Of Shop Shelves And Sales Aisles

What's all the fuss about?

Put in one sentence, a Point-of-Sales Material (POSM) is a display material that advertises a product in a place where a retail transaction is completed. Over the years, the application of POSM has positioned itself in the bracket of "must -do-activities" of a marketing team. For any marketing team, at least in the fast-moving consumer goods industry, POSM placement is as vital as paper ads or TVC campaigns.

Point-Of-Purchase Advertising International (POPAI) reports that as much as 75 percent of buying decisions are made in-store. Mass media has become ever more fragmented, making it increasingly difficult for brands to be effectively marketed to large population segments. This has led marketers to restructure their marketing budgets to identify alternatives to traditional mass media.

What's the right fit for you?

Different types of POSM are constantly being invented, but the list of POSM-types can still be draw up something like this: Danglers, buntings, wobblers, shelf-talkers, cut-out boards, price tags, packaging, promotional stands, banners, posters and gondola displays. Besides planning for which POSM to apply, it is also important decide "how" to go about this.

Traditional FMCG point-of-sales can be divided into three categories: General Trade (GT), Premium General Stores (PGS) and Modern Trade outlets (MT).

Premium general stores

Slowly, but surely, PGS are taking the place of GT outlets. Though PGS outlets are closing in on MTs in terms of service quality, their locations demand different approach in POSM placement nonetheless. Cut-out boards can be a superb option for PGS, especially when they are located in a side-street or goli. The shopping environment is calmer there, and people gathering there for gossip wouldn't mind to take a look at your cut-outs. Danglers might also work, but only if the store has ample space. Some companies have specific patterns of placing danglers.

Modern trade outlets

Now let's talk about MTs. These are the most organised locations to place POSMs, but at the same time the most expensive. MTs charging increasingly more for space may give off the impression that POSM placement there is becoming increasingly more effective. In reality this is a sign that marketers need to be more cautious and selective when it comes to planning for POSM placement in MTs. A chalked-out plan works better than simply bombarding shelves with shelf-talkers and loading checkout counters with display stands.

What do the experts say?

Siemon Scamell-Katz, renowned shopper analyst and global consulting director TNS Magasin, blames incorrect locations for a lot of wasted POS marketing expenditure. One research finding is that customers move from "location" mode to "shopping" mode as they walk around a store. During location mode they are subconsciously asking "what do I need and where is it?" while in shopping mode they are ready to make purchasing decisions. For example, in the case of edible oils, it cannot be expected that a customer comes to an MT outlet and then asks themselves which brand to buy. Edible oil brands are limited in number in Bangladesh and most people have a pre-determined choice when it comes to buying a particular brand. So, POSM for an edible oil brand should be to position the product in specific rows rather than having a big display at the entrance.

Placement of POSM is a must. Doing it right reaps immense rewards so why not go about it carefully and systematically? At the end of the day, we all love results.

The writer is working as Marketing Manager in Rupchanda.

General Trade Outlets

Unfortunately, POSM placement in GT receives least attention although it is still the major source of sales contributions. Many GT outlets are not suitable for placing sophisticated danglers, wobblers, display stands, etc. but that does not justify the lack of attention. Popular bazaars (compact markets) can easily be decorated with posters and wobblers, thereby serving the purpose of advertising. Simple technique, quick results!