P&G CEO Endorses In-Store Marketing Measurement

by , Feb 25, 2008, 5:00 AM
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Procter & Gamble CEO A.G. Lafley has given a ringing endorsement to an industry initiative aimed at gauging how effective in-store marketing is in driving purchase decisions.

Known as P.R.I.S.M., the initiative offers the potential to provide details on which promotional materials are effective with shoppers, Lafley said. And it's a chance to use that information to determine whether P&G can persuade consumers to spend more per trip.

Companies that are participating in P.R.I.S.M. include Coke, ConAgra, General Mills and Nintendo, as well as P&G. Agencies OMD and Starcom MediaVest Group, as well as multiple retailers, are also involved.

"P.R.I.S.M. will transform how we think about in-store consumer communications and behavior," he said at an investor event.

Lafley indicated that so far, P.R.I.S.M. has been more quantitative with details on shopper frequency and store traffic, such as how much consumers are putting in their baskets.

P&G spends some $10 billion a year on in-store initiatives, Lafley said--partly because research shows that 70% of final purchase decisions are made at the shelves. "We're confident we can improve the productivity of this investment," he said.

The $10 billion is in the same range as what P&G spends on more advertising-based channels.

Lafley said he hopes better information on in-store marketing's impact will contribute to better ROI for the other half of the $20 billion. P&G can "improve returns on total marketing spending because we can compare returns on in-store programs with returns from our out-of-store consumer marketing."

P.R.I.S.M.--a co-venture among Nielsen, the In-Store Marketing Institute, marketers and retailers--tracks exposure to in-store marketing efforts such as place-based networks, "shelf-talkers" and point-of-purchase displays.

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