Point of Purchase

Topics: Retailing, Supermarket, Sales Pages: 4 (1281 words) Published: January 13, 2013
Point of Purchase
by V S RAMA RAO on NOVEMBER 22, 2010
With more than 80 percent of supermarket shoppers making their final buying decisions in the store, point of purchase activities by marketers assume an important role. An effective combination of good store layout and attractive displays can change a humdrum retail environment into one that not only is more exciting but also produces more sales. Special displays are used in stores in order to attract shopper attention to one or more products. The bulk of published research conducted on the effectiveness of displays has come from the supermarket and drugstore fields. Numerous examples of the effectiveness of displays in attracting consumer attention could be cited. The following are representative of the findings: 1) Of 2473 supermarket shoppers interviewed, 38 percent had purchased at least one brand or item they had never before bought. The reason cited most frequently (25 per cent) for a first time purchase was that it had been displayed. 2) A study of 5215 customers in supermarkets, variety stores, drugstores, hardware stores, liquor stores, and service stations found that one third had purchased at least one of the displayed items. 3) Kmart discovered a 251 percent sales increase for sports products featured on continuous loop film in point of purchase audiovisual displays. It is clear from these results that displays are effective in increasing sales. In fact, the greatest gains can be realized generally by typing a price reduction to a display, as illustrated in Figure summarizing data for a large number of markets in the United States . A legitimate question by the reader may be whether the display takes sales away from ordinary shelf sales. It has been found that displays do tend to reduce normal shelf sales. However, net sales of display and shelf combined are usually so far above normal that use of displays appears to be strongly substantiated. Moreover, tests show that there is a rapid return to...
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