Hoyt Publishing Co.
www.instoremarketer.org
VOL. 2, NO. 7
December 2004 Contents
Director's Note: Rating Retailers

Ever try asking a brand marketer to publicly critique a retailer? You'll get straighter answers asking a baseball player about his steroid use.

Ask him "off the record" about a specific chain's policies, and you're likely to hear a litany of complaints about inflexible planning, prohibitive specifications and criminally negligent compliance. But ask for an official comment and it'll sound like he's talking about his mom. ("Retailer X is a valuable partner that continuously challenges us to rethink the way we do business.")

But there is safety in numbers -- especially when those numbers provide complete anonymity. At least that's what our editors had in mind when developing the survey behind this year's P-O-P Trends Report.

For the first time in the 11-year history of P-O-P Times' state-of-the-industry report, brand marketers were asked to "name names" and offer their views on the merchandising practices of leading retailers in the mass, supermarket, drug, club and home improvement channels. More than 250 respondents did so, answering such questions as:

Which chain has the most rigid display rules? (Take a wild guess.)

Which retailer is best at delivering store-level compliance for corporate-approved programs? (Does a certain club chain come to mind?)

Which is most receptive to new ideas? (Would you believe ... Meijer?)

Among negative trends, the retailers we asked marketers to rate typically expect a price discount to be part of a product's display program. (The Home Depot is rated as most flexible on this point.) On the positive side, there isn't as strong a demand for display allowances among these chains as might be assumed. (The Safeway and Food Lion grocery chains are cited as the biggest offenders in this respect.)

Overall, the good news to be gleaned from the survey results is that no retailer seems too draconian in its practices to block mutually beneficial collaboration with product vendors.

The bad news is that no retailer earns "excellent" marks, either. That means the practices of even the most partnership-minded chains leave room for improvement.

But that isn't really bad news. After all, a little room at retail is all brand marketers want.

Peter Breen
Managing Director, Content
In-Store Marketing Institute


2005 P-O-P Trends Report

In an early bird exclusive for Institute members, P-O-P Times presents its annual report on the state of the industry and offers positive signs for the future. Based on responses from more than 250 brand marketers, spending on displays and signs should rise in 2005: Although 52% of brand marketers say their budgets will remain the same as in 2004, 40% expect increased allocations.


Research: The Impact of Creative Elements
on Display Sales

Creative components that help deliver a brand's core message are more effective at improving display sales than promotional incentives. According to results from the aforementioned brand-marketer survey, basic marketing communications such as product images and descriptions of benefits were rated as better at driving incremental sales than sweepstakes, entertainment tie-ins and other types of promotions.


P-O-P Show Keynote: BP is Fit for Customers

How do you turn a gas station chain into a convenient shopping destination for busy consumers? By listening to what those consumers tell you and turning retail outlets into centers for customized food and beverage offerings. In an audio-enabled presentation from The P-O-P Show/New York, Chief Merchant Richard Griffin outlines BP's strategy for driving shopper loyalty.


Desktop Marketing Conference: RFID's Impact on the P-O-P Industry by Dan Lawrence of Precisia

Most discussions about the impact of radio frequency identification (RFID) technology focus on its promise to boost supply-chain efficiency and deter theft. In an audio-enabled presentation from The P-O-P Show/Chicago in September, Dan Lawrence, Precisia's director of technology, provides an overview of RFID's future applications on product packaging and P-O-P displays.


Welcome New Institute Members

The In-Store Marketing Institute is delighted to welcome new and renewing members to the Institute family. Below is a list of the 12 companies that graciously allowed us to crow about their decision. Welcome aboard.

  • Barkley Evergreen & Partners, Inc., www.beap.com
  • B & K Mueller, www.bk-ind.com
  • Cubicon Corporation, www.cubiconcorp.com
  • Design Phase, www.dphase.com
  • FHc, www.fhcfixture.com
  • Great Northern Corporation - Display Group, www.greatnorthern.com
  • Meridian Display, www.meridian-display.com
  • Momentum Worldwide, www.momentumww.com
  • Nextel, www.nextel.com
  • Procter & Gamble, www.pg.com
  • Sage Products, Inc., www.sageproducts.com
  • Temple-Inland Display and Packaging, www.templeinland.com


NEW in the Library...

Retail Handbook
A roundup of the products, promotions and displays unveiled at the 2004 National Association of Convenience Stores (NACS) Show.

Plus, a new Retailer Profile of AutoZone and updates of 7-Eleven and BP.

Case Studies
The holidays are always more fun when you share them with someone special. Co-branded displays delivering holiday offers have been all the rage this season. See a variety of examples among our Recent Additions.

Plus, recent campaigns from Nintendo, Midway, Siemens, Pfizer, Rayovac and Brown-Forman.

Research Library
Think the industry is a lot different now than it was in 1994? Browse through the history of the "P-O-P Trends Report" to learn what has changed -- and what has remained exactly the same.

Image Vault
More than 100 new images of displays and signs from AutoZone, Kroger, BP, Wal-Mart, 7-Eleven, A&P and more.

Plus, sell sheets and other promotional materials from the NACS Show.

Legal Corner
Read the Securities & Exchange Commission's case against three former Kmart executives and the product vendors who helped them misrepresent millions of dollars worth of vendor allowance agreements.

Lecture Hall
More coverage from The P-O-P Show/New York.

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