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Study to analyze effectiveness of POP strategies
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WASHINGTON -- Drug retailers soon wild have more insight into what works--and what
doesn't--in the world of point-of-purchase advertising thanks to a first-of-its-kind
study kicking off this fall with the help of four leading pharmacy chains.
Walgreens, CVS, Rite Aid and Brooks Pharmacy have agreed to participate in the study
being conducted by Point-Of-Purchase Advertising international, the Washington-based
non-profit trade association of the at-retail marketing industry. The chains will
provide a combined total of 150 drug stores across the country where brand marketers
will learn what combination of signage and placement boosts sales in each of several
product categories. Brand marketers sponsoring studies include Frito-Lay (snacks),
Pharmavite (Nature Made vitamins), Cadbury Adams (gum, mints and cough drops) and
Schering-Plough (OTC allergy medications).
"I think [the study] will give us insight into how effective our store signing is,"
said Walgreens spokesman Michael Polzin. "I think it can also show us to what degree
signage and displays are affecting impulse purchases versus planned purchases."
Two control studies will take place in 25 of the 150 drug stores. One control study
will let brand marketers test innovative POP never before used in drug stores. The
second control study will use new technology that electronically tags displays and
transmits hourly reports to an off-site computer. Goliath Solutions, which pioneered
this particular form of radio frequency I.D., will provide national brand marketers
with a way to improve placement of store displays and to monitor the execution of
their marketing plans, POPAI explained.
"Our goal is to make at-retail marketing a measurable part of the marketing mix,
a part whose proof of placement, cost effectiveness and sales lifts can be forecast
with precision," stated Dick Blatt, POPAI president and chief executive officer.
"With what we've learned so far, and with what this study will tell the drug store
channel of business for the first time, we can prove POP placement, pin-point its
number of audience impressions and quantify the cost effectiveness of POP by product
category and in cross-channel marketing."
The study could begin as soon as this autumn and will run for 16 weeks. Results
from the studies are expected to be available by next spring.
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