In an article for The Hub, Chris Hoyt attempts to shed some light on where shopper marketing fits in the grand scheme of marketing organization. According to Hoyt, “Where you put shopper marketing will seal your success…or failure.”

Bryson listed Kraft, Kellogg and General Mills among companies that see value in continuing to pump monies into their advertising budgets. At that time, the manufacturers found that upping their marketing spending allowed them to pass on price hikes without losing the customer. That idea might be a harder sell this week. Things have changed and manufacturers will need marketing more than ever to stay competitive with value focused private labels. But how do you continue marketing, compete with private label pricing and stay profitable? The answer is value engineering.

It is imperative that manufacturers get the most out of their marketing dollars — particularly for marketing in the store where brands are placed alongside private labels. Partnering with a display and fixturing company that is strong in value engineering, has capabilities in multiple materials (sheet metal, wire, wood and plastic) as well as in house engineering can stretch those dollars. Creating modular design elements that allow multiple configurations, making use of fixtures engineered for easy installation and graphic change out without additional hardware requirements are all solutions that maximize in store marketing investments. Another solution is international sourcing. Just be sure you have a partner that has many years of international experience and employees on the ground inspecting factory production processes to ensure you get a high quality product. 

In Bryson’s article, Larry Light, former global CMO of McDonald’s, articulates the value of marketing in today’s economy. “Investing in brands during a rough economy can not only fend off share loss but also boost the brand’s trajectory when things improve.” Light’s research classified companies who spent more on advertising and marketing during a recession as “winners” and those who cut spending as “losers.”

According to Light, “Losers cut marketing in a recession, and the result is they simply accelerated their loss in market share after the recession.” Value engineering keeps your brand in the game.

70-80% of buying decisions are made right there in the aisle and that’s where CPG’s need to focus marketing efforts. Sure people come in the store with a list and brand preferences. But when they take a look at the price difference and compare that to the weekly budget, CPG’s may lose out, unless they can convey a compelling message right at that moment when the decision is made. And a new media takes the stage…the grocery aisle. 

While graphics and creative aisle displays are not new, creating innovative systems, increasing the rate of installation and professional execution makes a huge difference on the impact of an in store selling message. Industry insiders report that some 30-40% of in store media is installed improperly, if it is installed at all! How much does that cost in wasted materials and missed opportunities?

In today’s climate, it can cost millions.