Calculating ROI on POSM Display in retail (part 2)

Points to remember For calculating ROI on POSM display-

So in my last article you ( Marketers ) would had got the clear thought on why it is so crucial to invest  in POS displays. So its been clear to all investors out there that investing in POS display is not only very important for them to increase the sales and revenue for the company but it also very important to create a brand recall and serves as a path to purchase.

So POS displays are not only the source of generating revenue by increasing sales but it also helps marketers to  achieve their targets in return for investing in medium like Print media, television advertisement or in any print format or any outdoor BTL activities, its just because the main aim of this promotional and advertisement channel is to promote the product. They are not doing the sales part but they are intended to boost the sales in offline markets/online markets where buyers usually take most of their buying decisions.

So it is most important for each and every brand to design and invest in POSM displays like FSU’s CTU’s in such a manner that the end consumer  is witnessing the actual product and actual commitment he or she sees in commercials or other source of advertisement. thus investing and designing the POS Displays in an very effective way is so crucial for every brand

Now Lets have some insights on what are the points marketers should consider while investing in an fsu-

So the Space rates which brands had to incurred in Placing a display unit in MT where the footfall of the shoopers are  more it costs around 40-50k per month for Per FSU.

So to be more precise on calculating The returns from that single unit on an monthly basis,here is an example which will give you not the exact returns as this investments are subjected to so many variables but it will provide you with the more brighter idea-

So lets say there is a brand X who are into Food Processing and they have ABC chips n snacks and they are placing their POS Display in shopping malls in tier 1 cities 

So the cost which they incure is around 40k-50k for a month for the placement of an FSU in that vertical

And the standard pricing for a single FSU is around 2.5k, so the brand is investing around 42.5k on first month becoz the durability or useability of any FSU from Amitoje India is minimum 8 months  without any wear and tear cost involved for the following months 

So brand is investing around 45k on an average on monthly basis (excluding transportation cost as it is not on frequent basis and it’s a variable)

Now lets look at the return part from that single unit FSU from Amitoje India

Suppose they are using a FSU large in which they are able to place 80 units of their products which is  priced at  rs 20 per unit.

And as the number of shoppers are more in that verticals and through that vertical on an average on daily basis 500 units of that product is sold so that FSU is recovering approax 10k on daily basis from that vertical and the average investment per month of that brand is 45k so this figure of 45k would get recovered in maximum 10 days and then rest of the months its just adding on to the ROI 

And the minimum life of an FSU made by Amitoje India is 8 months- 1 year ( differ from product to product) so the brand is only bearing cost of space allotted for that FSU and the advertisement cost for that product 

So from this example I would like to conclude that in Longrun POS displays from Amitoje India will help all kinds of brand to recover their Investment in  marketing ( excluding e commerce and digital investments)

So now lets have a look on how much brand incurs placing their FSU’s in GT-

Gt – supermarkets 2k-10k per month per FSU

And in general trade stores apart from super market brand incurs around 2-5k placing an FSU. this price range can also differs according to the relationship with the general trade store owner 

So more clarification on return part here from that one FSU lets take an example like in gt super market 500 units are sold on weekly basis so the brand is recovering around 10k on weekly basis and the rent for that space is 2k-10k  on monthly basis so thus a Single FSU of Amitoje India could recover the investment which brand makes to place it in GT super market in a week 

Thus it is clear from the above mentioned insights and calculation that an FSU from Amitoje India helps brand in generating more ROI in both GT and MT 

So Brand Managers and Marketers to generate more ROI on your marketing expenditure from offline channels please feel free to connect us as our core strengths are-

Foldability- Most of the Unit are foldable thus saving your transportation cost

Eco Friendly- So the Raw materials used by us in manufacturing all the units is environment friendly and recyclable

Innovation – The most strong USP of Amitoje India followed by foldability is the high level of innovation which we can do for the brands

Author

Gaurav Sharma: An experienced brand consultant at Amitoje India, with experience of helping amazing brands