Jon Wellings says we should rethink physical marketing in a digital universe.
When it comes to point of sale (POS) material, there has never been a level playing field. Big brands with their own stores have absolute control over
every element of the process. When they design an innovative and compelling display for their products, it will be deployed exactly as the creative intended.
However, for most brands, it is not so straightforward, as only the minority have any certainty about the end environment where their product will be displayed. They can design the most imaginative POS material, but there is no guarantee it will even make it out of the box in some locations.
To make matters worse, the bigger the campaign and budget, the more challenging the issue. When scale is introduced, at a continental or even global level, it becomes even harder to predict how different store environments can accommodate POS material. Anecdotally, POS wastage stands as high as 80% for some brands.
The advent of changing and increasing channels could mark a fundamental shift in how brands think about POS and can make their spend work harder. After all, the POS is where the transaction happens and that is no longer just physically in a store. Online retail means that the POS could feasibly be anywhere on the customer journey, particularly when it comes to mobile purchases. This liberates brands from a uniform and restricted campaign, allowing them total control and predictability over the sales environment. Previously, all brands without a retail footprint could do was attempt to raise awareness outside of the store as much as possible and hope that the POS was deployed as intended.
Not all stumbling blocks are magically vanished with the introduction of digital sales channels however. Multi-regional strategies have been difficult to implement owing to local differences and variations. This has been particularly problematic for physical POS because of the significant differences and sheer unpredictability of instore environments. A campaign deployed digitally is working in an environment of known quantities. They do not have to worry about the whims of store managers in creating a beautiful display for their product, because a digital POS can be controlled centrally.
However, this still does not give brands carte blanche to develop a one size fits all campaign. Local differences and variations go beyond solely the instore environment. They need to take into account linguistic disparities, the needs and preferences of local consumers, and cultural sensitivities which may render the humour or tone of a campaign inappropriate. This is alongside the more basic elements of thinking about how ads or sites will appear on different devices, and which are most prevalent in the locality where the product is being marketed.
This is all well and good for brands which are marketing ‘destination products’ – those items which merit a particular journey or those that customers would specifically browse online for, such as jeans or cosmetics. However, online sales channels are of little use to FMCG products which are incidental to a shopping visit. Only so much can be achieved using external brand awareness – instore standout is key, and this is where the lack of physical POS can be limiting. Online shopping does not necessarily solve the problem either, as a functional product will struggle to get noticed.
This is where new means of engaging customers can pay dividends and the explosion of digital channels comes into its own. These are principally using personalised communication and technology to bring a new dimension into stores – reducing reliance on physical POS to achieve standout.
Brands without their own retail footprint have no guarantee that a POS will be constructed and displayed for their product, even if supplied. But they could print a Quick Response (QR) code on the product itself, which customers can scan with their smartphone to receive a personalised offer or price. Equally, brands could develop their own apps that can be used to scan certain products, which then text discount coupons that the customer can use at the till. This is something companies can fully control and tailor to different localities, which also rewards loyalty and generates interaction with the brand.
This technology is readily accessible and for larger stores, already a reality in some venues. Earlier this year, iBeacon technology was unveiled which will allow retailers to use Bluetooth to broadcast notifications (special offers for example) to smartphone users through dedicated apps. While QR codes may be a little clunky, app technology has been widely used and adopted, and could represent a tipping point for instore marketing of products. Used wisely, it may one day even prove to be more effective in winning the standout war than physical POS.
However, that being said, companies are still reliant on the store owner implementing this technology. In time, stores may come to charge brands for the increased penetration and data they receive from this cutting edge technology.
Jon Wellings is head of managed services at Communisis.
