Jill Blomquist of Menasha shared point-of-purchase (P-O-P) trends and insights at the 2017 Sweets & Snacks Expo. While spending on digital advertising is growing rapidly, P-O-P budgets are unchanged for 60 percent and 26 percent actually plan to increase spending. According to Blomquist, this is due to the cost per display has risen over the years because of the trend toward customization at the store level, or the region at a minimum.
About 60 percent of P-O-P display spending is allocated to temporary or promotional activities. The remaining 39.7 percent goes to permanent or ongoing activities. But the biggest issue, Blomquist said, is the actual execution and doing compliance audits may be a good way to make sure you are maximizing shopper visibility. In analyzing audit data, they found that:
- 86.5 percent of permanent displays are actually set up
- 78.4 percent of temporary/corrugated displays
- 73.3 percent of signs
So, measuring P-O-P execution is the first step and tracking effectiveness is the second. Because when executed well, according to Blomquist, every $1 invested in in-store marketing can generate at least $2.50 in incremental sales. She found that end caps are the most effective in driving sales, followed by perimeter, in-aisle and checkout displays. For retailers, the most important factors are a focus on new item introductions, customized themes and coordination with seasonal events. And increasingly, retailers and manufacturers are testing the integration of content-delivering technology aimed at consumer education. Of 21 percent that have done so, two-thirds say the technology integration was very effective at driving sales — driving likely further experimentation in this area.
Download Blomquist’s Expo presentation to see many best-in-class examples in candy and snacks.