Are Point of Purchase Displays a Good Investment?
In today’s competitive retail environment, emerging Consumer Packaged Goods (CPG) manufacturers face mounting pressure to capture consumers’ attention right at the point of purchase. As a strategy, point-of-purchase displays have gained popularity, but the question remains: Are they truly a good investment?
The potential of point-of-purchase displays (POP displays) is significant, as they can drive impulse sales and enhance brand visibility. However, the harsh reality is that in our experience, only about 65% of these displays are correctly executed by the retailers. Retailers often destroy a staggering number of them, resulting in an inadequate return on investment. When these displays empty out, the likelihood of restocking diminishes, leaving a vacuum in your marketing efforts.
An even more significant challenge is posed by the actions of retail employees, who sometimes capitalize on lonely point-of-purchase displays by placing competitor products on your promotional space. This can be a nightmare scenario for you, particularly when you consider the substantial cost of producing these displays and the expenses associated with shipping—especially if they are pre-packed with your products.
Moreover, once your display is in-store, it is not guaranteed to be properly maintained. The higher your sales, the greater the risk that your displays could be neglected or poorly managed. If your point-of-purchase displays are not updated, they can become obsolete, failing to communicate your brand message effectively and potentially losing sales to competitors.
So, what is the solution to maximize your investment in point-of-purchase displays? The answer may lie in partnering with a retail merchandising agency that offers full market coverage. A reliable partner can ensure that your displays are visited regularly and maintained according to your specifications. Additionally, leveraging the power of AI can provide real-time data and insights on display performance, compliance, and consumer interactions. This level of attention ensures you get the most bang for your buck and that your point-of-purchase displays do their job effectively.
In conclusion, while point-of-purchase displays can offer significant advantages for CPG manufacturers, they also come with challenges that cannot be ignored. A robust merchandising strategy must support an investment in displays, including ongoing oversight and performance monitoring. Consider contacting experts who can help you navigate this landscape, such as those at www.marketsupport.ca, to ensure your investment translates into tangible results.
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