September 2005 Highlights
| Director's Note: The Halo Effect |
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P-O-P does a lot more than drive product sales at
7-Eleven, according to Doug Foster, the retailer's
vice president of marketing.
Speaking last week as a keynoter at The In-Store
Marketing Expo in Chicago, Foster said the nation's
largest convenience chain wants to develop store
environments that:
- Reinforce the brand image. This includes
integrating P-O-P with other marketing
communications, which is why you're starting to see
both TV spots and signage featuring halos (as in,
"Thank Heaven for 7-Eleven").
- Speed up the purchase process. Customers often
spend two minutes or less in the store, which is why
creating effective "P-O-P in a c-store may be the
ultimate challenge," and why the chain thinks it's
vital to "reduce visual noise," Foster said.
- Provide effective navigation. The store's major
departments "are now distinctly separated" so that
shoppers -- most of whom decide to visit 7-Eleven no
more than five minutes before they arrive -- can
spot their destination immediately. This also
includes delivering product information that enables
quick purchase decisions.
- Present a unique experience. This often comes in
the form of new and/or exclusive products, Foster
said. That's why support for the chain's fresh foods
is ranked No. 1 in the P-O-P hierarchy.
With that in mind, product merchandisers should ask
themselves one question: Is it any wonder 7-Eleven
doesn't want your temporary floorstand? If it
doesn't enhance the chain's positioning as a
uniquely convenient destination for on-the-go eating
and drinking, it just gets in the way.
Key suppliers have known this for some time.
That's why PepsiCo often goes beyond standard
account-specific programs to give 7-Eleven
exclusive products, such as the newly launched Frawg
Slurpee/fountain beverage. It's also why Frito-Lay
willingly lends its snack brands as value-adds to
sandwich purchases.
Not incidentally, it's also why PepsiCo is one of
the few CPGs to earn a consistent, branded presence
inside 7-Eleven stores. (Other direct-store delivery
vendors get space, too, although recent changes in
the chain's franchisee agreement are reducing the
number of "outside influences" on the store. Read
our 7-Eleven
profile for more on that.)
7-Eleven isn't alone in its thinking. Retailers
increasingly are requiring product manufacturers to
develop merchandising programs that will reinforce
their own branding efforts. Those chains that aren't
probably won't remain "key" accounts for national
brands much longer because, as Foster noted, food
and beverage products "are available everywhere."
It's time to see how your brand looks wearing a halo.
Peter Breen
Managing Director, Content
In-Store Marketing Institute
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| Research: "CPG Merchandising Trends" by Information Resources Inc. |
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Packaged goods marketers and their retail accounts
have increased merchandising activity in recent
years. But the effectiveness of circular advertising
and price reductions has declined, which suggests
"the growing importance of capturing consumers'
attention in-store through display." That's one of
the conclusions from a new IRI report on
merchandising activity in food, drug and mass retailers.
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| "Packaging Insights: Estimating Cost" |
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For brand managers who are content with adopting
standard rules of thumb, packaging should cost
roughly 10% of the product's retail value. Smart
marketers, however, can cite examples where the use
of such rules of thumb resulted in a marketing flop.
Resident packaging expert James Peters, director of
education for the Institute of Packaging
Professionals, provides a list of cost issues to
consider when designing effective packaging.
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| Desktop Marketing Conference: "Resolving Consumer Frustration in Home Centers" by Phil Federspiel of Group 4 |
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Shopping for bathroom fixtures and accessories is
a time-consuming process that can be extremely
frustrating if the category isn't well organized. In
a presentation delivered last fall at the P-O-P
Show/Chicago, Group 4 ceo Phil Federspiel explains
how Masco Corp. helped Lowe's update its bathroom
category to make shopping the aisle easier and move
shoppers "up the continuum" to higher-margin
merchandise.
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| Merchandising Trends: Assessing the Back-to-School Season |
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Institute member EastWest Creative helps us assess
the 2005 back-to-school season with more than 35
in-store photos and related observations from the
marketing agency's staff.
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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.
- Acushnet Golf
- Adams/Pfizer
- Alcone Marketing Group
- AMD Industries, Inc.
- American Express Tax and Business Services Inc.
- Americhip Inc.
- Artisan Complete
- Atlas Packaging
- Barkley Evergreen & Partners, Inc.
- Cascade Designs
- Circle One Marketing
- Creative Carton
- Dubai Shopping Festival
- Fisher Design, Inc.
- FLOORgraphics, Inc.
- GFX International, Inc.
- Harvey & Daughters
- Hasbro
- Jorge J. Larach y Cia.
- LA Brea Bakery
- L'Oreal
- Meridian Display
- Midland Display Group/A Division of Midland
Container
- National In-Store
- NBA Entertainment
- ODL, Inc.
- Packaging Specialists Inc.
- Perrigo
- Rubbermaid
- Saag's Specialty Meats
- Spring-Roll LLC
- The Gates Corporation
- Thomson, Inc.
- Toys R Us, Inc.
- TPN
- Trans World Marketing
- Unified Resources In Display
- Walgreen Co.
- Warner Music Group
- Wenzl & Co.
- YoYo USA, Inc.
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NEW in the Library... |
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Retail Handbook
Updated Retailer Profiles of Best Buy, Costco, H-E-B,
Meijer and Walgreens.
Plus, Kroger announces plans for an in-store TV
network, and Kmart tests digital signage advertising.
Research Library
Read "Scanner Data Corroborates P-O-P's Power," a
1995 article presenting IRI merchandising data, to
compare display activity then and now.
Plus, revisit "2004 Merchandising Trends" from
IRI's In-Store Solutions Group for a deeper look at
recent activity.
Case Studies
Football tie-ins and Halloween promotions slip in
before the end of the back-to-school season: Pepsi
trades for a "Halfback" and Hershey carves out some
pallet space.
Plus, a category report on hardware and an
overview of in-theater displays from P-O-P Times.
Image Vault
Review the winners of the 2005 Design of the Times
contest in an updated gallery featuring producer
information for all entries.
Plus, more than 150 new images of displays and
signs at retail.
Lecture Hall
Chief executive Jim Keyes explains 7-Eleven's "Team
Merchandising" philosophy in an article from 2004;
past lectures by James W. Peters and other packaging
experts.
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