Hall of Fame Profile: Chris DeMarco

How did you get started in P-O-P?I started in the industry in 1989 with Greater New York Display Group, a corrugated box and display manufacturer. After working two years on temporary displays at GNY, I moved to DMI [Dimensional Merchandising Inc.], a permanent display and contract packaging manufacturer. I was able to open up several new accounts there and focus more on creative design and project management.Managing the development side of projects for companies like Seagram, Nestle, Cosmair and Calvin Klein was where I felt I could really add value, so when I saw a job listing for a Manager of Merchandising Development in Creative magazine back in '90, I just had to respond. Little did I know that it would lead to relocation to Connecticut and eight years of work with one of the best this industry has to offer, Joe Ricci. It was at Duracell and under Joe's guidance that I received extensive experience in all facets of temporary and permanent merchandising.What are the greatest challenges involved in creating outstanding P-O-P?Obtaining clearly defined objectives from internal and external customers and managing their expectations. If we have concerns about unrealistic expectations, we voice our concerns immediately and suggest alternatives.It is also important to manage timing expectations up front. The process we have defines each step in development and commercialization and details the estimated time required for each step, which helps to keep everyone on the same page. Mobilizing co-workers from various departments with slightly differing objectives to work together toward one common goal can also be challenging but is required to create outstanding P-O-P.Effective supplier selection is also extremely important and is evaluated by us on a project-by-project basis. We use past experience, references and our supplier profiles to make decisions about new supply sources. In cases where the objectives might not be as clearly defined, we typically work with suppliers with stronger in-house creative capabilities and focus less on manufacturing capabilities. In instances where we have a better idea about what we want, we usually choose to work with a supplier with less design overhead and stronger in-house manufacturing capabilities.Do you expect to see more or less emphasis on P-O-P materials in your particular product category? Why?With the proliferation of new products in the beverage industry, I can only see more emphasis being placed on merchandising our expanding portfolio. We are also in a category that retailers rely on heavily to drive foot traffic in their stores, so they understand the importance of effective merchandising and point-of-sale communication. Our direct-store distribution system allows us more autonomy in stores, so we can execute local and national programs with scale and more efficiently.What have you found to be the most important elements of a successful product display?Our display programs must satisfy a variety of marketing, bottler, retailer and consumer needs. Important consumer criteria we strive for are improved shopability and accessibility, impactful product presentation and clear communication of key selling information. Important marketing criteria include the ability to communicate promotional messages and integrate a creative uniqueness that differentiates our products.Retailer needs include modularity and flexibility to fit various store layouts, structural integrity to assure safety, space and inventory optimization to maximize profit per square foot, and visual uniformity to assure continuity.Several bottler hot buttons include merchandising efficiency, ease of assembly, warehousing efficiency, transportability and cost effectiveness. In the end, the most important measure of a display program's success is its ability to drive incremental sales.What have been the most significant changes affecting the use of displays or other merchandising in the past five years?Retailers are raising the bar about what is being placed in their stores to ensure displays conform to their operational guidelines and visual standards. Retailers are demanding this customization, or at the very least, an upgrade to the functionality and visual impact of standard displays.To improve their chances of gaining retail placement, many product manufacturers are focusing their merchandising efforts on both account-specific programs and integrating breakthrough creative elements into their standard offerings. We are seeing more reloadable permanent or semipermanent displays that can increase the probability of extending the in-store life of a program.A "mass customization" approach can bridge the gap between totally custom and totally standard displays. These display systems are structurally flexible and can accommodate custom or promotional graphics but can still be mass produced to drive economies of scale. The result can be displays that satisfy both the retailer's desire for customization and the marketer's need to optimize costs.Another retailer hot button is category management. Retailers are pushing marketers to develop display systems that accommodate all brands and optimize sales of the entire category.How are new materials and processes changing the design, engineering and longevity of P-O-P materials?Wireless and Web-enabled messaging that can be updated in real time from one central location, video systems with interchangeable computer chips and high-quality sound systems that can isolate sound to a given location are becoming more affordable and feasible every day.I recently worked in a merchandising task force brainstorming session where we envisioned a day where integrated systems will drive promotional, seasonal, and even local message executions in addition to pricing and product communication. It is only a matter of time before one centralized P-O-S system links front-end messaging with back-end data to allow for customized communication, inventory tracking and data that can be used to measure a display program's effectiveness.What market forces are affecting your company's use of P-O-P materials, and how will this affect your displays in the future?Increased competition in the beverage category is being fueled by evolving consumer preferences for beverage alternatives. New products that address the needs of health-conscious consumers, line extensions that offer flavor variety or packaging that addresses functional needs such as on-the-go convenience are all contributors of growth in this category.PepsiCo's opportunity to bundle products from different divisions affects the frequency and intensity of our use of P-O-P materials. Power of One initiatives include displays that bundle a cross section of beverage and snack products from sister divisions together on the same rack. Our market research proves conclusively that when these complementary products are cross merchandised, we drive incremental category sales. Consumers' desire for convenience and improved shopability will continue to push us to develop displays that effectively segment this cross section of products.What do you like best about your job?Each and every day presents a new challenge that requires a combination of many unique skills. I enjoy the creative challenges and the ability to affect the way the product is presented to the consumer at the last possible point of the purchase occasion. The scope of the work and size of the display programs in the beverage category and being able to see instant results in bottom-line sales makes my work at Pepsi extremely satisfying.What advice would you give to anyone just breaking into the P-O-P business?Think strategically. Manage expectations up front, and refine your project management skills. Get out from behind the desk. Spend time in all facets of design and production. Ask questions and be prepared to wear many hats.

Hall of Fame Profile: Chris DeMarco

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