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InfoTrends Releases New Study on Integrated Point-of-Purchase Advertising

Wednesday, February 14, 2007

Press release from the issuing company

(Weymouth, MA) February 12, 2007 -- InfoTrends’ new research study, Integrated Point-of-Purchase: A Market Opportunity Assessment, defines the POP market, explores the vertical segments therein, quantifies the market potential, documents the existing production process, and measures retailers’ and manufacturers’ satisfaction with the existing model. The study also identifies cost elements, recommends specific market and product development activities, and reveals the primary inhibitors for adopting an integrated POP production model among parties likely to be involved in purchasing decisions. “POP advertising represents the last opportunity to influence buyers, but in many cases POP expenditures and effectiveness are largely unmeasured and unquantified. As important as POP is to both manufacturers and retailers, demand is growing for a more integrated and disciplined approach to POP production and display,” commented Tim Greene, a Director at InfoTrends. There are companies that supply semi-integrated marketing services to retail establishments and serve major consumer packaged goods brands. These suppliers, however, don’t provide the sophisticated front-end and back-end tools that could be implemented to provide a truly integrated POP system. As retailers start to recognize a sales lift from POP, their influence on the POP supply chain will increase. This means that the market is moving beyond a model where printer hardware manufacturers can be successful in the POP market by simply selling printers and supplies to print service providers who accept orders for a variety of printed applications without specific POP sales strategies. This study shows that printed POP graphics volumes are moving toward the integrated process model. “Understanding all of these different aspects of the POP market and production process allows us to provide strategic recommendations for digital POP graphics printer product development, as well as specific marketing and sales strategies that would expedite success in this growing market,” Greene added. Highlights of the study include: * Forecast for the retail value of printed POP materials in the US, which is expected to grow to over $28.8 billion in 2011, representing a five year compound annual growth rate of 6.7% * Documentation of existing POP material development and production processes * Retailers’ opinions on the most effective types of POP materials * Analysis of the leading POP market segments * Identification of more than 430 retail chain stores, restaurants, and banks Research for the study consisted of in-depth interviews with chain stores and franchise retail establishments, consumer packaged good manufacturers, print service providers, ad agencies, and marketing service companies. InfoTrends also surveyed over 180 companies that participate in POP planning, design, and implementation processes. Store audits concluded the research for this study. Audits were performed in a variety of retail establishments including banks, restaurants, convenience stores, grocery stores, sporting goods stores, gas stations, and drug stores. These store audits reinforced some of the volume numbers and provided a better understanding of how POP graphics are displayed. The complete study is available immediately for purchase. For more information about the study or to make a purchase, contact Scott Phinney at +1 781 616 2100 ext. 123 or scott_phinney@infotrends.com.




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