By Steve Davenport, Commercial Director, Bartuf Systems.
Wednesday, June 29, 2005

In store signage has previously been an overlooked business consideration and the benefits of point of purchase signage particularly undervalued. However, the quality of retail signage, together with high standards of merchandising, has become increasingly important to retailers as they strive to be more competitive.

For the retailer or brand looking to grow sales p-o-p can be an excellent investment yet although it is an important part of the advertising and marketing mix its potential continues to be underestimated even by those who use it. Whilst no-one would rush into an advertising campaign without proper planning, many companies who invest in P-O-P display fail to recognise its complexity as a medium and therefore are unable to get the most out of one of the most powerful tools available to the retailer today.

Choice and Design

In the past many people have regarded p-o-p as a promotional tool featuring temporary offers such as “3 for 2” or “buy one get one free”. This greatly underestimates the role played by P-O-P in growing sales for the retailer. Manufacturers have ensured P-O-P signage is now able to deliver a much more complex message to the consumer and many companies are incorporating it into their advertising mix to produce brand recognition and uniformity.

Technological advancements in manufacturing have decreased prices, shortened lead times, and created a wide range of new techniques to develop creative P-O-P displays. The P-O-P sector now incorporates a range of different products including; freestanding dumpbins, gondolas, point of sale wings and category flags. Experienced manufacturers are now able to offer a bespoke service to ensure that P-O-P is suited to the retail space available, clientele and product. The one-size fits all approach to merchandising is no longer acceptable or profitable.

The success or failure of a P-O-P display is determined as early as the design stage. It should provide a solution to clearly defined objectives whether they are to increase sales, maximise facing or increase brand image. Prior to the successful installation of P-O-P equipment into its stores, independent retail newsagent, Martin Jones, analysed and evaluated each of its newsagents looking at its top selling ranges and in store hotspots. With minimum disruption to each store simple promotional pockets and category signage were installed enabling customers to easily locate their favourite products and ensuring best seller were given high visibility. The result for Martin Jones was a 15% increase in sales.

POP Power - Will it work?

If used effectively it is undeniable that p-o-p will grow sales. Large displays in high traffic supermarkets have been shown to increase the rate of sales by as much as 64 per cent. However, within smaller retail chains the results have been just as impressive. The Point of Purchase Advertising Institute (POPAI) reports that 74% of all purchasing decisions take place in store, and in forecourts and convenience stores where impulse purchases make up a significant percentage of overall sales, customers need to be prompted. P-O-P offers an unavoidable in store cue to the customer at the vital purchasing decision moment.

Convenience retailer, One Stop, recently introduced two forms of P-O-P display to great effect. The company installed “dump bins” or freestanding promotional units across its stores simultaneously utilising the space available and encouraging impulse purchases. One Stop then requested a bespoke “kids stop” p-o-p solution consisting of a coloured back panel with shelving and a base “bin” located at key locations within store to maximise the sales of confectionary and soft drinks. The result is a eye catching and targeted display which uses space intelligently whilst creating a focal point in store to attract customers.

P-O-P is an extremely positive tool for any retailer wishing to maximise customer spend in his or her outlet. In today's retail environment it is vital that retailers use their space to maximise sales. Good quality signage can “rejuvenate” a product and encourage variations in buying patterns.

Branding and Identity– Can POP play a part?

High visibility communication of the corporate brand is of vital importance to building brand loyalty and can create a decisive competitive advantage. Companies need to raise brand awareness using every form of communication available to them as saturation and visibility are key when trying to build a household name. The use of branded display at the point of sale is the final opportunity for companies to reinforce their message before the consumer makes their buying decision. An excellent product in an inferior display will send confusing messages to the consumer about its quality, and in this way P-O-P plays a significant value in adding or detracting from the perceived value of a product.

Publishers of printed maps and atlases, Geographers A to Z Map Company commissioned the design of a bespoke P-O-P solution manufactured in coloured PETG plastic in line with A to Z's corporate blue branding. The cutting edge blue tinted units were designed to further enhance the A to Z brand recognition and to differentiate the A to Z brand at the point of sale. The mobile nature of the pop solution has also opened up new markets for the company by expanding the number of retail outlets able to stock A to Z products.

P-O-P plays an important role in strengthening brand and identity and ensures the premises on which goods are sold reflect the brand values of individual companies, creating complete brand consistency. The relatively temporary nature of P-O-P display also allows companies to ensure that any offers or promotions they may be running are featured in store so that retailers are up to date with their marketing schedule.

Who is in control?

Development in P-O-P display does raise issues about who would be the controlling force in visual merchandising in the future. Previously, independent retailers have been able to create a store environment that suited their customers and locality. The rising popularity of branded P-O-P display may result in retailers losing control over the merchandising of their stores to large brand names with the budget for large, creative P-O-P display.

However some would argue that the benefits for retailers would far outweigh the risks. Smaller independent retailers have previously been limited in the scope for their visual merchandising by lack of resources. Mobile P-O-P allows the retailer to experiment with shop floor layout and create focal points in store to increase customer traffic. Also, if a customer feels able to associate the store with a trusted brand as it is well displayed and readily available, this can only serve to create repeat custom and shopper loyalty.

Shaping the Retail Environment

Effective P-O-P should not only demonstrate and highlight the product but also bring a sense of order to the retail space. Retailers and manufacturers must strike a delicate balance between using pop effectively to make products attractive and accessible and causing an obstruction and sensory overload for the consumer. The market is saturated with different brands within any given category and p-o-p such as category flags and POS wings can help to break up the blocks of information facing the consumer and providing a more interesting and less daunting experience for the customer.

Following the decision to revamp its Kings Cross Station store, WHSmith took the decision to implement key changes to its fixture design. The store was split into two sections, one for quiet browsing and one focused on business visitors wanting to “grab and dash”. WHSmith faced the challenge of having to deal with a very high intensity customer flow in as short a time as possible as well as a desire to reduce the need for store staff to replenish stock during the day. Through the effective deployment of mobile pop fixtures WHSmith was able to hold more stock on the shop floor and create accessible product displays for time-pressured customers.

In addition to making the retail environment more organised pop is also vital in creating in store excitement. The mobility and cost effectiveness of P-O-P allows retailers to do their own branding, customising displays to suit their customers and locality, making it a powerful merchandising tool around seasonal holidays. P-O-P display allows the retailer the freedom to change store layout at will which is a cost effective way of refreshing the look of the store and increasing customer traffic.

Essentially, P-O-P signage is an inexpensive, effective way to enhance sales and leave an impression on the customer. The most effective P-O-P should inform the customer and demonstrate and highlight the product within the context of the store. If this is done successfully P-O-P display can play a critical part of retail business success.

Established in 1995, The Bartuf Group incorporates Bartuf Systems; Bartuf Display; Bartuf Europe and Bartrux. Based in Holbeck, Leeds, the company now has a substantial national presence, a multimillion pound turnover and is recognised as a leader in the field of high quality display solutions.

Bartuf Systems is a small to medium sized business and boasts extensive experience in the design and manufacture of display solutions for both the UK and international markets.

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