MARKET BUZZ 2002-09-09

Carol Angrisani / Liza Casabona

From P&G to P-O-P

CINCINNATI -- William Smith, manager of in-store presence at Procter & Gamble Co.'s Snacks/Beverages Global Business Unit, is the first person from a brand marketer, rather than a supplier, to be board chairman of Point of Purchase Advertising International.

For Smith, the role symbolizes the importance of POP advertising among the brand-marketing community. The appointment comes at a time when POPAI, Washington, the trade association for the POP ad industry, is repositioning itself as a more inclusive organization.

"This is a full-blown association that's trying to meet everyone's needs, not only suppliers, but also brand marketers and retailers," said Smith, whose yearlong appointment runs to March 2003. "It sends a clear message that brand marketers are also trying to build their business with POP advertising."

As manager of in-store presence, Smith oversees how P&G's snack and beverage brands are merchandised, shelved and displayed in retail stores, including whether they're in stock, readily available for purchase and in the right location.

Smith works in partnership with P&G's North American Market Development Organization to be more successful in getting P&G's brands merchandised in stores.

Due to retail consolidation, POP advertising and other forms of in-store presence are more important today than ever, Smith said. Consolidation has left fewer retailers that are increasingly focusing on marketing their own brand and trying to reach the same consumers as consumer packaged good manufacturers are.

"Retailers have begun to realize that they're a brand just like we sell brands. So we need to work with them and make sure both our brand messages work together," he said.

Since his appointment, Smith said he's been working to meet POPAI's goals, which include inclusiveness, advocacy, intellectual property and strategic utilization of technology. Another key goal is establishing POP advertising as a measured medium, on par with print, broadcast and other media. P&G is a sponsor of POPAI's "measured medium" study.

When asked to comment on other key trends affecting the industry, Smith said he's found there's a much more global interest in POP advertising, and key learnings that can be applied to specific markets. P&G is one of them, specifically with its Pringles and Pantene brands, he said.

"P&G, like a handful of other consumer goods marketers, is looking how to apply our brand equity across the globe," he said. "You have to adapt to local markets."

The Importance Of Retail Customization

Following is an excerpt from William Smith's column in "Marketing's Powerful Weapon: Point of Purchase Advertising," a textbook produced by POPAI for industry members and marketing professionals.

Brand marketers must discover how to customize the appeal of their brands to both consumers and retailers.

Successful brands build loyalty among the consumers by meeting the genuine needs and desires of individual shoppers. Marketers need to establish personal bonds to their brands by answering consumers' questions: What does your brand do for me? How does your brand make my life easier? How does your brand make the quality of my life better?

Better brands build better relationships with both tier current and future consumers to succeed in today's global marketplace.

Brand marketers must provide a personal touch to consumers, including where and how they do their shopping. Every consumer interaction at retail is an opportunity to build brand loyalty, but each contact must be relevant to the shopper's need during a particular shopping trip.

Brand information and advertising must be appropriate to the product category and retail store shopped. There are major differences in product life cycles and absolute retail prices that require consumers to spend varying shopping times per retail outlet. What works well when shopping for computers may be completely unnecessary when purchasing canned soup.

The consumer's time is a valuable possession that will be wasted with brand information and advertising that is neither clear nor direct. All POP advertising -- from interactive displays to floorstand rise cards -- must provide each consumer with the essential information one needs.

Customization of the brand marketers' products and/or services is also important for successful placement at retail. Differentiation has become vital to the success of many retailers, particularly as they try to distinguish their stores from their competitors'.

Brand marketers should look for opportunities to adapt their display and in-store advertising programs to the unique merchandising styles of their various retail customers, including their retail brand logos and store colors where appropriate and feasible. Flexibility in the design and placement of POP advertising and display must accommodate different store sizes, even within the same retail chain.

Delivering The P&G Message

CINCINNATI -- Procter & Gamble offers a wide range of point-of-purchase advertising materials across many of its brands. Its POP program includes both temporary and permanent displays and shelf-merchandising units used across all retail channels, including food, drug, mass, club, dollar and convenience stores.

Following is a Q&A about P&G's use of POP, with answers provided by Don Paddock, P&G's retail presence manager, North America.

Brand Marketing: How has P&G's use of POP changed recently?

Paddock: Over the years, our focus has shifted from using POP as a promotional support tool to managing POP as an integral part of our in-store marketing program.

Brand: If P&G is using POP more now than in the past, why?

Paddock: In-store marketing is a key element in our quest to win the first moment of truth, when the shopper makes a purchase decision. POP helps deliver a relevant message at this critical decision point.

Brand: Do some types of POP ads work better than others? If so, which ones?

Paddock:The most effective types of POP vary by product category, and are developed collaboratively with our [retail] customers. It is important that in-store communication support the brand's overall marketing plan and equity message.

Brand: Are certain brands more conducive to POP ads than others?

Paddock: POP advertising can benefit any brand, but as a general rule is probably more important to impulse and expandable consumption categories and brands.

Brand: Describe some of P&G's most recent POP ad programs.

Paddock: Our recent POP offerings range from display material for our Tide Downy Racing program to permanent, shelf-merchandising fixtures for Millstone coffee.

Brand: How important is POP advertising to P&G?

Paddock: P&G has used POP advertising for nearly a century to support our brands' in-store merchandising programs. We view POP and in-store marketing as an important element in our overall marketing mix.

Study: Organic Food Buyers Are Loyal

SCHAUMBURG, Ill. -- Organic food buyers are extremely loyal to the category, and intend to keep buying, while non-buyers have virtually no interest in organic products, according to a study by ACNielsen U.S., an operating unit of market research firm ACNielsen.

The study found that, of the one-third of consumers who have purchased organic food or beverage products in the past six months, 85% plan to continue purchasing organics.

However, among non-buyers, only 3% plan to buy such products in the next six months.

When asked how they feel about organic products, 63% agreed that "organic products are more expensive than similar non-organic products," far ahead of other attributes such as "no pesticides" (41%), "healthier" (26%), "do not contain genetically modified organisms" (22%), "better quality" (14%) and "less likely to have a food allergy reaction" (13%).

Toys R Us Expands In Supermarkets

PARAMUS, N.J. -- Toys "R" Us is strengthening its presence in Ahold USA's supermarkets with the addition of store-within-a-store sections in Tops Friendly Markets. The concept also may be brought to other Ahold divisions.

The sections will be tested in four Buffalo, N.Y.-area Tops banner stores. They join others being tested at Giant Food, Landover, Md., another division of Ahold USA, Chantilly, Va. Ahold reportedly plans to merchandise the toy displays in 35 other supermarkets, including its Stop & Shop banner.

While the program is still in test mode, "results have been favorable enough to expand the program to include other Ahold operating companies," according to a Toys "R" Us company statement. Toys "R" Us declined to comment further.

Kellogg Makes Local Kids Celebrities

BATTLE CREEK, Mich. -- Tony the Tiger will share the spotlight on Kellogg's Frosted Flakes cereal boxes with 10 youngsters for about six weeks beginning next month.

While Kellogg doesn't plan to support the design change on a national level, Jim Monte, Kellogg's breakfast division president, expects there will be a regional component in markets where the children live.

The temporary box design will feature a group shot of all the winners on the front. The back panel will spotlight each winner and include personal information such as name, age, home state and a brief description of why they were chosen to receive an award.

Tony was on hand during an awards ceremony in New York last month honoring the youngsters, all of whom have overcome physical disabilities and handicaps.

Tony presented the winners with awards at a ceremony hosted by Rosie O'Donnell. Each child won a $10,000 scholarship.

The ceremony also marked Tony's 50th birthday. At a press conference following the ceremony, Carlos Gutierrez, chairman of the board and chief executive officer of Kellogg, attributed Tony's longevity to his human characteristics.

"People like Tony the Tiger as a person," Gutierrez said.