P-O-P Options Overflow In Beverage Category

There's a lot more for consumers to soak in when they hit the beverage aisles these days. Carbonated beverages and tea drinks are vying with bottled waters and even on-the-go milk. One new display option, the single-serve cooler, has amassed sales data that proves that consumers will buy on impulse in impressive numbers if you hit them at the right location with a tempting package. That is resulting in marketers focusing more on display creativity, securing real estate, finding untapped outlets and ensuring the message cuts through the clutter.Marketers at Triarc Beverage Group, makers of RC Cola, Snapple and Mistic brands, are well aware of the need to make each brand stand out in the aisles. They believe the best approach is to create one strong, consistent message through all marketing elements. To support that, the company has re-engineered the look for its Snapple drinks for 1999 to feature new graphics that carry through all types of marketing -- advertising, promotion, packaging and merchandising. One unified look will make the whole greater than the sum of the parts, company officials say."Everyone is recognizing merchandising and P-O-P as key advertising elements, elevating their importance and strategic role," says Neal Larkin, director of promotion for Snapple brands at the White Plains, N.Y.-based company. "It's becoming harder and harder to reach people with your advertising message in traditional media. In-store efforts are extremely targeted and effective because you're in front of your consumers much more often. It's extremely important that you reinforce your brand image the same way traditional advertising does."The value of P-O-P carries through all brands, adds Bob Todaro, director of merchandising for Triarc's complete line of products. "A good creative, imaginative rack piece that speaks to our equity is every bit as effective for us as a good commercial. Our goal is to always reinforce our marketing message at the point-of-sale."Schweppes has taken that same approach on a global scale. In September, it announced that new packaging graphics hitting the market this month will reflect graphic approaches used in the international market. "The new design will create a billboard effect on shelves and further distinguish Schweppes from its competitors," says Holly Mensch, director of sales and mixers at the brand's parent company, Dr Pepper/Seven Up Inc., Plano, Texas.The new graphics, described as a "more contemporary" look for the 216-year-old carbonated beverage line, taps into the consumers' perception that Schweppes is an ideal mixer and offers a soft drink with "sparkling effervescence." All packaging will feature rising bubbles and a bolder, yellow-and-black Schweppes logo, Mensch explains. A key element in the strategy, she notes, is that the redesign will allow the brand to share advertising components internationally. "Schweppes is working toward global unity for both its products and advertising."This focus on a consistent message comes as the category -- and expanding related categories -- find competition increasing. But carbonated beverages aren't losing the battle for share, according to Gary Hemphill, vice president of the Beverage Marketing Corp., New York. "Carbonated sodas aren't losing ground," he says. "In general, what's happening is that beverage consumption is increasing." The company's data shows carbonated soda sales grew at a rate of 3.3 percent in 1997 and 3 percent in 1998. If anything, he says, mainstays like tap water, hard alcohol and hot coffee and tea are losing popularity. "The general outlook is for growth across the board in cold-drink areas."Because of the market saturation of carbonated-beverage products in supermarkets, the messages and approaches often differ from other products in the cold-beverage categories, marketers note. Often, P-O-P efforts are targeted to short-term price promotions or the ever-expanding range of high-volume package options, with special emphasis on tying into key occasions or special promotional themes via movies or sporting events. That means that creative, innovative messages, displays and programs can stand out from the crowd.Less Is MoreMarketing executives at companies such as Pepsi are realizing that when it comes to end aisle displays, less can be more. "We used to assume more was better, so we kept creating more sophisticated, more eye-catching displays with all kinds of bells and whistles," says Leslie Nagy, senior group manager for marketing services at Pepsi-Cola Co., Purchase, N.Y. Retailers ultimately rebelled at the labor expense in assembling the displays, and Pepsi noticed its production bills rising. "Today, we lean more toward generating excitement through dimension and die cutting that keep costs down and ensure retailers can put the pieces up quickly."Pepsi marketers also concluded that the lights and sound that seemed clever during a boardroom meeting could be annoying to consumers and store employees. "We are driven by field sensitivity and the return on investment," says Chrystine Vance-Homer, Pepsi associate marketing director.Keeping these objectives in mind, the company has switched many of its gas/convenience poster options to see-through signage. "They cost more, but the posters weren't getting up, because clerks couldn't see the pumps," Vance-Homer says. In effect, the paper posters were more costly because so many were being wasted. As a result of the cost difference, though, the poster messages have been changed to promote the overall brand image, which helps amortize the cost over a longer period. "We wouldn't do one for a holiday promotion, because we want a longer shelf life," she explains. "We use them to mark our real estate."Pepsi's marketers are also investing in pieces they can reuse in new ways. For instance, the company created new dies to produce a plastic globe that served as the centerpiece for its Pepsi Stuff campaign in 1996. It then reused the globe for its 1997 Pepsi Stuff campaign -- and also used it as the base for a model of the Death Star in its recent "Star Wars" promotion. "We want to invest in pieces that can be taken from one promotion to another and use them for more than one program," says Nagy.Triarc has also put the focus on flexibility and creativity, says Larkin. "We have to be more clever with how we design and engineer pieces." In many cases, that means having more than one application for a specific element. For instance, a recent pole topper could also be used as a flat case card or as an easel-backed freestanding card. "If a piece doesn't work in one class of trade or one situation, we want to have other applications for it so the retailers will be willing to use it."New Shapes and SizesThat creativity is expanding to accommodate new shapes and sizes of materials as well as new locations in the stores. "We're becoming much more creative about where we try to put a display or sign," says Larkin. "There's very little real estate available, so we have to take advantage of anything that's not off limits." That's leading marketers to take a closer look at the ceiling, the spaces above cooler units and smaller/narrower spaces around fixtures.Pepsi is also creating new displays for tight spaces, including a corrugated "side-stacker" for a stacked grouping of its new Pepsi One 12-packs. "We use two or four together with a sign to create a display," Vance-Homer says. "Retailers won't let us just stack our products, but we can provide our own little housing unit that creates a small display. It's not a prepack, but it's the same idea."Dr Pepper/Seven Up is looking at ways to counteract a new labor-saving technology: the automatic credit-card options at gas pumps. This technology allows many customers to pass through without entering the store, eliminating impulse purchases such as soft drinks, which are one of the highest purchased items when consumers buy gas.As a result, marketers are working with a variety of retailers to create pump merchandisers and toppers, island signage, curb signs and outdoor dock displays in addition to the P-O-P that is traditionally used on the single-serve coolers. "We examine the various channels of distribution to determine the appropriate P-O-P and merchandisers for each," says Richard Lee Hilton, senior merchandising manager for P-O-S merchandising materials at Dr Pepper/Seven Up.Co-branding with other companies in other aisles of the supermarket has also taken off, notes Triarc's Todaro. "It's a tremendous opportunity because everyone has the same problem of wanting the same retail space. If you bring in a concept for a cross-merchandising rack, you kill two birds with one stone. It's much easier for two companies to get one position than to get two." Triarc's brands tend to focus on regional tie-ins to emphasize local opportunities rather than try to produce a national effort, he says. Pepsi takes a more national approach, such as recently joining with Frito-Lay Inc. to create new merchandisers for beverages and snacks.Looking For New LocationsMarketers have begun looking to new and untried outlets for additional sales. Coca-Cola, for example, has placed refrigerated fast-lane merchandisers in Blockbuster video-rental stores. The desire to secure such non-traditional locations will increase, says Richard Lysinger, director of marketing at Cadmus Point of Purchase in Atlanta, which works with a number of companies including Coca-Cola. "Refrigerated units sell an incredible amount of product, and it's all incremental sales that would not have been made otherwise," he notes. "It's definitely a real estate game. If someone can secure that position, it's a real win for them."In recent months, Pepsi has virtually created a new location for its Pepsi One products. It joined with Simon Properties and General Growth Properties, two large mall developers, to establish Pepsi One Lounges in various malls. The "virtual lounges" include inflatable couches, a large-screen television, a putting green and a cooler of Pepsi One. "We are looking at different channels to determine where we can go," says a company spokesman. "Anywhere the consumer is going is where we want to be."Technology Aids CustomizingCustomization continues to be a growing trend, marketers agree. As printing technologies improve, the costs become easier to handle, says Cadmus' Lysinger. "It's possible today to mass-produce a piece and then use digital printing to add specific logos or messages, sometimes to as few as 15 copies." In some cases, Snapple's Larkin notes, the retailer will do the printing in-house, adding another reason for marketers to keep their pieces flexible and creative."We're trying to bridge the gap between stock and custom pieces to make custom more affordable," says Triarc's Todaro. "We're trying to enhance our stock pieces and create more opportunities for using them. But it has to offer more than simply a 'Your Logo Here' option to be accepted. Everyone has the same glide, ice barrel, rack, etc. The goal is to take these to the next level and put a twist on them that gives us some brand equity." For instance, Triarc achieved that with the first rack for its new Whipple Snapple blended drink, giving it the look of a blender. "It reinforces our brand and gives it meaning that no other product would have if it was used in that rack."As competition heats up, so does the interest in more durable pieces and an emphasis on permanent merchandisers, both of which secure real estate for longer periods. Plastics are replacing paper in many instances, and upscale looks are desired. Says Pepsi's Nagy, "We're moving toward more permanent pieces where we can change out the graphic look on a program-by-program basis. That allows us to let the graphics and message pop out while ensuring the display's framework fits into the store's decor."Snapple's Larkin agrees: "Our focus has moved away from promotional pieces to concepts that enhance the look of the store and the brand image. We're using more pieces that build brand identity and enhance our image, just as advertising pieces would. We try to be innovative and creative on our own -- we can't wait for the next big idea to come to us."

P-O-P Options Overflow In Beverage Category

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