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A product display (堆头) is a very important merchandising method in modern retail terminals and a key promotional tool for companies. Some products can see sales increase by two, five, or even ten times when they have a display compared to when they don't. A little-known company can quickly rise to the top of its industry by setting up numerous displays, becoming a favorite at retail terminals. A display can make you an overnight success. That's the magic of a display.
Setting up a display is not just a promotional tactic; it's an art, and a practical one at that. It must fully integrate the company's sales objectives, the message it wants to convey to consumers, and consumer needs. So, how can you use this art to achieve your sales goals?
How to determine if you really need a display?
Currently, companies generally set up displays for several reasons: first, to boost sales, as displays can effectively increase volume. Second, when there is a strong promotional push, displays become important because they attract consumers. Third, some companies decide based on competitor activity. For example, if Mengniu sets up a display, Yili must do the same. So sometimes displays are proactive, and sometimes they are reactive.
How to decide which stores to use for displays?
First, choose stores that contribute significantly to sales and profits, to further increase per-store sales. Second, for newly entered stores or those with poor sales, use displays to boost volume. Third, based on your resources, if you have ample budget, you can set up displays in more stores; if limited, fewer stores. Fourth, consider the importance of certain hypermarkets in your sales plan or your own promotional plans, and decide accordingly.
How to determine the display location?
When setting up a display, first consider six factors: 1. Brand strength. If your brand is weak, placing your display next to a strong brand will put you at a disadvantage. 2. Price tier of the product. 3. Location. For example, cross aisles, entrances, and other high-traffic areas will yield better results than other spots. 4. Target consumers' buying habits. Some products are impulse purchases, while others are habitual; choose the location and format based on these habits. 5. Category attributes. For instance, consumers prefer to buy milk in the dairy section. Pay attention to the category environment, such as whether there are unpleasant odors nearby or how related the surrounding products are. 6. Promotional intensity. If your promotion is weaker than a competitor's, it's unwise to place your display too close to theirs.
After considering these six factors, let's look at how to execute the display.
In practice, location is paramount. Displays are like real estate: location determines effectiveness. After weighing the six factors, you can determine the display's position in the supermarket. Several principles should be considered: First, choose high-traffic areas such as entrances/exits, checkout counters, payment points, corners, main aisle beginnings in category sections, and elevator entrances. Second, stay away from displays of brands with strong promotional intensity and high brand influence. For example, milk brands should avoid placing displays near Mengniu or Yili, as their displays often attract more consumer attention.
When setting up a display, be careful to avoid certain pitfalls. There are several locations where displays should never be placed: 1. Warehouse entrances/exits. 2. Category areas with low relevance. 3. Places with unpleasant odors, such as seafood or meat sections. 4. Locations with low consumer reach, even if cheap, as they are ineffective. 5. Next to competitors with lower prices and stronger promotions.
How should the display be set up?
Highlight the promotional theme. The theme should be clearly indicated on the display. Is it a free sample? A discount? A gift with purchase? Or just a simple display without any discount? The primary role of the display is to make the promotional theme clear at a glance. Also, clearly show the promotional items. For example, if you're giving away backpacks or food containers, place them in a visible spot so consumers can see them.
Make it convenient. First, make it easy for consumers to pick up products. Second, make it easy for promotional staff or store clerks to restock. Whether the display is cone-shaped or square, restocking should be convenient; otherwise, delays will affect the entire display's effectiveness.
Keep the promoted products simple. If you're launching a new product, highlight that one product. Don't put five products together, as it dilutes the promotional theme. Generally, a display should feature no more than two SKUs, keeping it relatively simple. The principle is to push your main products with strong promotional support. Therefore, product selection is crucial. Among your product lines, choose those that are most affected by competitors. Also, consider seasonality and other factors, as different stages require different considerations.
Safety. Pay attention to safety in display setup and arrangement. Some promotional items are fragile, such as the glassware often given away by Nestlé. Ensure that bundled items are securely tied and stable on the display. Since broken promotional items usually don't require compensation, they can cause losses. Also, when building the display, check the stability of the base and boxes. Some projects need to be negotiated separately with the store, such as running electrical wires or placing floor stickers, which can pose safety hazards. Plan thoroughly.
Create a sales atmosphere. No matter how you set up the display, the key is to highlight the promotional atmosphere. Achieve this through arrangement and by showing sales effectiveness in a prominent spot, such as deliberately removing a bottle or two to suggest that others have bought, creating a sense of demand. Also, if possible, use promotional staff. Walmart offers free displays, all standard 1x1.2 meters, with a basic weekly sales target. If the target isn't met, the store gives the display to someone else. Many companies use promotional staff, and it's proven effective, boosting sales by 80–150%. Especially for new product launches, the impact of terminal interception by promotional staff is significant.
Multiple displays: combine or separate?
Some large companies buy several displays to showcase multiple main products. Some choose to combine them into a display zone for a striking effect, while others separate them to intercept consumers from different positions. How to decide?
There are several situations where combining is suitable: 1. When competitors have few displays and no one interferes, you can create a sensation. 2. When both you and competitors are launching new products, buy five or six positions in the aisle at once to prevent competitors from promoting. 3. When your promotional intensity is very high.
Similarly, there are situations where separating is better: 1. When competitors promote frequently, or during Chinese New Year when their promotions are overwhelming, you should secure display resources as much as possible. 2. When competitors are already promoting, you can set up displays around them to intercept from multiple angles. 3. When you want to intercept consumers at several prime locations, separating is also the way to go.
When setting up displays, be careful to avoid certain minefields. There are several locations where displays should never be placed:
- Warehouse entrances/exits.
- Category areas with low relevance.
- Places with unpleasant odors, such as seafood or meat sections.
- Locations with low consumer reach, even if cheap, as they are ineffective.
- Next to competitors with lower prices and stronger promotions.
Meanwhile, some large companies often buy multiple displays to showcase several main products. Some choose to combine them into a display zone for a striking effect, while others separate them to intercept consumers from different positions. How to decide whether to combine or separate?
There are several situations where combining is suitable:
- When competitors have relatively few displays and no one interferes, you can create a sensation.
- When both you and competitors are launching new products, buy five or six positions in the aisle at once to prevent competitors from promoting.
- When your promotional intensity is very high.
Similarly, there are situations where separating is better:
- When competitors promote frequently, or during Chinese New Year when their promotions are overwhelming, you should secure display resources as much as possible.
- When competitors are already promoting, you can set up displays around them to intercept from multiple angles.
- When you want to intercept consumers at several prime locations, separating is also the way to go.
Source: 糖烟酒周刊食品版
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