Added purchase incentives using sales promotions
Display advertising and secondary retail displays can be used for various occasions, for example, to introduce a new product or sell a discontinued item as well as highlight special promotions, sale items or seasonal promotions.
When it comes to promotions, it’s important that the display design makes a clear reference to the occasion, says Horstmann. Dr. Ulrike Weichert, Public Relations Officer Nutrition and Health at Nestlé Deutschland AG also confirms that the design of the packaging and the display plays a major role, especially when it comes to seasonal goods. “Seasonal candy sales are driven by impulse because many purchase decisions are made in-store,“ explains Weichert.
Using examples of Nestlé products, Weichert explains the positive impact of purchase incentives: “We are especially successful in selling seasonal candy when these three aspects come together: gifting – i.e., the product makes a great gift –, an innovative variation of a popular product and an attractive packaging and display design.“ One example of this is the After Eight “Big Ben Advent Calendar“ display, which reflects its shape.
Knowing what works: Measuring the success of promotional displays
It is important to assess the effect of display advertising. The sales figures reveal whether the POS display has truly generated more sales. Horstmann explains, “Ideally, additional sales are not due to a seasonal or quantitative sales acceleration but are based on brand switching and new customers, who noticed the advertised item thanks to the display, purchased it and then stay loyal to the brand going forward.“
So to generate additional sales in the long term, the displays – combined with other measures – need to have a lasting impact. Horstmann criticizes that systematic reviews of results are not being conducted adequately in practice. ”Yet this is the only way to optimize future promotional activities.“
Better results through collaboration
Cohesive overall concepts that harmoniously blend design, placement and timing of promotional displays with all other marketing activities also offer the potential for optimization. Both Egner and Horstmann agree that this requires teamwork and collaboration across different areas.
Felix Horstmann thinks that in reality, it is far too rare that “manufacturers collaborate and retail companies are also being included in the design of corresponding integrated concepts.“ Dr. Steffen Egner criticizes that frequently there is also not enough communication within companies. He adds that especially the marketing department, which develops the communication strategy and the sales department, which supplies the POS, frequently get caught up in their own boundaries. “I think that this is the best long-term and substantial opportunity for improvement at the POS.”