Retail Advertising/Marketing From the CPG Perspective
Posted by Universal Ad at Wednesday, September 19, 2007 5:42 AM and is filed under Advertising,merchandising,Retail,Marketing,CPG 
No more statistics this week - I promise!
I usually don't promote the releases of other companies but I think this report will be of interest to our readers. Although its focus is on merchandising, it covers some very interesting trends for retail marketers.
As retailers start to use more and more of the available in-store displays for their own branding purposes, the POS display space available to CPG companies is being cut back significantly. We all know that traditional advertising vehicles are not as effective as they used to be, so what can CPG companies do since they're also losing their ability to advertise in-store?
(OK just a couple of stats to support this information) "In nearly two-thirds of CPG categories, 30% or more of volume is sold with merchandising support" but for example, within grocery stores overall merchandising activity declined in 60% of categories and "the number of grocery store displays has decreased almost 10% in just two years." This trend cuts across all categories, even the most heavily-merchandised ones.
Part of the solution is that CPG companies have to collaborate much more closely with retailers and show that their offerings "fit into the retailer’s comprehensive growth strategies". They also have to "aggressively step up experimentation with new in-store technologies, such as in-store TV networks, digital signage and intelligent carts to expand consumer reach in store.”
Additional trends covered in the report:
Posted by Universal Ad
I usually don't promote the releases of other companies but I think this report will be of interest to our readers. Although its focus is on merchandising, it covers some very interesting trends for retail marketers.
As retailers start to use more and more of the available in-store displays for their own branding purposes, the POS display space available to CPG companies is being cut back significantly. We all know that traditional advertising vehicles are not as effective as they used to be, so what can CPG companies do since they're also losing their ability to advertise in-store?
(OK just a couple of stats to support this information) "In nearly two-thirds of CPG categories, 30% or more of volume is sold with merchandising support" but for example, within grocery stores overall merchandising activity declined in 60% of categories and "the number of grocery store displays has decreased almost 10% in just two years." This trend cuts across all categories, even the most heavily-merchandised ones.
Part of the solution is that CPG companies have to collaborate much more closely with retailers and show that their offerings "fit into the retailer’s comprehensive growth strategies". They also have to "aggressively step up experimentation with new in-store technologies, such as in-store TV networks, digital signage and intelligent carts to expand consumer reach in store.”
Additional trends covered in the report:
- Trip-Based Merchandising - how the ability to identify high-potential shopping trips
allows retailers to specifically target them through merchandising, marketing and
assortment
- Solutions Merchandising - making the switch from providing consumers with products and price points to delivering solutions (such as multi-category promotions around themes)
- Sustainability - changing strategies in order to meet "the needs of today without compromising the ability of future generations to meet their own needs"
- Merchandising as an Educational Platform - the growing need to provide in-store education and store signage that clearly identifies product benefits
- High-Tech Merchandising - promising new ways to reach consumers, such as in-store TV networks, digital signage and intelligent carts
- Merchandising Lift Diminishing - although for most CPG categories, merchandising support shows average volume increases of more than 50%, this
merchandising lift is slowly deteriorating.
Posted by Universal Ad
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