POP Fulfillment

Achieving the Perfect Package

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The term “Perfect Packaging” carries a lot of weight in our world—however, many people may not realize the level of thought, calculation, and communication that this practice requires.

There’s a thought process that goes behind every piece we ship, and it’s predicated on the weight and size of the box, as well as how it will travel. We consider everything from the “edge crush test” (strength of the box), to substrates (whether a piece can be rolled or folded), to the maximum length and width of the materials being shipped. These considerations, along with using actual weight vs. dimensional weight (DIM), ensure that a package is shipped in the most cost-effective way.

Cost is a particularly important and sensitive topic with many factors to consider. While custom boxes may be necessary, they carry a higher price tag. Determining the ideal packaging at the lowest cost to the client is a balancing act.

Maintaining the integrity of the product is a crucial factor to consider when striving for the Perfect Package. One advantage to our bi-coastal distribution centers is that we test package delivery from one facility to the next. Through testing, we receive feedback on how packaging stands up during the delivery process.

We make it our business to stay informed about delivery guideline changes, and maintain a close relationship with FedEx and UPS. This relationship allows us to stay on top of even the slightest change in FedEx or UPS guidelines, such as changes in Time-in-Transit, fuel surcharges or fee structure.

Finally, we endeavor to use 100% recycled material. Because we specialize in marketing execution, protecting the environment is a primary focus.

Do you have questions or comments about our Perfect Packaging process? If so, please leave them in the section below.

QSR Article: Cheap Marketing Tips that Work

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iStock_000012639763SmallLast week I discovered an insightful article from QSR Magazine titled “Cheap Marketing Tips that Work.” The author, Robert Lillegard discussed the thin line that marketers must walk in order to achieve success through inexpensive marketing tactics.

He pointed out that some brands make the fatal mistake of cutting marketing budgets in the wrong areas, and hyper focusing on strategies that don’t support or maintain their brand image. Additionally, some make the mistake of only highlighting a single strength, rather than concentrating on multiple brand attributes and therefore appealing to a wider audience. In one particular instance, a company attempted to scale down their budget to include only social media and a new website, and found their same-store sales decreased by 20-30%. (The company has since launched a more multi-faceted, effective approach.)

Lillegard also cited the importance of proper implementation of marketing efforts, including careful budgeting and ample resource allocation. He continued by outlining “cheap strategies that work”, including handing out free food samples, attention-grabbing signage and POP materials, and loyalty programs. Event programs and anniversary celebrations have also proven to be extremely effective for many brands.

Lillegard concluded by pointing out that no marketing strategy will be effective without the support of a solid, quality product and great customer service. I couldn’t agree more. I also feel that brands tend to achieve the best results when they adopt a streamlined marketing strategy that maintains consistent brand messaging across multiple channels. It’s important to maintain the basic elements that promote your product and brand image, such as signage, window clings, and banners, and combine them with mobile marketing and social media strategies.

You can read the article in its entirety here. I’m interested in hearing your thoughts. What inexpensive marketing tactics have you employed? And have they proven to be effective?

National Marketing Campaigns: How Can You Avoid Waste?

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iStock_000007403708SmallThe dynamic nature in the execution of National Marketing Campaigns leads to waste. The amount of waste is generally dictated by the complexity of each campaign (driving up waste) and the relative effectiveness of the processes and technology applied to workflow (driving down waste). While there are many costs involved with these campaigns, I’m going to focus the discussion on waste related to the production and fulfillment of POP materials specific to each location.

When it comes to POP materials, waste is both simple and complex. Simplicity applies to situations where POP materials are produced but aren’t used (over-production), or shipped to stores that can’t use the POP elements. A more complex form of waste: sending less effective POP elements to stores and using standardization of messaging (offers, images, price points, etc.) in an effort to simplify execution. The inherent lack of localization in this approach inevitably has some negative impact on results; however, measuring exactly how much constitutes “waste” is a complicated process.

Ironically, most of this waste is driven by an attempt to simplify in the face of inadequate information systems. The over-production of materials occurs when there is a lack of confidence in the available data regarding quantities, or a fear of running out– and the assumptions regarding the cost of reprinting drive up this waste. Shipping POP elements to locations that can’t use them (due to the specific physical configuration of a store, or local ordinances) is driven by the “standardization” of POP kits. Many companies have taken this approach in order to simplify the fulfillment process to a degree that they perceive to be manageable. POP kit standardization is not only unnecessary—it’s wasteful. A fulfillment process should be capable of efficiently shipping unique POP kits to every location based upon the specific profiled needs of the specific store. For some companies, cutting waste in these areas by applying data-driven methods has resulted in material cost savings as much as 15% to 25%.

Addressing the waste inherent in standardized messaging requires a rethinking of the POP execution process, as well as the belief that relevance of the messaging is tied to results. The technology and workflows available today deliver cost-effective, highly localized POP materials. Leveraging these capabilities in a messaging strategy is the challenge—just know that the delivery systems are available whenever you’re ready.

If you want to learn more about reducing waste in the POP execution process, please feel free to leave me a comment. I’d love to hear from you.

Synergy of Services in Action

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synq-anatomyofpromoThe 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.

Synergy of Services

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Even the most creative in-store promotion won’t be successful unless it’s executed properly – and that means it’s quickly delivered to the right place, in the right quantities and in perfect condition. This seems simple enough, but large QSRs and retailers who have thousands of locations, that are all unique in some way, understand the complexity of this task. The critical components of execution — print, fulfillment and shipping – must work together in what I like to call a “synergy of services.”

Throughout the month, we will be examining the issues around “synergy of services,” and how it can lead to greater efficiencies, reduced costs and more time to focus on your core business. We’ll be hearing from industry experts about best practices and innovative solutions that can help your business grow. So join the discussion. We want to hear from you!

NRF Show 2010

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I was fortunate to attend the National Retail Federation Expo in New York on January 11-12. I had not attended for a number of years so it was quite fascinating to see what has changed and what has stayed the same.

On the surface, the show continues to be a retail technology showcase; however software, not hardware, has become the centerpiece of the show. I was surprised to see that some of the same business problems that challenged retailers 20 years ago (POS automation, supply-chain management, etc.) are still a focal point of many of the solution providers. There was one clear emerging trend that appeared throughout the conference – retail is changing from being supply-chain driven to consumer focused.

Over the last 20 – 30 years, most retailers’ investment in technology and management attention has been focused on supply-chain optimization. I don’t think anyone was suggesting that this was wrong; after all, getting the right goods, to the right place, and the right time is essential to good retailing. It’s just that a lot of people are now saying the game has changed.

Consumer-centric retailing focuses first on the customer experience and then builds everything from that starting point – product/menu offering, retail environment, marketing, customer service, etc. Some think that changing this focus is necessary to respond to what is believed to be a fundamental shift in consumer motivation. The idea that many consumers, particularly active social media participants, are driven to retail more for the experience and less to buy “stuff” is very significant.

I can’t say that I have fully digested this concept and what it might mean to retail. However, it does raise some interesting ideas, some of which were mentioned at the show:

  • Localization – Stores that are merchandised (product, price, signage) uniquely to reflect local consumer tastes and interests
  • Pop-up retail – Portable “stores” that can be moved by truck throughout the day
  • Temporary stores – Stores set up for short periods (days or weeks) in response to local market events
  • Theatric spaces – Stores that have been designed as “must see” destinations with extreme art and architecture
  • Dynamic environments – Retail spaces that change frequently (weekly, daily or even throughout the day) through the use of lighting and changeable graphics to create a dynamic customer experience.
  • Fast fashion – New fashion delivered to stores within two weeks of concept

These trends point to a need for agility and speed in your marketing processes; I think these topics are worthy of future blogs posts. Let me know if you agree; send me your comments to blog@synqsolutions.com, and I’ll post them.

Welcome to Executing Innovation

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Welcome to Executing Innovation, the Synq Solutions blog. This feature will be used to share ideas, answer questions and provide information about innovation in our industry. Look for updates on industry trends like cost reduction, localization and shifting marketing media. We’ll also address business problems, as well as specific uses of technology to drive solutions for your company. If you have a specific question or topic that you’d like to know more about, please email us at blog@synqsolutions.com, and we’ll try to address it in our next blog post.

We hope you will find this blog to be a valuable tool in your quest to stay informed about our industry. Our company is founded on technological innovation, and we strive to bring the latest ideas to you so that your company can save time and money on the execution of your marketing campaigns. Before you leave our site today, please visit the Synq Advantage, which explains how we use innovation in our QSR and retail solutions, as well as in the production of our training materials. We also will continue to publish new case studies and white papers. Please bookmark this blog and check back soon for our new series on Local Marketing, which we’ll begin posting next week. This series will explore the various meanings of “local marketing” and all of the issues that stand in the way of real business results.