Beverage P-O-P Makes a Splash

From the giants of the industry to the smallest players, non-alcohol beverage marketers face a common challenge when it comes to in-store marketing: breaking through the clutter.While other marketers have the same problem, the glut of beverage brands means the typical retail outlet -- whether convenience store, supermarket, drugstore or mass merchant -- could potentially feature a hundred beverage P-O-P displays. Some retailers, it seems, come pretty close to that."It can be like wallpaper to consumers -- this mish-mash of promotions screaming at them to the point that they don't even see them," says Neal Larkin, group director, promotions for Snapple Beverage Group, White Plains, N.Y., which was acquired last year by Cadbury Schweppes. "The challenge is to get something to stand out and strike a chord."That's no easy task, especially as the number of new beverage brands seems to grow every day. Nearly 1,100 new non-alcohol packaged beverages came to market in the first 11 months of 2001, bringing the total number of SKUs in circulation to 3,487, according to Marketing Intelligence Services, a Naples, N.Y.-based product tracking company. The fruit and fruit-flavored products category was the most prolific in introductions, with 165. Seventy-two bottled waters made their debut, while the fast-growing isotonic and energy drink category increased by 64 brands. Forty-seven health drinks came to market and 55 new carbonated soft drinks had been introduced by the end of November.Perhaps in reaction to the proliferation of new beverages, many of today's c-stores, drugstores and mass merchants are paying closer attention to the number, size and look of display pieces they'll accept. Gaining incremental placements in these environments remains a considerable challenge.Ebb & FlowCarbonated soft drinks, the bastion of the non-alcohol segment just 10 years ago, posted modest sales and volume growth in 2000, while the aseptic juice and isotonic categories boasted double-digit gains. The Coca-Cola Co., Atlanta, purchased juice marketer Odwalla Inc. last fall and expanded its brand portfolio recently to include KMX energy drink and Planet Java coffee beverage. PepsiCo., Purchase, N.Y., also on a buying spree, picked up the SoBe brands with its acquisition of South Beach Beverage Co. and brought the formidable Gatorade brand into the mix with its purchase of The Quaker Oats Co.Red Bull created a bull market for energy drinks with its rapid expansion from its West Coast base in Santa Monica, Calif., and posted 209% growth for the year ending April 22, 2001, according to Information Resources Inc. figures. And paddling hard to avoid missing the energy drink boat, brewing giant Anheuser-Busch Cos., St. Louis, introduced 180 energy drink.Channel SurfingJust as the lines between beverage categories continue to blur -- there are now vitamin-fortified, fruit-flavored waters that defy categorization as "health drinks" or "bottled water," for example -- the lines between retail channels seem more fluid."Everyone is going after every consumption occasion," says Richard Siao, director of sales planning for Danone Waters of North America, headquartered in Pasadena, Calif. "Supermarkets and mass merchants are putting single-serve bottles in coolers at the checkout lanes. Convenience stores are using merchandising to move multi-packs. So the approach of matching [products and P-O-P materials to] the traditional channel profile is obsolete."Tom Graves, director of marketing services for South Beach Beverage, Norwalk, Conn., agrees. "The 'big versus small' format isn't an absolute anymore. Everyone is vying for additional points of placement or points of interruption in the store," he explains. "So one size does not fit all. Having the right P-O-P for the specific in-store location is key."The solution for some marketers is to create a portfolio of P-O-P pieces ranging from static clings to display spectaculars, all of which are presented to retailers in every channel. "We create a gamut of materials so some pieces will appeal to each specific point of display in each class of trade," says Snapple's Larkin.Display materials may change depending on retail format or merchandising strategy, but one thing that must be consistent is the message. "The more times consumers see the same message repeated, the better it will stick in their minds," says Francie Patton, spokesperson for Arizona Beverages, Lake Success, N.Y. "P-O-P may be created differently for each channel or consumption occasion, but the message should remain the same."Simplicity is another absolute, says Mary Keating, director, business development for Gatorade/Propel, part of the Quaker Oats brands based in Chicago. "Our goal is to keep installation as easy as possible. Complex P-O-P will never get up in-store."Spectacular in Several SizesBeverage marketers attempting to break through the clutter are using the consistent messaging and ease-of-assembly theories in various ways. Coca-Cola tapped its association with the release of the much-anticipated "Harry Potter and the Sorcerer's Stone" film release last fall with a multifaceted program that included P-O-P materials appropriate for almost any size store.One Coca-Cola spectacular featured a graphic of the famous "Hogwarts Castle" where the movie was filmed and a 3-D owl flying above it. The display touted a sweepstakes offer to win a trip to visit the castle in England. In addition, an on-pack offer enabled consumers to win a library of "Harry Potter" books or a private screening of the movie for the school of their choice. The spectacular merchandised an array of Coca-Cola products in supermarkets."We scaled down the spectacular graphics for the convenience store formats because we believed the c-store could generate excitement with the 'Harry Potter' offers," explains Angie Wessner, team leader, marketing activation for Coca-Cola. The c-store execution featured stacked cases with a pole sign, as well as a pump topper and topper add-on piece designed to alert consumers at the gas island and draw them inside the store.Coca-Cola also created customized "Harry Potter" P-O-P programming for convenience stores, allowing retailers to offer movie cash, movie posters, back-packs and prize kits. "A lot of retailers were looking for customized programs featuring our association with 'Harry Potter,'" Wessner adds. "There was a lot of excitement about the movie opportunity, which they knew they could translate into sales with the right materials for their stores."Danone Waters has created P-O-P materials suitable for supermarket and c-store environments to support its Evian Style Essentials marketing program. Kicking off last month, a sweepstakes offer will award a lucky winner with a trip to the MTV Awards in March."Point-of-sale merchandising is the primary driver for this campaign," says Siao. "We're using a heavy P-O-P push to get the sweepstakes entries flowing, and we're using some basic marketing tactics to get customers intrigued enough to enter." Stylized graphic treatments showcase the hip, energetic appeal of the awards program, along with the MTV logo. Materials include base wraps, case cards, shelf talkers and pole signs, making the campaign accessible to merchants in every class of trade.Siao says the company added base wraps and other large-scale display elements to its Evian P-O-P line-up in direct response to a shift in the way supermarkets are merchandising water. "The supermarket is using water to draw consumers into the store. You're seeing water in locations where you had previously only seen carbonated soft drinks -- on the front of the weekly flier, in the lobby of the store and on endcaps," he says. "We had to reinvent our approach to supermarket merchandising materials because we're now getting tremendous off-shelf display [space]."Because supermarkets tend to offer more display flexibility than convenience stores, operators are seeking displays that make a big statement, Wessner says. "They want you to be relevant to the shopper and do it in a big way. Even though supermarkets are typically the venue for planned purchases, we find that 62% of shoppers don't have a list with them. So, there's a huge opportunity to influence beverage purchases in the store."Twisted HumorA multi-channel approach is also the strategy for Pepsi Twist, the latest extension of the core brand family for Pepsi-Cola Co. To drive awareness of the lemon-flavored cola, the company created an integrated marketing campaign that carries the "twisted" humor of its television ads to the in-store execution.Product-focused in-store materials feature graphics of cans of Pepsi Twist and Diet Pepsi Twist breaking out of what appears to be an egg but is actually a lemon. Pepsi Twist materials are available to all accounts in every channel, according to Russell Weiner, senior brand manager. To generate additional excitement at the store level, Pepsi launched its Pepsi Twist "Jam Tour" in November. The 12-month program involves events at malls, discount merchants and movie theaters. Performers will be using cans, barrels and other packages as drums to play the "Joy of Cola" theme song."One way we break out of the clutter is by using the humor aspect," explains Weiner. "Also, it's a simple graphic, and the 'punch line' is immediately understood. We don't take a cookie cutter approach to P-O-P merchandising. With the Jam Tour, we're creating live excitement and driving trial. When they see the in-store execution, the consumer will relate to the humor, recall the event and have a positive association with Pepsi Twist."Snapple is also working to connect with the core consumers of its Venom, the energy drink introduced last spring and distributed primarily through convenience stores. "We're talking to a young, fickle consumer who's looking for the next hot thing all the time," says Larkin. To stay in the spotlight, the company created a Venom-logoed mini-bike for use as the focal point of its in-store marketing effort. The bike can be suspended from the ceiling or positioned above case stacks of Venom, and consumers can fill out an entry form to win the bike."We create ballot boxes and take-one entry pads, and then we shout about the brand on pole toppers, cooler decals, ice barrels and other pieces," Larkin explains. "This creates a display that's very cool and very appealing to the core consumer who is also a heavy c-store shopper."A similar promotion for Stewart's Root Beer (another Snapple Beverage Group brand) will feature a branded inner tube float and a Radio Flyer wagon. "By giving retailers something of real value they can give away, we're gaining floor space and getting the brand message out," Larkin adds.Energy Drinks: High-voltageCompetition for space and consumer attention is fierce among the "energy" brands, which seem to multiply daily. SoBe Adrenaline Rush entered the market in fall 2000 and blanketed c-stores with coolers and unique countertop merchandisers to drive trial.Whitestone, N.Y.-based Energy Brands Inc, is touting its "Wanna go-go?" tagline on a range of in-store materials including static clings, small standees, glide racks and suction racks for its Go-Go Energy Drink. Distribution of the brand is primarily through convenience stores.Meanwhile, Arizona Beverages is hoping the "Plasmadome" display for its Extreme Energy Shot will be the calling card for its entry into the energy drink field. The plasma light display features lightning-like rays that shoot around the inside of an enclosed clear dome showcasing the product. The display was introduced last month along with neon signage and more traditional P-O-P materials.Convenience stores are the primary distribution channel for the new beverage, and the Plasmadome display can be hung on a wall or used on a countertop. Like other energy drinks, the brand is also distributed to on-premise accounts, so the Plasmadome can also serve as a backbar merchandiser.Convenience ConundrumConvenience stores are challenging retail environments for beverage companies. For many brands, they are also the most important. C-stores serve as the launch pad for new introductions, and that makes them the perfect places to drive trial of single-serve packages. Often, however, marketers find themselves challenged to make a big statement in a very small space."C-store shoppers are making a decision in a matter of seconds, so there's a stronger need to draw attention and create excitement around new offerings or promotions," says Gatorade's Keating."C-stores are definitely the most challenging," agrees Snapple's Larkin. "These stores have the smallest footprints in all of retail and a lot of operators don't want clutter that blocks access to product. The secret is to create materials that are friendly to this environment. That includes static clings for the cold door with clear backgrounds so product is still visible, and using space other brands aren't using, such as the ceiling or the floor. Be creative, but think about the retailer's needs."Gas islands are also important display locations, with more and more marketers vying for space atop the pumps. "The goal is to be impactful at the pump so you can get the customer into the store," says Coca-Cola's Wessner.Touting High TechWith so much attention being paid to getting display space and making a statement, beverage marketers don't always have time to learn about new technologies available for P-O-P. Costs of applicable technologies continue to drop, and some of them can be applied to displays with smaller footprints."A new trend is the miniaturization and mass production of electronic chips, such as the small LED lights with a 30-day blinking life, or programmable plasma or phosphorescent signs," says SoBe's Graves. "But [right now,] you can manufacture a ton of pole toppers for the price of a single plasma P-O-S piece. All these ideas are good, but they're expensive. Part of the P-O-S equation is the price of the item to the bottler." As costs come down, however, Graves anticipates more high-tech applications in beverage merchandising.Undoubtedly the light-and-sound features made possible by such advances will soon find their way into beverage merchandising, especially as the tide of new products coming to market shows no sign of receding, giving retailers more impetus to look critically at the potential of every display piece to drive sales."It's a fashion business," says Snapple's Larkin. "You have to work like heck to stay in front of the trends and succeed."

Beverage P-O-P Makes a Splash

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