5 Effective CPG Display Strategies for Brands

In the highly competitive market of consumer packaged goods (CPG), making your products stand out on crowded shelves is a constant challenge faced by brands. CPG displays are a vital tool in this fight for attention, acting as focal points that can influence purchasing decisions.

In fact, 73% of consumers prefer to experience products in person before buying. To stand out, CPG brands must focus on well-executed display strategies, which can make the difference between a product being noticed or overlooked. 

Effective CPG displays are not just about aesthetics; they are about consistent on-shelf availability and placement in line with planograms and promotions. The right display strategy can significantly improve brand awareness and lead to sustainable growth over long periods of time.

Key Highlights:

• Maximize Visibility: Track and ensure optimal product placement to maximize visibility, especially in high-traffic areas.
• Engage Target Audiences: Align display strategies with data-driven insights that track product positioning and shelf visibility to enhance engagement.
• Use Technology: Implement digital displays, AI-powered shelf monitoring, and data-driven insights to track performance and optimize retail execution.
• Measure Success: Monitor key metrics like stock levels, on-shelf availability, and planogram compliance to continuously optimize CPG displays and improve execution.

What is the Significance of CPG Displays for Brands?

CPG displays serve as the first point of interaction between a product and the consumer. For CPG brands, the visibility of their products in stores is often the first step to generating sales. Here’s why they matter:

• Increase Product Visibility: A strategically placed display ensures that products are seen by the maximum number of shoppers. Ensure optimal placement by monitoring stock levels and ensuring products are positioned in high-traffic areas to maximize visibility.
• Enhance Brand Awareness: Displays are an opportunity to reinforce a brand's identity. The colors, logos, and design elements in the display reflect the brand’s core values and message, which helps to build customer loyalty and trust.
• Influence Consumer Purchase Decisions: Many purchasing decisions are made in-store.  Eye-catching displays can spark curiosity, communicate key brand messages, and encourage shoppers to choose your product.
• Data Insights: Effective displays not only attract attention but also help brands track product performance in real time. Using real-time data tools like ShelfWatch allows brands to monitor metrics like on-shelf stock availability and planogram compliance.

What are Design Principles for Effective CPG Displays?

Creating effective CPG displays isn't just about placing products on shelves. It involves adhering to several design principles that ensure the display grabs attention, communicates key messages, and maximizes engagement. Some of the key principles include:

• Simplicity and Clarity: Keep the design clean and simple. Too much information or clutter can confuse the shopper. Focus on clear messaging and easy-to-read labels to help the consumer quickly understand what’s being offered.
• Strategic Use of Colors and Branding: Colors are powerful tools in CPG displays. Use your brand’s signature colors and eye-catching designs that appeal to your target demographic. The right color combination can evoke emotions and influence buying decisions.
• Use of Space and Layout: Optimize the space of the display. Whether it’s an endcap or shelf display, make sure the products are arranged in a way that maximizes visibility and accessibility, while avoiding overcrowding.
• Height and Placement: Consider the eye-level positioning for better visibility. Products placed at eye level are more likely to be noticed and picked up by shoppers, as they are within easy reach.
• Consistency with Planogram: Ensure the display follows the planogram to maintain consistency and compliance. This ensures that the product placement aligns with the store’s requirements and reinforces the shopper’s expectations.
• Interactive and Engaging Elements: Include interactive elements (such as digital screens or sample stations) to engage customers more deeply. Interactive displays create a memorable shopping experience, encouraging shoppers to spend more time with the product.

Top 5 CPG Display Strategies for Brand Growth

Effective CPG display strategies are tailored to the unique needs of the CPG brand, the products being displayed, and the target market. These strategies aim to increase visibility and drive sales within the physical retail environment.

Below are some of the most effective strategies CPG brands can employ:

1. Strategic Product Placement for Maximum Visibility

Where you place your product on the shelf can significantly impact sales.CPG brands should focus on placing products in high-traffic areas within the store. The top shelf, eye-level, or near checkout lanes are prime locations where products are more likely to be noticed by customers. 

Additionally, products that align with consumer habits, such as frequently bought items, should be placed in easy-to-access areas to increase visibility. By optimizing the location and arrangement of products, CPG brands can maximize exposure and make it easier for consumers to find their products. 

2. Tailoring Displays to Target Audiences

Not all customers are the same, and neither are their shopping behaviors. To make displays more effective, CPG brands should tailor them to their target audiences. This goes beyond merely identifying basic demographic details like age or gender; it involves product type, seasonal trends and regional preferences.

Customization of displays is about aligning them with the consumer's needs and your product's unique selling points. For example, family-oriented products can use larger, more accessible displays emphasizing value for money. For the health-conscious shopper, having green and organic-themed displays could be the key to capturing their interest. 

By integrating real-time shelf data, CPG brands can monitor planogram compliance and ensure on-shelf stock availability to better serve their target audience.

3. Maximizing Visibility with Accurate Shelf Data

For CPG brands, maintaining consistent visibility on shelves is crucial. Tracking on-shelf stock levels and planogram compliance ensures that products are available when customers look for them. With real-time shelf data, brands can quickly identify stockouts, measure share of shelf, and confirm that promotional displays are implemented as planned. 

For example, a beverage brand can monitor whether its promotional packs are correctly placed, while a health-focused brand can ensure its SKUs are occupying the planned shelf space. This visibility helps brands take timely action and strengthen their retail execution.

4. Cross-Promotion and Bundle Displays

Cross-promotion is a highly effective way to increase sales and maximize shelf space utilization. Bundle displays allow brands to present multiple products together at a discounted price, which encourages consumers to purchase more. This works particularly well in categories like snacks, beverages, and personal care.

For example, displaying a shampoo and conditioner together, or a snack with a beverage, is more likely to catch the attention of consumers who may be looking for related products or deals. Consumers appreciate the convenience of purchasing related items together, and these strategies can also increase the average transaction value.

5. Utilizing Technology in CPG Displays

Technology plays an important role in CPG displays, particularly in enhancing the in-store experience. This includes digital signage and dynamic pricing displays, which allow brands to promote special offers and track customer engagement.

These technologies allow for the real-time communication of promotions and help brands drive customer interaction at the point of sale. Digital displays are proven to spread brand messages 48%  more effectively than traditional signs, making them a powerful tool for enhancing customer engagement and increasing sales.

Using real-time shelf data, CPG brands can ensure that digital displays are accurately updated with stock availability, aligning with planogram compliance and preventing stockouts.

How to Measure the Effectiveness of CPG Display Strategies?

To gauge the success of CPG display strategy, brands must rely on measurable KPIs that can provide insights into how well the display is performing. Effective measurements help CPG brands determine what works and where adjustments are needed.

Key metrics include:

• On-Shelf Stock Availability: Ensure the product is always available on the shelf. If products are out of stock, the display is ineffective.
• Share of Shelf: Track how much space your product occupies compared to competitors and whether it aligns with the intended strategy. It helps in assessing the visibility and positioning of your products.
• Planogram Compliance: Real-time compliance tracking ensures that products are placed correctly according to the planogram, maintaining consistency with the store's layout.
• Promotion Success: Track the success of promotional displays by measuring how well promotions are executed and if they lead to an increase in sales.

These KPIs help CPG brands refine their display strategies and continuously improve their retail execution.

What are the Challenges in Implementing CPG Display Strategies?

Despite the many benefits of CPG displays, there are several challenges that CPG brands face during implementation:

• Planogram Compliance Issues: Ensuring that CPG displays comply with both the store’s planogram and the brand’s requirements can be a complex task. Deviation from the planogram can lead to missed sales opportunities.
• Limited Shelf Space: In crowded retail environments, shelf space for CPG products may be limited, making it difficult to showcase the full product range.
• Changing Consumer Preferences: Consumer preferences change rapidly, making it challenging for CPG brands to keep their displays relevant and aligned with current trends.
• Cost Constraints: Creating high-quality, impactful displays requires an investment in materials and design. Smaller CPG brands may struggle with budget constraints when it comes to display innovation.

By continuously monitoring and adjusting their strategies, CPG brands can overcome these challenges and drive better outcomes.

Future Trends in CPG Display for Brands

The future of CPG displays for brands will be shaped by technology and changing consumer behaviors. Here are some emerging trends to watch:

• Smart Displays: Technology-enabled displays that track stock levels, consumer engagement, and sales data in real-time, helping brands stay informed about performance.
• Efficient In-Store Engagement: Using interactive displays such as touchscreen monitors or QR codes for product information, allowing shoppers to easily access details and make informed decisions.
• Data-Driven Decisions: CPG brands will rely more on AI and machine learning to analyze real-time data and fine-tune their displays based on actual customer engagement and sales data, allowing for better-informed decisions and improved display outcomes.

How ParallelDots Can Help Brands Optimize CPG Display Strategies?

For CPG brands, optimizing display strategies is not just about having products on the shelf but ensuring those products are performing well and aligned with brand goals. This is where ParallelDots steps in, offering a technology-driven solution to enhance visibility, compliance, and performance. 

Here’s how we can help:

1. Real-Time Shelf Monitoring ShelfWatch provides real-time insights into on-shelf stock availability and planogram compliance. This enables CPG brands to monitor their products position in stores and track if they are correctly placed as per planograms. The platform continuously collects data, ensuring that stock levels are optimized and products are visible to consumers, increasing sales opportunities.

2. Planogram Compliance Monitoring Maintaining planogram compliance is crucial for any CPG brand. ParallelDots ensures that products are placed according to the predefined planogram across all retail locations. This is vital for maintaining brand consistency and making sure products are positioned where they can be easily accessed by consumers, leading to better product visibility and consumer engagement.

3. Optimize Shelf Space
By analyzing the performance of products across various shelves, ParallelDots provides valuable data on which products are getting the most visibility. This allows CPG brands to adjust product placement dynamically, ensuring that high-demand products are given prime space, leading to better shelf performance and increased sales.

4. Promotional Performance Tracking
With ShelfWatch, CPG brands can track the effectiveness of their promotional displays in real time. It helps measure how well promotions are driving customer engagement and sales. Brands can make quick adjustments based on data, ensuring that promotions yield the best results possible.

5. Data-Driven Decision Making
By providing actionable data, ParallelDots enables CPG brands to make informed decisions about their display strategies. Brands can leverage these insights to improve store execution, optimize product visibility, and ensure a better shopping experience for consumers, all while enhancing operational efficiency.

If you’re aiming to optimize your CPG displays, ParallelDots is here to help with advanced image recognition technology and real-time shelf monitoring solutions. Contact us today to learn more!

FAQs

1. Why are custom displays important for CPG brands?

‍ Custom displays help CPG brands stand out on crowded shelves by offering unique, tailored designs that attract consumer attention. They highlight key products, align with brand identity, and enhance customer engagement, driving both product visibility and sales.

2. How does product placement influence sales?

‍ Strategic product placement increases visibility and encourages impulse purchases. Products placed at eye level or near complementary items tend to attract more attention, influencing consumer decision-making and boosting sales. Proper placement also enhances the shopping experience, leading to repeat visits.

3. How should a CPG brand incorporate its branding into CPG displays?

‍ CPG brands should incorporate their logo, colors, and brand messaging into their displays to create a cohesive and memorable visual experience. Consistency across all displays strengthens brand recognition and helps customers easily identify the brand, fostering trust and loyalty.

4. What is the value of in-store promotions and interactive displays?

‍ In-store promotions and interactive displays engage customers, create excitement, and drive immediate sales. Promotions offer tangible incentives, while interactive elements, like touchscreens or product demos, encourage deeper engagement, making the shopping experience more memorable and impactful.

5. How can CPG brands use data analytics to optimize CPG displays?

‍ Data analytics helps CPG brands understand consumer habits, product performance, and traffic patterns in stores. By analyzing this data, brands can optimize display placement, adjust stock levels, and tailor promotions, ensuring displays effectively capture attention and drive higher conversions.