Retail display stands
Most of the companies in industries like FMCG, AlcoBev, Cosmetics, Pharmaceutical etc rely on point of sale materials (POSM) for their trade marketing activities. POSM industry currently has surpassed the global spending of more than USD 33.6 billion and is expected to grow by USD 68.4 billion by 2026.
Due to the pandemic, companies worldwide have cut down their trade marketing spend and hence they are currently trying to utilize their trade marketing budget more efficiently and effectively so that they can achieve greater sales from lower budgets.
Companies should really focus on cost savings while procuring POSMs by choosing the right suppliers and efficient designs. They can attain cost savings or cost reduction by choosing the right supplier, type of sourcing, uniformity in design and right pricing with suppliers.
Choosing the right supplier: Companies should decide on which type of supplier to engage with based on their demand, how frequently they need the materials, how often ad-hoc requirements would arise etc. Buyers with lower demand for materials should engage with POS specialists who are capable of offering suitable materials at a cost lower than that of aggregators. Buyers can negotiate for a better price by having a long term contract with their preferred agency. Buyers with huge demand can choose aggregators since they are capable of handling bulk demand and can also meet ad hoc requirements with a shorter lead time. Companies can negotiate with aggregators for volume discounts, global contracts and long-term agreements.
Type of sourcing: It is always ideal to choose full service outsourcing due to the advantages of ease of management and a single point of contact. Lead times could also be reduced tremendously with the help of this model. Companies can negotiate for better prices since all the services are being outsourced to the same agency.
Uniformity in design: Buyers should pay more attention to the design of materials in order to maintain consistency and also to reduce wastage. CTUs, FSUs, parasites, end caps etc. with multiple specifications should have similar panels, color code or joints so that they could be re-used for a different specification or a different campaign. Convertible displays can also be considered since this will help the buyer to reduce cost on a long-term basis.
The conclusion is that the need for POSM is currently booming and will grow in the coming years, especially for the companies like FMCG, AlcoBev, Cosmetics, Pharmaceutical. Companies like Amitoje India who is the market leader in this segment has created products which are not only cost effective but also saves the ad-hoc (operating cost) by 50% and hence gives marketers the best and innovative options for POSMs.
Author: Shikhar Verma
Shikhar (at) amitoje (dot) com
Shikhar is an experienced brand consultant at Amitoje India, with experience of helping amazing brands to maximise ROI through POSM/POS display stands and POP branding. To reach out to her for your brand click -> www.amitoje.com/whatsapp and ask for Shikhar.
Cost effective way to procure POSM.
Most of the companies in industries like FMCG, AlcoBev, Cosmetics, Pharmaceutical etc rely on point of sale materials (POSM) for their trade marketing activities. POSM industry currently has surpassed the global spending of more than USD 33.6 billion and is expected to grow by USD 68.4 billion by 2026.
Due to the pandemic, companies worldwide have cut down their trade marketing spend and hence they are currently trying to utilize their trade marketing budget more efficiently and effectively so that they can achieve greater sales from lower budgets.
Companies should really focus on cost savings while procuring POSMs by choosing the right suppliers and efficient designs. They can attain cost savings or cost reduction by choosing the right supplier, type of sourcing, uniformity in design and right pricing with suppliers.
Choosing the right supplier: Companies should decide on which type of supplier to engage with based on their demand, how frequently they need the materials, how often ad-hoc requirements would arise etc. Buyers with lower demand for materials should engage with POS specialists who are capable of offering suitable materials at a cost lower than that of aggregators. Buyers can negotiate for a better price by having a long term contract with their preferred agency. Buyers with huge demand can choose aggregators since they are capable of handling bulk demand and can also meet ad hoc requirements with a shorter lead time. Companies can negotiate with aggregators for volume discounts, global contracts and long-term agreements.
Type of sourcing: It is always ideal to choose full service outsourcing due to the advantages of ease of management and a single point of contact. Just like the ease of management outsource HR UK services provide to businesses. Lead times could also be reduced tremendously with the help of this model. Companies can negotiate for better prices since all the services are being outsourced to the same agency.
Uniformity in design: Buyers should pay more attention to the design of materials in order to maintain consistency and also to reduce wastage. CTUs, FSUs, parasites, end caps etc. with multiple specifications should have similar panels, color code or joints so that they could be re-used for a different specification or a different campaign. Convertible displays can also be considered since this will help the buyer to reduce cost on a long-term basis.
The conclusion is that the need for POSM is currently booming and will grow in the coming years, especially for the companies like FMCG, AlcoBev, Cosmetics, Pharmaceutical. Companies like Amitoje India who is the market leader in this segment has created products which are not only cost effective but also saves the ad-hoc (operating cost) by 50% and hence gives marketers the best and innovative options for POSMs.
Author: Shikhar Verma
Shikhar (at) amitoje (dot) com
Shikhar is an experienced brand consultant at Amitoje India, with experience of helping amazing brands to maximise ROI through POSM/POS display stands and POP branding. To reach out to her for your brand click -> www.amitoje.com/whatsapp and ask for Shikhar.
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