One of the most effective ways for a business to increase sales is through point-of-purchase advertising or POP. These marketing materials are often used in-store to promote products, catch consumer attention, and incite them to buy. Point-of-purchasing advertising also refers to the strategic placement of products in a store.
One of the most common forms of POP advertising is product displays near checkout registers. The objective behind this is to incite impulse buys from customers before they exit the store. For specialty coffee roasters and cafes, this can be a highly effective way to boost the sale of smaller items, such as coffee pods, sample packs, or drip coffee bags.
An effective point-of-purchase product display with eye-catching coffee packaging can help roasters generate revenue from high-traffic areas in the store.
To learn more about how roasters can boost coffee sales with point-of-purchase product displays, I spoke with Miranda Caldwell, the founder of The Coffee MBA.
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Sign upWhat is point-of-purchase (POP)?
If you’ve ever visited a store to buy a single item and left with several unrelated products, the POP marketing in the venue has worked. POP can encompass the entire store and everything inside, as well as any advertising placed outside to attract customers.
Additionally, how the store is organised and the use of product displays and promotional stickers all form part of POP advertising. Retailers can make use of several common types of POP displays:
- Temporary product displays: These are designed to last for a few months and often feature discounted or seasonal products.
- Semi-permanent displays: These can last between three months to a year and many retailers refer to them as secondary or off-shelf displays. These can be used to showcase “best-selling” items.
- Signage: This is one of the most effective POP techniques. It consists of using signs to draw customer attention to certain products. Marketing materials include posters and stickers, as well as hanging or countertop displays.
Point-of-purchase product displays must be vibrant and bold to showcase the product and attract attention. For businesses that typically sell one product, such as coffee roasters, packaging will play a pivotal role in these displays.
Coffee packaging design: How can it boost POP sales?
“Packaging is a huge part of a product’s communication toolkit,” explains Miranda, who is also a coffee business coach. “At its best, the packaging provides information about the product in an instant, without having to read any words. It’s almost subconscious.”
Research shows the design of point-of-purchase packaging can significantly influence a consumer’s decision to purchase. Beyond this, recent statistics show the global point-of-purchase packaging market is estimated to reach $31.5 billion by the end of 2023.
As demand for consumer goods increases, along with the competition between brands, the market growth for this packaging is likely to grow. This also indicates a need for more creative POP packaging designs in order to stand out.
When designing coffee packaging for POP displays, roasters must first consider their target audience. “Consider the colour, size, and shape of the coffee bags, as well as the texture of the packaging materials,” Miranda says. “The colours and messages must grab the attention of your target market and invite them into the experience you’re creating. If it doesn’t appeal to them in the same way as a ‘50% off’ sign, then rework the message.
“Of course, you must also consider the recognisable symbols and certifications that highlight the value of each product, and how these will be displayed on the bags.”
How can coffee brands boost POP sales?
Many retailers use POP displays at checkout to promote discounted items or shift old stock. However, Miranda believes this is reactive thinking and can be a wasted opportunity. “Be proactive in your marketing tactics. Using it to clear old stock may result in customers getting stuck in a loop of only buying from your clearance section.
“You want to be intentional with the point-of-purchase space. By leveraging this powerful position, you can introduce customers to new coffees.”
One of the most effective ways to profit from POP product displays is to make the product as convenient as possible. Several studies show convenience has become a priority for today’s consumers. Notably, the same study found 97% of consumers have abandoned a purchase because it was not convenient enough for them.
Therefore, finding ways to lower the barriers between convenience and the consumption of high-quality coffee has become a focus for many coffee businesses. This has led to an increase in the popularity of ready-to-drink coffee, drip coffee bags, and coffee capsules – which are just a few of the items that roasters can use in POP displays.
When using coffee bags within the product display, it is advised to use small sturdy packaging as it can convey a more premium product. Smaller bags will also make impulse purchases more convenient for customers. “Make it an experience, make it engaging, make it stand out, but make it fast,” Miranda suggests. “Keep your message strong, short, and meaningful. Consumers need to recognise immediately what they’re getting in order to make a quick purchasing choice.”
Alternatively, Miranda suggests using product displays at checkout as a place for testing and relationship building. “This is where you can determine what your customers want. You can even incentivize them to participate in short surveys to determine why they choose one product over another. You’ll get engagement with your brand, insight into your coffee drinkers, and the feedback you’ve been needing on your products.”
As convenience becomes increasingly important to customers, roasters must adapt by minimising the steps required to get high-quality coffee. At MTPak Coffee, we understand every customer has their tastes and preferences when it comes to convenience, which will influence their buying decisions.
This is why we offer a range of sustainable coffee packaging solutions that can be customised to suit your POP product displays. Our range of packaging includes recyclable drip coffee bags, filters, and packaging boxes, as well as RTD coffee pouches.
Our drip coffee bag options are made using food-grade, non-woven materials that are 100% biodegradable and will not alter the flavour of your coffee. Our range of RTD pouches is made from recyclable and biodegradable materials, with several customisation options available. We also have additional accessories, such as recyclable degassing valves, PLA spouts, and ziplock seals.
