Synergy of Services in Action

The execution of large scale POP marketing programs has been a challenge for decades. Most retailers respond to these hurdles by developing extensive processes and procedures that are considered today to be the “proven” approach. While these entrenched methods may be perceived as safe, most oftentimes they are far from ideal as they have not evolved with changes in the retail environment. Are your proven approaches really the lowest risk if they harbor waste and inefficiency?

The execution of POP campaigns can be divided into several overlapping phases:

1. Marketing Strategy – The practice of determining which products are of interest to consumers and how they will be sold, communicated and packaged.
2. Creative Development – The process that translates the marketing strategy into graphic messages that can be published for printing or online use.
3. Profiling – The process of matching specific marketing messages and POP elements to each store.
4. Production – The translation of the creative work into actual POP elements.
5. Fulfillment – The assembly of a group of specific POP elements that match the exact needs of a retail location into a POP “kit.”
6. Shipping – The transportation of each POP kit to each retail location.
7. Receipt and Installation – The receipt of the kit followed by the installation of POP elements prior to the start of the promotional campaign.

In practice, these steps tend to be chaotic and very dynamic; it is not unusual for retailers or QSRs to have hundreds of changes throughout the course of a single campaign. Meanwhile, the traditional buying practices of these companies tend to fragment these processes further as they seek to buy at the lowest price. The individual components may be at the lowest cost, but the net result is an inefficient and wasteful workflow.

Consider these opportunities:

• Speed – Based on my experience, more than half of the time consumed to execute a POP campaign is spent waiting for one party or another. What is speed-to-market worth to you?
• Cost – So much focus is placed on the per-piece cost of POP materials, and so little is placed on the total quantity ordered. Does every location require exactly the same items? What is the cost of the “extras” left over after a campaign because you are afraid to run out?
• Time and Focus – How much time does your organization spend trying to coordinate the overall process? Would that time be more valuable spent on your customers?
• Effectiveness – Do your marketing messages speak to local preferences? Are you keeping your campaigns simple just so they are easier to execute?

Consolidating the execution of multiple phases into a single qualified supplier provides the focus that is necessary to attack the inefficiencies inherent in this chaotic process. The cost and time savings that are derived can be sizeable; I have seen some companies save over 20% of the cost of their POP program by rethinking the entire process.

The consequences of something going wrong in a POP campaign can be very ugly, so it’s natural to want to hold on to your tried and true approach. However, the retail environment is changing and the opportunities for cost savings and improved speed, flexibility and effectiveness can make it worthwhile to leverage the synergy of services.