April 2005 Highlights
| Director's Note: Redefining the Store -- With Care |
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A few events with potential industry-shifting
implications have taken place in recent weeks.
Procter & Gamble's Dina Howell, director of the
company's First Moment of Truth Business Team,
unveiled a corporate initiative "to measure the
store as a fully integrated marketing medium" while
speaking at the Promotion Marketing Association's
Annual Conference last month. P&G is working with a
number of product manufacturers, retailers,
marketing shops and industry organizations on the
endeavor.
Using the term "medium" in reference to the store
environment still gives me the willies, because it
conjures up visions of upfront endcaps being sold
via rate cards to anyone willing to pay the CPM,
without proper regard to what's best for the store,
its customers, or the product involved.
But it's reassuring that the charge will be led
by P&G, whose work at retail has often gone "beyond
the brand" to include uncredited activity (in
the eyes of shoppers) that considers the long-term
needs of all parties instead of just product
volume growth.
Earlier this month, Unilever released a few
results from "Trip
Management: The Next Big Thing," the first in
what the company says will be a series of
shopping-behavior studies it has commissioned and
will release to the marketplace. According to Unilever,
the study "goes beyond other research ... and in
some instances, challenges long held beliefs
in retailing. For example, it points out that 70% of
all category level purchase decisions are made
before entering the store."
The study, which will be made available at next
month's FMI Show in Chicago, also finds that only
13% of food-shopping trips now represent the
"classic stock-up" on which much of CPG marketing
traditionally has been focused. If most store trips
are now "quick hits" for just a few items, that
makes in-store marketing even more important, right?
(Right.)
Finally, digital signage turned out to be a hot
topic at GlobalShop in March, thanks in large part
to recent efforts among supplier companies to better
unify as an organized industry segment. Costs are
still a
major factor here, but some pundits believe that
widespread adoption will be sooner rather than later.
Here, too, marketers intent on working with
dynamic displays will have to confront the status
quo: With the average length of shopping trips
consistently declining, how do you best use a tactic
designed to deliberately slow down shoppers? With
consumers increasingly conducting their pre-buying
research online, how do you provide information in a
store that will significantly affect purchase
decisions? In regard to both issues, how "dynamic"
does a store become before the digital messages blur
and sales effectiveness suffers?
Stay tuned for more on these topics. In the
meantime, we welcome your thoughts about these issues.
Peter Breen
Managing Director, Content
In-Store Marketing Institute
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| Research: "Display Trends 2004" from Mosaic InfoForce |
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Packaged goods retailers looking to improve the
shopping experience often view vendor-supplied
displays as contrary to their efforts. Yet H-E-B and
Wegmans, two regional independents widely considered
to be among the best at creating organized,
shopper-friendly store environments, have more
products on display than almost all other
supermarket chains. That suggests that the
merchandising "clutter" often discussed as a
detriment to the channel is more the result of
presentation strategy (or lack thereof) than it is
of display volume.
That's just one of the observations gleaned from
"Display Trends 2004," a report from Mosaic
InfoForce's Display Express Insights auditing
service prepared exclusively for the Institute.
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| Desktop
Marketing Conference: "RFID Unleashed In-Store" by Robert Michelson of
Goliath Solutions; "Technology-Enabled In-Store Marketing" by Jeff
Sandgren of Checkpoint Systems |
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While most of the retail world discusses the supply
chain efficiencies that can be realized through RFID
tags, a few really forward-thinkers already
are examining the technology's potential on
effective display marketing. Robert Michelson, ceo
of RFID systems operator Goliath Solutions, offers a
peek at what these forward-thinkers are learning in
a
keynote presentation from last December's P-O-P
Show/New York.
Elsewhere, our technology focus continues with
another desktop presentation, "Technology-Enabled
In-Store Marketing," in which Checkpoint
Systems' Jeff Sandgren discusses the need to
transform gee-whiz advertising systems into can-do
sales tools. And, in a special report, P-O-P
Times examines the greatest obstacle to the
implementation of display technologies: the costs.
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| Store Checks: Acme, Big Lots, Dominick's, Genuardi's, Giant Food, Publix, True Value, Wegmans, Winn-Dixie |
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The Institute had a busy March, visiting stores in a
number of states to assess the status of displays at
nine chains. This month's highlights include a look
at the first Dominick's "Lifestyle" store, part of
parent Safeway's ambitious plan to create an
ownable, marketable supermarket environment; proof
at industry bellwether Wegmans that temporary
displays don't necessarily detract from an upscale
presentation; and discovery of a surprising number
of brand-supplied materials at closeout chain Big Lots.
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| Member Contributions: Case Studies from Zipatoni; Project Snapshots from Rapid Displays |
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The Institute encourages member companies to share
in the learning by providing their own examples of
best practices for marketing at retail. This month,
we are pleased to present case
studies of highly
successful marketing campaigns from St. Louis
promotion agency Zipatoni and project snapshots of
innovative
displays from P-O-P manufacturer Rapid
Displays, Chicago.
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| Welcome New Institute Members |
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The In-Store Marketing Institute is delighted to
welcome new and renewing members to the Institute
family. Below is a list of the companies that signed
up recently. Welcome aboard.
- Benchmarc Display Inc., www.benchmarc.com
- Coca-Cola, www.na.ko.com
- Colgate-Palmolive, www.colpal.com
- Cornerstone Display, www.cornerstonedisplay.com
- Cub Cadet Corporation, www.mtdproducts.com
- Dentsu Inc., www.dentsu.co.jp
- Display World, www.displayworldinc.com
- Do-It Corp., www.do-it.com
- First Data Corp - Western Union,
www.firstdatacorp.com
- FSD, www.fsd.com.au
- Gorrie Marketing, www.gorrie.com
- Hewlett-Packard Co., www.hp.com
- Imagine! Print Solutions, www.imagineps.com
- IMS Schwarz Worldwide, www.imsfastpak.com
- Intuit Inc., www.intuit.com
- Keter Plastics, Ltd., www.keter.co.il
- Marketing Lab, www.mymarketinglab.com
- Meyers Display, www.meyers.com
- Miller Brewing, www.mbco.com
- Novamedia, www.novamediagroup.com
- PetSafe, www.petsafe.net
- PetsMart, www.petsmart.com
- Polaris Industries, www.polarisind.com
- Process Displays, www.processdisplays.com
- PromoShop Inc, www.promoshopinc.com
- Rand McNally, www.randmcnally.com
- Reactrix Systems Inc., www.reactrix.com
- Sherwin-Williams, www.sherwin-williams.com
- TimBar Packaging & Display, Point of Purchase
Division, www.timbar.com
- Vestcom International, Inc., www.vestcom.com
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NEW in the Library... |
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Retail Handbook
New Retailer Profiles examine Sam's Club intensified
business focus and True Value's efforts to unify its
6,000 co-op members.
Plus, from the archives: "RFID and the Store of
the Future" offers a tour of German retailer Metro
Group's groundbreaking in-store testing.
Research Library
A new academic study, "Are Slotting Allowances
Efficiency-Enhancing or Anti-Competitive?" created a
stir in the packaged-goods world this month by
taking a positive stance on the typically maligned
business practice.
Plus, a 2004 study conducted by U.K.
convenience-store chain SPAR finds that digital
signage works best when it advertises products close
at hand.
Case Studies
Under Armour rolls out dedicated fixtures for its
nascent women's apparel line; Lexar extends program
duration with dual headers on promotional displays;
P&G takes over Ahold lobbies by cross-merchandising
with the produce department.
Plus, P-O-P Times reports on effective
strategies for display setup and logistics.
Image Vault
Browse more than 300 new images of displays and
signs depicting activity at dozens of retail chains.
Legal Corner
View eight new patents on store display and
advertising systems.
Lecture Hall
From the archives: "RFID's Potential Impact on the
Future of P-O-P" by Dan Lawrence of Precisia.
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