TCMBA #19 - Optimizing Your Point of Purchase
Optimizing your Point of Purchase
Let’s get tactical!
A couple of weeks ago I was asked my thoughts about Point of Purchase (PoP) packaging. This article from Perfect Daily Grind and MTPak was the result!
But let’s dig deeper.
Here are two truths:
#1
If you only ever use your PoP to move old stock, that’s a huge opportunity cost. You could have used that precious real estate to improve your marketing and product development.
#2
Discounts and promotions start a ruthless cycle.
Nothing speaks louder than saving money, so you won’t get strong data about what’s working (or not) with your products. Plus, your coffee drinkers won’t be choosing you because you’re you. They’ll be choosing you for the price to quality ratio.
Here’s a quick story…
When I used to drink, my friend taught me to buy wine by finding the largest markdown.
The theory is that you’ll be optimizing the price to quality ratio. The best wine for the lowest price (compared to what else is on sale).
Did I ever stick with a wine I loved after buying it on sale? Nope. I had no brand or grape loyalty (as long as it was purple). I was beholden to the size of the discount, not my taste buds.
You don’t want this for your business!
There are other options that benefit the business in both the short and long term.
Here is, verbatim, what I shared with Perfect Daily Grind / MTPak (most of which didn’t get used in the article).
I hope it’s a thought-starter!
1. Recent research shows a dramatic increase in point-of-purchase packaging, as many brands "use it to clear old stock". What are your thoughts on this? This is reactive thinking and a wasted opportunity. Be proactive in your tactics. Leveraging this powerful position, you can introduce coffee drinkers to new products or share experimental products you're testing. Think about why you need to clear old stock. Is your current product strategy working?
2. How can products placed at points-of-purchase benefit a business? Use point-of-purchase intentionally. This precious space can be used for testing and relationship building. Trying to figure out your on-pack language or even your coffee blend components? Run an A/B test right there at your PoP to see which has the highest velocity. You can even incentivize participation in surveys from those same consumers to help understand why they chose A over B, for example. Consumers want to have an experience. Give it to them! Invite them to participate, then reciprocate. You'll get engagement with your brand, insight into your coffee drinkers, and the feedback you've been needing on your products.
3. In your opinion, how can coffee roasters boost POP sales? Make it an experience, make it engaging, make it stand out, but make it fast. Consumers need to make super fast decisions, especially when checking out. Think about their experience, they're sandwiched between a line of other customers and the person trying to take their money. It's a lot of mental pressure. Saving money is a fast way to access their willingness to buy, which is why this works well as a clearance section. The drawback to this is that they'll get stuck in a loop of only buying from your clearance section. If you want to be more intentional with the point-of-purchase space, keep your message strong, short, and meaningful. Consumers need to recognize immediately what they're getting in order to make a purchasing choice. Stories about the supply chain won't work as well here. Use the tools at your disposal to communicate the product's story in an instant.
4. In your opinion, should roasters use different forms of coffee packaging to bring attention to different products? Packaging is a huge part of a product's communication toolkit. At its best, the packaging itself gives you information about the product in an instant, without having to read any words. It's almost subconscious. Small, sturdy packaging evokes a more premium product, for example. While minimum order quantities can make a diverse packaging strategy difficult or expensive, the more elements you can use to communicate quickly, the better. Consider color, size, texture, material, shape, and of course recognizable symbols and certifications that point to the value propositions of each product. Consider your target consumer and the colors and messages that grab their attention to invite them into the experience you're creating. If it doesn't scream at them in the same way a 50% off sign does, then keep workshopping the message.
Remember: getting clear on what your customer wants, needs, and responds to will help you sell MORE COFFEE!
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