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November 09, 2009

The economic downturn has put stress on big consumer packaged goods (CPG) brands as more consumers make purchases based on price. CPG marketers do not want their products left behind for less expensive store and private-label items, which increasingly offer comparable quality and ingredients.

The retail point of sale represents a major battleground for brand marketers, as they attempt to get consumers’ attention through in-store displays and signage.

“While consumers are influenced by a number of factors prior to entering the store, digital point-of-sale media—in-store signage, displays and more—can have a big impact on their purchase decisions while they are shopping,” according to the new eMarketer report, “CPG Marketers Go Digital at Point of Sale.”

By focusing on digital media at retail, CPG marketers such as Kraft, Kellogg, Procter & Gamble and Unilever are going beyond the box to tout key ingredients, promote health messages and other product benefits. They have used in-store video to flag new sizes, flavors and convenient packaging features.

“The brands get it more than anybody because they understand what’s happening from a consumer trends perspective. It’s not about turning the store into a circus, but genuinely connecting with people.” — Laura Davis-Taylor, founder and principal, Retail Media Consulting, in an interview with eMarketer

One major selling point of in-store video and other digital point-of-sale media is that the technology offers CPG marketers real-time data so they can monitor sales, analyze the return on investment and tweak promotional messages.

“As CPG marketers seek to earn and cultivate lifetime loyalty for their brands, they need to think more creatively about their promotion and media strategies at retail,” according to the report. Digital point-of-sale media give marketers the tools to connect with and educate consumers, turning them into brand loyalists.

For more information at http://www.emarketer.com

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