Concepts of P.O.P. and Shopper Marketing

Let's start our article by recommending the book "Why We Buy?" written by Paco Underhill and his team, known as the Sherlock Holmes of retail.

The content of the book was prepared by observing developing markets around the world. Underhill and his team collected, blended, and classified all information from stores worldwide to write the book. They meticulously examined stores' locations, storefronts, product displays on shelves and racks, product packaging, posters, brochures, and catalogs, as well as entrances, exits, doors, windows, walls, elevators, fitting rooms, and the layout of counters and shelves. Furthermore, they conducted extensive research, including filming fifty thousand hours of video each year, to understand what attracts customers and what causes them to leave without making a purchase.

What is Shopper Marketing?

Shopper marketing, although having a longer history globally, has been introduced to our country in recent years; it is a marketing method that addresses the shopper (consumer), who is the most crucial player in the purchasing process.

Today, marketing at the point of sale is gaining increasing importance. The primary reason for this is that the purchasing decision is increasingly made at the point of sale. According to a study by POPAI (Part of the Shop Global Network), the only global organization in the field of point-of-purchase marketing, consumers make their purchase decisions 76% of the time at retail stores. For example, a consumer loyal to a chocolate brand may try a new brand's product due to effective communication by that brand at the point of sale. Therefore, allocating a portion of the advertising campaign budget for communication at the point of sale acts as insurance for that campaign.

Who is the Shopper?

The shopper, or the consumer, is the person who chooses among dozens of brands, products, and prices in retail. Before making a purchase decision, shoppers are exposed to various content and stimuli. For example, advertisements seen on television, in newspapers, on social media, things heard on the radio, and messages received on their phones influence the shopper's perception to a certain extent. However, according to POPAI data, this influence does not exceed 23%.

On the other hand, if there isn't a well-established brand perception in the shopper's mind or if their emotions about the product to be purchased are not related to the brand, much of what is done before arriving at the point of sale is futile. Our brains tend to remember certain things we consider important while deleting a lot of information, especially in today's world where we are exposed to a lot of content. The key point of shopper marketing is catching the shopper at their most vulnerable moment when they have already completed a significant portion of the purchase process. We've all entered a store just to take a look and left with a bunch of bags; the reason is either the seller's excellence or something that attracts us without us noticing.

Shopper Marketing

• It is a significant marketing definition that focuses on customer satisfaction and mutual gain rather than price and promotion wars. When implemented correctly, communication between the shopper and the brand will lead to success at the point of sale.
• Shopper management and applications at the point of sale are the insurance of all investments made in marketing.
• The point of sale is the final destination for the return on all marketing investments!

• Shopper Marketing Emerged Why?

Now the ropes are not in the hands of brands or retailers. Now the determinant of the retail sector is the shopper. The conditions have changed nowadays;

• There are many different brands in every category, and all these brands are fighting to enter the consumer's shopping basket.
• Consumers shop by choosing what they want from hundreds of different sales channels and retailers.
• Internet shopping offers consumers comparison opportunities and offers endless choices for purchasing.
• Despite the increased number of media tools and budgets allocated, the recall rate and returns received are decreasing. Bombarding people with advertising and messages leads to wasted budgets.

How is Shopper Marketing Implemented?

The cornerstone of the shopper marketing process is data. To develop a successful shopper marketing strategy, it is essential to know the consumer well. Consumer data is used to obtain insights from consumption and purchasing behaviors, and various theories are put forward. These theories include ideas that contribute to the brand's development. Starting from these ideas, attention should be paid to two issues in the strategy determined for implementation at the point of sale:

1. How can consumer behavior at the point of purchase be changed in favor of the brand?
2. Which sales channels are suitable for the work to be done?

Then, actions are taken in the agreed-upon sales channels according to the developed strategy. In the final step, the results of the actions are measured to obtain new data and insights.

Some Data Related to Shopper Marketing

• According to a study by POPAI, purchase decisions are made 76% of the time at retail stores.
• Consumers spend an average of two times a week and approximately 25 minutes each time in supermarket chains.
• While the brand recall rate for TV advertisements watched at home is 23%, the brand recall rate for advertisements watched in stores is 65% (Source: Bob Sybold - Business Voice).
• Migros, 5M Migros, Macrocenter, and Tansaş stores are visited by an average of 1 million consumers per day.
• Consumers spend an average of 27 minutes in Migros stores and 23 minutes in Macrocenter stores.
• The Walmart retail chain reaches 140 million viewers weekly in America and is America's largest and most significant medium.
• According to a study conducted by Walmart on the results of marketing activities at the point of sale, playing French music in supermarkets increases wine sales, while playing German music increases beer sales.
• 60% of in-store purchases are unplanned, 30% are planned, 6% are general planned, and 4% are alternative purchases.
• While it is assumed that most shoppers in chain stores are women, in reality, 50% of chain store consumers are men and 50% are women.

How Much Budget is Allocated to Shopper Marketing Worldwide?

According to a survey conducted by Shopper Marketing Magazine with leading brands in 2015, businesses in the packaged consumer goods sector allocated more than 15% of their marketing budgets to shopper marketing. Moreover, nearly half of the brands stated that they were increasing their budget allocation to this area. The concept of shopper marketing is becoming increasingly important for today's advertisers.

POP (Point of Purchase)

No one wants to say "no" to a cold drink offered in the summer heat or when they are tired of crowds. Knowing this, marketers introduce their new products in this way. At the moment of need! Called POP, this method, practiced by leading brands like Unilever, is highly effective.

Just as fire alarms say "break glass in case of emergency," marketers conduct "emergency (point of) promotion." Examples of this method include promoting products like granulated coffee or packaged herbal tea in areas with high concentrations of offices or protein bars outside gyms.

The POP method can be considered as applying traditional methods differently. Promoting products at the moment of need is actually a subset of promotion. This method, which is an instrument for sales development, is widely used in the West and is now encountered in our country.

In short, the POP method is based on reaching consumers at the right place and time. What matters is not only in malls but also in every way that reaches consumers' emotions...

Primary Objectives of the POP Method

• Reminder: It ensures that consumers remember the product while shopping.
• Encouraging Unplanned Purchases: It encourages consumers to make spontaneous purchase decisions.

Effects and Considerations of the POP Method

• It has been observed that POP activities immediately influence consumer purchase decisions and reduce the need for information.
• It should be noted that sales development activities may lead to temporary increases and may not contribute to long-term market growth.
• All point-of-sale activities need to be managed consciously and carefully, requiring a broad perspective that includes advertisements.

Promotion at the Moment of Need

POP activities serve the same purpose as instant product promotion activities, which can be considered as a type of classic POP activity. On the other hand, instant product promotion activities are conducted in environments where shopping is not the main purpose. The product is delivered to potential customers at the moment of need and in their environment. Examples of instant product promotion activities include high-protein foods and sports equipment sold in gyms, hair care products promoted in hairdressers, hand and skin care products sold in beauty salons, and temporary book and magazine stands set up in universities.

Former Advertising Association President Faruk Atasoy emphasized in a speech, "Implementing applications where a product group is consumed or can come to mind may be more beneficial because the consumer's interest will be higher. But besides sensitivity, it is also important for the consumer to be from the target group."

Unilever targeted gyms with this application in the past. They named their developed method "Point-of-Sweat." At famous American gym chain Bally's Fitness Clubs, sports trainers distributed Dove shower gel, deodorant, and facial wipes to attendees after their workout. Unilever's strategy was to present and promote personal care products at the point of need.

Actually, the application is solving a classic problem. Even if you give a product to the consumer for promotional purposes, you may not ensure its use. However, if you are there exactly at the moment of need, you guarantee the consumer tries the product. So, think about when the consumer really needs to take a shower and promote the shampoo right there...

American Promotional Marketing Association Director Claire Rosenzweig once said, "Promotional promotions, which are a constantly growing part of the $249 billion spent annually on consumer advertising, now constitute a $1.2 billion industry."

*** Considering that we are experiencing economically difficult times, it is necessary to take into account that this is the most attractive and cost-effective method to contribute to brand loyalty.

Examples of Practices in Turkey:

• Unilever: Ahter Kutadgu, Director of Law and Corporate Relations and Board Member at Unilever, explains Unilever's strategies for establishing closer connections with consumers. Unilever prioritizes reaching consumers through new channels while also focusing on maintaining and enhancing brand value.
• Lipton: In Turkey, to increase the use of tea bags, Lipton offers consumers the opportunity to try tea bags at gas stations.
• Algida: During summer holidays, Algida promotes ice cream by boat to meet the need for ice cream at sea.

Are New Strategies on the Way?

• Capturing the consumer at the moment of need and convincing them to try the product is an important strategy.
• Examples can be expanded: Beverage companies distribute cold drinks on the streets on hot days with the "Point-of-Thirst" strategy.
• The "Point-of-Dirt" application promotes stain removers in shopping centers.
• There are also examples like Starbucks introducing frappuccinos on a hot day in New York.
• In "Point-of-Relief" promotions, products that assist athletes are provided at the Chicago Marathon.

Advantages of Sales Stands Established at Points of Need and Promotions Made at Points of Sale

• Positive Impact on Brand: Strengthens brand perception by establishing physical connections.
• Increases Loyalty: Increases brand loyalty and protects against competing brands.
• A New Option: Unlike in-store promotions, it opens up new markets.
• Can Change Consumer Decision: Effective in directing consumers towards making purchases.
• High Impact of the Method: Capturing the consumer just before making a purchase maximizes effectiveness.
• Perfect Timing: The timing of marketing activities aimed at influencing consumer behavior is critical.