20th. Check out the GLAS website for more information on the event.

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