Hoyt Publishing Co.
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 www.instoremarketer.org .  
VOL. 2, NO. 2 
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JULY 2004 HIGHLIGHTS...
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Director's Note
Your Ad -- and Product -- Here
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The store is an advertising medium, but that doesn't mean displays are merely billboards. At least I hope not.

In developing our profile of CompUSA this month, we learned about the CompUSA TV Network, an in-house operation that sells ad space on nearly 18,000 screens situated throughout the chain's 226 stores. The network is touted by CompUSA as a great way to "reach 6 million tech-savvy shoppers per month" along with thousands more employees "for as little as $42 per store."

But aside from one token reference, the web site extolling the network's virtues completely ignores the direct, immediate impact these spots might have on sales of the advertised products. Isn't that sort of missing the point?

The store provides an effective venue for generating brand impressions, for reaching large numbers of people in a way that traditional mass media increasingly cannot. That's why a company like 1-800-Contacts will buy floor decals in supermarkets -- or why even a TV network like ABC will work with American Greetings to get promotional ads for programming onto store shelves.

But discussing the brand-building potential of in-store advertising without emphasizing its ability to increase sales is like a discussion of Pamela Anderson's acting talent without mentioning her appearance. At best, it's a little disingenuous; at worst, it's completely irrelevant.

The danger in treating the store as just another advertising medium is that the primary function of retail -- selling product -- gets lost within the agency-speak conversations about "consumer impressions" and "cost per thousand."

Taken to the extreme, display space could end up being viewed as ad space to be granted by the retailer to any product willing to pay up -- rather than to the products with the greatest potential for incremental sales gains. Display innovation gives way to standardized templates, with guaranteed placement making uniqueness less urgent and, quite possibly, the impact less substantial.

The strength of an ad on Wal-Mart TV rests not in its ability to reach more than 100 million shoppers, but in the fact that it signals the immediate availability of that product to them.

Will Wal-Mart TV ever accept advertising from products and services that the chain doesn't offer in stores? Quite possibly. But you'll never see Wal-Mart base its merchandising decisions on Wal-Mart TV's advertiser list.

That would be missing the point.

Peter Breen
Managing Director, Content
In-store Marketing Institute

Click here for more information. »

Desktop Marketing Conference
"The Psychology of Place" by Shook Kelley
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With a sense of nostalgia for the traditional ideas of "Main Street USA," consumers are looking to connect with other people in public spaces. Savvy retailers, taking a cue from this cultural trend, have designed environments that provide a venue for these exchanges.

In a presentation delivered in June at the In-Store Marketing Summit, Kevin Ervin Kelley of design firm Shook Kelley discusses how retailers and product manufacturers can improve their businesses by creating environments and brand identities that cater to the psychological needs of today's consumer.

Members: View the presentation here. »

Research
"Merchandising the Low-Carb Craze" by Mosaic InfoForce
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In mid-February 2004, when the low-carb diet fad was hitting a frenzied peak, the average supermarket contained more than four displays of related products as grocers scrambled to make a "healthy statement" to shoppers. Using data collected through its weekly in-store audits, Mosaic InfoForce offers a look at the effect low-carb marketing has had on display merchandising.

Members: View the research here. »

Packaging Insights
The Art of the Shipper
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The business objectives of mass merchandisers and club stores have spawned a whole new arena for P-O-P marketing: the outer packaging. Resident guru James Peters looks at how smart merchandisers are using graphics to turn shippers, trays and multi-packs into effective advertising vehicles.

Members: View the article here. »

Retail Research
How Retailers Use Consumer Research
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While nearly all retailers are mining their own sales data for business insights, fewer than 25% are regularly using sales research from any other source in their planning. In an exclusive survey of retail executives, Meyers Research Center examines the role consumer research plays in store planning and how manufacturers can best play along.

Members: View the research here.

NEW in the Library...
Retail Handbook
New profiles of consumer electronics leader Best Buy and would-be challenger CompUSA, and an update of supermarket chain Safeway.

Plus, more than 25 new articles on account-specific marketing and merchandising activity.

Research Library
"Retail Out of Stocks: A Worldwide Examination of Extent, Causes, and Consumer Responses," the groundbreaking study on the topic from a consortium of university professors.

Plus, an exclusive salary survey of P-O-P designers.

Case Studies
A look at the launch strategies for Coca-Cola's C2 and Pepsi Edge.

Plus, recent programs for Barton Beers, United States Beverages, Goodyear tires, Disney books and more.

Image Vault
Browse galleries of more than 35 displays for low-carb products and more than 550 displays for consumer electronics.

Legal Corner
Anheuser-Busch strikes back at Miller Brewing with a counterclaim charging "confusing" marketing tactics in stores.

Plus, four additional patents are available in the archives.

Lecture Hall
Benchmarc completes its informative tutorial, "The Nuts & Bolts of P-O-P," with new segments on corrugated displays, lighting and prototyping. Institute members have praised the series as a great primer on P-O-P materials and processes.

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