P-O-P: What is This Stuff?

When you hear about point-of-purchase displays, or P-O-P, what do you think of? If you are being honest with yourself you probably think of cheap cardboard display units and hanging posters. This is a part of P-O-P, but there is much more. The P-O-P of today utilizes hologram (Bond 1996), laser, and computer technologies.

P-O-P extends beyond the function of merely displaying a product. P-O-P can loosely be defined as anything which influences the consumer at the point where the consumer, the product, and the dollars come together (Benning 1992) (Mills 1995). Although P- O-P is an integral part of the selling process, it does not hold the key to the success or failure of a marketing program, nor does it encompass a marketing program in itself (Benning 1992). P-O-P is best used to complement existing marketing programs.

This paper is designed to instill a marketer or seller with a basic knowledge of how to create a point of purchase program. This study is by no means designed to be an exhaustive source of information on point-of-purchase. A study of this nature would b e thousands of pages thick. Instead this paper is designed to compile all of this information and some personal opinion into a useable body of knowledge.

This P-O-P guide begins by showing what P-O-P can do, and what it cannot do. It then walks the reader through the planning, design, implementation, and finally the evaluation stages of a P-O-P program. Hopefully, this will give the reader a broad enough overview of P-O-P advertising to decide if P-O-P is applicable to his or her situation and implement a program if P-O-P proves to be beneficial.

The Power of P-O-P

Today P-O-P has become the highest growth sector of the advertising market (Anonymous 1993). In 1992 manufacturers spent over $16 billion annually on P-O-P displays (Lamb 1992). P-O-P is clearly a popular advertising method, but why is it really needed?

P-O-P advertising comes into play at a very important point in the selling process: "where the success of a multi-million dollar advertising package hangs in the balance, as the consumer is deciding whether or not to buy" (Bond 1996). P-O-P is the seller's last chance to persuade the consumer to buy its product..

It is proven that P-O-P materials do this job of last-chance persuasion quite effectively. For example, a study by DuPont found that sales of a particular soft drink were 2.74 units per 100 shoppers with the companies existing advertising campaign and no P-O-P. When the company's advertising campaign was packaged with a complimentary P-O-P program sales increased to 7.75 units per 100 shoppers (Higgins 1983). That is a 283% increase in sales. Today P-O-P has become the highest growth sector of the advertising market (Anonymous 1993).

P-O-P advertising works best when it is combined with traditional marketing approaches and branding activities (Cramp, "Measure for Measure" 1996). P-O-P should be used to reinforce an existing advertising campaign. P-O-P does not have the capability to sustain an advertising campaign on its own.

Price reductions also complement P-O-P efforts. In one case, a minor price promotion combined with effective P-O-P increased brand sales to 20 times the level during non-promotional periods. This program's drastic effect on consumer response was achieve d using timed repetition of the promotion. This repetition is a key factor when P-O-P programs and price reductions are combined (Andrews 1995).

Impulse sales are P-O-P's strong suite. P-O-P methods work much better with impulse products, than for planned purchases (Miller 1990). The best candidates for P-O-P promotion are usually relatively inexpensive and many times seasonal (Battle 1994). However, P-O-P can also generate excellent results for products outside of these categories.

P-O-P Program Design and Planning

The two most important parts to any P-O-P program are planning and evaluation (Seitz 1995) (Culligan 1994). Careful planning makes advertising dollars go further and program effectiveness rise. There are many factors to consider when planning a P-O-P program, such as the objectives, the target audience, the retailer's requirements and specifications, and the time frame of display.

Objectives

A P-O-P display can have many objectives. It can introduce a new product, encourage the use of an existing product, or show a new use for an existing product. A P-O-P program which seeks to assist in the introduction of a new product must be very educational and informative. Notice the amount of facts and comparisons given on the display in Figure 1. A display would not need to have as many facts and specifications if its objective was to increase the use of an existing product. This type of display may concentrate on alerting the consumer that the product is available (See Figure 2). An additional objective of P-O-P may be to show a new use for a n existing product. A cross- merchandising display such as Figure 3 may be a good example of a P-O-P display which attempts to satisfy this objective.

No matter what the objective of the P-O-P program is, it must be agreed upon and communicated to all people involved in its production. It is necessary for this decision to be made and communicated early on in the process, because all of the decisions from this point on will based on this objective.

Target Audience

Qualifying the buyer is a basic step in any selling process. P-O-P is no exception. Who will buy the product and why must be decided before an effective P-O-P program can be established. Many times this information has already been obtained by previous market research. However, if this is not known, it is imperative that this be concrete before the program goes any further.

Retailer Specifications

In some cases the largest obstacle to the design of a P-O-P display is the retailer. As stores become laden with a plethora of different P-O-P from many different vendors, they may become overwhelmed by the clutter (Anonymous 1993). This may cause retailers to institute certain size or style requirements for the P-O-P material it uses (Cramp, "POPAI the Salesman" 1994). This obstacle can best be overcome by working closely with the retailer and establishing a personal relationship. A close relationship with the retailer will allow the P-O-P materials to be tailored to meet the retailer's specifications. Also, high-quality P-O-P materials help to deal with the retailer's objections. Remember, a retailer would rather have one display that sells than one hundred that do not (Black & Decker).

Timing

Advertising is not done in a vacuum. Many outside factors affect consumer's buying habits such as, the season, economic climate, or time of day. Although it is common sense that air conditioners do not sell well in the winter, some timing issues are more subtle. For instance, would one consider that generator sales stay at an extremely high level for over a year after a major storm or hurricane (Martin 1996)? The timing of the P-O-P program should be considered before any action is taken.

The P-O-P portion of an advertising campaign should be implemented simultaneously with the rest of the campaign. The serves to reinforce P-O-P's complementary relationship to an advertising campaign. For example, a P-O-P program containing the "Extreme Cordless" slogan, as seen in Figure 1, should not appear before the television, print, and radio advertising portions of the campaign which contain this slogan. The basis for this is that P-O-P advertising is not effective without the primary demand created by an encompassing advertising campaign.

P-O-P Material Design

So what is wrong with doing cardboard cutout displays like everyone else? This does not sell! Innovative, creative P-O-P sells more product. An example is WIX filter's 1993 Home Run Derby promotion. This promotion used extremely creative methods to introduce a striking display. The results were astounding. The promotion led to a 24% increase in WIX filter sales and a 90% increase in retail presence (Battle 1994).

There are many exciting new technologies which are now coming within the advertiser's budget (Bond 1996). These include many which can make a display stand out against its competition. These innovative technologies include revolving window displays, computer kiosks (See Figure 4) and multimedia CD-ROMS (See Figure 5). These technologies allow P-O-P to more effectively communicate its message than ever before.

There is more to a good P-O-P display than cutting-edge technology though. The style of the display must also fit the product being sold. The construction of the display must be attractive to the intended target market. An example of a good match of display style and product can be found in Figure 6. Here the display is being used to sell power tools to carpenters. The display is made of wood, roofing paper, concrete, and steel beams. The typical consumer of this product is involved with these materials on a daily basis, and thus probably finds them attractive and comfortable.

The construction of a display must also complement existing advertising efforts. For instance, Captain Morgan rum uses a pirate and his scalawag mates printed on curled parchment as their symbol. A display made of clear acrylic and stainless steel, despite the quality, would not be suitable for this product. This type of modernistic, high-tech approach would not be consistent with Captain Morgan's "Olde World" pirate advertising theme.

There are several other additional methods which can be used to make a P-O-P display more attractive to customers: lighting, motion, and the ability to interact with the product. The average P-O-P catches the consumer's eye for 11 seconds (Bond 1996). Lighting, such as in Figure 1, combined with motion can help increase this consideration time drastically. Displays with a rotating motion also serve to increase the amount of product displayed in a limited space (Battle 1994). The customer's ability to touch and feel the product, as seen in Figure 7, can also be an important addition to a P-O-P display (Cramp, "Built to Stand Out" 1996).

So you have the ultimate P-O-P display. It uses laser hologram technology to highlight a spinning computer on which the consumer can play video games. Why is it not selling product? It could be because the display was not priced, was not labeled, or there was not any stock of product available near the display. These are simple, but very important factors, which can kill a P-O-P program if not executed properly. It should be easy for the consumer to notice the display, find the price and relevant facts. Once the consumer has made the decision to buy, finding the product should be made as easy as possible. An impulse buy, which a P-O-P display often supports, relies on the availability of product (Manarino 1996). Figure 8 shows a good example of product easily available to the consumer. The key here is to make the product as easy to purchase as possible.

Implementation

A P-O-P program is only as good as its implementation. It is true that the design of the display is very important. However, without proper implementation of the display, the design is worthless. Implementation involves the actual construction, stocking, pricing, labeling, and signing of the display at the location which it is to occupy. This job can either be done by the retailer, manufacturer, or anyone in between. The difficulties encountered are going to depend partially on who is responsible for the installation.

Construction

The display can be scratch-built in the stores, pre-fabricated and shipped intact to the stores, or a combination of both. If the display requires a high degree of customization to fit the requirements of different retailers, it will probably be best to build a majority of the display while in the store using a small amount of pre-fabrication. However, if the display is fairly uniform for all of the retail outlets, it will be most economical to pre-fabricate the display. Pre-fabrication may also be an option if inexperienced people, possibly the retailer, will be installing the display.

If the retailer is going to install the display, it will be necessary to provide him or her with a large amount of support. This may include a telephone help line or a fax-back assistance service. At the bare minimum, detailed instructions and clearly marked parts should always be included with the display.

Location

The most important aspects of P-O-P implementation are location, location, and location. This is as true for displays as it is real estate. The location of the display may be the single most influential factor in the success of the display. In one case of personal experience, just moving the product off the shelf and onto a visible wingstack near the store entrance increased the sales from zero to two a week. A separate 1994 study by Audits & Surveys concerning the effectiveness of battery displays at different positions in a supermarket concluded that some areas were twice as effective as others (Brumback 1994). For example, the register stack, that area which a customer browses while waiting to check-out, was twice as effective as a back-of-store endcap. As these examples illustrate, normally the higher traffic areas are the more desirable areas. However this is not always the case. In some instances, such as cross-merchandising, a low traffic area situated near a complementary product may be an optimal location for P-O-P materials.

The most effective area is not the same for all products. However, the checkout line is a key location for several reasons. First the customer has downtime while waiting in line and his or her mind is free to consider possible impulse purchases. This is considered a "gentle sell" because it leaves the initiative to consider the product totally up to the consumer.

Although the checkout is usually a good location, there are also other factors to consider. The display should be as close to the customer's line of sight as possible. This means that the most important part of a display should be at eye level for the average consumer. Notice how the text of the display in Figure 1 is concentrated at eye level. Also, high-traffic areas are almost always better than low-traffic areas. The highest traffic areas are usually found near the front of the store and on the end of the aisle. These positions are called "end-caps" or "register-stacks" and are considered prime real estate within a retail outlet.

Cross-merchandising should also be considered when choosing the location of a display. Cross-merchandising, such as seen in Figure 3, is simply merchandising a product away from its category near a complementary or related product. An example of this may be displaying super-glue near the china department with a sign that suggests the customer repairs a broken piece rather than buy a new one. Many times the best cross-merchandising opportunities come from asking employees in other departments if they are often asked if they stock your product.

Evaluation

Is a P-O-P program over after the last sign is hung and the final kiosk assembled? The answer to this is a resounding "no." Somehow, a P-O-P effort must be analyzed to see if its benefits were worth its cost. Generally a P-O-P program should be evaluated on the basis of its effectiveness and its efficiency (Seitz 1995). There are several methods to measure each of these.

Effectiveness

Effectiveness is simply how well the program meets its objectives. How well a program's efficiency is evaluated depends primarily on the objectives set for the P-O-P program. Possible objectives for a P-O-P program are retailer acceptance, positive customer reaction, positive sales force reaction, or a positive reaction from media and other audiences.

The effectiveness of a program can be evaluated using either hard or soft measures. Hard measures are typically easily counted or derived at by a formula. These assessments are influenced the least by the evaluator's beliefs or opinions. Some examples of hard measures that could be used to judge the effectiveness of a program are sales volume, inventory levels, customer participation, sales velocity, and market share.  Soft measures are very different from hard measures. Soft measures usually are not easily quantifiable. For this reason, soft measures are easily influenced by the evaluator. Soft measures such as the retailer's feelings toward a particular P-O-P display, the attention customers pay to a P-O-P display, or an analysis of the media's review of a P-O-P program could be used to appraise the effectiveness of a P-O-P program.

Efficiency

The efficiency of a program simply attempts to judge if the benefits of a program justify its expense. This appraisal seems to lend itself to hard measures. Some possible hard measures for evaluating efficiency are cost per launch element, cost per incremental unit sold, cost per store, cost per foot of shelf space, cost per person-hour to produce and maintain the program, and finally actual versus budgeted cost. As you can see, efficiency is usually directly related to the cost of the program.

Problems

Measuring the efficiency and effectiveness of a program can be difficult. There are many ambiguities in the evaluation process. One problem arises in the evaluation of every P-O-P program: it is difficult to separate the effects of P-O-P from the effects of other promotional activities (Cramp, "Measure for Measure" 1996). However, this problem is not insurmountable.

The key to separating the effects of P-O-P from other promotions is to keep the other promotions constant while the effects of P-O-P are being measured. This leaves only one variable open to movement. The effects of the P-O-P can then be measured accurately.

Another logistical problem arises in the actual measurement product sales. It is difficult for a manufacturer, who sells only to the retailer or wholesaler, to measure the sales of its product to the actual consumer. With today's UPC and scanner technologies, the retail outlets have the perfect theater for gathering this data. Using a combination of scanners, computer databases, and UPC codes, a retail outlet typically knows how much of a product is sold on a daily, hourly, or possibly momentary basis. With today's technology it is even possible for a retailer to record from what display each item was bought. This is typically accomplished by placing a different UPC code on product placed at each location inside the store. This can give the evaluator keen insight into the effectiveness and efficiency of a P-O-P display.

Enough Already!

Do you still think that P-O-P advertising is cardboard signs swaying from the ceiling? Point-of-purchase advertising is a complex, growing field which requires added attention from all marketers because of today's increasingly crowded marketplaces. P-O-P technologies will continue to blossom as this focus on P-O-P grows. The next few years in the marketplace will be extremely exciting. You can be a part of this excitement when you add a point-of-purchase program to your existing advertising campaign. Remember, P-O-P cannot make or break an advertising campaign, but it can add dollars to pockets and sales to manufacturers!

Works Cited

Andrews, Katherine Zoe. "Market Research: Shaking up Consumers at the Point-of-Purchase." Harvard Business Review, November-December, 1995, 14.

Anonymous. "Before Long, You'll Need a Machete to Cut Through the In-store Clutter." ADWEEK Eastern Edition, December 6, 1993, 18.

Battle, John, "Cashing in at the Register." Aftermarket Business, September 1, 1994, 12.

Benning, Sr., Menin. The Power of Point-of-Purchase Advertising. New York: AMACOM,a division of American Management Association, 1992.

Black & Decker, Inc. The Black & Decker DeWalt Home Depot Intern Reference Binder. 22-35.

Bond, Cathy. "Sharpening the Point of Sale." Marketing, June 20, 1996, 34.

Brumback, Nancy. "Gauging POP Ad Impact Called a Science." Supermarket News, December 5, 1994, 19.

Cramp, Beverly. "Built to Stand out in the Crowd." Marketing, February 8, 1996, 27.

Cramp, Beverly. "It's POPAI the Salesman." Marketing, June 30, 1994, 31.

Cramp, Beverly. "Measure for Measure: Evaluating the effectiveness of Point-of-Purchase Advertising Campaigns." Marketing, May 2, 1996, 32.

Culligan, Brendan. "Mapping out In-store Marketing Strategies." Beverage World, May, 1994, 114.

Higgins, Kevin. "In-Store Merchandising Is Attracting More Marketing Dollars with Last Word in Sales." Marketing News. August 19, 1983, 1.

Lamb, Charles W., Joseph F. Hair, and Carl McDaniel. Principles of Marketing. Cincinnati, Ohio: South-Western Publishing Co., 1992.

Manarino, Frank. Home Depot Account Manager for Black and Decker. Townson, Maryland. June 22, 1996.

Martin, Marty. Home Depot Employee. Raleigh, North Carolina. October 4, 1996.

Miller, Cyndee. "POP Gains Followers as 'Era of Retailing' Dawns." Marketing News, May 14, 1990, 2.

Mills, Kenneth H., Judith E. Paul, and Kay B. Moormann. Applied Visual Merchandising. Englewood Cliffs, New Jersey: Prentice Hall, 1995, 3.

Seitz, Laura. "How to Develop and Assess Point-of-Purchase Programs." HFN: The Weekly Newspaper for the Home Furnishing Network, June 12, 1995, 74.

Additional Resources

Anonymous. "Point-of-Purchase Trends." Marketing News, January 2, 1995, 8.

Cramp, Beverly. "Built to Stand out in the Crowd." Marketing, February 8, 1996, 27.

P-O-P Times. 1996. P-O-P Times / P-O-P & Sign Design. http://www.hoytpub.com/poptimes/ [12 October 1996].

Point of Purchase Advertising Institute. 1996. POPAI. http://www.popai.org/ [6 October 1996].

Roth, Lazlo. Display Design. Englewood Cliffs, New Jersey: Prentice Hall, 1983.

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