Is Instore Placement Still A Powerful Strategy for CPG Brands?

Posted by Greg Keating on Feb 5, 2020 1:01:58 PM

Shopping aisle.

Contrary to what you may have heard, CPG marketing teams should still pay close attention to products on shelf. In-store placement still matters, particularly in CPG marketing, which focuses so often on the rich brick and mortar retail environment. Here’s why CPG marketing should always pay attention to the placement of their products in-store.

Retail CPG Marketing and In-store Placement

The first fact in support of in-store placement is that two-thirds of consumers still make their brand decisions in the comfort of a traditional brick and mortar store. Having your products at eye level or on an end cap does make a difference. We know younger patrons aren’t nearly as loyal as older generations, so these prime placement spots are particularly vital to attract the next set of consumers to your brand.

While CPG marketing teams often don’t have a lot of control over store design and product placement, these should leverage any influence they have to snag the best locations for their products. Organic and pay-to-play opportunities can help companies get their products noticed. No matter your approach, understanding instore placement is as crucial to your success today as creating the right kind of packaging to get your products purchased.

Instore placement influences not only the purchaser but also the overall store experience. Marketing teams should monitor in-store foot traffic to measure product placement and ensure more robust sales.

Shop filled with beauty products.

Winning Instore Placement Strategies for CPG Brands

What do we currently understand about instore placement?

  • Products placed in the center of shelving-units are eye level and therefore, noticed first. 
  • The majority of consumers are right-handed, and they typically scan from left to right, starting at eye level.
  • You have eight seconds, if you’re in the right place, to attract the purchase.

CPG marketing teams can and should adopt some best practices to stand out on store shelves:

  • Packaging design matters as much or more as product placement. The design should consistently incorporate the brand’s personality and character in ways that make it pop out on the store shelves.
  • Use the packaging design to somehow connect with your target audience. CPG marketing must build trust and tell your story in a concise and engaging way.
  • Packaging size is essential; you can lose preferred shelf space if your package is poorly designed.
  • See if you can leverage live demonstrations, free sampling, or other in-store experiences to support packaging and product placement. Retail stores are seeking new ways to improve the customer experience and engage them for a unique brick and mortar event. 
  • Increase your use of field marketing displays with visual aids to increase interest in the product.

Your CPG marketing team should focus on capturing and not distracting potential consumers. Instore placement is both cost-effective and straightforward, and it should be incorporated into any CPG strategy this year.

Forbes calls instore product placement, “One of the most organic and influential ways to reach consumers in 2020.” Developing an engaging product and packaging design is important, but your product location is just as crucial to brand success.

Hangar12 is at the forefront of CPG marketing strategy and more. Subscribe to our blog to stay up-to-date with our latest insights.

Topics cpg

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