Shopper Marketing - August 2016 - 128


INDUSTRY REPORT
by Bill Schober

W

hen P-O-P Times magazine conducted its first
Trends Report back in 1993, most marketers
couldn't be bothered to measure display performance, material costs were their biggest headaches, and
stores were packed with floorstands full of VHS tapes.
To say that in-store marketing has changed a lot over
the past 23 years is beyond an understatement.
As the charts on the following pages testify, P-O-P

practitioners face a world of changing technologies and
shifting performance expectations. To add a qualitative
aspect to our quantitative survey work, we assembled
a "virtual roundtable" of veteran CPG merchandising
executives and posed some of the survey's questions directly to them.
One truism remains: In-store marketing still commands a central position within the path to purchase.

SPENDING
Over the past year, how did your
company's P-O-P budget change?
Increased
24.4%

How do you predict your company's
P-O-P budget will change for 2017?

Will increase
26.2%

Decreased
14.6%

Won't change
59.5%

No change
61.0%

Average Increase: +16.1%
Average Decrease: -14.6%

Average Increase: +11.82%
Average Decrease: -9.17%

How is your company's P-O-P
budget changing relative to the
money it spends on digital?
Increasing
relative to digital
30.0%

Will
decrease
14.3%

How is your company's P-O-P budget
changing relative to the money it
spends on traditional advertising?

Decreasing
relative to
digital
32.5%

Staying the same
37.5%

Source: P2PI.org/Shopper Marketing P-O-P Trends Survey (June 2016)

Increasing
relative to
advertising
12.2%

Decreasing
relative to
advertising
24.4%

Staying the same
63.4%

INSTITUTE ANALYSIS: While much has changed over our 23 years of industry
survey work, P-O-P spending patterns have not. Except for recession years, one
in four merchandising executives typically report that both current and predicted
P-O-P spending levels will increase while approximately half report that they'll stay
the same.
Probably more notable is the indication that significant in-store display budget
dollars are being redirected toward digital. That is in line with the observation that
many leading-edge P-O-P practitioners are beginning to integrate digital into their
display work.
The data shown for spending relative to traditional advertising should be taken
with a grain of salt as many respondents said they do not have access to their company's above-the-line spending data.

2

Has your company's P-O-P
budgeting changed in recent
years?
STEVEN HECHT: I concentrate on
permanent and semi-permanent
merchandising where I have not
seen any restrictions on spend. If
the ROI is there, the spend is validated. I give our marketing people
options and they decide how many
they are executing.
Very often suppliers will ask me
if I have a budget, and sometimes I
don't. But I know from experience
how much things should cost.
BOB MYERS: Budgets have continued to go up for us year-over-year.
They're primarily going up because
we continue to go after different
markets: e-commerce, natural and
organic, drug or discount, for example. We'll look at our toolbox
and pull out a new capability that
we can use to go in and sell them.
We are increasing our budget again
this year to support some of those
strategy changes around the tactics
of merchandising in-store.
MAUREEN MARRONE: Our P-O-P
budget is getting larger because we're
trying to gain more control over how
our selling environment looks in the
retail store.
We are putting more money into
digital than we ever have before.
Not a ton, but it definitely has increased and it gets incorporated
into our merchandising budget as
we try to figure out what's best. Although sometimes I think that digital may be a little bit overrated for
what we sell.



Table of Contents for the Digital Edition of Shopper Marketing - August 2016

Contents
Shopper Marketing - August 2016 - bellyband1
Shopper Marketing - August 2016 - bellyband2
Shopper Marketing - August 2016 - 1
Shopper Marketing - August 2016 - 2
Shopper Marketing - August 2016 - 3
Shopper Marketing - August 2016 - Contents
Shopper Marketing - August 2016 - 5
Shopper Marketing - August 2016 - 6
Shopper Marketing - August 2016 - 7
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