Shopper Marketing - August 2016 - 131


When we were trying
to grow distribution in
" Things might change with smart
c-stores, it wasn't about
displays, but you'll still need the
merchandising; it was
P-O-P vehicle there. I can't imagine
about using the units to get
the items into the c-store.
it's ever going to go away."
We'd build a baseline of
sell and basket ring for the
Steve Hecht, Senior Manager of Visual Merchandising
Design, Johnson & Johnson Consumer
retailer, move less-profitable SKUs off the shelf, and
put General Mills items on
focus on: speed, cost and innovation. We're willing to
the shelf. Merchandising was the mechanism.
SMITH: People are becoming more aware that shoppers pay more if it's innovative and will drive business. But
have a lot of ways to engage with the things they want we're also looking at speed-to-market. You can bring us
to buy, whether on the phone, on the internet or in-store. a great item, but if it takes three months to make, it falls
With all of these triggers, the need to have a consistent outside our framework of 7, 14 and 21 days. Speed-tomarket, cost and innovation.
message across the board is more critical than ever.
But you need to get things right on the primary shelf JILL ANDERSEN: While it's nice that we're on a lot of
first. That doesn't mean you can't boost sales with a dis- retailers' "approved vendor" lists, you still have to earn
play, but your primary area is where people are going to it every day. And that comes down to a team that understands internal processes and can manage a project
be buying 80-90% of the time.
all the way through a retailer's system to speed development, approvals and execution.
Which qualities do you find to be most important
HECHT: Being honest and responsive. Cost is always a
in a P-O-P producer?
MYERS: There are three pillars that we and our partners big consideration because we're a big company, and when

PICKING A VENDOR
What factors do you use to select a full-service P-O-P producer?
1: "Producer offers best design/quality"
2: "We have an existing relationship with P-O-P producer"

When selecting a P-O-P vendor, does
your company prefer to work with:
Just one
turnkey*
supplier
18.5%

3: "Producer offers lowest cost"
4: "Producer offers fastest service"

Four or more
suppliers
25.9%

Two or three
suppliers
55.6%

5: "Producer is suggested by retailer"

*Turnkey suppliers offer a range of services from displays,
graphic packaging and signage to assembly, pack-out
and distribution. 

INSTITUTE ANALYSIS: The answers to our "How do you Pick
Vendors" questions have always varied greatly; it all depends
on which side of the table is being asked.
Source: P2PI.org/Shopper Marketing P-O-P Trends Survey (June 2016)
CPG marketers usually opt for "Design/Quality" (as seen in
the chart, above, left). Had we asked P-O-P producers, however,
it's likely they would've claimed that "Lowest Cost" is a much
bigger factor than their clients are willing to admit.
The factor "Suggested by a Retailer" trailed the other four
options by a fairly significant margin, indicating that chains
today don't exactly have a mandate in this area.
If the chart (above, left) is to be believed, familiarity may

actually breed loyalty. "An Existing Relationship" was the
second-highest-rated factor in vendor selection.
Turning to the vendor preference chart (above, right) we
see that most merchandising executives prefer to work off
of a short list of two or three vendors or rely on one turnkey
supplier. This is a far cry from 20 years ago when it was
almost customary to see every project start with a dozen or
more vendors thrown into a brutal price shootout run by the
purchasing department. That's because typically, the first
things shot in a shootout were design flair and engineering
quality.
5



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
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