Retail formats,
particularly upper trade formats like hypermarkets and supermarkets, present
unparalleled opportunities to influence shopper behaviour at point of purchase.
Take for instance consumer promotions like discounts, banded packs, collectibles, sampling, loyalty programmes and special displays; or for instance in-store
media such as television, shelf talkers, cart and floor vision, and interactive
sampling via promoters.
These activities have important bearing on store
choice and brand choice. From the retailer’s standpoint they draw shoppers and
increase their store loyalty. For manufacturers, they serve to attract new or
lapsed consumers as well retain and reward existing consumers.
In-store activities have acquired far greater
significance with the consolidation of retail, and the fragmentation of media.
In many countries the incidence of shopping at a major chain far surpasses
primetime TV viewership. Consequently, the need to engage with
shoppers at point of purchase has grown in importance.
Displays, discounts and co-op advertising result in considerable
gains in sales. In-store merchandising and communication, as well as special displays
like the one showcased in Exhibit 17.1 for Tiger
beer, can generate visibility, shape brand image and store image, and prompt purchases.
Such activities play a vital role in marketing, as they are an effective way to engage
with customers and influence their purchasing decisions.
