30 Jul Value Engineering in POSM
Insight into Value Engineering
Did you know, the Value Engineering of Point of Sale Merchandise (POSM) units has both Marketing and Financial benefits to a business? From in-store marketing advantage to serving broader business goals like budget reductions, Value Engineering is a multi-faceted, complex process in POSM development. It requires expertise in materials, local market competencies, available technologies and structural design.
What is Value Engineering of POSM?
According to us at Point, Value Engineering, as a methodological concept, condones the substitution of materials and processes for cost effective alternatives without disturbing product functionality and, where possible, drive innovation.
Why?
Because there is often a better way of doing something to make a greater impact. The idea is to not just deliver a better marketing campaign asset, but deliver it whilst saving cost and time without compromising the end product.
How?
Well, that’s not a straight-forward question with a straightforward answer…
The Approach
In POSM design you have two variants that differentiate your value engineering objectives. You either have – relatively speaking – a structure that has never existed before, or you have an existing structure
explains Chris O'Brien, Point's Industrial Design Manager
Industrial Designers have 2 approaches for Value Engineering:
- Use their expertise to guide the development of a new structure giving value to the brand campaign
- Or, employ value engineering through sourcing new technologies and ways of thinking then apply that to existing structures in order to modify the way they’re manufactured.
Both of these value engineering approaches will result in either cost savings, brand visibility or other campaign objectives set by the client
Before the engineering begins, the first question that needs an answer is: What is your campaign objective? Is it, more for your buck, an urgent deadline, bespoke innovation, a jaw-dropping in-store campaign etc.? What’s the point?
What Marketers Need To Know
ROI - Return on Innovation
To simply make modifications to things or to replace one thing with another, is not innovation.
Modifications need to result in a positive ROI to be considered as innovation.
Innovation begins with out-of-the-box thinking and without new ways of thinking, there’ll be no new developments, no new products and therefore your marketing cycle (and your business) will cease to exist.
If you don’t like change – that’s great, but you’ll dislike irrelevance even more.
Eric Shinseki
Now we ask: “Do we fix the problem, or do we identify the problem before it becomes a problem?”. That’s innovation.
