Supermarket Point of Purchase Display Close-up Study

ContentsA summary of key findings and selected charts from the Supermarket Point-of-Purchase Display Close-Up follows. To download the complete report in PDF format, click on the Attached Files link in the right-hand column.Program ObjectivesThe P-O-P Close-Up study explores and interprets shopping behavior, attitudes and decision-making patterns of consumers shopping at supermarket displays.Specific program objectives include: Obtaining demographic profiles of the supermarket display shopper. Purchase frequency and brand loyalty among supermarket display shoppers. Understanding purchasing behaviors that are taking place at the supermarket display. Evaluating the underlying dynamics of category, brand and size/quantity decisions made at supermarket displays. Determining the prevailing attitudes and perceptions that shoppers hold towards particular displays as well as towards supermarket displays in general. Study Design and MethodologyThis research was conducted via in-store intercept interviews with consumers immediately after they had selected a product from a supermarket display.As part of the research, interviewers were able to observe and record various behaviors that consumers exhibited while at the display. Only shoppers who appeared to be at least 16 years old and who selected an item for purchase from a display were eligible to be interviewed. Interviews ran approximately 10 minutes. All respondents were given a $5.00 cash gift for their participation.All fieldwork was conducted during December, 1998 and January, 1999.This management report represents a summary and analysis of the study findings. All study sponsors received a full set of data tabulations in addition to this management report.Sample CompositionA panel of 16 high volume supermarket chain outlets located in eight geographic markets was set up for this research. Participating chains/markets included:Stop & Shop, Boston Acme, PhiladelphiaA&P, AtlantaKroger, NashvilleKohl's, MilwaukeeMeijer, DetroitSafeway, Phoenix, San Francisco A total of 505 random sample interviews were conducted among shoppers at these outlets. This total was quota sampled as to different locations in the store so as to ensure adequate bases for analysis. The total is broken out in various ways in the sample composition section found in the appendix of this report.Conclusions and ImplicationsOne of the broad purposes of this P.O.P. Close-Up Study is to provide brand marketers and P.O.P. producer/suppliers with information that supports their display initiatives with the retail trade.Regardless of the specifics of any display program, retailers need to know that there is broad support from the consumers, themselves, regarding the use of displays in the supermarket.Display shoppers are well represented in all of the demographic segments that come into the supermarket and this means that display programs must be designed with all types of consumers in mind. Consumers acknowledge that displays influence what they buy and impact their shopping behavior in a variety of ways. Displays can play any number of roles in the supermarket and those who design and implement display programs must consider the overall merchandising objectives for the products being displayed.This research can assist in that process because it demonstrates how displays impact what consumers do in the store and what kinds of displays or display locations might work best in particular situations.In many cases, support for certain types of display programs can be found in that not only are displays causing consumers to act in certain ways but that consumers are actually acknowledging that the display is responsible for that behavior.Displays are doing an excellent job at getting consumers to make impulse purchases as well as making their brand and size/quantity decisions in the store.In-store decision making levels among display shoppers far exceed the levels that have been observed for shoppers in general. Floorstand/prepack shippers and on-shelf displays were particularly effective in this regard.Consumers strongly associate displays with encouraging/influencing them to make unplanned purchases and many claim they would not have made a purchase if they did not see a display for the particular item. Another direct selling role that displays can play is in acting to "close the sale" by ensuring that shoppers follow through on their plans to buy certain items.The correlation between planned purchases of display items with sale pricing and circular features substantiates that displays can effectively reinforce planned behaviors when they are integrated with pre-store selling efforts.Displays are a powerful tool to get people to try an item they've never tried before or to attract shoppers who don't typically purchase a particular category or brand.Compared to supermarket shoppers in general, trial purchasing and purchases made by shoppers who are not particularly loyal to a category or brand is more likely to happen at the display than at the shelf. This is especially true if it is an in-aisle or on-shelf display that is "visually appealing" to the shopper. These shoppers identify the display as playing a key role in their decision to try something new or different. We have identified three ways that displays play a direct selling role in the supermarket: generating impulse/unplanned purchases, reinforcing planned behavior and attracting trial purchasers and non-loyals. The fact that displays appear to be doing a good job with each of these provides clear evidence of their direct impact on category and overall store sales. Moreover, this offers individuals who design and implement display programs a strong selling proposition to bring to decision makers for the use of displays in the supermarket. Displays also have a more subtle and indirect role on what consumers do in the supermarket because they are part of the store's ambiance. Displays are helping put shoppers in a buying mood by contributing to the overall store experience.Consumers believe that displays make their shopping more pleasant and more enjoyable. Since many consumers shop in the company of others, a trip to the store often carries a social element. Displays can impact the shoppingexperience by taking advantage of this social aspect. End caps, perimeter locations, displays that highlight sales or specials and those that have particular appeal to children or teens appear to have the best potential for enhancing social interaction in the store. The research has shown that, directly and indirectly, displays do a lot to influence consumers in the supermarket. One important goal of the P.O.P. Close-Up Study is to suggest ways in which displays can do an even better job at impacting the brand marketer's and the retailer's bottom line.Consumers want displays that make it easy to shop. High shopability must be a given in any future display program. Consumers also want displays that are visually appealing and are more likely to be impacted by units that are perceived as eye catching and match the packaging of products being displayed. However, consumers suggest that there is some room for improvement regarding the aesthetics of current displays, particularly in-line merchandisers, power wings/shelf extenders and end caps. Depending on the merchandising objectives at hand, a display might be designed to encourage the shopper to stop and browse or it might serve to expedite the purchase decision by encouraging the shopper to grab something and keep on going. If a browsing role is sought, the display might be best situated away from high traffic areas like the front end. There appears to be a synergistic effect from using multiple forms of P.O.P. together (i.e., display with signage). Analysis of Study FindingsDisplays need to be designed and used to appeal to all types of shoppers.Demographically, display shoppers do differ a little from supermarket shoppers in general. They are a bit younger, include greater numbers of males and working persons and they are more likely to have children and teens at home.However, these differences matter less than the fact that display shoppers are well represented in all demographic segments that shop in these outlets.Brand marketers and P.O.P. producer/suppliers can bring a strong sell-in story to the retail trade regarding their display programs. MRC's nonnative database indicates that about one fifth of all packaged goods products purchased in the supermarket are bought off of a display. Moreover, supermarket shoppers acknowledge the direct impact that displays have on their purchase behavior.More than three-fourths of display shoppers claimed that the display influenced their brand decision. Fully half said the display had a lot of influence. Shoppers at end aisle locations were particularly likely to say that the display influenced their decision.The vast majority of shoppers agree that displays directly purchase behavior by:helping them notice sales and specialshelping them find productsreminding them to buy productshelping them notice new productsIn fact, shoppers are more likely to stop at a particular display because it helped them notice a sale or special or because it reminded them to buy a certain product than for any other reason.Displays act as a direct selling tool in two important ways: they encourage impulse buying and other forms of unplanned behavior in the store on the one hand, and they reinforce planned behavior by acting to "close the sale" or ensuring that shoppers follow through with their plans to buy certain items.Displays are good for the retailer's business as well as the brand marketers because they are highly effective at generating incremental volume through impulse buying.Based on comparisons with MRC's packaged goods norms, display shoppers are considerably more likely than the general supermarket shopper to make their category, brand and size/quantity decisions in the store.While all kinds of displays appear to be doing a good job at encouraging in-store decision making, floor stands1pre-pack shippers and on-shelf displays (shelf extenders/power wings) are particularly effective.Shoppers at these displays were even more likely to say they were making an impulse purchase or deciding on brand and size/quantity in the store. These shoppers were also more likely to agree that displays encourage this sort of behavior.Display programs can be designed with the knowledge that supermarket shoppers expect to make impulse and unplanned purchases from the display.It's not just that shoppers happen to be making a lot of impulse or unplanned purchases from displays, they come to the store knowing that this is a normal and accepted part of their shopping experience. In other words, displays don't merely create impulse behavior, but that shoppers have the attitude that displays are responsible for the behavior.Most shoppers acknowledge that displays encourage impulse buying and this is borne out by the fact that shoppers who claim a particular display influenced their decision by a lot include greater numbers of impulse and unplanned buyers than shoppers who claimed less influence from the display.This research substantiates that display programs integrating sale pricing, circular features and displays in the store offer an effective approach for reinforcing planned behavior.This combination of tactics offers a way to become part of the consumer's pre-store plans via the circular feature and then use the display to ensure those plans are carried out once the consumer is in the store.Display products are far more likely to be seen in the store circular (14%) than non-displayed products (3%) and this is especially true when the displayed product is on sale.Moreover, sale items were more likely to have been planned purchases than non-sale items.Much thought is given to how to use displays to increase sales. Seen from a different perspective, brand marketers and their retail trading partners risk losing sales if they don't include displays as part of their merchandising strategies.Retailers risk losing sales because more than a third of the display shoppers claimed they would not have made a purchase if their selection had not been on a display.Brand marketers are at even greater risk in that only a third of the display shoppers claimed they would have looked for the same brand on the shelf if the item was not on display.Much of this has to do with displays' ability to generate impulse buying and instore decision making. In fact, it is the shoppers at those displays shown to be most effective at generating impulse behavior - floor stand/pre-packs and shelf extenders/power wings at in-aisle and on-shelf locations - that were least likely to say they would have simply looked for the same brand on the shelf if the display had not been present.One role that displays appear to be playing with much success is in attracting shoppers who are not necessarily loyal to a particular category or brand. Displays are also generating a lot of trial purchasing among consumers. This demonstrated success at generating sales outside of the core franchise underscores the value that displays have to both brand marketers and retailers. Organizations that develop and implement display programs can use this evidence to strengthen their selling propositions to brand marketers and to retailers.Displays are attracting frequent and infrequent buyers of a particular category to about the same degree. Displays at in-aisle and on-shelf locations appear to do the best job at attracting infrequent category buyers.Display shoppers also exhibited a much lower level of brand loyalty, on average, than supermarket shoppers in general. Again, the ability to attract non-loyal buyers to a particular brand was most evident from displays that were located in aisle or on shelf.Trial purchase levels (i.e., buying something for the very first time) from a display were also higher than among supermarket shoppers in general. This was especially true for in-aisle displays.Trial purchasers and shoppers who bought a brand that they don't usually buy acknowledged that it was the display that had a lot to do with their decision. This underscores the importance of displays' role in growing category or brand sales by bringing new customers into the franchise.Trial purchasers and non-brand loyal buyers were more likely than other shoppers were to say that the display influenced their decision to buy a particular item by a lot.These customers were also relatively more likely than other shoppers were to claim that they would not have bought the item if the display had not been present in the store that day.Displays that remind shoppers to buy because they are visually appealing may be more effective at attracting trial purchasers and nonbrand loyal shoppers than displays that highlight a sale or special.Trial purchasers and shoppers with low brand loyalty were more likely than other shoppers to cite "reminded me to buy" or "visually appealing" as the reason they stopped at a particular display. At the same time, these shoppers were relatively less likely to mention "saw a sale or special" as the reason they came over to the display.Displays do a lot more for the retailer than just act as a direct selling tool. As an important part of the store's overall environment, they can help create a certain mood and put people in a buying frame of mind. Displays can perform this kind of indirect selling role by making the shopping experience more pleasant, more enjoyable, more fun.Displays perform this indirect selling role in a number of ways. We have already seen that consumers hold the belief that displays encourage impulse buying. Most consumers also hold the opinion that displays make shopping more enjoyable and create a more pleasant store environment.Another way that displays can enhance the store environment is by appealing to the social nature of the shopping experience. In fact, more than a third of all display shoppers were accompanied by someone else. End cap/mass displays, displays in perimeter locations and those featuring sale items appear to have the best potential for taking advantage of peoples' natural desire for social interaction.Displays that hold particular appeal to children or teens may encourage mom (or dad) to purchase items on impulse or to choose brands they don't usually buy.Shoppers who made impulse purchases off of displays and those with less brand loyalty regarding the displayed item they selected were more likely to have been accompanied by children or teens than other display shoppers were.Display design must continue to maintain high standards in ten-ns of making it easy for the consumer to shop.The vast majority of shoppers believe that the displays they were shopping from held products that were accessible and easy to see. More than three fourths also said these displays were well stocked, clearly showed the prices of items and were appropriately located in the store.However, if displays are going to be as effective as they can in terms of enhancing the overall store environment and the shopping experience they need to be more aesthetically pleasing than they are now.Having displays that are visually appealing are important to supermarket shoppers and has a demonstrable impact on their propensity to buy. Shoppers who claimed that a particular display influenced them by a lot were more likely to also say they found the display to be eye catching and to have packaging that matched the display.Display shoppers were relatively less apt to give high marks to these displays in terms of their being eye catching and having product packaging that matches the display. Shoppers tended to be most critical toward in-line merchandisers, shelf extenders/power wings and end caps regarding these aesthetic issues.Display design must not only consider what kind of direct or indirect role is being pursued but also how that role might be played. Should the display work to expedite the purchase decision or should it encourage the shopper to stop and stay awhile? Obviously, this is a decision that must be based on the overall merchandising objectives for the category or brand being displayed. One thing that appears to be clear is that displays designed to encourage browsing might be best located in less heavily traveled areas, such as in-aisle, as opposed to high traffic locations like the front end.Overall, display shoppers were no more likely to be observed examining items than supermarket shoppers in general. However, there was a fair degree of variation in the amount of examination that took place at different places in the store. There was relatively more examination of items observed at on-shelf and in-aisle locations while very few shoppers at front end locations were seen examining products on the display before making a selection.Displays that encourage browsing and examining the products on display might be particularly well suited for stimulating trial purchasing as well as attracting less loyal shoppers.Those who were buying something for the very first time as well as shoppers choosing a brand that they were not particularly loyal to were relatively more likely than other shoppers were to be observed examining items at the display.One way to ensure that displays are as impactful and as effective as they can be is to use them in conjunction with other forms of P.0.P. materials such as signage.Shoppers saying that the display influenced their purchase decision by a lot were more likely to have been at a display that had a sign associated with it than other shoppers were.Shoppers at "signed" displays were also more likely to be making an impulse purchase than shoppers at displays without any signage attached to them.

Supermarket Point of Purchase Display Close-up Study

P2PI MEMBERS

JOIN P2PI

Related Images

Business Topic

Market Segment

P2PI MEMBERS

JOIN P2PI

Related Images

Related Articles

Business Topic

Market Segment