Point of Purchase (POP) Display: Advantages & Considerations
What Is a Point of Purchase Display?
A point of purchase display, aka POP display, is a marketing setup used at retail stores to promote products to shoppers. It can be placed near the area of merchandise or close to the POS.
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These displays can be serviced and re-stocked by the manufacturer&#;s salespeople, by contracted service merchandisers, or the retailer&#;s own team, based on the arrangement between both parties.
The merchandise sold through a POP program can be sourced on consignment basis, where the manufacturer holds all the responsibility of the inventory and the retailer only gets a commission on sold merchandise , or it can be directly bought and held by the retailer.
POP Display Examples
The most common POP display example is the floor stand, which could be made of wood or other materials. It comes with several shelves to display the products, and is branded from all sides to stand out and promote the brand.
Other point of purchase display examples include:
- Product dispensing machines
- Countertop display racks
- Rotating stands
- Gondolas
Point of Purchase Display Advantages
POP displays can be a win/win solution for retailers and brand manufacturers. They can help retailers move merchandise faster and achieve higher inventory turns, and at the same time promote the brand owners&#; products to a customer that is ready to shop.
Read Also: Why Do CPG Companies Compete for Retail Shelf Space?
Research conducted during the holiday season in has shown that 1 in 3 purchases are made on impulse, i.e. unplanned purchases. So using a point of sale display can help the brand manufacturers capture a part of this impulse buying, and also help retailers deliver sales, by increasing the average value of the transactions.
Advertising to store customers is also more cost effective, because the audience is in an advanced stage in their buying journey, and is already showing interest in the particular product category, by browsing that area of the store. The evaluation of the POP program can also be done easily, by linking it to store sales of the items in the program. This benefit has recently given rise to Retail Media Networks, which are the online versions of POP displays.
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Point of Purchase Display Considerations
If the POP display doesn&#;t succeed in moving the products quickly for the retailer, it will stop being attractive, as it is occupying retail space that might be better utilized for other products.
Brand marketers should keep this in mind while planning for the POP program, the products that will go on it, their package designs, and any promotions that can accompany the program.
One particular challenge is also replenishment. The manufacturer needs to make sure enough inventory is available to re-stock the display and avoid stockouts, so that the display doesn&#;t get empty and hurt the customer experience. Also, the display needs to be maintained, in order to stay neat and attractive to consumers. Many CPG companies use brokers or service merchandisers to perform these tasks on their behalf.
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Getting POPPED UP: Starting with Retail Point-of-Purchase ...
POP or Point-of-Purchase display is a marketing material or advertising placed next to the actual merchandise. These items are usually located in the checkout area or other location where the purchase decision will be made. More commonly abbreviated to POP by retailers, this is one of the most under-utilised tools in retail. Though this has become a staple strategy for manufacturers as most vendors will have some sort of POP material they can provide for free use in retail stores. These materials also highlight the product and draw the customers&#; attention to it, which is important in a retail store crammed with similar merchandise.
POP displays are as simple as a sign or as elaborate as a display carton. For example, a retailer may use a a sticker stuck to the end of the shelf to draw attention as the customer walks down the aisle of a grocery store which is a small visual item or they can even create a full display of where the vendor&#;s products are merchandised inside it. Think of a free-standing display with the vendor&#;s branding on it, with only its merchandise on display inside.
Not to be confused with other retailing terms, POPs have moved from its traditional location of the cash wrap to other hotspot locations in the store. In its earlier forms, POP displays and materials would only be found in the cash register area. But today, manufacturers and retailers have discovered that POP displays can be placed throughout a store with great success.
One of the most elaborated POP is a vendor shop. This is tagged as a &#;store within a store&#; idea where a particular vendor places a section in the retail store that sets its merchandise apart from the rest. Probably one of the most powerful forms of POP is a signage. In fact, one research study conducted found that displays with signs outperformed displays without signs by 20 percent. This just means that sales of each item with signs were 20 percent higher than the sales of the times without signs.
What&#;s even more incredible is the fact that regular priced merchandise which is not even on sale was able to outperform sale or clearance priced merchandise by 18% when it was signed and the sale items were not. In short, signs as part of a POP display draw attention to the items. So, when the customer takes notice, they tend to buy it. These signs can take the form of hanging displays and posters or they can be mounted on store shelves as long as the signage doesn&#;t interfere with or annoy your customer, it&#;s a great way to draw attention to a new product, or one that&#;s on sale, as well as seasonal items.
Signage can be thought of as a silent sales agent who can keep a customer in a store and interested when the store is busy and the salespeople cannot instantly get to them. So if you 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 make a major difference and boost to your business.
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