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December 1990 |
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| Researching P-O-P Design Is the "Spark" for Success |
Article for "SEMA News"
The Official News Magazine of the Specialty Equipment Market Association.
by Stephen J. Alexander
President, Automotive In-Store Marketing |
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| Stephen J. Alexander |
Aftermarket vendors can all agree that in the automotive aftermarket marketing environment, new products are introduced faster than retailers can absorb them. So how can you get your product noticed and ensure placement on the shelves?
A recent case history, involving the patented SplitFire spark plug, marketed by Old World Automotive Products Inc. of Des Plaines, Ill., clearly demonstrates how the expertise and skills exhibited in the process of developing, in advance, a carefully crafted in-store product positioning campaign, backed by a powerful P-O-P display, made the difference in obtaining broad retailer acceptance and thus roll-out success.
At SplitFire, the discipline of advertising, public relations, marketing and pricing structure were fully coordinated with the design of an innovative P-O-P in-store merchandising system, configured to fit into any type of aftermarket outlet, including retail mass-market auto chains, jobber/retailers and service merchandisers. The result is a fully orchestrated December roll-out of this innovative premium-priced spark plug, which will be merchandised on one of the most unique P-O-P merchandisers ever built for an automotive aftermarket product.
True, the P-O-P display was created to tie in all other marketing and advertising efforts. However, the display did not take shape by accident or through some mysterious "gut feelings" process. To understand how the SplitFire merchandiser developed is to come to terms with the very essence of modem techniques used in the process of going from concept to roll-out.
This case history best starts with a description of Chris Clay, sales and marketing executive for the Division of Old World Automotive (of Peak Antifreeze fame) and the key role he played in bringing SplitFire's marketing visions and dreams into reality.
Chris Clay cut his packaged-goods merchandising teeth at Nabisco. That's right, cookies, crackers, and consummate consumerism. Next time you bite into an "Almost Home" cookie, think of Chris Clay.
As with Nabisco products, at SplitFire Chris fully understands that long before any product is ready for the consumer to remove from the shelf, prodigious planning must occur to ensure that the trade "buys in" to a merchandising strategy and thus cooperates by ensuring that a new P-O-P merchandiser will obtain the most desirable position in the retail store.
SplitFire knew it was critical to develop a strong positioning statement in support of a unique, high-performance, patented spark plug that would sell at 4 to 5 times the prices of conventional plugs. Early on, the company carved out a marketing, advertising and merchandising effort focused upon emphasizing the products' "values" and "value-added" strengths.
Marian Davis' and Harry Hibler's article in Hot Rod Magazine, February 1990, plus some 40 other written pieces, had already broken the story and reached some 10 million base readers (30 million with pass-through). Over-the-phone orders were literally overloading the company's 800 number to the tune of 15,000 units per month.
However overwhelming this mail-order activity may have seemed, the internal marketing and merchandising team lead by Tom Hurvis, President of Old World Automotive Products and comprised of Chris Clay, Mike Barcum and Earl Johnson (President of the SplitFire Division as well as the plug's developer and patent holder), and ably supported by Mike Hedge and Jim Michels of Hedge & Co. (PR and advertising), never lost sight of the primary mission: To prepare to obtain strong retail distribution.
On the crucial matter of in-store merchandising policy, the question on the table focused on what type of P-O-P display would accomplish specific corporate goals.
Intermark Corp., the display designer and manufacturer, and SplitFire quickly focused on the nine key areas of concern: 1) Educating the consumer; 2) Showing an instant, dramatic product comparison to ordinary spark plugs; 3) Providing stocking flexibility; 4) Offering modular configurations to fit any in-store environment; 5) Involving the consumer in instantly discovering the spark plug's special performance characteristics; 6) Enabling the consumer to "translate" product claims into practical, useful information; 7) Capturing impulse purchasers; 8) Training sales personnel; and 9) Beautifying the store.
Most important, SplitFire readily understood the value of applying Intermark's proprietary research techniques, a process formulated to remove any design guesswork and subsequent financial risk of building a P-O-P system that the trade will not accept or consumers will refuse to use.
SplitFire knew that research serves as the keystone for strategic decision-making. They wanted conclusions derived from in-store realities, not perceptions. The plan centered around a multi-method multi-method approach to obtain the information and knowledge necessary for understanding the retail environment for the specific product in question. As Chris Clay stated, "This will result in on-target, creative and actionable solutions."
The research process is quite logical and involves seven steps. Each step is specifically related to the step that follows. Shortcuts should be avoided. Cold objectivity is the rule. Emotional decisions cost money and waste time.
Corporate Input
The research process began with an intensive corporate-input session which laid the groundwork for the project. At this meeting, a team of Intermark and SplitFire management executives met to clarify objectives and expectations, review any previous research, confirm stores for field investigations and agree upon issues to be examined and questions to be answered.
Photo Audit
To visually document actual conditions under which SplitFire's products would be offered for sale, photographers were dispatched to key pre-selected retail and jobber outlets. The photographs of the store interiors helped point up problems dealing with interior physical layouts, identify opportunities, and served as a catalyst for an initial creative discussion and direction.
Field Investigations
Following a review of the photo audit and armed with the corporate input data, a field investigation team visited senior merchandising and sales managers at specific stores within designated markets in order to develop category and product-specific information regarding the retail reality which the sales force deals with on a day-to-day basis.
These interviews and observations uncovered valuable information on the attitudes and concerns of the retailers with whom the sales force interacts, but also afforded the benefit of tapping the extensive knowledge and experience of SplitFire's top sales representatives.
Trade Headquarter Interviews
Interviews with selected headquarter executives enabled SplitFire and Intermark to gain firsthand, detailed information about the trade's perspectives on the spark plug category, merchandising issues and in-store programs.
Note that headquarters interviews were conducted following field investigations so that the direction of the interview was guided by information learned from SplitFire's sales and marketing team.
The research developed in this phase provided valuable "grassroots" feedback which proved to be a critical link in the success of the final merchandising program. In addition, the headquarter research uncovered information which assisted in the development of a compelling sell-in strategy.
As a result, armed with a thorough understanding of the important in-store issues - both from a category and brand perspective - SplitFire and Intermark were able to draw appropriate conclusions and effectively get down to the business of effectively targeted solutions.
Analysis and Interim Creative Direction
The next step focused on compiling the research, analyzing the findings and translating the facts into interim creative approaches. Backed by supporting marketing rationale, these results were translated into specific in-store merchandising design recommendations, on paper.
A word of caution: At this juncture, the temptation is great to become enamored with your own ideas. Don't! A great deal of intelligent progress has been accomplished, but the goal line is still to be crossed. SplitFire was resolute about maintaining its sights on the objectives.
Trade Probes
Now here's where the process got real interesting. After the initial creative review, SplitFire chose a few carefully selected concepts to bring to key targeted retailers for review.
Additionally, Chris Clay and his team efficiently maximized the use of both time and exposure opportunities by simultaneously conducting the trade probes and debuting the product for nationwide distribution at SEMA/Al Show '90, supported with a carefully detailed marketing campaign.
Full-detail color renderings of each concept were unveiled, showing various configurations depicted in an actual aftermarket in-store environment. All participants in the trade probes enthusiastically joined in the discussions, with each trade level contributing suggestions, modifications, and improvements. Special attention was paid to how the proposed system would "fit" into the retailers' own merchandising philosophy and the shopping habits of the retail customers.
It was clear SplitFire did its homework. A modular system was just what the trade wanted for maximum planogram flexibility and SKU stocking growth.
Notable was the across-the-board recognition by the trade of the value and appreciation of bringing them into the process before the merchandising system was built and delivered. The results of such a cooperative effort meant that the trade was "buying-in" and thus "taking ownership" of both the P-O-P display, the marketing and sales direction and, most importantly, the introduction of the product itself. In fact, SplitFire received a substantial number of purchase orders at the SEMA/Al Show based on the strength of their commitment to in-store merchandising support.
Armed with this valuable input gathered during the trade probes, SplitFire and Intermark returned to the drawing boards to prepare for the next critical step.
Final Analysis and Prototype Development
A foam-core table-top scale model was prepared. Once more, input was sought from the trade. Minor revisions were suggested. The next step was to build a working prototype merchandising display. The goals at this point are to fine tune the physical features and work out the production and distribution processes.
Prototypes we're actually shipped to selected retailers for a test installation and to evaluate la - minute aesthetic considerations. Once again, any changes necessary from this into the store seeking SplitFire spark plugs based on a predetermined shopping decision; 65 percent of all aftermarket consumers will make an unplanned purchase if a product can attract the consumer's attention based on a P-O-P display. Thus, from the beginning, the display was positioned to be the "decision clincher."
The point is: SplitFire never lost sight of the nine primary goals stated earlier, while holding true to the axiom that P-O-P development does not occur in an isolated room oblivious to the realities of the market place, but must be carefully researched and planned to serve both trade and the ultimate consumer.
Stephen J. Alexander is an aftermarket consultant, speaker and monthly columnist for SEMA News. To learn more about other in-store merchandising and marketing issues, contact Stephen Alexander, Automotive In-Store Marketing at 239-395-9203 or e-mail him at salexander@autoinstore.com.
COPYRIGHT NOTICE:"Reprinted with permission from SEMA News, December, 1990, page 14. Copyright by Specialty Equipment Market Association . Specialty Equipment Market Association retains all rights to this material." To subscribe to SEMA News, visit www.sema.org, call 909-396-0289, or email member@sema.org.
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