Tag: branding

The Impactful Retail Display Guide

Post author By Onne Farahnabila
Post date 14/08/2023
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Good retail displays are essential in your stores. They entice your customers, engage them in new products, build brand awareness, and drive more sales. However, creating them can be daunting for even the most experienced marketer.

Here is the ultimate guide to creating a compelling retail display.

What is a Retail Display?

A retail display is a physical structure or space used to promote and sell merchandise in a retail environment. Retail displays can be found in both physical stores and digital stores.

They are typically used to showcase products in an appealing way, to attract customers, and to encourage them to make a purchase.

Why are Retail Displays so important?

Retail Displays offer a powerful platform to enhance brand awareness by showcasing a brand’s unique identity and products, introducing new products or seasonal items through captivating displays generates excitement and interest among shoppers. Furthermore, well-organized displays improve the overall shopping experience, guiding customers through the store and making their journey more enjoyable.

With a significant percentage of purchase decisions (up to 76%) being made right in the store, the impact of retail displays cannot be underestimated as they often become the deciding factor to clinch a sale. Whether implemented on a grand scale or a more modest one, the outcomes can be remarkable.

For instance, a recent survey demonstrated that introducing products through novel displays can lead to a staggering surge in sales, with potential increases reaching up to 478%.

Types of Retail Display

There are various types of retail displays, each serving different purposes and catering to diverse product categories.

Here are some common types of retail displays:

Window Displays

Placed in store windows, these displays aim to attract passersby and create a solid first impression. They often showcase the store’s latest products, promotions, or themed arrangements to entice customers into the store.

Gondola Displays

Gondola displays are shelving units placed along store aisles. Retailers use them to organize and present a wide range of products, making them easily accessible to customers.

Dump Bins

Dump bins are large containers, often placed near checkout counters or high-traffic areas, to hold discounted or promotional products. Customers can sift through these bins to find deals and special offers.

Showcase Displays

Enclosed with glass or transparent materials, showcase displays are used to exhibit valuable or delicate items, such as jewelry, electronics, or high-end products.

Mannequin Displays

Primarily used in fashion retail, mannequin displays showcase clothing and accessories on realistic mannequins to demonstrate how the items can be styled and worn.

Each type of retail display serves a unique purpose in presenting products, creating an appealing shopping environment, and influencing customer behavior. Retailers often use a combination of these display types to optimize their store layouts and enhance the overall shopping experience.

So What is a Good Retail Display?

Indeed, the process of creating effective retail displays demands a thoughtful and creative approach. Achieving success requires strategic placement, captivating designs, and seamless communication with store teams.

At CVI, our focus is on ensuring that your retail displays shine in every store. Whether you are organizing store-wide sales or launching new products.

Reach out to us to learn more about how we can help you elevate your retail displays and achieve remarkable results.

Tags awareness, branding, business, digital marketing, digital strategy, display marketing, marketing guide, retail display marketing, retaildisplay, social media strategy

Article

“The Power of Captive Markets” Understanding the Dynamics and Implications

Post author By Onne Farahnabila
Post date 18/07/2023
No Comments on “The Power of Captive Markets” Understanding the Dynamics and Implications

What is a Captive Market?

A captive market is one in which there are suppliers who control the supply of specific goods. This scenario results in high demand for the little supply available. Consumers do not have a choice but to buy the presented supply. This leads to higher prices with limited diversification for consumers.

Why a Captive Market is Important?

A captive market is important for businesses due to several reasons. Firstly, it provides a stable revenue stream as customers have limited or no alternative options to purchase from a specific provider. This consistency allows businesses to plan their operations, invest in expansion, and make long-term decisions confidently. Secondly, a captive market reduces competition, giving businesses an advantage with higher profit margins and control over pricing and supply. The lack of alternatives or high barriers to entry discourages potential competitors from entering the market, allowing the dominant business to maintain its market share.

However, from a consumer perspective, a captive market may restrict choice and potentially lead to lower-quality products or services and higher prices. To safeguard consumer interests, regulations are often in place to promote competition and prevent the abuse of captive market power. These measures aim to balance the advantages for businesses and the protection of consumer welfare in markets characterized by confined market dynamics.

Examples of Captive Market

1. School Stationery

Every educational institution possesses its exclusive stationery store from which it supplies all the necessary items such as notebooks, textbooks, stationery, uniforms, accessories, and more to its students.

Although these items can be readily purchased from external sources, the school’s strict regulations enforce students to obtain them solely from the designated stationery unit. Moreover, certain products like school-branded ties, belts, covers, and copies serve as representations of the school’s identity, making it obligatory for students to acquire them from the authorized store. In such circumstances, despite higher prices, students have no alternative but to procure their requirements from the school’s own supply unit.

Even in the case of uniforms, the school has an exclusive dressmaker who charges excessive fees for creating regular attire. Hence, the purchasing channel remains within the school, and due to barriers preventing other options, students find themselves constrained to accept the prices in this captive market.

2. Food courts in Malls

Prices within the food court of shopping malls vary depending on the mall’s status. In regular malls, food prices are slightly higher than market prices, while in upscale malls frequented by celebrities and the elite, prices are significantly inflated.

This price difference can be attributed to the disparity in rent between the two categories of malls. The rent in ordinary malls is lower compared to posh malls, leading food vendors to charge higher amounts within the limited space. Additionally, malls often have policies that prohibit outside food, further limiting buyers’ options and leaving them with no choice but to accept monopolistic pricing.

3. Cinema Halls

Similarly, within cinema halls, food prices are notably higher compared to other areas in the same mall. Only a few stalls offer their food at exorbitant prices that are unaffordable for ordinary individuals. In this scenario as well, people are confined by limited sellers and consequently accept the prices set for their products.

4. Pharmaceutical Drugs

Patented drugs with no generic alternatives create a captive market where consumers have no choice but to purchase the specific brand-name drug at the price set by the pharmaceutical company.

In conclusion, captive markets can significantly impact both consumers and businesses. While businesses benefit from a stable revenue stream, reduced competition, and greater control over pricing and supply, consumers may face limited choices, higher prices, and potential quality concerns. To strike a balance, regulations are in place to protect consumer interests and promote fair competition.

If you’re a business owner seeking effective marketing strategies to navigate captive markets or enhance your market position, our marketing agency, CVI, is here to help. With our expertise in crafting targeted marketing campaigns and identifying growth opportunities, we can assist you in reaching your target audience, increasing brand visibility, and standing out in competitive market environments.

Contact us today to discuss your business goals and explore tailored marketing strategies that can drive success in captive markets.

Tags branding, business, business marketing, captivemarkets, digital marketing, digital strategy, marketing guide, social media strategy

Article

Understanding the Decoy Effect and How to Use in Marketing to Increase Sales

Post author By Onne Farahnabila
Post date 19/05/2023
No Comments on Understanding the Decoy Effect and How to Use in Marketing to Increase Sales

If you have ever encountered three drink sizes offered by a coffee shop or supermarket, that is an application of the decoy effect.

The decoy effect is one of the marketing strategies used to increase the sales of a product.

Price is the most complicated marketing element. Therefore, to determine it, many considerations are needed, and the decoy effect is one of the strategies used for this purpose.

What is the Decoy Effect?

As quoted by The Decision Lab, the decoy effect is a pricing strategy used by adding a third, less attractive option as bait to influence the buyer’s perception of the main option.

One instance of implementing the decoy effect can be seen in the following scenario:

Company A offers beverages in two sizes – small and large, with the respective prices:

Small: Rp35,000

Large: Rp50,000

This pricing strategy allows customers to easily compare and select the option that best suits their needs or budget.

However, the company decides to apply the decoy effect by introducing a third option – medium, as a lure.

Thus, the beverage options now include:

Small: Rp35,000

Medium: Rp45,000

Large: Rp50,000

By adding a third option with a price that appears to be reasonable, the company creates the decoy effect.

Initially, customers may have a tendency to select the small option, but the presence of the decoy option can potentially influence their decision-making process.

How to use the Decoy Effect in business?

To effectively use the decoy effect in your business, it’s important to consider more than just prices. The decision could also involve factors like quality versus convenience.

The ultimate goal of a decoy is to create the perception that your target product is a good deal. This can be achieved by changing the relative value of different parameters (e.g. cost versus layover time for a plane ticket) or by offering more for less (e.g. different sizes of perfume).

Here’s a quick guide to creating a decoy:

Choose your target product or service, ensuring that it’s something your customers already like.
Introduce a decoy that offers less for the same or almost the same price. The decoy should be a very bad deal in comparison to the target.

However, it’s important not to make the decoy too unappealing, as you still want to make the price of the target product favorable. You can make the decoy less attractive by changing a different feature, such as the color.

Ensure that the third option you offer is distinct from the target and decoy and provides a clear customer comparison point.

Apply Decoy Effect to Your Marketing Strategy

This strategy is commonly used in pricing, where a third option is added to make the target product appear more appealing.

Though to effectively use the decoy effect in the business, it’s important to consider factors beyond price, such as quality versus convenience, and to ensure that the third option is distinct from the target and decoy while providing a clear comparison point for customers.

If you’re unsure of how to apply Decoy Effect to your marketing strategy, CVI will be happy to offer consultation to help you.

Tags branding, decoyeffect, digital marketing, digital strategy, marketing guide, social media strategy

Article

The Importance of Context in Color Psychology for Marketing and Branding

Post author By Onne Farahnabila
Post date 03/04/2023
No Comments on The Importance of Context in Color Psychology for Marketing and Branding

What is Color Psychology?

Color psychology is the study of how different colors affect human mood and behavior. Understanding color psychology in marketing and branding is crucial for businesses to communicate their message and influence consumer behavior effectively.

By selecting the right colors for their brand, businesses can create a powerful emotional connection with their target audience and convey the right message.

Challenges of Applying Color Psychology in Marketing and Branding

Many researchers have attempted to classify how individuals react to particular colors. Still, the truth is that color is too subjective and heavily influenced by personal experiences to be universally translated into specific emotions.

Factors such as personal preferences, experiences, cultural differences, and context can all affect colors’ impact on us. Therefore, the belief that colors can evoke hyper-specific emotions is often inaccurate.

Making Effective Color Choices for Your Marketing and Branding Strategy

The right color is appropriate for your brand

The appropriateness of color is important in branding and marketing. According to a 2006 study, the choice of color for a brand is determined by how appropriate it is for the product or service being offered. It’s essential to determine whether a color is appropriate by collecting customer feedback.

The right color differentiates your brand

Studies have shown that color is essential in creating brand identity and recognition, with new brands advised to choose colors that differentiate them from competitors.

The Isolation Effect suggests that items that stand out are more memorable. Research has found that consumers prefer color patterns with similar hues but also favor palettes with contrasting accent colors.

The right color has the right name

The names given to colors can significantly affect how consumers perceive them. Research indicates that consumers prefer fancy color names over simple ones, even when the colors displayed are the same. Furthermore, unconventional and unique color names are more appealing for products, including paint colors, where elaborately named shades are considered more attractive than those with simple names.

The Power of Colors

Color can have a significant impact on communicating messages, setting particular atmospheres, and even shaping people’s choices. It also influences consumers’ purchasing decisions, clothing choices, and how they decorate their surroundings.

Tags branding, color psychology, digital marketing, digital strategy, marketing guide

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