Packaging, Point of Purchase Communications, and Signage

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Packaging, Point of Purchase

Communications, and Signage

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter Objectives

After reading this chapter you should be able to:1. Describe the elements underlying the creation of

effective packages.2. Appreciate the role and importance of point-of-

purchase (POP) advertising.3. Review evidence of POP’s role in influencing

consumers’ in-store decision making.4. Examine empirical evidence revealing the

effectiveness of POP displays.


Chapter Objectives (cont’d)5. Appreciate the importance of measuring audience size and

demographic characteristics for out-of-home as well as in-store advertising messages.

6. Appreciate the role and importance of on-premise business signage.

7. Review the various forms and functions of on-premise signage.

8. Appreciate the role and importance of out-of-home, or off-premise, advertising.

9. Understand billboard advertising’s strengths and limitations.


Mobile Grocery Shopping


Packaging•Both protects and helps sell the product•Packaging performs key communication and sales

roles at the point of purchase in 10 to 12 seconds•The package serves to:

1. Draw attention to a brand2. Break through competitive clutter at the

point of purchase3. Justify price and value to the consumer4. Signify brand features and benefits5. Convey emotionality6. Motivate consumers’ brand choices


Packaging Structure

•Gestalt: consumers react to the unified whole of the package not the individual parts.

•The package is the most important part of the product.

•The brand name is the most important part of the package.

•Packaging Structure Components:• Color• Design and Shape Cues• Packaging Size• Physical Materials


Evaluating Packaging


Evaluating the Package: The VIEW Model

Information

Workability

Emotional Appeal

Visibility


Figure 22.1: Illustration of Workability


Figure 22.2: Hypothetical Illustration of Quantifying the VIEW Model Components


Designing a Package

Step 1: Specify Brand Positioning Objectives

Step 2: Conduct a Product Category Analysis

Step 3: Perform a Competitive Analysis

Step 5: Determine Communication Priorities

Step 4: Identify Salient Brand Attributes/Benefits


Point-of-Purchase (POP) Communications

•A final opportunity to affect consumer behavior; many decisions made at this time

•POP advertising has grown 12% each year since 1983, with over $21 billion now spent on POP communications.


The Spectrum of POP Materials

Permanent Displays

• Intended for six months or more

Semipermanent Displays

• Intended for two to six months

Temporary Displays

• Intended for fewer than two months

In-Store Media

• Executed by a third party (in-store radio advertising, digital signage, shopping cart ads, shelf ads, and floor graphics)


Figure 22.4: Illustration of a Permanent Display


Figure 22.5: Illustration of a Semipermanent Display


Figure 22.6: Illustration of a Temporary Display


Figure 22.7: Illustration of Floor Advertisements

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Growth of In-Store POP TV

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What Does POP Accomplish?

•Manufacturers: • Keeps the company’s name and brand name before

the consumer • Reinforces brand image• Calls attention to sales promotions• Stimulates impulse purchasing


What Does POP Accomplish? (cont’d)

•Retailers: • Attracts the consumer’s attention• Extends the amount of time spent in the store• Maximizes available space• Better organizes shelf and floor space (improves

inventory control and turnover)


What Does POP Accomplish? (cont’d)

•Consumers:• Delivers useful information• Simplifies shopping• Sets brands apart• Informs consumers of new products and brands• HOWEVER: Consumers can be overwhelmed by

excessive POP stimuli


POP’s Influence on Consumer Behavior


POP’s Influence on Consumer Behavior• Informing:

• POP materials alert consumers to specific items and provide potentially useful information

•Reminding:• Reminds consumers of brands they have previously learned

about via broadcast, print, or other advertising media•Encouraging:

• Influences product and brand choices• Encourages unplanned purchasing, and impulse buying

•Merchandising:• Effective and efficient use of retail space


Encoding Specificity Principle

Encoding Specificity Principle

Information recall is enhanced when the context in which people attempt to retrieve information is the same as or similar to the context in which they originally encoded

information.


POPAI Consumer Buying Habits Study

•POPAI Study Categories:1. Specifically planned: intend to buy the brand (e.g., Pepsi)

and actually do so2. Generally planned: intend to buy the product (e.g., soft

drink) and actually do so3. Substitute purchase: intend to buy the brand or the product

and buy something else or don’t buy• Intend to buy “Pepsi” – bought “Coke”• Intend to buy “Pepsi” – didn’t buy soft drink• Intend to buy “soft drink” – didn’t buy soft drink

4. Unplanned purchase: bought without prior intent


Results from the POPAI Consumer Buying Habits Studies: 1965 2012


Product Categories with the Five Highest and Five Lowest In-Store Decision Rates


POPAI Results for In-Store Decisions


Factors Influencing In-Store Decision Making

•The rate of unplanned purchasing is elevated when:• Consumers are on a major shopping trip• They shop more of a store’s aisles• The household size is large• They are deal prone

•Retailers benefit from having consumers shop longer and traverse more of the store while shopping


Brand Lift Defined

Brand Lift

Measures the average increase of in-store purchase decisions when POP materials are

present versus when they are not.


Supermarket and Mass Merchandise Product Categories with the Highest Average Brand Lifts

from Displays


Evidence of Display Effectiveness: The POPAI/Kmart/P&G Study

•Investigated the impact that displays have on sales of P&G brands in six product categories:• Paper towels, shampoo, toothpaste, deodorant,

coffee, and fabric softener•Positive sales increases materialized for all

products under two sets of display conditions versus nondisplay control stores.


Display Information for POPAI/Kmart/P&G Study


The POPAI/Warner-Lambert Listerine Study

Regular Price Listerine Normal Shelf Space

Normal Shelf Position-Feature Price

Feature Price on Rear Endcap Display 141% Sales Increase

Front Endcap Display and Featured Price

162% Sales Increase

11% Sales Increase


Encouraging Retailers to Use POP Materials

•POP Materials should:• Be the right size and format to meet retailer

specifications• Fit the store décor• Be user friendly• Be sent to stores when they are needed• Be properly coordinated with other aspects of the

marcom program• Be attractive, convenient, and useful for consumers


Why POP Displays Go Unused

•Do not satisfy the retailers needs•Take up too much space•Too unwieldy/too difficult to set up/ flimsy•Lack eye appeal•Some retailers do not believe the displays increase

sales


Measuring In-Store Advertising’s Audience• Pioneering Research for an In-Store Metric (PRISM):

• Is the result of an In-Store Marketing Institute initiative with Coca-Cola, Kellogg's, Kroger, Miller, P&G, and Wal-Mart

• A procedure for acquiring standard diagnostics (e.g., reach, frequency, and gross ratings) for measuring in-store media performance

• Gross impressions = traffic (i.e., freq.) x compliance (i.e., POP in-store use) x unduplicated audience (i.e., net coverage)

• Allowed brand marketers to plan and evaluate in-store advertising (e.g., Wal-Mart TV) in much the same way as they do for print and broadcast media

• Unfortunately, the project was discontinued in 2009 with the pullout of Wal-Mart


On Premise Business Signage

•Considered the most cost-effective and efficient form of communication available to retail businesses

•Types of On-Premise Signs:• Free-standing: monument signs, pole signs, A-

frame (sandwich board) signs, portable signs, inflatable signs

• Building-mounted: Projecting signs, wall signs, roof signs, banners, murals, canopy signs, awning signs


Figure 22.8: Illustration of a Free-Standing Sign


Figure 22.9: Illustration of a Building-Mounted Sign


Forms of Billboard Ads• Poster Panels

• Regularly seen alongside highways and in other heavily traveled locales

• Bulletins• Hand painted, or computer generated vinyl images

• Digital Billboards• Relatively new; represent 30% of OOH revenue in the USA;

rotates ads every 4 to 10 seconds; expensive and controversial in some areas

• Specialty Billboards• Use different artistic and graphical techniques in an engaging

and creative way


Out-of-Home (Off-Premise) Advertising•OOH advertising expenditures in the United

States amounted to $6.83 billion in 2011, with $2.05 billion devoted to digital out-of-home (DOOH) advertising

•OOH advertising is the oldest form of advertising (thousands of years)

•Billboard advertising is the major outdoor medium and accounts for nearly two-thirds of total OOH advertising expenditures


Figure 22.10: Illustration of an Interactive Media Wall


Figure 22.11: Illustration of a Specialty Board


Billboard Advertising’s Strengths and Limitations

Broad reachHigh frequencyGeographic flexibilityLow cost per thousandSubstantial brand identificationExcellent last reminder before purchasing

Demographic nonselectivityShort exposure timeEnvironmental concerns


Billboard Audience Measurements and Other Forms of OOH Advertising

•Nielsen Personal Outdoor Devices (Npods) were developed by Nielsen Media Research to determine demographic characteristics of outdoor audiences using GPS technology

•Other forms of OOH advertising include:• Transit advertising• “Street furniture”


Figure 22.14: Illustration of a Transit Advertisement

Packaging, Point of Purchase Communications, and Signage

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