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Brad VanAuken The Importance of Point of Purchase

by Brad VanAuken, BrandForward, Inc.

December 2005

Recommend this article

Over the past 20 years, retail brands have significantly increased their leverage over consumer product brands because (1) they increasingly control access to products and (2) the environment in which the products are sold and (3) they have point of sale data to which manufacturers are not always privy. And given the relative size of some of the largest retailers (Wal-Mart’s sales of $285.2 billion [year ending January 31, 2005] eclipses P&G’s sales [all brands] of $60 billion), retailers don’t only affect product sales and market share directly through product access/distribution, but also indirectly by contributing to marketplace exposure/brand awareness.

Point of purchase is the place where everything a brand has done either results in a sale or doesn’t. While most consumers still state that product brands are more important to them than retail brands, most would not waste the time to seek out their preferred brand at another store if it is not available where they are shopping. And, according to a March 31, 2005 Economist article, consumers spend no more than 6 seconds trying to find a preferred brand before they give up and settle for a substitute.

So, how can you maximize your product brand’s probability of success at point of purchase? Through the following:

  • Offering a unique or superior product sought out by the consumer prior to entering the store
  • Developing emotional connection and loyalty to your brand before and after the point of purchase
  • Creating a prominently visible brand identity (as seen from a shelf facing)
    • Including distinctive packaging size/shape/colors
  • Developing point of purchase signage that simply and powerfully communicates:
    • Your brand’s most compelling point(s) of difference
    • Your brand’s superior value (remembering that value has a numerator and a denominator -- this usually does not translate to lowest price)
  • Understanding retailer metrics and motivations and developing product programs accordingly
  • Working very closely with retailers’ category managers to ensure that your products receive maximum attention, consideration and placement
  • In conjunction with the category manager, developing innovative in-store promotions that highlight your products and brand(s)
  • Creating your own retail outlets so that you can develop and control a superior point of purchase experience

Owning Something That is Difficult for Competitors to Copy

The easiest thing for a competitor to copy is a price reduction or discount. Almost as easy to copy are advertised (or otherwise communicated) product and service features. The least easy to copy are consumer benefits that are based on proprietary consumer research or behind-the-scene systems, logistics, or customer service training. For instance, if front line service employees are trained to internalize the brand promise and are empowered to deliver it in whatever way makes sense given the situation, that is much less easy for a competitor to observe and copy. The way a company interacts with different consumers differently through database marketing is also less visible (and often highly effective).

Characteristics of Successful Brand Champions

Chief brand champions will be more effective if they exhibit the following personal characteristics:

  • Curious
  • Well rounded
  • Intuitive
  • Visionary
  • “Big picture” thinker
  • Strong customer knowledge
  • Strong business knowledge
  • Assertive
  • Disciplined
  • Tenacious
  • Resilient
  • Passionate
  • Able to simplify the complex
  • Able to translate brand concepts into something relevant for non-marketers
  • Story telling ability
  • Teaching ability
  • Likable personality

These qualities seem to imply three roles: (1) vision crafter, (2) teacher/evangelist and (3) standards enforcer.

Source: BrandForward’s informal survey of corporate brand management leaders, May 2002.


Brad VanAuken is president and founder of BrandForward, Inc., a full-service brand management consultancy with clients throughout the world. Previously, Brad was the vice president of marketing for Element K, a leading e-learning company and director of brand management and marketing for Hallmark Cards, Inc. During his tenure as Hallmark’s chief brand advocate, Hallmark received the Brand Management of the Year award. Recognized as one of the world’s leading experts on brand management and marketing, Brad is a much sought after speaker and writer. He wrote the books The Brand Management Checklist and Brand Aid. His free online brand management and marketing newsletter is read by thousands of marketers throughout the world. Brad has a BS degree from Rensselaer Polytechnic Institute and an MBA from Harvard Business School.

Email: vanauken@brandforward.com
Company Profile: BrandForward, Inc.
Company URL: http://www.brandforward.com

 

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