No one in the automotive aftermarket can deny the power of a well-designed point-of-purchase (POP) merchandising program. If it’s well-designed, a POP program can really boost sales. In fact, gains ranging from 25% to 200% are not uncommon.

POP merchandising can take several forms. It may be a display, graphics, objects or all of these that are used to draw attention to a product, group of products or service. If it’s a good POP plan, it does more than just draw attention — it brings value to the shopping experience and incites customers to make a purchase.

Several products in the automotive aftermarket lend themselves to exciting in-store POP presentations. These include appearance chemicals, performance chemicals and the myriad of auto aftermarket accessories.

POP programs are often implemented by manufacturers that want to boost products sales, and sometimes POP programs are developed at the urging of retailers. Sometimes, retailers develop their own POP programs, although their agenda is different; they may promote products or services, but the intent is to build their image and the featured “brand” is their store or chain of stores.

Some retailers discourage POP merchandising programs because they have enacted a “clean floor” policy. In other words, they fear cluttering up their floor space and simply forbid freestanding floor displays. A ban on freestanding floor displays, however, makes it hard for manufacturers to find placement for POP materials. It also deprives the business of considerable opportunities offered by intelligent, effective POP merchandising programs. Instead of imposing a “clean floor” policy, it would be preferable for retailers to selectively use floor displays and to work with manufacturers on development of effective POP materials that satisfy everyone and generate more profit.

Careful Planning Essential

Whether the POP program is developed by a manufacturer or retailer, it must be carefully planned to assure success. This entails a lot more than thinking up a catchy phrase and display. A well-designed POP merchandising program requires coordinated efforts between marketing, creative design, pricing, production and shipping. It’s an effort that takes months, not hours or even days.

The creators of a POP program should consider what’s been done in the past, what worked and what did not. In other words, the strengths and weaknesses of past efforts need to be carefully taken into account.

A POP merchandising plan must peacefully coexist with competitive products. It must extol the virtues of one product without “trashing” others.

Themes can be used to optimize POP programs. These could be as broad as football, soccer or car racing or more specific holiday themes, such as Thanksgiving or July 4.

Must Have Substance

To be a success, A POP merchandising plan must say more than simply “buy me.” POP programs without substance get a poor reaction from customers, who are bombarded with meaningless commercial messages daily. Customers react positively to useful information that provides the key features of a product, the benefits and that has an impact.

The message presented in a POP merchandising program needs to be concise. Consider the reaction of many consumers to the huge number of commercials shown on television: they channel jump. If you give customers in your store too much information about a product or service, they react similarly — they’ll pass you buy. The POP program needs to be short and sweet.

For maximum impact, a good POP program also has to be coordinated with outside advertising. Too often in the auto aftermarket, retailers and manufacturers advertise in the traditional media to get customers into the stores, but then in-store POP support is missing. That connectivity with the product generated by the initial ad in a newspaper or television spot is lost in the store, and so are many sales.

Pre-testing Essential

To help assure success, any POP merchandising program that’s been designed must first be tested. That’s the only way to make sure the program elicits the response that retailers and manufacturers want from consumers. The cost of testing is small compared to the cost of an unsuccessful POP merchandising program, especially if it’s one that will be implemented in multiple stores or nationwide chains.

There are a number of ways to conduct testing. One of the most effective methods is by organizing consumer focus groups. This is something that can be done by market research firms, although some of the larger manufacturers and retailers have in-house resources capable of conducting testing. The proposed POP materials are presented to consumers and questions are asked about their reactions. The information is used to help determine whether the POP material will incite other customers to make a purchase.

If the POP materials are to be used nationwide or in different geographic markets, pre-launch testing may have to be conducted on a regional basis. Consumers in different markets can have very different ideas or mindsets and different messages may have to be used for the POP program to be successful.

In short, any marketing plan without POP support is a lost opportunity to build sales. An effective POP merchandising program does a lot more than take up floor space; it can have a very positive influence on purchasing decisions and your store’s bottom line.

‘Clean floor’ policies hinder retain sales, says P-O-P study Auto parts stores can learn a thing or two from the kinds of point-of-purchase – the grocers. P-O-P sells! In a comprehensive five year study that Point-of-Purchase Advertising International (POPAI) is conducting with the Advertising Research Foundation, initial results have showed that retailers’ “clean-floor” policies “actually hurt retail sales.” In fact, the study, In-Store Advertising Becomes a Measured Medium, said the cost-effectiveness of in-store advertsiting is “pretty close to that of either radio or outdoor advertising.” Some of the other major findings include: P-O-P advertising generated incremental sales ranging from +2 percent to +65 percent independent of any price reductions. Specifically sales increased: By + 2 percent with the addition of brand signage, By + 12 with the addition of base wrap, By + 27 percent when a standee was added, By + 40 percent through the addition of an inflatable/mobile, and By + 65 percent, when assign was added that communicated the brand’s tie-in with a sport, movie or charity. In one example, P-O-P cost-per-thouseand (CPM) was found to be clse at $6-$8 to that of out-of-home advertising, or radio, which is approximately half the cost of television advertising. Signage was seen at more than 90 percent of secondary displays. However, manufacturer preprinted signs only occurred on 13 percent to 35 percent of displays, and significant differences were found between supermarket chains in the amount of P-O-P found in their stores. When advertising appeared at the product display, it was found at the main shelf only 22 percent to 35 percent of the time. Consequently, many consumers miss the message, but see the products. The supermarket phase of the study encompassed 250 stores, including independents and the top 15 supermarket chains in 22 different cities and covered 94 brands in eight categories. Categories included beer, cereal, salty snacks, cold/allergy/sinus, dog food, carbonated soft drinks, laundry detergent, shampoo and conditioner.

Stephen J. Alexander, president of Automotive In-Store Marketing, is a member of Aftermarket Business’s Retail Advisory Board. He can be reached at his Sanibel Island, Fla. headquarters, phone (239) 395-9203, or e-mail salexander@autoinstore.com.