P.O.P Survey - Nov 2004
The objective of the 2004 Meridian
survey of consumer packaged goods (CPG) companies was to benchmark
leading manufacturers’ approaches to POP investment across
UK channels. In particular we were keen to provide some insight
in an area where our clients have increasingly been expressing
an interest – what return can we expect for our POP investments
in the UK?
Meridian’s experience is that many suppliers
have no robust way of routinely measuring the impact either of
POP in trade channels, or of the effect of their field sales support
and execution at the outlet level.
Many have expressed frustration that ‘cause-effect’
data is difficult to come by, unless lengthy & expensive testing
is undertaken, always requiring the tacit agreement of the retailer
who may have a vested interest in seeing the results!
So whilst the survey gathers information about
the approach taken by various suppliers to investing with their
trading partners, its underlying theme is to question the degree
of ‘data informed’ insight which is guiding and quantifying
this investment.
Was the level of POP spending arrived at as a
result of a testing programme for example? Is it required to make
a minimum return (in sales or gross contribution), or is it regarded
as a brand investment?
Or is it more intuitive – we spent x last
year, so we are expected to spend x plus inflation this year?
This survey sheds some light on the way in which
leading suppliers are approaching this difficult issue, and provides
some signposts for the future.
The questions directly addressed are the following:
- Does the approach to PoP investment vary
according to channel?
- How much channel specific material is provided?
- How do participants rate compliance by channel
– both main fixture & promotional sites?
- Is compliance routinely measured in every
channel?
- In which channels do suppliers make outlet
visits, & is this resource provided ‘in house’
or outsourced to a 3rd party?
- Which supplier categories are the most innovative
when it comes to POP?
- Which channels will be priorities for POP
investment in the next 3 years?
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