Monday, April 18, 2016

Category Management Series: When Technology Lift Point Of Sales Marketing

So far, in the FMCG world, not a lot of technologies have been used in terms of marketing of point of sales. What is important to calculate, is how much investment you need in the technology and how much extra margins you will get in order to figure out a return on investment. And on products with so much sales with a very low profit, it is difficult to implement new creative technologies without having a negative impact in terms of profit.

Nevertheless, it is always interesting to see when an initiative work. And that seems to be the case for Nestlé in the UK, where they have tested specific POS to make its Quality Street brand stand out of the crowded category.



And it seems to work: they have increased their sales by 41% thanks to the POS. Obviously the candy category is a good one to benefit such an initiative: a lot of those sales are made by impulsion, so when you make them stand out, the increase can be pretty high.

But still, it is interesting to notice those initiative, because I believe technology is not implemented enough in stores in general.