One Blog |March 11, 2014 | POS Tracking Software
How CPG Companies Fine-Tune Local POS Promotions 2014
Remember the days when network television was the most effective way to get a marketing message to consumers - When companies such as Anheuser-Busch and Miller Coors had the size and scale to get the best deals for prime-time airtime on one, two or all three networks.
Today, with a cable audience divided among hundreds of channels and thousands of programming choices, prime-time network television is no longer the best or most efficient buy. Even cable choices can be far less effective today considering that DVR penetration is at nearly 40% — audiences simply fast-forward through advertising.
On the other hand, when your targeted customer is in the aisle at the retail store where your products are purchased, they often actively seek “advertising” with point-of sale (POS) signs and displays. POS introduces them to new products, informs them of sale prices and promotions, and focuses their attention on your product and away from your competitor’s.
We all know that POS marketing works. But there are only a small number of companies that actually measure and manage their POS. The same is true whether it’s called Point-of-Purchase (POP), In-Store Marketing, Shopper Marketing or Trade Promotions (TP).
How do you know how well you are doing?
Surveys indicate that only 18% of Consumer Goods companies comprehensively assess and manage their POS initiatives. If you have the answers the following questions, then you are among the elite.
- What amount was spent on Trade Promotions, such as signage, displays and other collateral?
- What products were promoted, and over what period of time?
- Where were the promotions placed and who was the targeted customer?
- What were the results of the promotion and its effect on sales?
According to International Data Corp. (IDC) Manufacturing Insights for the typical consumer package goods manufacturer Trade Promotions (aka POS) is the second largest cost item on the P&L, behind COGS, and it's growing.
In a webinar * conducted by Consumer Goods Technology Magazine and IDC the Top Trade Promotion Management challenges for these companies include:
- The lack of a good Trade Promotion Management Tool to measure spend effectiveness and promotion return on investment (ROI)
- Dissatisfaction with promotional results — companies know some percentage of promotional events are unprofitable, just not which ones
- Inability to leverage prior learning or experience
- The lack of data accuracy and availability
Where OnTrak Fits
Here’s the good news, and hopefully you won’t keep it a secret.
Today OnTrak Software has the tools that enable you to track, measure and manage your promotional efforts and spending — all at a cost that will surprise you.
Three of our products, specifically SignTrak (for custom POS), PermaTrak (for permanent POS) and MenuTrak (for custom beverage menus) already have the ability to track what was spent; where and when the promotions were placed; and the incremental sales that were achieved as a result of the promotions.
With OnTrak, you have the ability to measure POS ROI; know what works and what doesn’t; and show you how to leverage your experiences with promotions. OnTrak products help build a comprehensive data base that allows you to begin to optimize your promotional efforts.
To learn more about OnTrak's POS Marketing Management Tools, please click this button:
* Reference - CGT, MindTree & IDC Presentation, “How Global Companies Fine Tune Local Promotions,” September 15, 2011