The Paradox of Choice

"As the number of choices keeps growing, negative aspects of having a multitude of options begin to appear. At this point choice no longer liberates, but deliberates. It might even be said to tyrannize" (Barry Schwartz - The Paradox of Choice).


Making shoppers to chose your products it's like making TV-zappers to watch your ad. 


First of all, you have to be on their shopping path. Shoppers chose the store format depending on their shopping mission (bulk shopping, top-up, emergency shopping just to name the basic ones). A manufacturer has to make sure that it focuses on the right channels with its products. On average, shoppers visit only 30% of the shelves of a store - even if they declare that they visited "everything".


Secondly, your category has to be easily reachable. People don't want to consciously think in-store. If they have to stop to figure out where should they go next - they get confused, frustrated and may skip a category.


Once shoppers are close to your category, you have to make them stop to review the assortment. If it's a destination category - that's very easy. But if your category is preferred or convenience you have to work really hard to make it noticeable.


After shoppers shoppers stop to chose their product - how can you make sure they buy something? Easy: by clearly segmenting the shelf according with decision tree. It's difficult to chose between 200 deodorants & 20 brands. But it's more easier to chose between 30 antiperspirants aerosol and 5 brands. 


Less choice is sometimes more choice.

Point of Purchase

Today I learned one of the most comprehensive definitions of Point of Purchase (POP):

Point of Purchase is the decisive moment when all previous marketing activities stand or fall" (Marketing Week).

The Point of Purchase is any place when a product or service can be bought. It refers to all elements within or around that place. Therefore, when we talk about POP we refer at: fixtures, gondola ends, checkouts, stack displays, central alleys, refrigerators.

The POP is extremely important as 70% of the decisions are made at POP level. Generally speaking, for FMCG categories:

• one third of the decisions are solely made outside of the store - the shoppers come with the item in mind and leaves with the same item in shopping basket;
• one third of the decisions are made at shelf levels. Buying decision was taken because the item "was seen on the shelf";
• another third of the decisions are a mix of the two influences - decision is switched at POP. Shoppers come into the store to buy a certain brand or format and leaves with another item.

There are two moments of truth for a brand interaction with the shopper / consumer:

• first moment of truth is at shelf level - when the product is bought
• second moment of truth is at home - when the product is consumed.

It's very clear that if the first moment of truth is not won by a brand, the second do not exist anymore; here lies the untapped power of trade marketing.

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