Study to analyze effectiveness of POP strategies

Drug Store News,  August 18, 2003  by Antionette Alexander

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WASHINGTON -- Drug retailers soon wild have more insight into what works--and what doesn't--in the world of point-of-purchase advertising thanks to a first-of-its-kind study kicking off this fall with the help of four leading pharmacy chains.

Walgreens, CVS, Rite Aid and Brooks Pharmacy have agreed to participate in the study being conducted by Point-Of-Purchase Advertising international, the Washington-based non-profit trade association of the at-retail marketing industry. The chains will provide a combined total of 150 drug stores across the country where brand marketers will learn what combination of signage and placement boosts sales in each of several product categories. Brand marketers sponsoring studies include Frito-Lay (snacks), Pharmavite (Nature Made vitamins), Cadbury Adams (gum, mints and cough drops) and Schering-Plough (OTC allergy medications).

"I think [the study] will give us insight into how effective our store signing is," said Walgreens spokesman Michael Polzin. "I think it can also show us to what degree signage and displays are affecting impulse purchases versus planned purchases."

Two control studies will take place in 25 of the 150 drug stores. One control study will let brand marketers test innovative POP never before used in drug stores. The second control study Will use new technology that electronically tags displays and transmits hourly reports to an off-site computer. Goliath Solutions, which pioneered this particular form of radio frequency I.D., will provide national brand marketers with a way to improve placement of store displays and to monitor the execution of their marketing plans, POPAI explained.

"Our goal is to make at-retail marketing a measurable part of the marketing mix, a part whose proof of placement, cost effectiveness and sales lifts can be forecast with precision," stated Dick Blatt, POPAI president and chief executive officer. "With what we've learned so far, and with what this study will tell the drug store channel of business for the first time, we can prove POP placement, pin-point its number of audience impressions and quantify the cost effectiveness of POP by product category and in cross-channel marketing."

The study could begin as soon as this autumn and will run for 16 weeks. Results from the studies are expected to be available by next spring.

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