396 CHAPTER 12 BRAND ACTIVATIONObjectives and target groups of POP communications
POP communications can serve several objectives or functions ( Figure 12.9 ). An eye-catching
exterior store design may attract the consumer’s attention and may diff erentiate the store
from its competitors, in that way increasing the likelihood that the consumer will enter the
store. Th ink of the fl agship stores of Apple, Nike, and Prada, for example, which clearly
stand out in the shopping street. In supermarkets, eye-catching displays or funny fl oor ads
may draw attention to specifi c products and may induce the consumers to buy a product
they did not intend to buy before entering the store. Eff ective POP material should remind
consumers of ongoing or previous advertising, PR, sales promotion or other campaigns,
reinforcing the communications message. Because of the high amount of communications
clutter today, consumers have diffi culty remembering the diff erent messages and oft en confuse
brands. POP material is a good tool to aid consumers in this. Besides reminding, POPNike was founded in 1972 and Foot Locker in 1975. Foot Locker started with a new concept: a store devoted to
athletic shoes only. This aroused Nike’s interest, and Nike wanted very badly to get into the area. Selling its shoes in
an athletic shoe store would rub off on its own image. In the beginning, Foot Locker was hesitant since it did not
want to sell ‘unbranded footwear’ and Nike was still unknown at that time. Over the years, the two companies grew
together and were able to benefit from each other’s strengths. Nike’s ad campaigns triggered demand for its shoes,
and Foot Locker’s extensive network of stores made the shoes available everywhere for the consumers. Nike got
prominent displays in Foot Locker stores and Foot Locker got Nike’s newest models. This allowed Foot Locker to
grow five times as fast as its competitors. To drive sales, Foot Locker began to aggressively discount its products
over the last few years. Nike, on the other hand, wanted to preserve its image of cutting-edge fashion king. This led
to a dispute between the two companies that started in the beginning of 2002. When Nike posed rigid terms on
the selection and price of shoes it would sell to Foot Locker, Foot Locker announced a cut in its Nike order by 15%
to 25% in the hope that Nike would reconsider its terms. Nike responded in the opposite way: it slashed its planned
shipments to Foot Locker by 40%, withholding its most popular and newest sneakers. Consumers could no longer
find Nike’s hottest shoes at Foot Locker, shoes that Nike began selling to Foot Locker’s competitors. Moreover,
Nike’s campaigns were no longer driving consumers to Foot Locker’s stores. All this induced a serious drop in sales,
a negative impact on its image and an enormous marketing challenge for Foot Locker.^56BUSINESS INSIGHT
No hot Nikes at Foot Locker any moreFigure 12.9 Point-of-purchase communications objectivesM12_PELS3221_05_SE_C12.indd 396M12_PELS3221_05_SE_C12.indd 396 5/6/13 2:58 PM5/6/13 2:58 PM