Hi sailguy-ga,
I broke this down into distict questions to make it a little clearer.
There is a lot of information.
1. How big is the industry?
"Over the past decade Point-of-Purchase media has become a major
element in the marketing programs of retailers and brand marketers.
According to media industry merchant bank Veronis Suhler more than $17
billion is spent annually in the United States on Point-of-Purchase
media, making it one of the largest and fastest-growing marketing
services categories."
http://www.eink.com/news/releases/pr35.html
2. Who are the top US manufacturers by rank?
POP Magazine's listing of the top 100. They've even broken it down to
the top ten in wood, plastic and other materials.
http://www.popmag.com/pointofpurchase/images/pdf/Top100POPSuppliersRpt.pdf
This magazine gives the top 50. In 1999 they are ranked by the 1998
figures, etc...
CREATIVE THE TOP 50 P.O.P. COMPANIES April/May 1999
http://www.creativemag.com/Top50pop.html
CREATIVE THE TOP 50 P.O.P. COMPANIES April/May 2000
http://www.creativemag.com/top50pop2000.html
CREATIVE
THE TOP 50 P.O.P. COMPANIES, April/May 2001
http://www.creativemag.com/topco2001.html
CREATIVE THE TOP 50 P.O.P. COMPANIES
April/May, 2002
http://www.creativemag.com/topfifty502.html
You'll notice the names are pretty much the same and the POP volume
has increased.
3. What types of clients do they serve?
While POP started out as a grocery store marketing tactic, in the past
few years it has become pervasive. Home entertainment, publishing,
candy, toys, alcohol, tobacco, housewares, financial groups, airlines
and car dealerships are some of the areas where POP has become firmly
established.
A breakdown of the top 100 buyers by brand and product:
http://www.popmag.com/pointofpurchase/images/pdf/2001%20TopPOP_listings.pdf
A roster of some of the clients of the top 50 companies:
Clorox; Toyota; Disney; Sony; UDV; BAX Global; Burger King Corp.;
California Lottery; Charles Schwab; Dannon; Del Monte Foods; Eddie
Bauer; Encore Entertainment; Foster Farms; LensCrafters; Mazda;
Mercedes Benz; Nabisco; Lipton; Unilever; United Distillers and
Vintners (UDV); U.S. Airways; Specialty Brands Inc.; Brown &
Williamson, Tobacco; California Milk Advisory Board; Dole Food;
Dunkin' Donuts; S.C. Johnson; J.M. Smucker Co.; Microsoft Corp.;
Washington Apple Commission; United Distillers; Philip Morris; Sony;
Ford; Duracell; Coca-Cola; New Balance; Unilver; Hunter Douglas; R.J.
Reynolds; Miller Brewing; Chevron USA; Frito-Lay; Anheuser-Busch;
Coors; American Airlines; E & J Gallo; Neiman Marcus; Bacardi-Martini;
TGIF Friday's; Bridgestone/Firestone; Sun-Diamond; C.R. Gibson; Dollar
General; Auto Zone; Tridon Co.; Lorillard Tobacco; Pepperidge Farm;
Day Runner and this is just in the first few agencies.
4. What associations do they belong to?
Promotion Marketing Association (PMA) represents the promotion
profession and promotes understanding of the importance of promotion
in the marketing mix. They represent the interests of marketers,
retailers, agencies, suppliers and academics. Call 212-420-1100;
http://www.pmalink.org.
Promotional Products Association International represents the
specialty advertising, premium, incentive, and gift industry. Members
are suppliers or distributors of imprinted promotional advertising
products. Call 972-252-0404; http://www.ppa.org.
The Incentive Federation was formed to protect the rights of
organizations to motivate customers and employees through the
intelligent and ethical use of incentive programs. Comprised of the
leading associations, trade shows, and some of the top suppliers in
the incentive field, the Federation monitors Federal regulations that
could affect the proper use of incentive programs, and lobbies against
proposals that could hinder the ability of businesses to properly use
incentive programs. As part of its industry services, the Federation
also conducts the only regular research on the use of incentives by
U.S. organizations, and manages the Incentive Promotion Campaign, the
industry-wide effort to promote professional use of incentives. For
information, call 908-233-4009, e-mail hhenry333@aol.com.
The report is at: http://www.incentivemarketing.org/IFSurvey.html
No web site is listed for this association.
Incentive Marketing Association (IMA) is the leading voice of
suppliers in the incentive marketplace. IMA's membership includes:
merchandise suppliers; gift certificate suppliers; performance
improvement companies; providers of on-line incentive programs and
services; fulfillment houses; distributors; manufacturers
representatives; sales promotion agencies; consultants; full-service
incentive houses; and the major trade publications and trade show
managers in the incentive field. Call 630-369-7780;
http://www.incentivemarketing.org.
Incentive Manufacturers Representatives Association (IMRA). IMRA is
the Strategic Industry Group (SIG) of The Incentive Marketing
Association (IMA). The purpose of this association is to promote the
highest professional standards of incentive representation through the
education and interaction of its representative and manufacturer
members thereby contributing to the growth, understanding, and
excellence of the Incentive Industry. For Information, contact: Karen
Renk, IMRA, 1805 North Mill St., Suite A, Naperville, IL 60563. Call
630-369-3466, fax 630-369-3773
http://www.imra1.org. and http://www.info-now.com/imra/
Association of Retail Marketing Services (ARMS) is primarily geared to
companies that supply and use merchandise in retail marketing
programs. ARMS maintains a continuous liaison with other associations
and is a founding member of the Incentive Federation, the field's
cooperative legal arm. ARMS supports research through the Incentive
Federation and is helping to spearhead the first Industry Promotion
Campaign in 2000 designed to educate corporate decision-makers to the
benefits of incentive use. Call 732-842-5070;
http://www.goarms.com.
Point-of-Purchase Advertising Institute (POPAI). Members are
producers, buyers, and users of signs and displays used at retail. The
Web site has a gallery of POP displays entered into POPAI's OMA Awards
Contest every year since 1998. Call 202-530-3000;
http://www.popai.com.
The American Hardware Manufacturers Association (AHMA), is a trade
service organization headquartered in Schaumburg, IL USA. It serves
U.S. hardware producers, manufacturers' agents and industry trade
publications. AHMA provides a broad spectrum of programs for its
members and the entire industry, including educational opportunities;
legislative representation; domestic and international marketing
support; technology initiatives; targeted publications; and many other
industry directed services. It also promotes the products or services
of a number of member benefit vendors who present cost-containment
opportunities to the Association's members.
http://www.ahma.org/
5. How do they get their business - how do they market themselves?
Some marketing is done through the trade associations listed above.
Trade publications go to retailers interested in or using POP
merchandising:
Hoyt Publishing Company has trade media for POP buyers.
http://www.popshow.com/popbuyersguide/index.stm
Creative, The Magazine of Promotion and Marketing ISSN-0737-5883 is
published on a bi-monthly basis in the interest of sales promotion and
marketing executives who manage Point-of-Purchase Display, Trade Show
Exhibit and Sales Promotion Programs by Magazines/Creative Inc., 42
West 38th Street, New York, NY 10018.
Point of Purchase is a strategic marketing publication, addressing POP
advertising from the perspective of both brand marketers(1) and
retailers. We achieve this editorially by providing feature stories of
brand marketers(1) and retailers (that utilize POP) and a balance of
industry news, case studies, resources and guest opinions.
This site also has a POP Online Buyer's Guide that connects suppliers
with buyers.
http://www.popmag.com/pointofpurchase/about_us/index.jsp
PMA gives links to other resources.
http://www.pmalink.org/resources/promotion_links.asp
6.Is all business agency or broker driven/generated?
It seems that, for the most, part the companies that make the displays
are the same as the agencies who market them. If you read through the
company descriptions in the CREATIVE TOP %) - they talk about
engineering, design and manufacture along with providing the product
to clients.
7.What opportunities exist for growing/expanding their businesses?
An article in Promo magazine discusses the retail spaces opening up to
POP. Travel agents, financial groups and other outlets are opening up
to this type of marketing.
"The need for results sends P-O-P spending up 18.1 percent"
http://pointofpurchase.promomagazine.com/
search terms: ( the numbers indicate the search order - not the
question)
1.market analysis overview Packaging Point Purchase Display
manufacturing industry
2.100 Major US Manufacturing pop P-O-P
3.marketing Point Purchase your POP company
I think this pretty much covers the basics, but if you need any
additional information, please post a clarification.
Thanks,
bcguide-ga |
Clarification of Answer by
bcguide-ga
on
22 Feb 2003 00:28 PST
Hi,
The additional information about the size of the industry is actually
embedded in the original answer.
http://www.popmag.com/pointofpurchase/reports_analysis/top_pop/index.jsp
and
http://www.popmag.com/pointofpurchase/images/pdf/Top100POPSuppliersRpt.pdf
both discuss the current size of the POP manufacturing industry and
some of the challenges facing this industry.
http://promomagazine.com/magazinearticle.asp?magazinearticleid=102340&magazineid=25&siteID=22&releaseid=6310&mode=print
contains some additional information on the POP industry and its
impact on in-store sales.
In 2000 it was a 17 billion dollar industry. This was due to a steep
increase in spending on POP that year, but with the “soft” economy
hitting retailers and brand manufacturers, the POP display industry
has been impacted as well. The figures for 2001 dropped to 15.5
billion, but the early indicators for 2003 are that there is an
upswing and the industry analysts expect the rebound to reach the 2000
figures.
Another estimate from Inland – a POP manufacturer states that it is a
12 billion dollar industry.
http://www.inlandscorezone.com/pages/r1_w6_3.htm
However this company deals with cardboard displays and that may be the
market share for this product.
Plastics, wood, metals and other materials are also used in POP
display manufacturing. Digital products are also beginning to be used
for this purpose
5. How do they get their business - how do they market themselves?
Trade magazines are traditionally poor marketing arenas. How about
mailing lists, mainstream/traditional marketing, sales efforts, PR,
etc.
Marketing tactics for POP display manufacturers are business to
business tactics. Sales are handles by salespeople who follow leads.
http://www.gorrie.com/casestudies.asp provides some case studies that
this company worked on. The tactic is to provide the POP user with a
solution to the problem that exists in moving the product in question.
Many of the leads do seem to be generated by trade magazines targeted
to the advertising people involved with in-store marketing at direct
to consumer companies. Trade shows – both in the POP industry and
venues for others seeking advertising products – are another prime
source of leads. Awards issued at these gatherings provide good PR for
the POP manufacturing companies who are winners.
http://www.popjobs.com/popshows/index.wu4
http://www.popjobs.com/popshows/newyorkarticle.wu4?articleid=0d9246ba
http://promomagazine.com/magazinearticle.asp?magazinearticleid=69960&magazineid=25&siteID=22&releaseid=5751&mode=print
http://www.popmag.com/pointofpurchase/industry_events/index.jsp -lists
of events for sales training and contacts with other business sales
executives who may be interested in developing POP strategies for
their companies.
I’ve contacted several of the companies and they are not willing to
go into depth on their marketing strategies. The delay in responding
to you was due to this personal contact effort.
The basics are that they do promo through trade events, trade
magazines and online listings. Sales reps contact the leads and
present innovative strategies for improving sales through the use of
POP displays. A strong portfolio of awards and clients helps to back
up the sales presentation.
Mailing lists are not strong contenders in this industry. The success
of obtaining clients through targeted mailing lists does not usually
justify the expense involved. It is not a strategy that works well in
this industry. Many of the companies obtained new clients through word
of mouth from satisfied clients. Marketing people apparently
brainstorm at trade events and meetings and successful programs get
talked about.
6. Is all business agency or broker driven/generated? If for the most
part, yes, then explain what isn't?
The marketing of pop displays is generated by the manufacturing
companies. Those that I contacted maintained that the sales are direct
to the customer and do not go though agencies or brokers. Do you have
any indication that this is not the case?
7. What opportunities exist for growing/expanding their businesses?
You list more industries for the same work. Are the skills, materials,
and tools being used for other applications?
There does not seem to be any indication that the POP display
manufacturers plan to expand out of the POP display business. However,
many of the companies are subdivisions of plastics and corrugated
cardboard producers. In that sense, there are other applications that
the parent company is involved in using the same processes. The reason
that many of these manufacturers are entering the POP business is that
it is a growing industry and provides.
http://www.inlandscorezone.com/r2.asp?main=r1_w1 is an example of a
company that produces POP displays – but also sells packaging and
other products.
Corrugated Container Corporation
http://www7.thomasregister.com/olc/cccbox/index.htm is a cardboard
manufacturing company that has moved into POP Displays, but still
maintains their original product line.
I haven’t found any evidence of companies that were set up as POP
display manufacturers crossing over into other product lines.
One avenue of growth in the POP display industry is the incorporation
of digital signage
http://svconline.com/magazinearticle.asp?magazinearticleid=13063&magazineid=49&siteID=15&releaseid=2762&mode=print
“In addition to compelling realism, quickly changeable content and
geographic reach, dynamic signage gives the manager control over the
consistency of the corporate brand and message across all markets.
There are also substantial savings in both cost and time when compared
to designing, manufacturing, distributing and installing
duratranspanels, cardboard cutouts or other traditional signage
formats. Moreover, dynamic signage dispenses with clutter.”
It will be interesting to see if all of the companies that produce low
tech displays can keep up if the industry moves to electronic media
for signage.
Regards,
bcguide-ga
|
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