tag:blogger.com,1999:blog-3729219606047339151.post4749315365290063016..comments2023-10-28T01:32:51.692-07:00Comments on Natural~Specialty Foods Memo: Packaging & POP Memo: Lights, Sound, Video - On Packaging and In-Store Point-of-Purchase DisplaysNatural~Specialty Foods Memohttp://www.blogger.com/profile/05306249932308020679noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3729219606047339151.post-9249736707494902122008-10-22T17:11:00.000-07:002008-10-22T17:11:00.000-07:00Don't disagree with your premise in the main.But e...Don't disagree with your premise in the main.<BR/><BR/>But empirical evidence certainly does show increasing numbers of people caring about the foods they eat. <BR/><BR/>From experience, excellent packaging and point-of-purchase displays DO work in-store; no doubt.<BR/><BR/>But not sure electronic enhancements do so more than conventional materials.<BR/><BR/>Certainly a POP display with sound and streaming video, particualry say animation, will draw kids'interest, for example, in the cereal aisle. But will they increase sales? Don't know. <BR/><BR/>Also, will the display's added cost provide a cost-benefit analysis even assuming such electronic displays did increase sales. Doubt it unless the added costs of the displays is marginal.<BR/><BR/>That's the key point I am making.<BR/><BR/>No argument that flashy packaging, ect. can enhance sales in many cases.<BR/><BR/>Of course, we are seeing lots of movement to retailers that don't use such flashy packaging in their store brands. So, perhaps there is a less is more phenomenon brewing. That certainly is the case in Germany and increasingly so in the UK, where no frills discount grocers are leading in sales andmarket share gains.<BR/><BR/>In terms of actual electronic product packaging, I think it will remain a novelty.<BR/><BR/>And the ironic thing about POP displays of any kind is that most chain food and grocery retailers have what are called "Clean Floor" policies -- meaning they allow very few manufacturer POP displays in their store asiles. Usually just a few during the year from the big guys -- and they pay for the store real estate.<BR/><BR/>It is more frequent during holiday periods like Christmas -- but the marketers pay even more then for the floor space.<BR/><BR/>If you add in the cost of the in-store real estate, then the extra cost of the electronic add-ons to the displays, it's tough to make margin.<BR/><BR/>Then there is the issue of returns. Often the retailers will just ship back product left on these displays, deducting it from the accounts payable they have for the respective vendors. Another margin eater.<BR/><BR/>So personally, I don't see this as a coming retail trend. But could be wrong, of course.<BR/><BR/>Regarding the center or core of the store verses the perimeter, the center store still produces the highest gross sales in supermarkets. But that's in part because there is merely more product there.<BR/><BR/>The perimeter departments -- fresh produce, perishables, ect. -- have been where the growth -- and profits -- have been for about the last decade or so. This correlates with the trend towards fresh foods, since that is generally where they are located.<BR/><BR/>Thanks for your input. Enjoyed reading your Blog and have bookmarked it for regular reading.<BR/><BR/>Editor.Natural~Specialty Foods Memohttps://www.blogger.com/profile/05306249932308020679noreply@blogger.comtag:blogger.com,1999:blog-3729219606047339151.post-67337700129990120992008-10-22T09:52:00.000-07:002008-10-22T09:52:00.000-07:00Your analysis makes sense for people like you and ...Your analysis makes sense for people like you and I who care what kind of food we eat, but aren't the majority of people still shopping the aisles in the middle of the supermarket? Those are the people easily fooled and drawn to flashy packaging and advertising.<BR/><BR/>Even if you aren't knowingly a victim of being biased by advertising, when you have to choose one product amongst 10 competitors, you'll subconsciously reach towards the one that is most familiar...or the one with the fancy e-ink display.Anonymousnoreply@blogger.com