Electronic Retailer - July 2012 - (Page 39)

BY GREG TUCKER Why Investing in Point-of-Purchase Displays Pays Off CHANNEL CROSSING: RETAIL Silence is golden and the silent salesman known as a point-of-purchase display continues to be one of the most influential pieces of the marketing mix. Advertising and marketing campaigns share similar goals with point-of-purchase displays, as these displays hold the competitive advantage others lack: location. Since an estimated 70 percent of decisions are made within the competitive landscape of the store, it comes as no surprise that a growing number of brands are investing in this strategy. The direct response industry is flourishing because of this impulse purchase trend, which is why prime in-store real estate is now reserved for As Seen On TV products. There is no better time to catch a shopper’s attention and drive awareness of a brand than when they’re in a store, with money in hand, ready to buy. It is also why the corrugated industry in which Bay Cities operates continues to thrive. Previously obstacles shoppers would run into with their carts, points of purchase have improved structurally. Yet, the objective remain the same. From power wings to pallet displays, a point-of-purchase display refers to any promotional piece placed at the point of sale. They serve to create a compelling and definitive voice that differentiates a product – and ultimately closes a sale. Point-of-purchase displays are an integrated part of aggressive in-store marketing campaigns and the final step in various promotional projects. They capitalize on the impulsive nature of most shoppers who often make in-store decisions based more on the packaging than brand itself. One of the main goals for the direct response industry is getting a product to market, but then what? Parallel to direct response, point-of-purchase displays promote a direct action from shoppers. Direct response advertising drives customers to take immediate action. So does a point-of-purchase display. Each goes hand in hand to convince a customer to buy a new or unknown product rather than something familiar or trusted. Initial marketing or advertising efforts may have caught a consumer’s preliminary attention or interest, but the real challenge lies with turning that desire into action. Point-of-purchase displays can convert curious shoppers into actual customers and, therefore, address the bottom line. You have three seconds to grab the shopper’s attention, and only one first impression. This particular silent salesman serves to inform, clarify and demonstrate not only the want but also the driving need for a product. With the background in place, via infomercials and advertising spots, customers arrive in stores educated. If products are readily available in well-placed and designed displays, decision time is minimized and the sale is more easily attainable. Hampton Direct, a leader in the direct-to-consumer industry, utilizes Bay Cities for some of its display needs. The company realizes speed to market is essential for any direct response company entering retail, as in-store displays often go from concept to creation to retailer within a matter of a few weeks, sometimes even days. Direct response companies capitalize on this quick turnaround due to the nature of their industry and importance of timing. Companies that offer full turn-key services and have the ability to translate client’s graphics and branding criteria into an impactful display that captures the customer’s attention are qualities to consider when taking a product to retail. Cheryl Coates, vice president of sales at Hampton Direct, talks about the results she’s seen when the company has used in-store displays. “Varying by retailer, it’s not uncommon to see an ROI of 200 percent to 300 percent with the use of point-of-purchase displays.” Brands as well as retailers have realized this substantial increase in sales and point-of-purchase displays have become the solution and tool both parties use in order to create success. Although, point-of-purchase advertising continues to progress both structurally and graphically, the medium to create such easily assembled, maintained and exciting display’s still lies with the use of corrugated. It is an agile, sustainable material that goes far beyond the standard assumption of protecting and shipping products. It offers unlimited creative capabilities that meet both the display and packaging needs of a customer while remaining environmentally friendly. Whether a pallet display or end cap, point-ofpurchase displays are living up to the name of where they are commonly found: Action Alley. Ensuring additional goods are on the floor and in direct sight of shoppers can only result in an action. Whether that action is one of impulse or previous interest, with well-designed displays that feature product attributes and showcase use, the goal of increasing sales is easily and attractively attained. Greg Tucker is president of Bay Cities, a leader in the creation and manufacturing of innovative retail packaging, point-of-purchase displays, and industrial protective packaging. 39 July 2012 | electronicRETAILER http://www.naylornetwork.com/era-nxt

Table of Contents for the Digital Edition of Electronic Retailer - July 2012

Calendar of Events
Your Association Your Bottom Line
Industry Reports
FTC Forum
eMarketer Research
IMS Retail Rankings
Jordan Whitney's Top Categories
From the Executive's Desk
Cover Story: Could You Sell Like Amazon?
Counterfeiting: Why We Should Care and What We Can Do
All Media Are Not Created Equal
Guest Viewpoint
Inventor's Corner
Advertiser Spotlight
Bulletin Board
Advertiser Index
Rick Petry

Electronic Retailer - July 2012