One Blog |September 5, 2017 | POS Performance

Do Point-of-Purchase and Point-of-Sale Displays - POP & POS -Really Work?

Denis Clark

The answer from our customers is a resounding YES!

Do Point-of-Purchase and Point-of-Sale Display Really Work?What they mean is that by tracking, measuring and managing their POP/POS they have seen an increase in beverage revenues, a decrease in the cost of their POP/POS, and a dramatic increase in accuracy and productivity in the ordering, production and placement of POP/POS.

In fact, point-of-sale marketing, which some distributors historically viewed as a “Necessary Evil”, has now become one of their Core Business Practices.

Supporting Industry Research

POPAI (Point-of-Purchase Advertising International), is an industry association that promotes best practice and is dedicated to enhancing the total shopper experience. 

In 2015, POPAI merged with A.R.E (Association for Retail Environments) to create Shop! The combined new association provides expanded services, including research, education and networking to approximately 2,000-member companies on six continents.

"Shop!" has a variety of studies available about this topic. The following is updated research which indicates:

POS Advertising

  • More than 76 percent of all brand purchase decisions are made in-store.
  • In-store sales have increased as much as 65% when POP/POS materials are used.
  • On a cost-per-thousand basis, POS advertising is close to that of out-of-home advertising, or radio, which is about half the cost of TV advertising. 

TV Advertising

  • TV advertising is measured by the number of "eyeballs" that are seen for a given advertising investment.
  • At-retail advertising and promotions can be directly correlated at the store level with "sales lift," which is simply not possible with TV advertising.
  • Sometimes called point-of-sofa advertising, TV advertising is important, but it is advertising that is not seen by shoppers when they are "in situ" -- in the place where they can become buyers.
  • In 2014 the average Promotional Program Value (PVV) for in-store POP displays was 499%, which means that for every $1 spent on displays there was an average return of $4.99 in incremental sales. Again, such measurement is not possible with broadcast or print advertising.

Suggested Industry Benefits

According to studies, at-retail marketing initiatives provide the following benefits:

  • Better utilization of at-retail space.
  • Without a permanent custom retail display, you don’t have as much control over where your products will be located. Your product line can easily get mixed in with competing brands, making it easy for consumers to brush right past. 
  • With custom POS displays, usually purchased from the beverage alcohol suppliers, there are no missed opportunities. Also, permanent displays and even display enhancers are often placed more advantageously meaning your products will really stand out. 
  • In an ever more crowded beverage alcohol market, retail customers actually seek POP/POS displays to help them decide which beer or wine to buy.

Brand Building

  • Positioning beverage alcohol brands is vital for future sales. If shoppers are unfamiliar with some of the newer brands you've picked up, a POP/POS display is critical to get your brand noticed. 
  • If your brands are not new to the market, POS is the best way to maintain your brand's "share of mind" with shoppers.

More Influence Over the Buying Process.

  • Both temporary and permanent POS will increase your top line and encourage and sustain brand recognition. 
  • Sales have been shown to rise when POS materials are present because of the exposure your brands receive due to the regular and frequent placement of POS messages/promotions. 

Note:  The preceding information was provided by Shop! and Avante, a supplier of custom permanent POS displays.

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Your point-of-sale marketing return-on-investment (ROI) can be measured, managed and increased by deploying systems that enable tracking of your POP/POS investment 

To learn more about how OnTrak Software helps beer, wine and spirits distributors achieve maximum benefit from their investment in POP/POS marketing, please click the following button:

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