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50 THINGS YOU NEED TO KNOW ABOUT POINT-OF-SALE
Louise Durack
1.“Our research has shown that while social and recreational reasons make up around 12% of
shopping centre visits, 70% of people are there to shop. Not a revolutionary statistic, but it
reminds us that people are more receptive to advertising messages when they are already
there to buy. The case is even stronger when you look at the fact that 70% of purchases are
unplanned. Therefore retail media is able to help shoppers with what they originally came for
and ensure that it’s the advertisers’ brand they buy, while also appealing to those shoppers
who are open to impulse.”
Westfield
2. There are over 1300 shopping centres in Australia – equal to over 15 million square metres
of retail space. Shopping centres are now responsible for 40% of all retail sales and a third of
all retail space.”
Mark Fishwick, managing director, Torch Media
3. 70% of brand decisions are made at point of purchase.
Research from Point Of Purchase Advertising International (POPAI), Australia and New Zealand
4. “The importance of point-of-sale marketing, including sales promotion, continues to show
significant growth in Australia. As a result, the number of sales promotions alone in the
marketplace at any given time is increasing. Lottos.com.au, an online directory of sales
promotion, claims to list over 1,700 current competitions open to Australians. In addition to
this, there are hundreds more display-only activities being run in retail stores and venues
around the country.”
Peter Maniaty, creative director, Euro RSCG 4D
5.60% of supermarket purchases are unplanned. Research from Point Of Purchase Advertising
International (POPAI), Australia and New Zealand
6. “Use all senses to trigger emotional impact. Emotion is the key! If your customer comes
home and still talks about your brilliant and unique POS advertising you got it right. To achieve
this, you should think about all human senses and how your POS campaign can stimulate the
senses. Nothing is impossible and latest technology makes it even possible to use scent to get
the customer in the buying mood.”
Holger Pfeilmaier, marketing manager, LookPrint
7. “POS is the best mass-reach medium to get to grocery buyers – it takes a brand into nearly
350 centres – regional, sub-regional, and neighbourhood shopping centres across Australia.
With a $20 million capital investment into the shopping centre market by outdoor companies,
the shopping centre is the right place to target customers as they make buying decisions.”
Lighthouse Communications
8. “Consider the following international POS trend, identified by Moxie Market Strategy and
yet to hit Australia: segmented channel execution. It’s about executing your brand
communications differently in different channels. Take Coca-Cola for example. It presents its
brand quite differently in restaurants compared to take-away outlets. The communication is
based on a combination of shopper behaviour and channel characteristics. Segmented
channel execution is very popular in the United States – it’s about being more relevant,
effective and targeted to shopper behaviour in each channel (grocery, convenience, etc), and
it minimises wastage at point of sale.”
Norrelle Goldring, principal, Moxie Market Strategy
9. “Media agencies should seriously be considering the flat-screen television option due
mainly to its POS credibility. It’s proven that many customers make snap decisions that turn
into impulse buys at the point of purchase and this is a very compelling argument for brands.
In the early stages of the technology, companies found it difficult to see why they should
market products in this way. This has become a lot better as time has gone on and they can
now see how the technology has increased the average (liquor store) customer’s basket sale
from maybe $25 to $35.”
Martin Watson, consultant, Roar Media
10. “Always opt for digital where available, especially if it incorporates sound and Bluetooth.
Research conducted by the JC Williams Group concluded that shoppers are 5-10 times more
likely to notice and recall dynamic media than static media. Our recent iFIND Bluezone
campaign results for Paramount’s Transformer movie validates this research, with this
campaign being the most successful Out Of Home Bluetooth campaign worldwide, in terms of
number of downloads.”
Jeff Estok, General manager sales and marketing, Global Mall Media
11. “Your packaging is point-of-sale too. Okay, so there’s no room for a free-standing display.
Your budget means you can’t afford floor stickers, electrostatic decals or self-feeding hang
cells. The retailer won’t even let you put up a simple shelf strip. All is lost, right? Wrong. Too
many businesses forget that the packaging itself can play a huge role in driving a purchase
decision. And we don’t just mean on-pack stickers and sales promotions. Use things like shape,
colour and design to ensure your product commands attention. It can be a powerful
communication story in its own right.”
Peter Maniaty, creative director, Euro RSCG 4D
12. “POS influences brand switching. In today’s hyper competitive market, consumer loyalty
is no longer a given. Almost 9 in 10 shoppers deviate from their shopping list.”
Mark Fishwick, managing director, Torch Media
13.Point-of-sale can have a direct impact on sales. A recent Network campaign, which involved
a heavyweight two-week burst saw Panadeine go from number two to number one in its
category for top-of-mind recall with 69.4% product recall, positioning them at number one
within their product category. Ad awareness was increased by 16.5% following the campaign,
and post-campaign there was a massive 95.4% recall for ShopaLites, significantly higher than
any other mainstream media. Weekly, fortnightly and monthly purchase consideration
increased for Panadeine, proving ShopaLites can have a direct impact on regular sales.”
Brendon Cook, chief executive officer, Network Outdoor
14. “POS works – we have the research to prove it. The moment of purchase decision is one
of the few times consumers actually pay attention. This is a golden moment for advertisers.
A study of more than 100 campaigns over a two-year period, conducted by Synovate Aztec for
Torch Media, showed that POS delivered consistently.”
Mark Fishwick, managing director, Torch Media
15. “A compelling offer is one that will be easy to implement in store and equally easy for
consumers – don’t get them to jump through too many hoops.”
Simon Watson, State account director, McDonald’s
15. “For pure, promotional ‘shelf talker’ style POS, located at the point of purchase, we must
think of it like a red rag to a bull. It needs to be loud and proud. Subtlety is not our friend at
this last chance to win a sale moment. Reminds me of my days as a department store spruiker
if I had a red light and a red ticket in front of a table of boxer shorts I could have been
talking Martian and the people would still have flocked to see what the fuss was about.
Simon Burrett, managing partner, The Foundry
17. “The retail environment should be an expression of your brand attributes. Vodafone stores
feature a clean and welcoming look and feel. We’re up-front about what’s on offer, our
displays are clear and informative - and customers know exactly what we stand for when they
visit any of our stores.”
John Casey, chief marketing officer, Vodafone Australia
18. “Vodafone likes to delight and reward our customers, and often it’s the little things we do
instore – the unexpected gift with purchase – or the surprises our customers receive later on
- such as a free magazine subscription, or a chance to win a money-can’t-buy-experience.”
John Casey, chief marketing officer, Vodafone Australia
19. “The most compelling thing I ever saw was in a department-cum-gift store called Hema
in Stockholm, Sweden. Each week, it would use a big circular display area at the front of the
store to showcase the top 10 or so items that were being shoplifted from it. By highlighting
the items that people (invariably young people) were stealing from the store, shoppers were
given the message that the store obviously stocked a lot of trendy, innovative, exciting
products that were in great demand from the fashionable people of Stockholm. What a great
way to turn an awkward, everyday retail problem into a point-of-sale success story.”
Rose Herceg, former CEO, Pophouse Media
20. “Communicate a promotion. We all want to know ‘what’s in it for me’ and it is no different
for consumers when entering any store. Think of it from a consumer’s perspective – they are
overwhelmed by choice, bombarded with countless messages and under time pressure. To
cut through the noise, POS that conveys a consumer promotion, price discount or anything
that adds value to the consumer is an excellent way of engaging with them just prior to
purchase.”
Katie Rigg-Smith, communications planner, Mindshare Sydney
21. With up to 70% plus retail purchase decisions made at the point-of-sale, location-
based marketing initiatives are absolute gold for marketers; getting the mix right here can
make or break. It’s truly the last golden marketing mile. Strong mediums that are creatively
used to capture shopper awareness at point-of-sale, drive sales results. Marketers have to be
prepared to try new technologies and break old moulds.
Anthony Deeble, managing director, Outpost TV
22. “Closer to home, in Perth, Western Australia, I witnessed a great but very simple, little
idea for shoppers in an independent grocery store. At the entrance, there was a selection
of brightly coloured post-it notes for people to rip off and use for their shopping list as
they went about the store. The simplest ideas of all, as we know, are often the best.”
Rose Herceg, former CEO, Pophouse Media
23. “Closing the loop on the communication mix. Truly effective point of sale closes the loop
on the communication mix. It doesn’t introduce an entirely new thought as this would only
confuse the consumer. Indeed, communicating a new thought in a store environment could
undo all the great work up to that point. Effective POS always works as an integrated piece of
a total communications plan. In order to achieve such cohesion we need to stop referencing
this imaginary ‘line’ we have created that supposedly divides the disciplines into above-the-
line and below-the-line. The consumer couldn’t care less about this line and only views the
campaign in its entirety which is what we should do too. To the consumer, point-of-sale is the
final message prior to purchase and one that should linked into everything else they have
seen, heard, read or experienced prior to going in store.
Katie Rigg-Smith, communications planner, Mindshare Sydney
24. “In Tokyo once, I saw one of the fashion stores with its windows covered up with big
luxurious red velvet curtains and a sign simply saying ‘come inside’. Did I need further
encouragement?”
Rose Herceg, former CEO, Pophouse Media
25. “Permission is key. From AURA's perspective – as a specialist in delivering wireless
proximity marketing services and mobile location-based information – we need to realise
that the POS solution needs to be permission-based and privacy compliant. For example, the
consumer should be given the opportunity to accept or decline the communications/offers.
This will give them the confidence to accept the offers/messages.
26. “Ideally it should also be free. It should not cost the consumer anything to accept, receive
or redeem offers or to access the location-based information.”
Adam Dunne, sales and marketing director, AURA Interactive
27. “But increasingly POS is also going in a second direction as customers want more and more
information about the products they buy. It’s not about replacing the sales person, it’s about
engaging with the customer and enhancing their experience at retail. That’s why we’re seeing
an increased focus on POS that has a quieter tone allowing the customer to find out the vital
information about the products that are on sale. This is the ‘moment of credibility’ for the
retail brand, where it has the opportunity to prove its own credentials by demonstrating how
well it knows its product, and what its customer needs. Retailers who understand when and
how to wave the red flag and when to go for the softer sell are the ones that will win out in
the future. The new Snooze store at Essendon is a fantastic example of new thinking in POS, as
is the new BBQ Galore store at Caringbah.”
Simon Burrett, managing partner, The Foundry
28.Instant gratification is key. Consumers hate to wait! The offer must be available/ delivered
immediately.”
Simon Watson, State account director, McDonald’s
29. “The POS success formula is: navigate – inform – motivate – activate It is a good idea to
have the POS success formula in mind when creating a POS promotion. You should know the
important steps of the buying process and the stages where POS material can perform the
biggest influence.
30. “Women are more susceptible to POS marketing than men. 50% of all women can be
convinced to choose a new or different brand at the POS. However, only 36% of all men would
change their brand preference in a store.”
Holger Pfeilmaier, marketing manager, LookPrint
31. Successful POS material needs ‘wow-factor’. When creating a point-of-sale campaign, try to
be different. A mainstream campaign that doesn’t impress the customer won’t give you the
desired results. The noodle brand Barilla for example, designed a 5m long gondola inclusive of
gondolier to create Italian flair around their products. The result: 186% more sales compared
to ‘normal’ shelf POS media.”
Holger Pfeilmaier, marketing manager, LookPrint
32. “Retailer power. Save for a handful of global mega-brands, the control exerted over
marketers by the world’s major retailers has risen sharply in the past decade and Australia is
no exception. Clean store policies, SKU quotas within categories and the rise of home brands
knocking many second tier brands off the shelves and into commercial oblivion – are just
some of the factors that have had a fundamental impact on the POS landscape.”
Peter Maniaty, creative director, Euro RSCG 4D
33. Context, not content, is king. Understand the environment that you’re creating content
for before you create it. While a person may physically be in one place, his attention may be
elsewhere. A person walking through a shopping centre is not looking for advertising, so the
message has to be interruptive enough to capture their attention.”
Jeff Estok, General Manager Sales and marketing, Global Mall Media
34. “Shopper research is the key to getting the marketing mix correct. While more and more
consumer-marketing dollars are being allocated to customer marketing activities, the major
grocery retailers are using this investment for added support for the expansion of the house
brands. This will impact all POS brand strategies.”
Peter May, managing director, G2 Australia
35. “85% of grocery buyers visit a supermarket at least weekly, with more than 50% visiting
more than once a week.”
Lighthouse Communications
36. “Average weekly spend by a grocery buyer is $166, with approximately 44% of grocery
buyers with kids spend over $200 on groceries each week.”
Lighthouse Communications
37. “As a post production company specialising in TVCs with a dedicated department working
on content for digital POS, we see POS as one-to-one communication. Therefore don’t address
all the shoppers in the store. Just talk to that person passing by the screen and give them a
reason to buy now. Rather than selling the brand, sell your special offer.”
Justine Douglas, marketing manager, Cutting Edge
38. “Investing in LCD screens is not enough. Hook up with a company that can produce and
manage effective content that can be centrally managed so that only current and approved
messages play.”
Justine Douglas, marketing manager, Cutting Edge
39. “Shoppers are moving. Keep the message simple so they can get it in just a few seconds.
Long or obtuse messages will only be watched and understood if you happen to have a couch
and a mini-bar in your shop!”
Justine Douglas, marketing manager, Cutting Edge
40. “Once you have captured their attention, make sure you capture it with something of
relevance. Most interruptions are unwelcome, but recent research has shown that people
can and will give attention to commercial communications … but only when it suits them.”
Jeff Estok, General manager sales and marketing, Global Mall Media
41. “Customers are not just shopping on price; they are really looking to get the best quality
of product they can before parting with their cash. And as an extension of people being ‘time
poor’ with potentially more disposable cash in their pocket, there is now the ‘doing it for me’
phenomenon. Rather than DIY, consumers are increasingly being offered the chance to have it
done for them, for example with services such as home improvements. Whereas at one stage
we were seeing people mainly doing their own home improvements, nowadays several of the
DIY chains such as Bunnings are offering this as a service within their stores.”
Michael Morrison, lecturer in retail, Monash University, Melbourne
42. “The number of people who frequent shopping centres on a weekly basis, combined with
the amount of money spent in this environment ensures that the power of retail media is
second to none.”
Brendon Cook, chief executive officer, Network Outdoor
43. “A large number of people visiting local regional shopping centres go for supermarket
shopping – yet until now, advertisers have not been able to effectively communicate with
these shoppers prior to purchase. point-of-sale allows advertisers to increase their impact in
regional Australia.”
Brendon Cook, chief executive officer, Network Outdoor
44. “Point-of-sale cannot be switched off! Unlike television at home, POS campaigns are not
reliant on content for their existence, and they cannot be avoided. Try switching off a decal
on the door of the freezer as you reach in for the ice cream.”
Mark Fishwick, managing director, Torch Media
45. “Effective point-of-sale requires considering the retail operations. Ensure that the point-
of-sale is safe for shoppers, durable, works in the space and looks good even when half of the
product has been sold.”
John Batistich, general manager marketing, Westfield
46. “Marketing plans must be fully integrated and focused for final execution instore.”
Tom Harris, CEO, Point of Purchase Advertising International (POPAI), Australia and New
Zealand
47. “Australians make 1.75bn visits to shopping centres each year, around two visits each week
per Australian, where they spend $84bn or 50% of household income at shopping centres –
shopping centres now account for around 40% of all retail sales.”
Lighthouse Communications
48. “Shoppers and consumers are not necessarily one and the same. We must look to the
shopper insights, not simply the consumer insights. Activation at point-of-sale needs to
understand how to activate shoppers.”
Peter May, managing director, G2 Australia
49. “Cunning stunts (mind how you say that!) and great packaging must work hand-in-hand.
It is vital to differentiate – especially at point-of-sale. The role of store marketing activity, eg
memorable sampling in-and outside the store, can actively work to link the brand, the
shopper-need, and the product.”
Peter May, managing director, G2 Australia
50. “Teamwork between retailer, brand and point-of-purchase solution provider is vital for
success.”
Tom Harris, CEO, Point of Purchase Advertising International (POPAI), Australia and New
Zealand
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9 November 2007
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