As we enter the 21st century there are many predictions that the importance of the retail store is declining in favor of shopping on the internet. The battle has been drawn along lines of faltering "brick and mortar" stores vs. the emerging e-commerce market. Both retailers and major brands are jumping into the internet at a frenzied pace to make sure that they are available to shoppers who prefer on-line shopping. Many consumers complain that "brick and mortar" shopping has become tiresome, boring and too time-consuming. These are objections which the P.O.P and promotion industry must help to overcome to make shopping more appealing and entertainment driven. While e-commerce will undoubtedly grow in the future, "bricks and mortar" stores will always retain the vast majority of consumers who want to examine, touch, try on, the products they are purchasing. In addition, "bricks and mortar" stores and Internet shopping will not be complete rivals. Some predict that the future will combine the technology of kiosks and touch screens into the store to enable the consumer to order goods and merchandise directly from the Internet. In any case, the consumer always should be the top concern and priority of P.O.P. and Promotion Managers. Dramatic changes in the lives of consumers are coming and smart marketers will try to take advantage of the opportunities brought on by changing trends in consumers’ appetites and needs.
We have invited some of the top experts in this field to give us their thoughts and predications on promotion trends in the 21st century.
Allan Buccholz,
Executive V.P.
Frank Mayer & Associates
Predictions For The Millennium
To predict the future of an industry over an entire century is a near impossible task. Imagine someone standing in front of a handcarved cigar store Indian in 1899 and being asked to predict what kind of changes he would see in signage, displays and merchandising over the next century. I trust he would not have envisioned interactive kiosks with Internet connections. He probably couldn't even foresee battery operated motion displays.
My insights into the 21st century are based on some fact, a large amount of whimsy and little regard for what the critics will say in 2099 when judging my accuracy.
Without question the three things that will drive change in the POP industry in the coming century are the same ones that have always driven change in any industry- consumer habits, client demands and technology.
Consumer Habits. I believe the consumer will, as always, be more and more demanding in the presentation of, and information about, the products he or she is purchasing. If people are to continue going to "brick and mortar" stores, there will have to be more compelling reasons than today. The consumer will want more pleasing environments, entertainment and information. If more of these are available at a retail store than are available through electronic communication, the consumer will continue to shop in a store. POP displays and merchandising will simply have to continue the trend of being more exciting, more informative and more entertaining. I believe all successful retailers will offer online alternatives to shopping in their stores, but only an alternative for those consumers that want it.
Client Demands. Clients have always been a major catalyst in "raising the bar" in our industry. The simple phrase "Show me something new and exciting" will never go away. Trying to out do the competition is always great fuel for changes in any industry.
The types of retail outlets will continue to evolve and effect the types of displays and merchandising programs we develop. Mega retailers will flourish on one end of the spectrum with specialized boutiques doing well on the other. The future is not bright for the middle ground. Except for those niche boutiques, expect retailers to offer more services than ever under one roof. The trends of today, such as banks in supermarkets or restaurants in retail stores may expand to a Starbucks in a Burger King, a Burger King in a Walgreens or a Walgreens in a Home Depot. Who knows? As a result of all of these services available in one place, the marketers will have to do a better job of drawing attention to their particular product or service.
Global strategies for marketing products will continue to expand. Not only will the image of a brand be similar throughout the world, the displays and fixtures will have a common look because it was designed and produced by a POP company with worldwide capabilities.
Technology. This will have the largest impact on what we see in store in the next century. Technology will effect how we present ideas to our clients, how we manufacture, what we manufacture and how our displays look and perform. Technology will also play a vital role in how we measure the effectiveness of our displays and programs.
Declining costs of computer chips and new technology will allow more information in and on displays, on the shelf or even on the product itself. Wireless communication will be everywhere. There are some predictions that say within the decade we will no longer have hardwired phones anywhere. As a result, more people than ever will be carrying communication devices with them, on their person, at all times. Imagine the possibilities of communicating with these consumers as they walk the aisles of a retail store. "One-to-one" marketing, where a seller can identify the very specific needs of a potential consumer will be enhanced by simple communication devices that store our "profile" as well as our buying habits.
Technology will also accelerate other promo-tional areas surrounding, and integrated with, instore advertising. Direct mail will arrive via electronic means, as will coupons, sweepstakes entries and other promotional devices.
Besides new ideas to fill their marketing needs, our clients will demand more sophisticated presentations. Simple animation of sketches will lead to complete walk-throughs of a "virtual sketch".
With all of the exciting changes ahead there will also be things that won't change. There will never be enough time to get the sketches and presentation ready. The prototype will still have to be done in less than a week. And the price will always be too high. And I think a number of stores will still have a handcarved cigar store Indian standing in front.
Walter Nathan,
Chairman of the Board,
RTC Industries
In-Store Marketing in the 21st Century
The new millennium promises fast paced change across all aspects of our society. We can expect nothing less within our own industry.
We see three trends in particular creating the most significant impact: the growth and importance of in-store marketing; consolidation within our industry; and globalization.
The Growth and Importance of In-Store Marketing
Never before has the importance of the in-store environment been so elevated in the minds of brand marketers and retailers. The proliferation of communications channels has diluted the ability of traditional media to hit the target, bringing increasing attention on the retail store as the surest point of contact. Growing recognition by retailers that they themselves are a brand has raised their consciousness of the need to manage and distinguish their environments and the experience of shopping within their stores. Moreover, the internet has prompted all marketers to evaluate the value proposition they offer at retail. At a minimum, retailers and their brand company partners must offer an experience that is sup-erior to that offered on a web site if they are to attract consumers and win the battle for their shopping dollars.
With this as background, the future of in-store marketing starts to come into focus. Retailers will insist that in-store programs be more distinct to their retail space and more targeted to their particular customer. They will demand that brands assist them in creating in-store experiences that drive consumers into the store and into specific categories. They will expect greater impact. As appreciation grows for the level of commitment needed to successfully implement in-store programs, we see retailers and brand companies focusing on fewer but larger, more complex and more consequential programs. Brand companies will look to the in-store environment as a more important and integral component of a total brand effort. Brand equity is becoming the last vestige of competitive advantage and brand marketers are recognizing the retail store as a point of tangible contact between their brand and their target consumer. We will see increasing emphasis on the creation of in-store programs that go beyond brand identity to create a more fulfilling brand experience.
Consolidation within our Industry
As the protection and enhancement of the brand experience at retail becomes paramount, marketers will look to align themselves with a reduced number of in-store companies. Closer and more strategic client/supplier relationships will create the consistency across markets and retail channels that we see in media based marketing. We will continue to see the trend of multiple suppliers being honed to a core few and even a single partner that is trained to understand the goals of the brand and that works in conjunction with other brand agencies to develop and deliver an integrated brand strategy. There will be increased value assigned to confidentiality with respect to brand strategy.
More is expected from us. Today, "better, faster, cheaper" is the benchmark against which all product and service providers are expected to deliver. Brand company and retailer customers are expecting us to be more turnkey, to provide a broader array of services. We are expected to be strategic, to manage highly complex programs and to deliver them in weeks instead of months. We are expected to have full "backend" capability to allow access to our information in the way our customers want it. Customers are unabashed at asking for whatever they need to assure that their growing investments at retail are successful.
We must all rise to the expectations of a changing industry. Customers are asking us to step it up, to be much more comprehensive, to continually add value and to do it faster. In the spirit of partnership, we should appreciate when our customers push us to be better. We should be delighted to respond. Consolidation in our industry is a market imperative and we should all welcome the revolution.
Globalization
Brand marketing is now considered from a global perspective and brand programs are globally implemented. Increasingly, so is the merchandising and support of those programs.
We are proving the benefits of retail strategies that are globally integrated. Brand consistency is leveraged. As cultural and market barriers dissolve, and as revolutionary improvements in communications and travel bring us closer together, the power of consistent global branding becomes apparent. Innovation is improved. With concurrent development from multiple worldwide locations, we can inject the benefit of many and varied perspectives. Additionally, national or regional customization can be factored into a retail strategy upfront, instead of after the fact. Efficiencies are gained. With proper planning of global needs, economies of scale can be gained in the use of resources, in the sharing of tooling and the coordinated production of components, and in the effort to minimize inter-country taxes and duties.
Brand companies like Nike and Coke and retailers like Sephora are highly focused on global brand consistency. They insist on consistency from market to market. They are fostering global innovation. And they are requiring their in-store efforts to be managed with global efficiency. The recent launch of the Star Wars in-store program underscores the globalization of retail marketing, with a galactic brand message delivered across a global marketplace.
The brave new world of in-store marketing is here...
Douglas Leeds, Chairman/CEO, Thomson-Leeds, Co. Inc.
21st Century POP
The Times They Are A ‘Changing’
(And Isn’t It Exciting?)
During the past few years, we have experienced more exciting changes in the way we receive information and conduct our business than all the changes that occurred during the preceeding 200 years. It is a wonderful time to be entering the 21st Century...as change represents increased opportunities for those who create, buy and use the medium known as point of sale advertising.
One of the ingredients for success for a POP company has and will continue to be flexibility. Few industries are staffed with people who are as accustomed to doing so many things differently each day as those who are active in the point of sales industry. It is this flexibility that will ensure that the industry will successfully make the transitional changes that are occurring in the marketplace.
Entertainment Value Key to Retailer Under Siege
Anyone who is asked to look ahead at the POP industry as we enter the Millennium, will certainly mention that retailing will continue to change and will affect how brand marketers communicate within their stores. As retailers continue to be challenged by consolidations, mail order, Internet shopping and changes in customers expectations and shopping patterns...more emphasis will be concentrated on fewer retail locations and those locations will strive to be entertaining destinations for consumers. Retailers will ask that the displays in their stores do more than just hold product or communicate product benefits. They will want POP to enhance their environments. This will raise the standard for POP and drive the cost and quality of POP programs higher.
New Retail Locations: The Experience Showroom
In some categories, there will emerge a new type of retail location that I call "the experience showroom." These will be locations that consumers go to simply experience and learn about products. There will be no cash register and no sales transactions in these stores...though purchase decisions will occur."POP Comes Into Its Own as a Medium" As more brand marketers (at consumer product companies) look to tie their traditional Advertising Agencies compensations to performance (i.e. Procter & Gamble with all its agencies...Grey, Leo Burnett, Saatchi, etc.), the "Ad World" will pay more attention to the effectiveness of point of purchase as a medium. For years, POP was often thought of as an extension of packaging or just an afterthought by the advertising community. This will change and it will create a new level of creativity in-store with better graphics but probably with less complex mechanical constructions.
POP: Strong Growth Horizon
More and better research, such as POPAI's current research initiative with the Advertising Research Foundation will emphasize the value of POP as an advertising medium on par with print and broadcast. As agencies get more involved, budgets for POP will increase. Traditional POP houses will be faced with either increased competition or will join forces with ad agencies either as suppliers or as divisions of the agencies. Consolidation in our industry will increase as the industry faces more competition and is expected to do more for clients. Those who do not participate in the consolidation will be at a great disadvantage. But there will also be consolidations (which are already starting to happen) that will not be successful. Consolidation for size alone is not a benefit to brand marketers and retailers and in the end these newly formed pop conglomerates will struggle. Consolidation for increased services (more value) will be the success stories of the 21st Century.
Team Selling to Partner With Brand Marketing
The concept of individuals "selling" displays will fade away as clients demand that teams serve (rather than sell) them their in-store advertising needs. Team selling will create real partnership with brands marketers and will enable the POP industry to work more comfortably with agencies whose culture is based on the "team concept."
Technology will continue to speed the way we operate as businesses and create new challenges and opportunities for the POP world. Technology will allow the POP industry to process information faster, design & engineer faster, and produce more efficiently. It will allow our respective firms to operate with fewer people. The people we have will be more experienced, valuable and command higher salaries.
Technology to Drive "Destination Magic"
As the cost of technology goes down, there will be corresponding increases in the number of in-store programs that are based on interactive participation between the prospective buyer and the advertiser or retailer. Advances in technology will help create "entertainment" features that retailers will crave more. Technology will create some of the destination magic that entertains and engages consumers. We are already starting to see objects projected into store aisles, touch screens on store windows, light & motion impregnated into material as thin as paper, objects suspended in air as though they were floating, displays that keep products fresh in a vacuum, video images projected clearly in daylight, temporary displays that refrigerate products, etc. etc. The next revolution for our industry is almost here. It will have a very profound change on the way we do business. I believe that good communications and respect for each other along with today's technology will allow us to finally produce what most clients really want but up to now thought was impossible. It's ...Just in Time POP (no more warehousing and inventory) and truly Customized POP at the local (micro) level while maintaining the image of the brand. It will be chosen on the WEB by each retail location to match their specific needs (100% buy-in and thus 100% utilization). The world mass customization will no longer be an oxymoron. It will be our on-line strategy. It will be the way many POP programs will be produced with quality, better value and speed. In short, it will be very effective, very fast and cost effective.
Now isn't that what POP always was anyway? Change is fun. Change is opportunity. We are in for a lot of exciting changes in The 21st Century. The POP world is beautifully positioned to be one of the great benefactors. How exciting!
Dianah Campbell, Marketing Manager,
Stone Container
Corrugated Industry Trends For The 21st Century
As we approach the end of one era and the beginning of a new, our role as a producer supplier is changing rapidly. The envelope continues to be pushed in this expanding role as we strive to satisfy the customer yet meet internal goals.
Time lines will continue to be compressed while expectations will increase. Clients and prospects will be faced with tighter budgets, therefore more and more will be requested from vendors. Players in the industry are growing larger and larger with mergers and acquisitions. Service, service, service is the key to meet the requirements of marketing, purchasing, and logistics to assure success in display programs.
As expressed by sales manager, David Winfrey, "shorter lead times along with client headcount reductions compound and exert additional pressures on design, customer service, operations, tooling manufacturers and packing centers to create my biggest challenge. Customers must get their products to market quickly; therefore, turn around time will continue to shrink, leading to tighter delivery schedules. Continued escalation in the marketplace for temporary displays will be the results. Shorter order quantities with store specific identification, cross-branding, co-promotions, and unit modularity are growing in popularity."
Trends in the market, as expressed by Jim Mantey, sales representative in the Chicago area, lean toward "more and more space being provided to marketers at club stores, home improvement superstores, convenience stores, and office superstores. Seasonal promotions in grocery aisles and lobbies are getting more spectacular. Permanent shelving and signage at retail chain stores are getting replaced by quick-in/quick-out corrugated display kits enhanced with lights and motion. The flip side of the coin is the fact that mass merchandisers are setting the standards for displays. These expanding venues are demanding more pre-assembled displays where the unit is put in place, a cover is removed, a sign mounted and voila you're done! Demands for easier installation, more product visibility, themes, and structures to withstand the rigorous distribution channels continue to challenge the creative designers."
Expanding technology is projected to be the single most influential factor in the marketplace. It is both a blessing and a curse in that it has provided us with enhanced communication techniques, yet it allows us to distort our expectations. Enhanced software for design, order entry and production along with e-mail and overnight shipments have shortened the turn around time until the human factor has been removed from the schedule. Unfortunately he still exists. The primary challenge for the future will be meeting the needs of the employee. Stress in the workplace must be addressed with procedures and programs put in place to deal with problems. The shortage of experienced personnel will place constraints on employers. Working environments will continue to be hot topics. Quality of life will become more important in both the workplace and the personal arena.
There appears to be a shift in the focus for sales presentations. No longer is an individual product the subject, but an entire line of products is considered. Presentations take the form of "mini-tradeshows" with all the supporting collateral from the POP to the promotional materials. POP will run the gamut from pallet programs to end-aisle and counter units. Quick set-up is essential with compliance rates crucial to success. Cross promotions are fairly common place. Additional materials as lights, sound chips, plastics, etc. are incorporated into temporary displays. Product packouts and handling of display programs from design through manufacturing and distribution provide the client/vendor more control. Suppliers can sell customer satisfaction if they can be involved with a project from concept to completion.
As we approach the millennium with anticipation, we feel the use of temporary displays in the marketplace is alive and well. We are excited about the future and what it holds for our industry.
Mike Wahl, CEO,
HMG Group
Interactive Kiosks In The 21st Century
A Whole New World
As the Year 2000 finally arrives, the thought of a new millennium before us gives rise to fanciful speculations of what the future may hold. How will the next thousand years shape the way people do commerce and earn a living? Given the dramatic changes during the past century (in communications, transportation, technology), even the short-term future seems to be filled with promise and exciting possibilities.
The past decade alone has seen certain trends emerge which have changed the face of our business. Buzz words such as "retailtainment," "e-commerce," "clicks n' mortar," and others have entered the popular lexicon. The emergence of the Internet as a mass medium has had an impact on the way people conduct business, the way they interact with each other, and, yes, even the way they shop. On-line shopping is fast emerging as an alternative way for consumers to find what they want quickly and conveniently. Many are predicting that this holiday season will find record numbers of shoppers avoiding the crowds and traffic of other gift-hunters by making their purchases in the comfort of their own homes.
The Interactive Solution
But the growing popularity of the Web does not signify the death chime for traditional "brick and mortar" establishments! Interactive in-store displays can combine the best of both the physical and cyberspace worlds.
As technology continues to advance at a rapid pace, interactive kiosks are increasingly recognized as viable tools for retailers. Touchscreen monitors, wireless technology, miniaturization of components, and other innovations have helped produce affordable, adaptable, multi-purpose electronic systems. And embedded chip technology enables not only interactive kiosks, but other shelf displays as well, to be linked to each other and connected to the Internet.
Interactive kiosks will continue to provide benefits for consumers, retailers, and manufacturers, at both the point of information and the point of purchase. Here's why. "Point-of-Information" The biggest benefit of interactive kiosks is that they can serve as "extra staff" when human employees are busy with other customers or working on more complex tasks. Electronic displays will continue to be a visible way to attract customer attention, encourage interactivity, and answer questions that consumers might have.
High-tech kiosks can create an up-scale, modern, cutting-edge ambiance for the store environment simply by their presence. Today's consumer is media-savvy, on the go, and looking for a fun shopping experience. Interactive kiosks blend entertainemnt with functionality, supplying users with both amusement and information. Kiosks will continue to educate and inform shoppers while they excite them and motivate them to try products.
Today's shopper is already familiar with surfing the Web and using interactive displays (from ATMs to on-screen television menus), so in-store electronic kiosks will not be as intimi dating as they may have been years ago when computers seemed to be only for the younger generaiton. Now, self-service technology is all around us, from gasoline stations to hotel lobbies to ticket-purchasing machines in theaters. Interactive kiosks are convenient, easy-to-use, and offer quick answers to customer questions, easing long lines and frustrated shoppers, especially during peak times. Touch screen technology is so user-friendly that even technophobes will find it simple and convenient.
Location, like is so often the case, is key. Retailers will have to place the interactive kiosks in areas of their store that best meet the needs of their shoppers. But as components become smaller and smaller, and as interactive units become more streamlined, compact, and mobile, retailers will be able to place kiosks wherever the need may arise, easily moving them to new in-store locations as the seasonal needs may warrant.
Kiosks will proliferate in stores where it is impractical or impossible for staff to answer all the consumer questions or explain to them all the features and benefits of a multitude of products. This will become more and more important in the future because technology is not only changing the way people buy, it is changing the nature of what they buy. For example, if you are going to sell a consumer on the advantages of having an integrated 56K modem as a feature on a new video game console, we need to make sure that the consumer clearly understands the complex benefits of the integrated modem. Interactive kiosks facilitate the communication and education process.
Point-of-Purchase
The long-term future of interactive kiosks, however, is not just as a tool for information. Interactive displays will serve as profit-centers for brick-and-mortar stores.
One of the most exciting applications for interactive kiosks will be to offer consumers more options than those currently available in the physical store. Imagine a world in which consumers never leave a store empty-handed because a desired product is out-of-stock. With interactive technology, if an item is not on the shelves, the customers can still find it - and buy it - through the kiosk.
The finite space of brick-and-mortar stores will become "an infinite virtual warehouse" for a wide selection of products in various sizes, colors, and shapes. Instead of losing customers to the availability of Internet-shopping at home, retailers will use interactive kiosks to bring the Internet to the store. "Clicks n' mortar" will prove to be the answer to the threat of on-line shopping. Rather than view cyberspace as an enemy of the physical shopping experience, retail stores will recognize the need to partner with on-line entities ( most likely through their own on-line Web sites) to offer their customers controlled access to the limitless potential of the World Wide Web.
Retailers will then need to use the physical space that the interactive technology has created for them to further build their in-store environment into consumer-friendly destinations, encouraging shoppers to come to their stores, promising to meet their needs.
Satisfying the customer is the ultimate goal in order to assure continued success. And interactive technology will play an enormous role in further realizing that goal. First by offering shoppers the friendly, detailed, instant information they require in order to facilitate and enhance their in-store experience, then by offering them services above and beyond what is currently available on the shelves around them.
By making the shopping experience quicker, easier, more exciting, and more all-encompassing, interactive kiosks may very well be the revolutionary ingredient that carries brick and mortar stores competitively into the techno-savvy 21st century - and beyond.
Andy Steinfeld, President,
Clearr Corp.
Trends In Promotional Signage
The decade of the 90’s has been without question the most dynamic in the history of promotional signage--i. e., signage used in retail display settings. The decade began with backlighting just beginning to be widely used. It is ending with it being well established, and becoming the dominant medium in retail graphics, with a host of new forms of related graphic display technologies emerging.
Before the 90's, photos and posters were already popular in retail displays, but their lack of elegant and practical methods of display, and their lack of illumination, limited the impact of the graphic displays of the day. The development of quick-change, spring-loaded, attractive frames made nonlit graphic display more practical and attractive. The emergence of backlit displays, fueled by Eastman Kodak's development of its Duratrans® backlit media in the early 80's (which was quickly followed by others) made improved backlit graphics widely available and more economical. Manufacturers of fixtures to display this new backlit material quickly emerged, enabling display users to begin taking advantage of this high-impact medium.
Early backlit fixtures on the market were boxy, heavy, and had poor brightness and evenness of illumination, when compared with today's products. Nevertheless, the increased impact of backlit images versus nonlit images was quite dramatic. Studies have since confirmed that backlit images attract far greater attention, and their messages are remembered to a far greater degree, than are non-illuminated images.
The 90's have seen a revolution in the proliferation of graphic images of all kinds, especially those of the backlit variety. There are three predominant reasons this has evolved: 1) the increasing realization by users of the impact of quality graphic displays, especially when backlit, 2) the revolution in the world of display graphic production, brought about by the rapid emergence of the science of digital imaging, and 3) the development of greatly improved light boxes and other forms of backlit display fixtures. The end of the decade is witnessing the emergence of new, more dynamic forms of graphic display, both backlit and nonlit.
When the 90's began, large-quantity posters and other printed materials were produced on litho presses or by silk-screening. Medium and small-quantity runs were done either by silk-screening or photographically. The latter were at relatively high costs, and typically with several days' lead-time for small quantities, and extended lead times for medium quantities. Creative work was done largely by hand, which was costly and time consuming. Graphic computers were barely practical to use, and were in the hands of only a relatively few proficient operators.
Today, computers with powerful creative capabilities are found in every ad agency, photo lab and graphics house, and in every in-house creative department. Stock images, which used to typically cost $500 or more for a single use, are now available for unlimited use at a tiny fraction of that cost on readily-available CD's and over the Internet.
Large-quantity runs are still produced on presses, but the film process in printing is in the process of being eliminated. This reduces costs, while improving printing quality, as there is no more film to shrink or otherwise get damaged or altered during use or storage.
Many medium-quantity runs continue to be silk-screened, but that technology has improved also, resulting in better quality and lower costs, when adjusted for inflation. The big revolution has been in the area of small- to medium-quantity runs, due in large part to the digital imaging process. Creative work can be done much more easily. Anyone with a CD drive or Internet access can import images and other elements. Powerful Mac and PC programs allow creative work, which formerly was largely the domain of full-services agencies, to be performed in-house in small as well as large companies, and even at home.
Photo labs have led the way in the digital world, and thousands of new graphic service bureaus and digital printers have emerged. Small- and even medium-quantity runs can now be performed in far less time and far more economically than ever before, using plotters and other digital printing methods. Lambda® Technology gives photographic quality to digital images, even when a photo, rather than a negative or chrome, is scanned to produce the image. Images can be transferred across the street or across the world by modem, or can be sent by disk. Further creative work or image enhancement can be done efficiently by an intermediary or by the printer itself, whenever necessary.
The result has been a dramatic decrease in the costs and time required to produce display-quality images. Consequently, the use of dramatic graphic displays is burgeoning.
This rapid proliferation has in turn increased the use of high-quality nonlit and backlit display fixtures. Display fixture manufacturers have responded by offering a far wider selection of products, and have dramatically improved their quality.
Light boxes, for example, were typically in the 5" to 6" depth range at the beginning of this decade. Some manufacturers now offer profiles as thin as 2", which actually have brighter and more even illumination than did the earlier models. Additionally, the appearance and functionality have improved significantly.
At the same time, they have created light boxes, of acceptable quality, specifically priced for the high-volume user. There are several light boxes on the market available for under $50--in the early 90's it would have cost several times more to achieve backlighting for the same size of graphic image. Today, it is a rare occurrence to go into a fast food restaurant, a department store, or most any chain store without seeing some form of backlit display, or at a minimum some other form of dramatic graphic display.
The trend to backlighting and other forms of bold graphic display will continue, with no end foreseen. Display users will increasingly realize the return, and the providers of printed media and display fixtures will continue to develop products which are even more user friendly and cost effective.
In addition, a new generation of graphic display products has taken root, and is emerging with the approach of the new millennium. Various types of fixtures are now available which display multiple images in sequence, or provide different forms of animation.
Prismatic sequential-image displays, with three images in sequence, are available from select manufacturers. One manufacturer also offers a backlit version. This type of dynamic display medium has been used for many years for exterior billboard display, but has recently also found widespread use in point-of-purchase venues, with available sizes as small as 12" x 18".
Scrolling backlit displays are now available, in fixtures which can display up to 15 images in sequence. In one brand, images can be changed individually, and the fixtures may be rotated between vertical and horizontal formats, if desired.
Fiberoptic displays provide animation using points of light, which can be sequenced to go off and on, as well as change colors. Backlit polarized animation displays give the appearance of movement to water, smoke, and other flowing or pulsating elements.
Other types of electronic animation are also available, and new types of backlit graphic animation are currently being developed, for introduction within the coming months.
Why are these new display mediums being created? Display users have become increasingly firm believers in the value of high-impact graphic displays. The use of backlighting as well as high-quality display systems for nonlit graphics will continue to grow. In addition, a sophisticated segment of display users has proven ready to distinguish itself by going the next step. It is opting for the optimal visual impact of the displays which combine dramatic graphics with motion or animation.
This trend has already begun, with the first large-quantity installations of the emergent technologies having taken place within the past year. You may expect to witness their expanded use, as well as increased and better use of backlit and nonlit high-impact graphic displays, as the new millennium unfolds.
Keneth Howard, CEO,
Thorco Industries, Inc.
Mass Merchandisers, Fixtures, P.O.P. And The New Millennium
As we stand at the edge of the next millennium and contemplate the future of mass merchandisers and their vendors, I can't help but reflect back on the history of our company. Since its humble beginnings in the horse and buggy days of 1899, the evolving retail marketplace has required Thorco Industries to reinvent itself several times. From small family owned shops, to regional chains, to nationwide mass merchandisers, each new retailing breakthrough has forced a reevaluation of the company's direction, products and procedures. With each new trend, the time available to regroup and react grows shorter. The world of retailing is in fast forward, and fixture and P.O.P. companies are already working hard to meet its needs.
If we as vendors expect to remain viable and thriving, we need to identify the coming trends in mass merchandising and even more so, what's driving those changes. The fact is, the next five years will bring more changes in the way goods are bought and sold than we've seen in the past 20 years. Several trends have already emerged which we expect to continue and play an ever-increasing role in shaping the discount retail environment.
Fully assembled fixtures and P.O.P.- Fixtures and P.O.P. merchandisers must arrive at the store ready to do business. Shipped assembled and ready to "sell" will be a must; there is no time or experience at store level to assemble a carton full of parts and pieces. Information graphics and electronic salesman - Electronic signage will become an integral part of fixturing as a way to inform customers regarding features, benefits, selection and accurate pricing. Major changes to store signing will be made by simply inserting a new disk or CD. Customer interactive systems and demonstration video screens will continue to gain ground, becoming not only desirable but also a necessity for many product lines.
Designed-in ease of movement - Mobile permanent displays, which can be easily stored in the backroom between uses, will gain favor for economic reasons over seasonal "throwaways". All merchandisers will be moveable via casters, integral pallets or reinforced to accept floor jacks. Entire department layouts will change overnight making easy-to-move fixtures a must.
Department store looks at discount prices - Fixtures that have the department store "look" will become common place in mass retailers. This transformation will be driven by name brand vendors as their goods are made available in mass retailer discount outlets. Brands that never imagined being in a discount environment five years ago will find it necessary just to survive. Fixture suppliers will be asked by the brand vendor and retailer to build a more upscale merchandiser at minimal cost. These new design parameters will require a higher level of creativity in use of materials, engineering and manufacturing.
Another key factor, which will serve as a catalyst for change, is retail consolidation. Surprising as it may seem, of the top 100 retailers in business at the end of 1979, only 15% are still in existence today. Although some major consolidation has already occurred, the need to join forces to remain competitive will continue to gain momentum. This will not only involve general merchandise "big box" chains, but food and drug, home, hardware and specialty shops. Our potential customer base is shrinking and will continue to do so as we move into the new millennium.
To stay in tune with the trend toward retail consolidation, there must also be a consolidation of fixture and store supply vendors. Major store chains are changing their fixture buying philosophy in a quest to insure constant quality, delivery and price. They are finding it more economical to have one or two suppliers, instead of many, handle a certain segment of store fixturing. One purchase order, one invoice, one shipping point and one delivery date will become the goal of many large retailers.
We, as fixture and P.O.P. suppliers must continue to look at opportunities inside as well as outside our normal product lines. The forming of partnerships, acquisitions or even start-up operations will be essential moves necessary to position a company as a favored provider in this shrinking pool of potential customers.
No discussion of mass merchandisers and the future of retailing would be complete without a few thoughts on electronic commerce. Although certainly a factor in the coming years, the Internet will continue to be used more as a research tool to gain information and speed the selection process.
In the near term, the Internet will expand its niche as a source of services such as travel and investment, but the purchase of most tangible goods will remain in the store. Customers still like to touch, feel, smell, and compare the "merchandise" before making a final decision. The Internet's influence however, will mean quicker buying decisions and less time spent in the store. With this change in shopping habits, the display vehicles we produce must do a better job of grabbing customers, holding them in the store and creating impulse sales.
On the surface, it seems just surviving the multitude of challenges our industry will face in the first years of the new millennium will be a daunting task. Just as our counterparts in 1899 used a combination of ingenuity and fortitude to flourish in the twentieth century, our resolve and creativity will turn these challenges into opportunities. The daily floor of new technology will be harnessed and used to sell merchandise in ways we can't now imagine. Although consolidation may be shrinking our U.S. customer base, an emerging worldwide market will offer fixture and P.O.P. companies the opportunity to manufacture and distribute our products to an entire world of anxious consumers.
Joe Fish, V.P. Sales & Marketing,
Hankscraft Motors, Inc.
New Trends In Motion & Electronics For Displays In The 21st Century
On the eve of the new millennium, it might be wise to first take a moment to review the basics of all advertising displays. Whether a sample counter card, an elaborate motion display or a permanent in-store unit, the typical P.O.P. display has two critical elements: reasonable cost and the ability to effectively relate a sales message to the consumer at the retail level -- the time and place at which statistics confirm more than 60% of all buying decisions are made. Motion displays of the future must still incorporate these elements but they will do so using state-of-the art animation devices as such items fall in price due to decreasing production costs and increasing demand.
As we take a look into the next century, it is hard to believe that the motion display business as we know it today had its beginnings just a short fifty years ago. Back in 1949, Hankscraft revolutionized the advertising industry by perfecting the very first battery powered display motor designed to add motion to in-store displays. The 21st Century will take our industry far beyond the simple technology of the original "Wig-Wag" motor.
The display designers of the future will have an array of choices from which to create the next century's displays: - Motors will be ultra-miniaturized utilizing the latest discoveries in superconductivity and molecular mechanics. - LEDs and the invention of other light-emitting electronic devices will completely replace incandescent and fluorescent lamps. - Interactive displays will be capable of understanding the verbal queries of baffled consumers and will provide the verbal answers in any language. - Smart circuits will allow to learn from its environment, consumer traffic and sales statistics and then modify and tailor its message for optimum performance and maximum sales potential. - Holography will be widely used due to advances in holographic computer monitors and television. Very thin holographic displays will produce outstanding moving graphics for P.O.P. displays. Programming will be beamed in over the wireless information highway from regional headquarters. Concern for the environment at all levels of society will prompt legislation on a scale never seen before. Displays will be required to be reusable and/or recyclable. Motorized display designs will be such that with a simple change over, the previous motion use in a promotion will be used on the next promotion. On this same note, batteries will be required to last longer and be reusable. The future of battery technology will also allow smaller and more versatile devices to flourish. These new "super cells" will replace the battery of the 20th Century to provide longer discharge times while decreasing costs both from an investment and environmental view. One marvel of the 21st Century will be “smart displays.” These displays will not only sense the presence of an individual, but will determine the age, sex, and other factors of a consumer and then modify the content of its promotional message to appeal to that particular person. For instance, electronic "sniffers" will be able to tell what brand of shampoo the consumer uses and then display a promotion for that given product. By now you probably feel like you have just read the first chapter in the latest science fiction novel. Not so! Surprisingly, the basic research and technology for all of these amazing predictions already exist today. Practical applications for these technologies are actively being perfected within the scientific and engineering community. It is just a matter of time before today's wonders become a reality for the P.O.P. advertising industry and the next generation of motion displays. This technology explosion will arm tomorrow's motion display designers and producers with an amazing arsenal of animation options to expand their creativity. The challenge will be to temper their enthusiasm for the new and exciting with good old-fashioned 20th Century common sense. Again, we return to the basics -- a good motion display must effectively get the message to the consumer in a cost-effective, easy to use format. Some things never change.
Allyn Miller, President,
Flair Communications Agency, Inc.
The Future Is Ours To Create
In the changing competitive landscape of the future, past descriptors like “advertising agencies, promotion agencies and public relations agencie” will all be redefined. Our agency, Flair, will be a “networked”" component in providing our clients with highly integrated, brand building initiatives. We will be even more directly linked to the retail environments, including On-line, Grocery, Chain Drug, Mass, Club and Convenience. Integrated On and Off-line promotional marketing and communications strategies will call for new tactical executions. Our role will address a broad array of targeting efforts from one-on-one to mass audiences. Global marketing efforts will take us into more off-shore ventures as we create a worldwide “on the ground” presence for our agency. We will continue to refine and evolve practicing the principles of PowerHouse Marketing which we formally launched in 1999. PowerHouse Marketing is our unique combination of consumer understanding, client intimacy, brand intuition and entrepreneurial spirit that delivers to clients the most compelling and differentiated brand building solutions possible. PowerHouse Marketing is based on the premise that: A.) Promotion is the driving force of marketing and B.) Great promotions must capture the soul of the brand and the imagination of the consumer to generate incremental sales. The ultimate deliverable of Powerhouse Marketing is Flair's creation of a brand promotion platform. From this promotional platform come all of the strategic and tactical imperatives which drive consumer behavior and sales while building the brand.
In the future, the relationships which we will share with our clients will change as well. Performance will be the bottom line measure and basis for our reviews and compensation. As an agency we have and will continue to work for and respond to our clients, not Wall Street.
CD-ROM's and intranet messages will replace soon to be outdated printed "collateral/sell-in" materials. Digital outputs and messaging will replace hard copy "point-of-sale." "Direct Response" will crisscross on and off-line barriers and media.
The agency of the future? Creative, strategic thinking will rule. Client service and performance will be the measure. Technology will drive tactics and produce efficiencies.
At Flair we are very excited about the future because we believe we know what it looks like and how we can grow our agency leadership position in this newly defined competitive landscape.
THE FUTURE IS OURS TO CREATE
We believe "the future is ours to create" and we are acting upon our beliefs.
When we look into the future of our agency - and the future of the business categories in which we compete -- we do so within the framework of defined, future scenarios. After studying these scenarios we craft strategic and tactical plans embodying "fresh perspectives" to optimize our agency's role in each of these possible, future, scenario models.
Unlocking these fresh perspectives is both an art and a process. At Flair we work in a 'networked process' with Global Business Network (GBN). GBN is an international think tank whose members include many of the world's leading-edge future thinkers, as well as social behaviorists, artists and business leaders. What GBN provides its members is "Scenario Planning" facilitation. Scenarios are a qualitative planning tool which allow GBN member company managers to think in the context of long-term strategies and to act with the confidence that comes from saying,
We have an understanding of how the competitive landscape might change, we know how to recognize when it is changing, and as it changes, we know what to do and how to do it.
The point is not to "pick one preferred future" and hope for it to come to pass. Nor is the point to find the most probable future and adapt to it -- or to "bet the company' on it. Rather, the point is to make strategic decisions that will be sound for all plausible futures.
In helping "to create our future" we first imagine a future made possible by changes in technology and work style.
We will find success by continuing to add value in changing times, morphing ourselves based on client needs while adhering to solid marketing principles. What will not change is the need to deliver measurable, profitable results for our clients - and to do so cost effectively.
In the future that we are creating for our agency we will continue, as an entrepreneurial agency, to respond to the needs of our loyal associates. We will be successful in the future by breaking old paradigms, providing challenging work, taking advantage of technology, adhering to Total Quality Principles, and delivering programs which drive profitable sales results for our clients.
The insights we have gained from scenario planning provide a context for thinking clearly about the array of factors that affect our ability to help clients succeed at building brands in a competitive, cluttered, complex, often cut-throat and ever-changing future marketing arena. by breaking old paradigms, providing challenging work, taking advantage of technology, adhering to Total Quality Principles, and delivering programs which drive profitable sales results for our clients.
The insights we have gained from scenario planning provide a context for thinking clearly about the array of factors that affect our ability to help clients succeed at building brands in a competitive, cluttered, complex, often cut-throat and ever-changing future marketing arena.
Richard Hornsby, Marketing Manager,
Nashville Display
Wire Display Trends In The 21st Century
As we enter the 21st century, manufacturers of wire displays will face new challenges as well as some of the same ones such as space efficiency, value/cost efficiency and pay out. Wire, which offers many benefits and advantages, will continue to be an important material and a mainstay for POP displays as a solution to address the merchandising needs for consumer products companies and retail chains.
Development and production lead-times have continued to shrink. However, merchandising programs for new products supported with national advertising, holiday promotions and special occasions have to be in store by the dates required by retail chains. Wire displays can be manufactured in 4 to 6 weeks because tooling isn't required. Other type of materials can require expensive tooling which can have a lead-time 12 to 18 weeks. Wire displays are functional, durable, strong and stand up in a tough retail environment. While some materials attract dust, wire is self-cleaning by allowing dust to fall through to the floor.
Designs, materials and finishes for POP items are influenced by many different types of consumer products, including large ticket items such as automobiles and major appliances to furniture and household accessories. Wrought iron furniture both outdoor, and indoor, which is constructed from wire, is again very fashionable as well as lamps and accessory items. Wrought iron items are offered in more styles, greater selection with more creativity. Refrigerators and stoves are being offered again in a stainless steel finish. It is expected that these trends will carry over to the POP industry and be reflected in future wire displays with more creative shapes, concepts, and finishes. Wire will be used in a more decorative and ornamental manner to embellish, accent, add interest and create art forms. Nostalgia will also have influence on the use of wire to produce pieces that are reminiscent of the past.
There is a growing trend in the use of pallet and half pallet displays that are constructed from wire, setup and shipped to the store loaded with product and attached to wood pallets. A combination of header and vertical signage is used on the merchandisers to add visual interest. These displays arrive at the stores packaged with product ready to move to the retail floor to provide immediate availability.
A variety of product categories are being merchandised using this type of display. Recently, we have seen promotional items, new product introductions as well as major holiday promotions. These in-and-out merchandisers are widely used in mass merchandising chains, office and home supply stores, home improvement centers and club stores. It is anticipated that similar wire displays will be used to a greater degree to merchandise a wide range of products packed in corrugated shelves, which offer the necessary structural integrity to support the product weight in a cost efficient manner.
Environmental issues will become even more important as the number of large wire merchandisers of this type being produced for use on an in-and-out basis continues to increase. It is a major advantage that wire is a recyclable material. Rod is primarily produced from recycled steel. In the 21st century, how to recycle and dispose of outdated POP displays and other items will be a major concern.
Wire grids will be used in a wide range of configurations, shapes and ways with colorful finishes in many trade channels to merchandise all types of products from apparel to automobile parts. Wire shelves and baskets will be used extensively in POP displays for many types of products, on store fixtures and gondolas in retail chain stores.
Various other materials including tubing, metal, plastic, wood and MDF will be used with wire to enhance the design, appeal and dimension of the displays and fixtures.
New technology in equipment, computer software and manufacturing will assist in achieving new, innovative designs and manufacturing methods and processes to maintain very cost efficient displays and short lead times. Improved, faster and more high tech CNC wire benders, jigless, mesh welders, and robotic welders will be a part of the manufacturing arsenal to produce quality products.
There will be new finishes, powder colors and textures to attract the consumer to the displays. Nashville Display is in the early stages of exploring and developing revolutionary merchandising concepts and products that will offer unique appearance, features and benefits as well as new manufacturing technology to product these products.
Hyla Lipson,
President, Fiberoptic Lighting, Inc.
The New Millennium And The Role Of Women In It.
When I first became involved in sales promotion, the 80’s were underway (about halfway actually). My first adventure into POPAI Marketplace was fraught with cardboard, plastics and lots of men hawking their wares in the aisles of the show. The newest idea was a dimmer switch for neon.
Well, times have changed since then - we now have interactive media, e-inks, the Internet and lots of body piercing. (And we thought we were being innovative when we burned our bras in the 60’s - wow - that didn’t even hold a candle to what is going on today with individuality.) The aisles of the marketplaces of the world are filled with an array of items which are much like Jules Verne’s writings of the Nautilus - the difference being - everything is here... now! In the past 20 years we have seen the rapid pace of change zoom by...and that rapid pace is not slowing down just because our calendar numbers are turning over.
We’re "playing it loud" with Nintendo, we’re enjoying "the softer side" with Sears, we "keep on going” with Everyday, we hear all around us "someone saying McDonalds," we "sing in perfect harmony" with Coke, we "just do it" with Nike, AND we are supposed to have enough free time with all of today’s innovations and labor savers to "sit back, relax, and enjoy the ride" with United Airlines.
There are almost unlimited choices for everything from aspirin to paper towels. Today, one can buy facial tissue (notice I did NOT say Kleenex) with aloe, vitamin E, lotion, and a partridge in a pear tree. AND these tissues come in all colors (or non), scented (or not), and in boxes of all sizes from the handy pocket pack to the big sneeze triple strength version. And this is only facial tissue - if we multiply all products on the market today and configure their permutations and configure their permutations and varieties - the quagmire of products is even more befuddling than it was when Vance Packard wrote his classic "Hidden Persuaders."
We have seen a president de-famed, we have been downsized, right sized, and strategically aligned. We have read about our peers being sued for price fixing and bribery, we have seen school shootings and the destruction of entire villages by human hand or by mother nature. We have seen population growth pass the 6 billion mark and "we still keep on going."
And what does that have to do with women in general? And what does this have do with women in sales promotion? Well - we are still here...and we are crashing through the glass ceiling...and we are being paid more fairly...and we are being recognized as individuals...and acknowledged as a group.
For myself - manufacturing is the hardest thing I have ever chosen to do. Murphy’s Law takes over when you open up a factory. The rules and regulations are incredible. The pace is unbelievable. The demands of clients are overwhelming. The capricious nature of the consumer is unpredictable (or is it). But, there are rewards. And I believe the most significant of all rewards is in knowing more people and broadening the global sense of who is my friend!
As a business owner, I have experienced few gender issues - if one has a viable business or issue - today, that is what counts...and that is a good thing. I look forward to the Millennium of its continued change and its on-going challenges.