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Future POP programs will point to more excitement
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CHICAGO -- Tomorrow's point-of-purchase programs in drug chains will boast more
color, movement, excitement and micro-marketing opportunities, but fewer one-fits-all
POP campaigns and smaller footprints for floor displays.
These were some of the predictions by drug chain panelists at the Drug Store Retailer
Forum presented the Point of Purchase Advertising Institute (POPAI) Marketplace
here last month.
"I think we're going to see a proliferation of more excitement vehicles' in the
stores," said panel moderator Jay Forbes, vp and publisher of Drug Store News. He
noted that meaningful POP drives customers to buy more and creates plus revenue
for the chain.
The audience of POP suppliers and specialists also heard details about in-store
strategies from Gordon Stromberg, senior vp of advertising of Toronto-based Shoppers
Drug Mart, and Bob Dyer, manager of new market development for Pittsburgh-based
Thrift Drug.
According to Stromberg, the 675-store Shoppers Drug Mart -- Canada's largest drug
chain -- will reach sales of around $3 billion this year, with average sales per
square foot of over $800. Each Shoppers location is franchised by a pharmacist and
carries core categories of cosmetics, HBA, confectionary and prescription.
The chain does not allow manufacturer POP pieces, said Stromberg. Instead, suppliers
customize in-store programs to fit its colors and graphics. "We love POP -- the
type we create," said Stromberg.
POP offers are restricted to certain formats, he explained. "An instant redeemable
coupon is a call to action and instant gratification. We found that if a customer
was loyal to Product A, they would not switch for a contest offer."
Five percent of the chain's ad/promo budget is spent on POP. "That 5 percent gives
us the biggest bang for our buck. We've done exit interviews, and each time, POP
was recalled -- over radio, TV and flyers," he said.
If POP works well, why not increase it? "Because there's only so much material you
can put up before it crosses the line and becomes clutter," said Stromberg.
Thrift Drug's Bob Dyer also described his chain's changing POP strategies for the
565-store chain, which has locations in 18 states and will reach sales of around
$1.4 billion this year. "I'm excited about these changes because they're going to
help us increase our sales and profits," said Dyer. He said he looks for in-store
marketing to renew customer interest in drug chains as the "destination for health
and wellness needs."
Both panelists praised creative in-store programs for generating repeat traffic.
Stromberg noted a cross promotion with Pizza Hut and Kentucky Fried Chicken. Thrift
Drug's Bob Dyer cited American Greetings' Spooky House Halloween display.
"It's attractive, with sound and moving parts. They are attention getters," said
Dyer. "It attracts kids -- and moms and pops. They bring kids back again to see
the display." Based on success of the AG display, Thrift is working on integrating
AG's Santa's Workshop display into its store for the holidays.
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