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November 1990 |
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 Printer Friendly Version |
To Get a Leg Up...
Use a Step-By-Step P-O-P |
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 |
The best in-store merchandising displays do not happen by accident. Careful planning and coordination with a manufacturers' overall marketing plans and objectives is key to launching a POP merchandising system that will garner acceptance by the trade and achieve longevity in the retail environment.
Oftentimes we can find parallel examples of such careful planning and coordination outside of the automotive industry. These case studies can be used, however, to help us with our own in-store merchandising. For in stance, outstanding examples abound in the apparel industry, which has established timeless techniques for determining the right in-store merchandiser. The "dress up" segment of the aftermarket can draw upon experiences in the apparel industry to assist in coming to terms with the interrelationships between temporary and permanent merchandising displays.
The following case history on L’eggs pantyhose explores the process of developing and positioning an in-store display. The centerpiece of L’eggs pantyhose promotion is its permanent displays that are almost inescapable: with some variation in size, they appear in supermarkets, drug stores, discount outlets, convenience store, Sears and J.C. Penny stores nearly everywhere, in fact, except department stores.
It would be incorrect, however, to attribute all of the brand's sales stimulation effort to this substantial, ongoing presence in retail stores. In addition, it relies heavily on an aggressive series of long-planned temporary promotions. Many temporary displays promote established brands sold on permanent displays. However, some brands-Little L’eggs Tights for children, for example-were introduced on temporary displays and, because of their success, were incorporated on permanent displays.
To male eyes, the products' many varieties are, perhaps, indistinguishable-something like, "Seen one pair, you've seen them all." In fact, however, L’eggs is really in the fashion business, with the types and popular colors constantly changing.
Then, too, the company-L'eggs Products Inc., division of Sara Lee Corp. produces different brands (Underalls and Coloralls, for example) and many varieties of L’eggs (Control Top, Sheer Energy, etc.). Seasonal differentiations (especially in colors) are other offshoots of the basic product.
These variations on the basic theme mean that the company is constantly playing different tunes in its in-store merchandising. That also means that it relies heavily on temporary displays to augment the permanent fixtures. Many times the two mesh. The new "Classics" pantyhose line, for instance, was launched in July 1990 on permanent displays. To augment the gradual national rollout, L’eggs also designed a temporary shipper that offered the new product at a special price.
One of the newest links between the two types of displays is represented by the O-Tower, a simulation of the original free-standing vertical display. This tower attaches to the front of the Hosiery Center-the major permanent display and reaches out only 12 inches into the aisle. It can hold packages of special sale items or products from the permanent display that are being singled out for individual or seasonal treatment.
The synergy between the short-term and long-term P.O.P. is carefully planned. The long range planning process (LRP) begins as far as 18 months to two years ahead of execution. It is initiated by brand managers, but the plans are carefully coordinated for adherence to corporate guidelines and brand group strategy. To some this process may seem laborious and excessive, but the lengthy lead time reflects the necessity, for this type of product, to plan, produce and distribute the P.O.P. materials.
Generally, L’eggs schedules 14 to 16 shipper events per year. In addition, it runs numerous temporary point-of-sale campaigns-tear pads affixed to a display, for example-in the same period. Managers of such complex plans are charged with the responsibility to make certain that the dates of the different promotions do not overlap, particularly since some of the special campaigns last as long as four months.
Although the designs of temporary merchandisers must meet a corporate ,.overall look," promotional displays have more leeway graphically than the permanent displays. The only additional restriction is size, a standard which is imposed by retailers.
The approval trail that the designs then follow includes stops in promotion, brand management and legal with the final check-in at upper management. Nevertheless, the process rarely takes more than two to three weeks. Finally, a purchase order is placed with instructions for distribution of the display to its final destination. Most of these displays are temporary and are limited to a single brand or segment of the line. Some are price-off promotions (two packs for the price of one, for instance) that are restricted to specific periods.
L’eggs offers regular cased goods on selected styles throughout the year to retailers who want to feature hosiery more often than the promotional schedule. In this way, there are promotions going almost every week of the year. Whenever and however the promotional displays are used, they not only inject some instant sales energy, they also support the permanent display by reiterating the L’eggs name and market position.
The initial, and now famous, floor- standing display for L’eggs, which reflected the egg- or half-egg-shaped package, was designed and produced by the Howard Marlboro Group, which continues to produce L’eggs permanent displays and other in-store projects. The egg-shaped merchandiser is also on permanent display at the Whitney Museum in New York.
A principal instrument to maintain market dominance is the Hosiery Center, a modular display that fits into the spaces reserved for in-line shelving units. The standard dimension and thus minimum width for the L’eggs section is four feet, but they can be built, beyond that dimension in 16-inch increments, with some inline Hosiery Centers up to 48 feet wide. Space management managers work with the sales force and retailers to develop the most efficient planograms for both L’eggs and the product category.
What makes the Hosiery Center unique is that it is not restricted housing. Although the centers highlight the L’eggs name and provide on-the-shelf space for its products, they are intended to house a store's entire stock of pantyhose. Thus competitors' products, including private-label brands, reside alongside L’eggs packages in the hosiery centers.
The L’eggs brand has another important edge in the centers. The company provides the racking for L’eggs products free of charge, but the retailer must pay for the racking of other lines and brands. It should be noted, however, that the widespread appearance of the Hosiery centers indicates that the advantages of coordinated merchandising of hosiery are strong enough to induce a great many retailers to buy into the program.
In addition, the company has numerous other permanent units that can be used in special situations or stores. For example, few convenience stores devote enough space to the product category to justify a Hosiery Center, so several smaller displays are available to them.
L’eggs also has enhanced some of its permanent units with a new interactive device shaped, naturally, likes its famous egg. The device is positioned at the edge of a shelf and therefore takes none of the valuable shelf space. It is designed to help shoppers determine the type of pantyhose they need and also leads them, step by step, to calculate their correct size.
The interactive unit is capable of compiling information on users and thus providing the company with market data. The shelf-edge computer, called the L’eggs Pantyhose Advisor, was more than 18 months in development. The device was created and produced by Intermark Corp., New York, and is based on that company's successful Clarion computer.
It was introduced into the field last fall. About 2,000 of the units are scheduled to be placed at the introduction. The units will not be restricted to larger locations because the company has found that many smaller to medium sized stores can make effective use of the on-site computer.
The interactive unit is capable of compiling information on users and thus providing the company with market data. But it is only one means of gathering information from the field available to L’eggs marketers.
They have one rather certain method of evaluating their in-store efforts. The promotional products are guaranteed to retailers: if they don't sell, they come back to the manufacturer. The returns data tell a very direct story. And, of course, the company's own sales force and retailers provide first-person responses to their efforts.
For the most part, the information tells the marketers and merchandisers what worked and what didn't. The data are scrutinized closely and help determine future uses of P.O.P.
Whatever the figures reveal, however, one thing won't change. The L’eggs lines will continue to step ahead on promotional and permanent displays. Because of the increasing emphasis placed by retailers upon the value of the 11 real estate," aftermarket vendors must practice careful planning to effectively integrate temporary promotions and displays into a permanent in-store merchandiser. The results will be solid "value added" P-O-P, driving greater product velocity and profits to all participants in the automotive aftermarket distribution system.
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, November, 1990, page 18. 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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