Point Of Purchase Packaging – What Is It & Why It is Important?

In the world of retail, packaging is not just about protecting and transporting products. It’s also about making a connection with customers and influencing their purchasing decisions. One type of packaging that plays a crucial role in this regard is Point of Purchase (POP) packaging. POP packaging refers to the packaging used to display products at the point of sale, typically in retail stores. In this blog, we will explore what POP packaging is, its various types, and why it is essential for businesses to invest in this type of packaging.

What is Point of Purchase Packaging?

Point of Purchase (POP) packaging is the type of packaging used to display products at the point of sale in retail stores. The purpose of POP packaging is to attract the attention of customers and encourage them to make a purchase.

POP packaging is designed to be visually appealing, informative, and convenient, making it easier for customers to find and buy the product. It can be used to promote new products, offer discounts, and create brand awareness. POP packaging can take various forms, including counter displays, floor displays, shelf displays, hanging displays, and standee displays.

What Are The Different Types of Point of Purchase Packaging?

There are various types of Point of Purchase (POP) packaging, each designed to attract customers and promote products in a unique way. Here are the different types of POP packaging

Counter Displays

Counter displays are typically small in size and can be placed on a counter or a shelf near the cash register. They are used to promote impulse purchases and are often filled with small, easy-to-grab products like candy, gum, or mints. These displays are designed to catch the customer’s eye while they wait in line to pay, increasing the likelihood that they will make an additional purchase.

Floor Displays

Floor displays are larger than counter displays and are designed to stand on their own. They are usually placed in high-traffic areas of the store, such as the entrance or the middle of an aisle, and are used to promote larger items like electronics or appliances. Floor displays are often used to create a themed display that showcases a particular product line or to highlight a new product launch.

Shelf Displays

Shelf displays are smaller than floor displays and are designed to be placed on existing retail shelves. They are used to highlight a particular product or product line and are often used to promote new products or sales. Shelf displays are typically placed at eye level to increase visibility and encourage customers to make a purchase.

Hanging Displays

Hanging displays are suspended from the ceiling or attached to the wall and are designed to be seen from a distance. They are often used to promote banners or flags and are typically used to promote seasonal or holiday-related products. Hanging displays can also be used to create a themed display that showcases a particular product line.

Standee Displays

Standee displays are life-size cutouts of a product or a celebrity that can be placed anywhere in the store. They are often used to promote movies, music, or new products that need more attention. Standee displays are designed to be eye-catching and are usually placed in high-traffic areas of the store.

Pallet Displays

Pallet displays are large displays that are built on top of pallets and are placed on the sales floor. They are often used to promote bulk items like beverages or snacks and are designed to be easy to stock and replenish. Pallet displays are usually placed at the end of an aisle or near the entrance of the store to increase visibility.

Dump Bins

Dump bins are open containers that are placed on the sales floor and are used to promote small items that are sold in bulk, such as toys or cosmetics. They are designed to encourage customers to dig through the contents and make a purchase. Dump bins are usually placed in high-traffic areas of the store, such as the entrance or the middle of an aisle.

Sidekicks

Sidekicks are smaller than floor displays and are designed to be attached to the side of an existing retail shelf. They are often used to promote smaller items, such as snacks or drinks, and are designed to increase visibility and encourage customers to make an additional purchase.

Power Wings

Power wings are displays that are attached to the sides of the aisle shelves and are used to promote small items that are sold in bulk, such as candy or gum. They are designed to be eye-catching and are usually placed at eye level to increase visibility and encourage customers to make an additional purchase.

What Is The Importance of Point of Purchase Packaging?

Let’s dive deeper into the importance of Point of Purchase (POP) packaging:

1. Attracts Attention: In a crowded retail environment, POP packaging can help products stand out from the competition. Bright colors, interesting shapes, and eye-catching graphics can capture the attention of shoppers and draw them towards a particular product or display. This can be especially effective for impulse purchases, where a shopper might not have been actively seeking out a particular product.
2. Increases Brand Awareness: POP packaging is an effective way to increase brand awareness and recognition, especially for new or lesser-known brands. By using consistent branding across different POP displays and packaging, a brand can create a cohesive and memorable shopping experience. This can help shoppers remember the brand and increase the chances of repeat purchases in the future.
3. Promotes Sales: POP packaging is often used to promote sales or special offers, which can encourage shoppers to make a purchase. By prominently displaying the savings or benefits of a particular promotion, POP packaging can create a sense of urgency that can lead to increased sales. This can also be an effective way to move excess inventory or promote new products.
4. Enhances Customer Experience: Well-designed POP packaging can enhance the customer experience by creating an immersive and engaging shopping environment. By using creative displays and interactive elements, POP packaging can help shoppers feel more connected to the brand and the products they are considering. This can increase the likelihood of a shopper making a purchase and create a positive impression of the brand.
5. Provides Information: POP packaging can also provide important information about a product, such as its features, benefits, or ingredients. By providing this information in an easily digestible format, POP packaging can help shoppers make informed purchasing decisions. This can be especially important for products that have specific or unique features that a shopper might not be aware of.
6. Differentiates Products: POP packaging can help differentiate products from competitors by highlighting unique features or benefits. By emphasizing what makes a product special or different, POP packaging can make a product more memorable and increase its chances of being purchased. This can be especially effective for products that have a lot of competition or that are similar to other products on the shelf.

Overall, Point of Purchase packaging is an important tool for increasing sales and brand awareness while also providing an engaging and informative shopping experience for customers. By using creative and effective POP packaging, brands can stand out from the competition and create a memorable shopping experience that encourages repeat purchases.

What Are The Factors To Consider When Designing Point of Purchase Packaging?

When designing Point of Purchase (POP) packaging, there are several factors to consider to ensure that it is effective and achieves its intended goals

Target Audience

Understanding the target audience is essential when designing POP packaging. The packaging should be designed to appeal to the specific demographics and preferences of the target audience. For example, if the product is targeted towards children, the packaging should have bright and playful colors, interesting shapes, and feature popular characters. If the product is targeted towards older adults, the packaging should be clear, easy to read, and highlight the benefits and features of the product.

Brand Identity

The packaging should reflect the brand’s identity and be consistent with other branding elements such as logo, color scheme, and typography. This helps to create a cohesive and recognizable brand experience for shoppers. A consistent and recognizable brand identity can also help to build trust and loyalty with customers.

Product Visibility

POP packaging should be designed to showcase the product and its unique features. The packaging should allow for clear visibility of the product, so the shopper can easily see what they are buying. Any important information or messaging should be easy to read and located in a prominent position on the packaging.

Functionality

The packaging should be functional and practical for both the shopper and retailer. The packaging should be easy to handle, transport, and display on the shelf, and should not take up too much space or be difficult to store. The packaging should also be easy to open, especially if the product is intended for single-use.

Environmental Considerations

With the increasing focus on sustainability and environmental concerns, POP packaging should be designed with eco-friendly considerations in mind. This can include using recyclable or biodegradable materials, reducing waste, and optimizing packaging size to reduce transportation emissions. Brands should also consider using packaging materials that can be reused or repurposed to further minimize environmental impact.

Production Costs

POP packaging design should be cost-effective to produce, taking into account production methods, materials, and labor costs. This is especially important for brands with limited budgets or for products that require high volumes of packaging. By designing packaging that is easy and inexpensive to produce, brands can minimize costs and increase profitability.

Competition

POP packaging should be designed to stand out from competitors on the shelf. This can be achieved through unique design elements, striking colors, or an attention-grabbing shape or size. By creating packaging that is different from the competition, brands can capture the shopper’s attention and increase the likelihood of a purchase.

Compliance

The packaging design should comply with any relevant regulations or industry standards, such as food safety requirements or child safety regulations. Brands should ensure that their packaging meets all applicable regulations and standards to avoid any legal or safety issues.

By considering these factors when designing POP packaging, brands can create packaging that is effective, efficient, and impactful for both shoppers and retailers. Careful consideration of the target audience, brand identity, product visibility, functionality, environmental impact, production costs, competition, and compliance can help to ensure the success of the packaging design.

What Are The Benefits of Point of Purchase Packaging for Businesses?

Point of Purchase (POP) packaging offers several benefits to businesses, including:

1. Increased Sales: Effective POP packaging can help to increase sales by capturing the shopper’s attention and encouraging them to make a purchase. Well-designed packaging can highlight the unique features and benefits of the product and create a sense of urgency or excitement around the purchase.
2. Enhanced Brand Awareness: POP packaging can help to increase brand awareness by showcasing the brand’s logo, color scheme, and other branding elements. By creating a consistent brand experience across all packaging, businesses can build brand recognition and loyalty with customers.
3. Improved In-Store Experience: POP packaging can improve the in-store experience for shoppers by making it easier to find and purchase products. Packaging that is easy to identify and locate on the shelf can help to reduce frustration and create a more positive shopping experience.
4. Differentiation from Competitors: Effective POP packaging can help businesses differentiate themselves from competitors on the shelf. Unique packaging design or innovative features can capture the shopper’s attention and make the product stand out from similar products on the shelf.
5. Cost-Effective Advertising: POP packaging can serve as a cost-effective form of advertising for businesses. The packaging can include messaging, branding, and product information, all of which can be used to promote the product and the brand.
6. Increased Perceived Value: Well-designed POP packaging can increase the perceived value of the product in the eyes of the shopper. High-quality packaging can create a sense of luxury or premium quality, which can justify a higher price point for the product.
7. Brand Extension: POP packaging can be used to extend the brand into new product categories or markets. By using consistent branding elements across all packaging, businesses can leverage their existing brand equity and expand their reach to new customers.

Overall, effective POP packaging can help businesses to increase sales, build brand awareness and loyalty, improve the in-store experience, differentiate from competitors, and create cost-effective advertising opportunities. By investing in high-quality packaging design, businesses can achieve a range of benefits that can contribute to their overall success.

Case Studies: Successful Point of Purchase Packaging Campaigns

Coca-Cola’s “Share a Coke” Campaign

Coca-Cola’s “Share a Coke” campaign was launched in 2013 in Australia and quickly expanded to other countries around the world. The campaign replaced the Coca-Cola logo on its packaging with popular names, such as “Emma,” “David,” and “Jessica.” The campaign was designed to encourage customers to find bottles with their own name or the name of someone they wanted to share a Coke with. This personalization of the packaging helped to increase sales and engagement with the brand. The campaign was a huge success and helped to generate a significant increase in sales for Coca-Cola.

KitKat’s “Break for a KitKat” Campaign

KitKat is known for its iconic slogan, “Have a Break, Have a KitKat,” which was used in a point of purchase campaign in 2015. The campaign featured specially designed packaging that incorporated the slogan and encouraged customers to take a break and enjoy a KitKat. The campaign helped to increase brand awareness and engagement with the product, while also promoting the brand’s message of taking a break.

M&M’s “Vote M&M’s” Campaign

M&M’s launched a point of purchase campaign in 2016 that allowed customers to vote for their favorite M&M’s color. The campaign featured specially designed packaging with the different M&M’s colors and encouraged customers to vote for their favorite color. The winning color was then featured in a new commercial for the brand. The campaign was a huge success, generating significant engagement and social media buzz, and helped to increase sales for M&M’s.

Dove’s “Real Beauty” Campaign

Dove’s “Real Beauty” campaign has been ongoing since 2004 and has included several point of purchase packaging campaigns. The packaging features images of women of different ages, sizes, and ethnicities, which helps to promote body positivity and diversity. The campaign has been highly successful, helping to increase brand loyalty and generate positive associations with the brand.

Hershey’s “Reese’s Pieces” Campaign

Hershey’s launched a point of purchase campaign in 2016 that featured specially designed packaging for its Reese’s Pieces candy. The packaging included a cut-out shape of the Reese’s Pieces mascot, encouraging customers to take pictures with the packaging and share them on social media using the hashtag #ReesesPiecesChallenge. The campaign was highly successful, generating significant engagement and social media buzz, and helped to increase sales for Hershey’s.

These successful POP packaging campaigns demonstrate the power of effective packaging design in driving engagement, sales, and brand loyalty. By creating packaging that resonates with customers and encourages interaction with the brand, businesses can achieve significant success in the marketplace.

Challenges and Limitations of Point of Purchase Packaging

While point of purchase (POP) packaging can be a powerful tool for businesses, it is not without its challenges and limitations. Here are a few examples:

1. Limited Space: Retailers typically have limited space available for POP displays and packaging. As a result, businesses need to be strategic about how they use that space and ensure that their packaging stands out among the competition.
2. Cost: Developing custom POP packaging can be costly, especially for small businesses with limited budgets. Businesses need to carefully consider the return on investment of their packaging efforts and ensure that the cost of the packaging is outweighed by the potential sales boost.
3. Regulatory Compliance: POP packaging needs to comply with various regulations and standards, such as product safety and labeling requirements. Businesses need to ensure that their packaging meets these standards and avoid any legal issues.
4. Design Limitations: POP packaging needs to be designed to fit the specific product and retail environment. This can limit the design options available to businesses and make it challenging to create packaging that stands out.
5. Sustainability Concerns: POP packaging can contribute to environmental waste and pollution, which can harm the brand’s reputation and cause consumers to switch to more sustainable options. Businesses need to consider the environmental impact of their packaging and explore more sustainable alternatives.

By being aware of these challenges and limitations, businesses can develop effective strategies to overcome them and maximize the impact of their POP packaging efforts. This can help businesses to achieve their marketing and sales goals while also maintaining regulatory compliance and minimizing their environmental impact.

Conclusion

In conclusion, point of purchase packaging is a critical component of any successful retail strategy. It not only helps businesses increase sales and improve brand awareness but also enhances the overall shopping experience for consumers. By understanding the different types of POP packaging, factors to consider when designing it, and the benefits of using it, businesses can develop effective strategies that help them stand out from the competition.

However, it’s essential to recognize the challenges and limitations that come with POP packaging, such as limited space, cost, regulatory compliance, design limitations, and sustainability concerns. Businesses need to develop strategies to overcome these challenges and ensure that their packaging efforts align with their overall goals and values.

Overall, effective point of purchase packaging requires careful planning, creativity, and attention to detail. By leveraging its benefits while addressing its challenges and limitations, businesses can create packaging that not only drives sales but also enhances the customer experience and builds long-term brand loyalty.