VIEWS: 4 PAGES: 11 CATEGORY: Advertising POSTED ON: 2/11/2013
Compliance guide to help businesses get the most out of their Point of Sales advertising project with the design and print company The Printed Image.
pos compliance guide welcome... >>let’s begin with some startling facts... Up to 75% of purchase decisions are made at the point of purchase... Therefore as consumers are apparently approaching the shelf with such an open mind, brands have an enormous opportunity to jump off the shelf and into the basket! What better way to do so than to be the most visible brand on the shelf? An enticing offer, creatively displayed on a suite of innovative POS would surely sway the consumer towards your brand, wouldn’t it? However... Up to 40% of POS never see’s the light of day! Not only that, but... Up to 50% of store managers do not comply fully with briefs supplied for implementation of POS in-store. I know, you’re thinking that can’t be true! Clearly the POS that you have lovingly invested so much time, energy and money into has not been wasted, has it? Surely, store managers are not blind to the value of POS in uplifting sales, are they? To be fair, store managers can only work with what they are given, and dressing the shelves as nicely as you had intended is not as straightforward as you might think! >> 2 >>introducing ‘compliance’ POS Compliance is about getting the basics right: ensuring product availability and poor retailer - supplier visibility, selecting the most appropriate form communication... of promotional implementation, clear display ... About expected sales uplift for accurate stock and sales of pricing, and making sure in-store displays forecasting are correctly and appropriately placed. ... About promotional detail, POS Compliance is not just a task, and responsibility for achieving ... About what POS will be provided & how the store will be it does not rest on the shoulders of the store manager. Rather, merchandised, achieving POS Compliance is a process, and it is one in which the brand, the retailer and the POS supplier all play a part. ... About required stock levels & frequency of restocking. All parties should be actively engaged and committed to working towards achieving the highest possible rate of POS Compliance in- production/distribution... store. Unclear labelling of POS - installers cannot find/are unaware of Getting it right is not straightforward either. There are a lot of POS suite pitfalls along the way which can seriously compromise the Late delivery of POS - less time in store to impact on sales implementation or effectiveness of your POS and the resulting return on investment you would expect from it. Coordination with stock delivery - lack of stock makes POS redundant Some of the main barriers to compliance are as follows: Damage in transit - POS cannot be implemented Quality of POS - poor print quality compromises brand’s impact on design... consumer Size/footprint of POS - too big for use in-store Inadequate kitting elements - compromises impact of POS in store Inappropriate materials - not durable enough Inappropriate design - does not fit on shelf implementation... Lack of innovation - low impact on the consumer Motivating merchandisers - why should they comply? Overly-complicated implementation - too difficult/time Instructions for use - making it easy to comply consuming to get right Staffing levels - who has time to merchandise & ensure sufficient stock supply? feedback... ...If it works, HOW WELL, and if it does not, WHY NOT? 3 >> >>the brief & managing the design process Whether you’re a retailer or a brand owner, Appropriately detailed - Enough information to understand the you no doubt are faced with ever-increasing brand and its objectives, but not so much as to blind the designer competition and sales performance or mask the true objectives. expectations. With the demise of the Celtic Simply written - Designers and marketers are different animals Tiger, this challenge still has to be met, and they don’t use the same language. A brief is really a set of although probably with dwindling budgets! instructions, not a sales tool, so use of acronyms and marketing So how do you achieve that “WOW!” factor, with minimal cost? terms should be minimal. As a brand owner, it’s important to remember that while your retail Include practical information - If you need an SEL (shelf edge customers are looking for innovation and impact, they each have label) strip, what are the product dimensions and how many guidelines that must be adhered to. So, to avoid unnecessary facings do you have? If you need an FSDU (free standing display design or print cost and wasted POS, it is important to ensure unit), how much product should it hold? If you need shelf from the outset that the retailers’ requirements are met when defenders, what height is the shelf? developing your creative brief. As a result, your print & design costs will be kept to a minimum, your critical path adhered to and Convay a budget - Communicate this at the outset, so that your chances of achieving compliance at the implementation stage realistic options can be quickly identified and unnecessary cost are maximised. can be avoided. Things to look out for include your footprint allowance (height Set the critical path - To maximise your rate of POP compliance, and floor/shelf size restrictions), material specifications and a critical path is well... critical! If you don’t leave sufficient time co-branding guidelines or perhaps the retailer will only accept for design of your Christmas, Easter or Halloween POS, you run retail ready units. the risk of compromising its effectiveness or having less face-time with the consumer than your competitor! Discuss your critical path the better the brief, the better with the designer/printer well in advance and agree timings on each stage from brief to delivery. the result Other information - Any mandatory content such as legal lines, You want to be sure that your POS designers and manufacturers corporate guidelines, etc. as well as information about the target understand the barriers to compliance that you face getting your audience should be clearly stated. POS placed in-store, so it’s important to get the brief right from the word go. It is useful for your designers and printers if you mention any compliance issues you have had in the past - perhaps they can From our experience at The Printed Image, the best design briefs suggest a new format, merchandising mechanic or material that are all: will overcome this for you! Clear & concise - Objectives and creative considerations clearly stated. >> 4 >>the importance of brand-retailer communication Compliance in-store depends on a strong two which other stores are likely to face at the full roll-out stage. way relationship between brand managers Feedback from these buddy stores in a live environment often and retailers. Stepping up communication determines how well the final promotional suite is put together. levels on a strategic and practical level helps Keeping up to date records about each retailer helps to ensure retailers to understand the function and appropriate POS kits are sent to each store and minimises the possibilities of in-store marketing. By occurrence of wasted time and resource. Information about shelf communicating with them about your promotional objectives and sizes, floor space availability or footprint requirements, number of how in-store activity relates to your wider brand message, you available facings, etc will help you to select formats of POS that encourage them to buy in to your brand. Moreover, informing them are targeted in their function and appropriate to the available about expected sales uplift incentivises their efforts to ensure space. materials are correctly installed and shelves are properly stocked. By taking time to review sales uplift achieved and monitor Most presentations take place at HQ, however it’s important to other KPIs (key performance indicators) with your buddy store, review your plans with the local retailer also where possible and you will be able to make more informed decisions about how to outline how POS will be implemented in store. They may tell you, direct your budgets and which forms of POS are proven in their for example, that hanging signs which require a step ladder to impact. Refining your activities in this way will lead to more cost implement will suffer, or that as the floor is washed each night, effective, efficient and effective implementation which will be water may leak onto corrugated free standing units so they may easier for stores to comply with and result in a much higher return require a plastic base tray. They may also tell you that certain on investment. pieces - if rendered in plastic rather than board will last in-store longer, achieving a higher return on investment. Retailers have the Whilst store audits entail additional expenditure at the outset, it first hand knowledge in this area hence the importance of their does lead to less waste of POS, reworking of inappropriate formats input from the onset. down the line, better targeting of investment and a higher rate of return. With a bit of luck, you should see the cost of auditing pays testing, testing… for itself very quickly! Working with flagship or ‘buddy’ retail outlets can significantly ease the process of understanding constraints in-store, in terms of available space, pressure on resource, and any other circumstances which might affect POS merchandising. By talking to the retail staff, insight can be gained into the reality of managing stock, maintaining corporate appearance, and any store level nuances that contribute to implementation levels achieved. Running a test with a “buddy” outlet can help identify compliance issues 5 >> >>manufacture & distribution of POS While forming strong brand-retailer To create impact and maximise opportunity in store POS is most relationships is the best way to overcome often developed in suites rather than one-off stand-alone items. barriers to compliance, this goes beyond From one retailer or promotion to the next, your kitting simply investigating what their practical requirements will vary substantially. Some kits will be generic, and installation requirements are, and involves some bespoke to an outlet. Kitting instructions should be understanding other compliance issues they developed early in the process, double-checked by commercial face throughout the process. teams or sales reps and forwarded to your supplier in a timely As a general rule, adhering to timelines and clear manner. Oversupply of POS to a small outlet, insufficient supply to communication are the key drivers to successful compliance at a supermarket or supply of inappropriate items to any retailer only retailer level. Once you have provided realistic lead times and have leads to waste and ineffective use of spend! Furthermore, addressed any issues which could lead to time-wasting or supplying these details to your POS supplier at the last minute can installation headaches, you have won half the battle. lead to late delivery or kitting error. The single biggest cause of non-compliance in-store is lack of How your POS is packed and delivered is of the utmost importance. clear instructions for use. Merchandisers work under constant For a start, it should be packed in a way that prevents damage in time pressure and items that involve guesswork or require a degree transit, so that a usable suite of POS is available to the store! in Engineering to construct are a sure-fire way of making sure your Furthermore, it should be clearly labelled, so that there is no POS never sees the light of day! A clearly laid out, simple-to- confusion as to what has been provided and what brand it is for. follow instruction sheet with images of the finished piece and POS suites which are branded on the outside or labelled with display should overcome this barrier in most cases. imagery of the POS artwork are more easily found/identified by A good POS supplier will provide this for you. Also, why not set up merchandisers, increasing their chance of being placed in-store. a hot-line within your brand team so installers have a point of Timely delivery of POS is another measure for maximising POS contact if they experience difficulty at implementation? Above all, compliance in store, as late-delivered promotional suites have less the value of quick-and-easy construction design cannot be over- opportunity to impact on sales figures and risk being wasted emphasised! entirely if the merchandiser’s scheduled window of opportunity for Quality control measures are vital to successful POS placing it in-store has been missed. implementation. At The Printed Image, our clients are given both digital and physical proofs to sign off on and numerous QC checks and measures are implemented along the production process, so that mistakes are caught and eradicated long before dispatch. White sample prototypes are vital for testing from size/durability to weight & transit testing. >> 6 >>compliant merchandising So your suite of POS has been designed with focus more directly channelled on the appearance of POS in-store, retailer requirements in mind, produced to a brands often find the resulting displays more impactful. high quality, appropriately kitted, labelled As mentioned earlier, availability of stock (or lack thereof!) on- with clear instructions for use, distributed in shelf during a promotion is another barrier to compliance, so a timely way and has arrived in good having retailer buy-in is still necessary! Aligning stock and POS condition… the POS has reached the store placement by a POS Champion can be an effective measure for and is ready to be merchandised. Now you face the next challenge! resource planning and a good way of enabling compliance to be How do you get all of it installed, with best visual impact, in the maximised. correct space and in a timely manner? Whether it be stores, brand reps or 3rd party merchandisers, a Depending on the nature of your promotion, the type of POS being clear and accurate brief on how a display should be implemented installed, the staffing capacity of the retailer and the level of is key to ensuring compliance is met. Planograms, visuals control you want to have over the finished display, there are illustrating how POS should be placed and a phone number several ways of approaching this, but really it all comes down to that merchandisers can use when they face difficulty are all useful accurately briefing whoever it is that will be placing the POS in tools for achieving full compliance. store. Which begs the question… For retailers who are merchandising themselves, poor Whose POS is it anyway? communication from head office can be a barrier to compliance, but this is quite easily overcome by supplementing head office In many cases, where POS suites are quick and easy to place in bulletins and sending direct communications that raise awareness store, asking retailers to merchandise it is the most cost effective at store level to pending activity. If store managers see what is option. As they stand to gain from well placed and impactful POS being produced and are told what the likely outcomes and benefits displays, it is in their interests to ensure POS is properly are, they will be more likely to comply with the brief and plan leveraged. One useful measure for them insuring against non- stock levels. compliance is to nominate POS Champions who have direct responsibility for POS activity within the store (or specific aisles There are a number of ways to motivate store managers and within it). Whether or not they place the POS, they would be merchandisers to maximise your POS compliance for you; responsible for locating and monitoring it, as well as supplying highlighting sales uplift, setting store targets and creating rewards feedback to the store manager or brand. systems accordingly are sound methods of generating buy-in from your POS stakeholders. But these need to be backed up with store- Where POS displays are larger or more complicated than level training, regular communication and strong implementation a retailer can be expected to invest time in, or where the brand tools from the outset. prefers to hold control more directly, using sales reps or third party merchandisers to place POS is the way to go. With their 7 >> >>measuring feedback Unless you’re actually tracking levels of The choice of KPIs, method of measurement, frequency of it and compliance from promotion to promotion you responsibility for it will all vary according to availability of really have no way of ensuring that the resource and budget. measures you’ve put in place are having an Aspects of compliance which can be measured can include the impact at store level! following: POS influences consumer choice at the point Quality of goods (design, print quality, material, etc) of purchase, so it stands to reason that inappropriate POS and non-compliance both lead to a loss of potential revenue, a Level of appropriateness (footprint, accessories) compromised return on investment and hindered brand Labelling & packaging (clearly labelled, good condition) communications. To counter these losses then, a brand must first Assembly (ease of use, clarity of instructions) determine what level of influence its POS is having on sales and Stock levels (pre-promo, restock frequency, adherence to planogram) what level of POS compliance is currently being achieved. Timings (production, delivery, assembly) This is where your buddy store can be useful! Let us assume you “Popularity” (what works, what retailers like) have created a test suite of POS, got buy in from your buddy store, and have achieved 100% compliance within it. Now you can Overall effect (strength of visual appeal, standout from competitor) measure the impact of your POS on sales: Data can be captured quantitatively, using a “scorecard” format, Week 1 (buddy store): WITHOUT POS = c 1000 sales where each display is judged on a scale according to a set of Week 2 (buddy store): WITH POS = c 1400 sales categories such as those above, as well as capturing stock levels and sales figures through EPOS. Additionally, qualitative data such Total sales uplift: = c 400 (or 40% uplift) as verbal feedback and images of in-store displays can be Cost of POS for buddy store = c 80 captured. ROI of POS for buddy store = 500% But no data capture and feedback is worth its salt if learning’s are not gleaned from it and communicated back to all parties As mentioned at the outset, research has shown as much as 40% concerned. Leverage your findings by refining your designs, of POS may go straight to waste. Assuming the remaining 60% is adjusting your print spec, altering your kitting instructions or fully compliant (which is unlikely!), you’re still looking at the communicating with retailers and merchandisers more effectively. following loss: Often, simply acknowledging feedback from a retailer (“thank you Buddy store @ 100% compliance = 40% sales uplift for sending back your questionnaire”) or outlining a new learning So, regular store@ 60% compliance = 24% sales uplift you have arrived at (“we will be amending the construction of the This represents €160 lost revenue potential per store! unit based on your concerns”) may be enough to motivate them to And that’s a best case scenario! ensure that the next round of POS reaches full compliance. Effective measurement of POS Compliance requires that parties involved are agreed on exactly what is being measured and how. >> 8 >>clever customer communications Over the past 20 years The Printed Image has All this from one supplier and one service team. In short, we evolved from being a print supplier into manage every touch point that helps build your brand and drive Ireland’s premier creator of marketing sales for you. We view your challenges as our opportunity to communications materials. We are a first provide solutions by thinking creatively and producing for you choice partner for leading worldwide brands everyday. and smaller companies looking to Our 20 years proven track record in delivering winning marketing communicate effectively with their customers. solutions for some of Ireland’s premier blue chip companies, Our model encompasses all the skills and offers all the services to government bodies and SMEs has meant we have vast knowledge supply you with the most cost-effective solutions for all your and experience specifically in POS and marketing communications. below-the-line marketing communications activity. With our experience, knowledge and investment in innovation we >> Marketing Consultancy are constantly creating new POS offerings and formulas for success >> Branded Promotional Products through the various paths to purchase. >> Concept Development If you would like to meet with our team to see how we could work >> In Store Theatre together on maximising your POS impact and ROI please call 01 4089222 or mail our Sales Team on firstname.lastname@example.org. >> In-Store POS Displays (Permanent, Modular, Illuminated, Motion) Clever Customer Communications is our product. >> Graphic Design Delighting you, the customer, is our goal. >> Full Promotion Packages >> Branding & Identities >> Point-of-Sale Engineering >> Multiple Award Winning Print & Print Management >> Vehicle, Building & On- Trade Branding >> Advertising >> Warehousing Logistics & Implementation 9 >> clever customer communications | www.tpi.ie The Printed Image, Font House, Fonthill Industrial Park, Dublin 22. Tel. +353 1 408 9222 Fax. +353 1 408 9250 eMail. email@example.com www.tpi.ie
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