Not according to the Compliance Initiative Study.
Multiple studies have proven the importance of in-store POP and displays at influencing purchase decisions and increasing sales lift in-store. Nearly 1 in 6 brand purchases are made when a display with that brand is present in-store according to the 2012 POPAI Shopper Engagement Study. There’s resounding evidence that POP materials remain a critical component in product marketing and driving sales.
BUT, how do you know if the promotional display has been displayed properly in the store, or if it has even been displayed at all? Turns out that compliance, meaning whether or not your POP promotions are displayed in-store as planned, depends on the retail channel, the display type and who is responsible for the display installation.
To shed light on this concern, POPAI partnered with Quri, a provider of retail analytics and insights, to conduct the Compliance Initiative Study, which was released earlier this year. The goal was to uncover a true understanding of retail POP display compliance, sales lift, and ROI to help the Association’s members with future decision-making processes based on the performance of in-store promotions.
Less than half of displays are compliant
The Compliance Study spanned Food, Drug, Mass and Dollar channels as well as different types of displays: Floor Stand, Endcaps, Power Wing, PDQ, and Shippers. Multiple national consumer packaged goods (CPG) brands participated in the study by providing timely in-store display execution projects in return for the report. In order to better validate the execution of a promotion for a brand, 300 store locations where the installation of displays was required where evaluated, even if the promotion was actually significantly larger. All totaled, approximately 5,600 in-store observations were made using factors that included location, merchandising efforts, and inventory as well as real-time sales data.
“The report findings show that while companies believe displays are being executed, unfortunately, many are not, and thus companies are losing sales revenue.” says John Anderson, POPAI’s Interim President. As it turns out, overall display compliance of displays revealed that only 41% on average had the planned display properly executed, according to the CPG brand. That’s less than half! 17% were displayed vastly different than planned (such as a floor stand dismantled and placed on a shelf), which leaves 42% of displays not compliant.
Other surprising and noteworthy results
- Compliance by Channel: The Dollar Channel has the highest compliance at 78%. Drug was the second highest at 59%, Mass was third at 40%, and Food was lowest at 30%.
- Sales impact by Channel: Mass Merchant Stores proved to have the greatest impact on sales at 32%. Food has 19%, Drug 13%, and Dollar came in at 9%.
- Compliance by Display Type: Endcap displays are most likely to be executed properly 66% of the time. Power Wings are second at 50%, Shippers 44%, Floor Stands 33% and PDQs were the least likely to be compliant at 31%.
- Sales Impact by Display Type: Endcap displays have the most sales lift attributed to the display by far at 77%. Shippers 21%, PDQ 20%, Floor Stand 15% and Power Wings at 11%.
- Compliance by Retail Support: Displays that rely on Store Personnel to execute are most compliant at 58% vs. a Broker 43% or DSD (direct store delivery) at just 10% compliant.
- Return on Investment (impact vs. cost): Floor Stands provided the most efficient display type measured with a promotional program value of 700%. This means that for every $1 spent on a display there was an average return of $7.00 incremental sales dollars when it was properly executed.
The POPAI study sheds some fantastic light on the compliance mysteries that brand marketers should be aware of when implementing a POP display program- especially in a congested or under-staffed retail environment.
KDM P.O.P. Solutions Group has the technology in place to better assist our customers with the compliance of their in-store marketing executions. INTELLITRAK™ compiles and manages attributes about each retail location to create a unique store profile. The platform is designed to help marketers eliminate the waste of unused POP materials, provide in-store compliance tools, find efficiencies in print production through order consolidation, schedule and track distribution, and provide valuable marketing reports.
- Learn how we support brand marketers with every facet of their in-store marketing goals. Contact us today.