Guest contribution • 14.09.2017

POP displays for category management

The display needs to match the theme, while the theme needs to match the products

Category management can be defined as the management of retail product categories that are compiled based on consumer needs. These needs include a great store layout, an easy way to find the desired products and meaningful product suggestions for example. The management of these product categories is based on economic principles, objectives, key performance indicators and measures. It is the quintessential mission of any retailer. Retailers can involve one or more manufacturers for support if it makes sense and they deem it worthwhile.

When it comes to marketing measures pertaining to category management, it essentially includes all retail marketing tools, complemented by tools of manufacturing marketing- if applicable. These tools also comprise displays at the point of purchase.

The function of these types of displays is to call customer attention to the merchandise, spark their interest and trigger a response. This might be the purchase of products or to deliver a certain message. Category management focuses on the product group and not the individual brand unless the product categories are made up of brands - as is the case with clothing retailers for example.

Product categories are generally made up of products consumers can use together or as an alternative. Examples include various products pertaining to “barbecuing” or different brands and types of mustard. Product categories can be marketed and addressed in point of purchase displays in a variety of themes.

Read here an in-depth interview on the positioning of displays in the store:

This display, shaped like a Ferris wheel and 1,60m high, is an eye-catcher from...
This display, shaped like a Ferris wheel and 1,60m high, is an eye-catcher from far away already. Not only its impressive height, but also the different colors of the passenger cars draw the attention of buyers and their children alike. It can be accessed from all sides and can also be easily filled.
Source: iXtenso/Schmitz

What are the requirements for such displays to ensure that they optimally perform their tasks?

Only the customer is able to answer this question. The starting point in every planning process is the knowledge of how customers respond to these types of displays or point of purchase stimuli, respectively.

When people perceive stimuli in their surrounding environment, it goes along with activating and cognitive processes. Too much stimulation can lead to sensory overload and disorientation, which is also called retail shopper confusion as it relates to purchasing behavior. Consumers subsequently avoid certain types of stimuli or are completely turned off by them and don’t purchase anything. We also need to remember that not all customers respond to the same stimuli in the same way. What is enjoyable for one customer, might actually be uncomfortable for another.

A display that stands in a customer’s way, blocks the view of the product, doesn’t have a message the customer understands and involves more senses than he/she is able to handle, is unable to perform its job well. Quite often, a display seems to have been solely designed for the drawing board and doesn’t take its future surrounding environment into consideration. In this case, the multisensory approach was misinterpreted by addressing all of our senses at the same time.

Hendrik Schröder
Hendrik Schröder is Professor of Marketing and Retailing at the University Duisburg-Essen, Campus Essen. His preferred research areas are: relationship between industry, retail and customers, buyer behavior, category management, online shops, multichannel retailing.
Source: Hendrik Schröder/Universität Duisburg-Essen

How can a display contribute to achieving the objectives of a product category?

You should first consider the store location where you might place any particular kind of display. There are essentially two different cases: the product category items have already been combined on the shelf or they are presented together in a special area for a sales campaign. There are displays that serve to store the items, displays that customers can use interactively and displays that provide information in digital or printed form at a certain location in the store; for example, on the sales floor, the ceiling, at the shelf or in the shopping cart.

Next, you need to identify the theme the display is meant to convey. Plenty of occasions throughout the year lend themselves to themes. This involves both opportunities and risks, though ultimately the focus should be a balanced and sensible number of sales campaigns during a specific time frame. Whether the theme is “Everything you need to BBQ“, “Valentine’s Day“, “Easter“, ”Halloween“, ”Bachelor Party“ or ”Girls Night Out“, the display needs to match the theme, while the theme needs to match the products. Although surprises and variety are wanted at the point of purchase, they must not confuse and irritate consumers, which might particularly be the case if the stimuli emanating from the display don’t match the cognitive structures of customers, that is to say, they are not consistent with their patterns of thought. (A recommendation for people working in the field: It makes sense to explore scientific approaches and studies on this subject because they clearly demonstrate what you should and should not do.)

Given that displays are rarely used repeatedly in identical form, and since every type of business and retail store has its very own conditions and restrictions, it is best to test the planned display prior to its application. Even though this type of test costs time and money, it can reveal unwanted effects and prevent losses.

As the process continues, retailers need to ensure that the displays are being implemented as planned in the stores and that results are systematically measured. To do this, it is essential to record sales volumes, revenues, and gross profits not just during a sales campaign but also during respective periods prior to and after the sales campaign to subsequently draw conclusions about the display’s success. These conclusions can then be utilized for future display campaigns.

Author: Prof Hendrik Schröder, University Duisburg-Essen, Campus Essen

related articles:

popular articles:

Thumbnail-Photo: GfK study: Brick-and-mortar retail in the EU...
14.06.2019   #marketing research #trend research

GfK study: Brick-and-mortar retail in the EU

Highest 2019 growth in Romania and Lithuania

The majority of European consumers are currently subjected to opposing forces. On the one hand, this consists of uncertainty over Brexit, trade conflicts and weaker growth prospects in important export markets such as China. But on the other hand, ...

Thumbnail-Photo: Implementing new ideas: Design thinking in the retail world...
29.04.2019   #customer satisfaction #trend research

Implementing new ideas: Design thinking in the retail world

Focus on customer expectations

It may be uncomfortable at times – but a change in perspective can help businesses to implement new ideas and successfully complete ongoing processes. Design thinking is a customer-centric approach that can help in this endeavor.“What do ...

Thumbnail-Photo: Computer-generated imagery: better and faster product photography for...
12.04.2019   #online trading #digital marketing

Computer-generated imagery: better and faster product photography for online stores

David Wischniewski on the possibilities of product visualization

Product photography is essential to the success of any online store. Unable to provide haptic feedback, retailers are tasked with inspiring their customers to buy. This can be an expensive endeavor in the long run. Digitally created renderings of ...

Thumbnail-Photo: Choosing the right marketplace for your business: A profitable niche...
17.06.2019   #online trading #marketing research

Choosing the right marketplace for your business: A profitable niche product is key

"Platform strategies are critical for success," says Dr. Kai Hudetz of the IFH Cologne (Institute for Trade Research)

Ebay or Amazon, Zalando or Otto? Retailers have many options when it comes to an online marketplace where they can sell their merchandise. Success for retailers hinges on making good choices.Dr. Kai Hudetz, CEO of the IFH Cologne, gives tips on what ...

Thumbnail-Photo: Footwear market expected to grow rapidly
15.03.2019   #trend research #brand management

Footwear market expected to grow rapidly

Application insights, latest trends, developments, and forecasts to 2021

Global Footwear Market is expected to grow at a significant CAGR in the upcoming years as the scope and its applications are rising enormously across the globe. Footwear is a garment worn on the feet to protect and comfort against adversities of the ...

Thumbnail-Photo: Designer Outlet Croatia as hybrid retail destination...
04.04.2019   #customer counting #shoppingcenter

Designer Outlet Croatia as hybrid retail destination

Building footfall and counting shopper traffic

Designer Outlet Croatia, majority-owned by Ingka Centres has enhanced shopper traffic performance by adding an aspirational, 'hybrid' retail destination to the existing IKEA Store in Zagreb supported by the implementation of a traffic ...

Thumbnail-Photo: The customer is always right? Two customers might spell trouble!...
09.05.2019   #consulting #brick and mortar retail

The customer is always right? Two customers might spell trouble!

How salespeople can handle customers who bring company along

Customers rarely shop alone. Most of them shop with family or friends. The other person might not always be in a good mood, patient or friendly. Can the salesperson simply ignore the other person in these instances? How should he or she handle this ...

Thumbnail-Photo: Imaginative sales promotion – displays for the POS...
25.03.2019   #pos marketing #displays

Imaginative sales promotion – displays for the POS

The POPAI Award finalists 2019 in our photo gallery

This year's participants impress with their attentive designs, functionality and practical handling. The contestants demonstrate the wide-ranging possibilities a display offers for presenting products and attracting attention at the point of ...

Thumbnail-Photo: Customer Story: How the Johan Cruijff Arena scores with self-service...
31.05.2019   #self service #artificial intelligence

Customer Story: How the Johan Cruijff Arena scores with self-service

CCV helped develop a smart self-service soft drinks dispenser.

Johan Cruijff ArenA, previously known as Amsterdam ArenA, has a capacity of 55,000. As the largest stadium in the Netherlands, it has hosted global sporting events such as the 1998 Champions League Final and the 2013 Europa League Final. The ArenA ...

Thumbnail-Photo: Digital food retail: customers expect more personalization...
07.06.2019   #personalization #food delivery service

Digital food retail: customers expect more personalization

New research sponsored by precima shows retailers must act quickly to develop a detailed understanding of shopping missions.

The fast-changing dynamics of the food retailing environment continue to challenge companies to keep pace with fast-changing shopper demands. The latest of these shifting shopper requirements involves their behavior on digital platforms and is ...

Supplier

iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn
CCV Deutschland GmbH
CCV Deutschland GmbH
Gewerbering 1
84072 Au i.d.Hallertau