VIEW FROM ABOVEA broad-brush view of the landscape of experiential, branded retailing

2011 EVENT OPERATIONS AGENCY PLANNING SERIES

The Event and Marketing Agency Guide to:

POP-UP STORE EXPERIENCES

INSIGHTS AND IDEAS FOR CREATING BEST-IN-CLASS POP-UP STORE ENVIRONMENTS

Customer values, tastes, fads, trends, colors, and how marketers respond or develop those values are the dynamic face of brand-oriented retailing. Phish cobranding with GreenPeace in 1985, Martha Stewart polling customers for projects and tastes, Apple developing its first branded stores in 2001 and its SXSW blow out in 2011—all voice the lively dialogue between retail brands and their consumers. But retail space has not, until very recently, been considered as dynamic. Brand immersion has generally taken place in an event-based platform and the shop environment was left to stagnate, unable to echo consumers and their interests.

1. Experiential—the cost side of the ledger. In the beginning there was the event. The event agency invented the concept of the pop-up experiential immersion. From early pop-ups in warehouses, in-store venues and local events, the targeted, highly branded event space has matured. Retailers budgeted millions for experiential projects, measured value in “store sales bump”, or “coupons” and wrote a PO for the next project.

This changed in 2009. Budgets collapsed, retailers demanded performance to metrics agencies never thought about, and required proof that pop up projects drove transactions at the store and web level. Today, agencies are regularly asked by brands to develop and manage dimensional experiences and to integrate with all other media and activation strategies to create brand awareness and connections with the longest possible tail.

2. Transactional—the income side of the ledger. Last year saw an explosion in the number and type of income-producing pop up retail experiences. From one-off boutiques with exclusive merchandise in highly targeted economic zones for Parker Pens and Grants Scotch Whiskey, to carefully marketed product launch outlets for Apple, to 600 seasonal units for Toys

R Us. In short, retailers are changing how they present to the consumer. The pop-up footprint is literally earning its place on the sales ledger.

The face of the popup is becoming more diverse , more specific to the brands need. Micro-pop-ups are being developed to exist for one night, aligned to an event, offering a true inventory-based retail opportunity. Literally over 100 brands are discussing seasonal pop-ups as a solution to landlord and budget issues.

3. Crossover is the place of the most value. Event-based experiential space will always have a value. No other approach allows the consumer to literally immerse himself in the brand’s values. And even in the face of web-based retail’s rapid growth, consumers will always choose to experience a physical environment we call a store. Tomorrow, however, will be different for agencies, retail designers, brands and consumers. Brands are requiring their marketing departments (and thus agencies) to collaborate closely with their merchandising departments (and thus retail designers) to develop powerful experiences that drive immediate sales. Seasonal events, new product launches, talent-based events, “super-niche” products, engagement in store-based “mass-customization” of products are all the lexicon of event-based retail.

This crossover point between event-based and transactional experiences is a high-value opportunity to develop programs for brands, their retail customers and your agency. Keys to the success of this model include available locations, willing landlords, appropriate demographics, seasonal or event-focused timing, well thought-out merchandising and hyper-focused branding, integrated digital platforms, and the ability to design, implement and knock down as quickly as possible. n

The Need for SpeedSeven tips for going from idea to pop-up store in eight weeksA rapid design, build, implementation and removal produces maximum value for all parties in the event-retail program. More speed means more launches and locations, means more revenue, means more success. With timelines measured in weeks rather than months, it’s critical that agencies and their partners align with clients from the outset. Tips for going from concept to grand opening in just eight weeks:

1. Footprint before pitch. First things first—finding the right location or perfect event for a pop-up is the most important part of the process. Carefully think out the demographics of a project, and work with the client and property owners or event programmers to secure the optimum venue. Know what your site MUST have, and know what you can let slide in a negotiation or site selection.

Pop-ups can be open for a matter of days or weeks rather than months, so plan to work out a special contract with the property owner. And, be ready to convert—more pop-ups are getting the green light to go long-term as revenue generating, transactional spaces.

2. Fabrication partners. Find the right partner to bring your pop-up plan to life. Agencies and retail design firms with rich internal resources (i.e. architects, designers, and property specialists) have the capacity to manage all of the details around contracting, fabricating and installing a program. The best choice for these groups is an experienced partner who can build and execute their plan quickly and on-budget.

Agencies that may not have broad internal resources or a long background in pop-up programs may require more of a turnkey solution on the design, management and fabrication side. The partner they choose should have a broad pallet of deliverables and a lot of experience managing a dimensional-build process, knowledge of local permitting and building regulations, and graphics and décor experience.

“The right partner is a one who can deliver what’s valuable to the agency while being flexible and proactive, with people and processes that allow for change,” says Jeff Baker, CEO of Manchester, NH-based Image 4, which has handled numerous successful pop-up and nation-wide retail programs.

3. Avoid micro-management. While it may be tempting to send that email or pick up the phone to check in, things run more smoothly when everyone agrees to a set plan and sticks to it. Start things off smoothly: Get together everyone with a direct contribution to the outcome of the project together as soon as possible to map it out. “If you’re calling partners every two hours and making changes, the whole process grinds to a halt. It’s tough to keep momentum going when the plan changes, and it ends up costing more,” Baker says.

The architect, creative director, designers creating the brand presence, the project lead and your production partner need to sit down with client at the beginning to figure out exactly what the expectations are for the pop-up, how deliverables will be broken up, and what an ideal outcome would be.

Getting a pop-up up and running in a matter of weeks is a complex matrix, and that first meeting should be candid, freewheeling, open, and should include decision-makers from the end-user client if possible.

4. Think modular. Keep in mind that any custom-designed and built element within the store has to be conceived, drawn, engineered, and constructed (and don’t forget about edits from the client and their sign-off). There is a time load to each of these processes, so keep in mind that the days can pile up quickly. The big question clients and agencies alike must answer: Is customization more important than speed? If time is of the essence, custom/modular solutions can bring the best of both worlds to a project.Pop-ups leveraging modular elements and systems move through the production and design process much more quickly than custom elements. For example, using modular walls or displays instead of building them from scratch can save valuable time, allowing agencies to focus their energy and budget on other custom elements in a space, such as fixtures, accents, lighting, graphics or media.

5. Avoid change orders. Changes can kill the overall timeline for your project. For projects with a quick turnaround, materials have likely already been ordered by the time a change is made, so a last minute switch can result in a major pitfall. “If you want a pop up to look great and open on time, minimizing change orders is a good idea. Change orders definitely add time; buying new materials, rush freight costs, re-built fabricating. To reengineer something always takes longer, because you have to deconstruct what’s been built—all while under pressure,” Baker says.

6. Budget the experience. When allocating funds for a pop-up program, don’t under-budget the physical space. It’s a challenge to manage staffing, samples, transport, project management—all the parts of a program. However, the space shouldn’t seem like it’s an afterthought, since the space and the talent will have the most direct affect on your overall experience. Decide how important the physical experience is to a campaign or project and budget accordingly. Remember that speed creates challenges, and challenges create costs. Plan on spending 20-percent over your costs so if you need to throw overtime or extra resources at your project in order to launch on time, you have the option. “It is in everyone’s interest to have a contingency budget. The faster the project is moving the higher the contingency budget should be,” Baker says. “What’s worse—spending 20-percent more, or launching two days late”?

7. Expect the unexpected. Keep things like holidays (even obscure ones), weather conditions, strikes and “acts of God” in mind, because they may impact the project in some way. Will your client understand? Remember that money can solve some problems (such as express freight costs and hiring extra workers,) and can be a big help in getting the launch off on time, but there are problems that are solved only by more time. n

2 To upgrade your agency’s pop-up store experiences, visit image4.com or email popup@image4.com

Pop-Up Budget PlanningA rundown of pop-up store costs every agency can bank onMaterials? Permits? Signs? What’s with all these costs? Pop-up stores are growing as one of the most effective experiential platforms. But too many agencies aren’t budgeting correctly, often underestimating build costs, project management fees or lease payments. Here’s where your dollars go, broadly from high to low slice of the budget.

Materials specification. There is a huge variety in materials, so don’t design a project without checking in on how materials selection will affect your budget. Materials will make or break the budget first, which is why a lot of pop-up programs simply paint the existing walls of a space as opposed to leveraging custom-built walls or wall coverings. Be careful, though, because preparing existing walls, floors and ceilings, and returning them to a leasable condition, can be a budget killer in itself. Look into using adhesive vinyl graphic coverings or faux materials that can mimic the look and feel you need. Lean on partners to find ways to work to your budget.

Physical site specials and specialty site trade labor. Whether it’s addressing electrical loads, lighting, flooring, site remediation, plumbing—any specialty labor is going to be expensive. In ballpark figures, you can hire a general laborer for $25 an hour, specialty labor will cost $50 to $100 an hour. Anything that physically changes the site or requires a construction permit means big dollars. And speaking of permits, make sure you budget for all of them –construction, electrical, plumbing, signage and occupancy are the biggies.

Fixtures and cabinetry. All the products inside your pop-up need to look great! Fixtures and displays play a large role in presenting products to consumers in the most appealing and interesting way possible. Decide whether the product speaks for itself and requires minimal display support, or whether a more detailed, ornate display will help make the big splash. Cabinets built onsite will eat a fair amount of your budget, as will A/V and media displays. Look for rental or factory built solutions from your partners.

Packaging and freight. Materials need to get from one place to another, and that’s not free. If you build onsite, you can have materials delivered directly to the venue and build out over a few weeks – at the cost of increased labor, lease and utility bills. Retail and pop-up elements can also be built by your off-site fabricator, but it will cost more to get them there once built, so do your math carefully. This is a line item that is often overlooked, but can get very costly depending on how much material needs to be delivered to a footprint.

Installation labor. These costs range from the price of moving materials in the door to fixtures and running cable. It runs across the cost scale from project to project and it is variable, but it will cost less than those items listed above.

Exterior sign. Don’t let this one catch you by surprise. A pop-up’s exterior sign can range in cost depending on the message you want to send to passers by. In most cases, the sign will have to receive a permit which requires time and money (and also means it has to be drawn and submitted—which takes even more time).

Venues vary, and signs may have to be hurricane or earthquake certified, depending on where your program is launching. Also, the more complex the sign, the higher the costs, and internally illuminated signs will require a specialty installer.

Graphics and décor. Although nearly everyone complains about the cost of graphics or signs, this is almost always the smallest part of your budget, and often where you can gain the most visual and budget impact. From graphic panels, light boxes and fabric elements, to signs, wayfinding and custom printed wall coverings, these elements critically important to the user experience. n

To upgrade your agency’s pop-up store experiences, visit image4.com or email popup@image4.com 3To upgrade your agency’s pop-up store experiences, visit image4.com or email popup@image4.com

Pop-Up Product SpotlightReForm becomes the event agency’s go-to pop-up store exhibit system

4 To upgrade your agency’s pop-up store experiences, visit image4.com or email popup@image4.com

No op-up fabricator has attempted a component-based pop-up solution—until now. Image 4 has joined forces with Protean to take the latter’s ReForm system to market as a turnkey, floor-to-ceiling pop-up store solution.

ReForm is modular wall system that combines sound architecture, rapid deployment, high aesthetic value, and ease of use and re-use that should put it on any pop-up designer’s radar screen.

The big differences from all other building systems:

n When the panels are assembled into the framework, the extrusion is completely hidden, resulting in a flat, nearly-seamless wall surface.

n The panels are clipped to the face of the extrusion with a retaining clip, and it becomes load bearing in sheer and in torque. The panels snap in and out of extrusion retainers with a special tool, and it takes about a minute to install a four by eight panel, and 15 seconds to remove one.

n The system supports all architectural finishing techniques we use today, from laminates and paint to wall covering and magnetic graphics.

“The system’s ability to accelerate the launch is amazing—depending on the project, we can engineer, specify and build anywhere from equivalent time, to half the time as it would take onsite. We have launched 800sf concept to keys in eight weeks,” says Image 4 CEO Jeff Baker. Once onsite, a typical ReForm pop-up install is up and running in just two days. ReForm is a solution for pop-ups where the branded environment has a significant aesthetic contribution to the outcome of the project—where more than a graphics or paint-based solution is needed. The system delivers a high-value brand environment where the fit, finish and materials make a difference to the brand experience.

Using the ReForm system takes the build requirement out of the leased space. Site costs drop, because the client is not leasing the space while Image 4 is building the project in its Manchester, NH factory. For example, if a project is going to take eight weeks to build, a client may avoid paying rent for that time or will have to work out a special deal with the property owner. And once a pop-up’s run has ended, ReForm environments can be collapsed in two nights, as opposed to the five to 10 days needed to dismantle traditional construction.

“Now agencies and retailers have regained control of the build cycle,” Baker says. The ReForm system also minimizes the chance of costs that can be incurred for damaging or having to repair the building a pop-up is housed in, so it saves the time and materials cost needed to remediate the site.

Since Image 4 engineers and builds out each ReForm project in a factory, agencies and clients can actually walk through the environment before it is deployed in a location footprint. This eliminates the unknown of what the space will look like and work like before it’s installed onsite, and makes it easier to refine designs and make changes quickly and at lower costs than custom builds.

The fact that ReForm can be leased or rented easily allows projects that are planned for a short-term run to go long-term if they are successful.

The end product can also be moved from one location to another, with the same aesthetic results.

An added bonus: In most jurisdictions ReForm is considered a shop fixture, it doesn’t require building permits to install. “It’s just like going and putting paint on the wall, except now you’ve got an entire environment,” Baker says. n

Traffic JamFour tips for designing pop-ups to manage and value trafficOnce a footprint for a pop-up store has been secured, it’s time to get to work on the physical layout. Figuring how to get a client’s message across without cluttering up a space or creating foot traffic problems can be more challenging than it may appear. Tips for designing traffic-friendly spaces, and for determining the program’s value.

1. Wayfinding. It helps to show people how to move through the space. If people don’t know where to go when they enter the environment and don’t understand how to interact with the space, your client’s message may never get across to the end-user. Leveraging signs, shapes, graphic images, colors, textures, and patterns on the floor can be valuable ways to communicate these messages.

Signs may work for simple things but more complicated layouts and interactive areas require more thought so people don’t get hung up in high traffic areas.

2. Scripted Experience. The key to a successful experiential program is to “script” the experience, and then apply that to a specific physical layout. Each location will have its own set of design limitations, so design to the script, then to the location.

“Have clear goals for how many visitors you would like in the space, how long you’d like for them to remain in the space, and what action you want to occur. Controlling dwell time is key - you can create an environment that encourages meandering or create a design that moves the visitor rapidly from one place to another,” says Image 4 creative manager Elizabeth Hummel.

Changeable spaces allow for multiple uses (i.e. using the space to host a cocktail party on opening night, followed by a traditional retail space the next day), so think simply and modularly whenever possible. The more elements inside the store that can be pre-staged, the better – even more important when your pop-up is a 20-foot container!

3. Interactives. Interactive elements areas where people are engaged and tend to spend more time. These are “destination points” in the footprint, so you have to think about managing crowds and guiding people to the space and out of that space.

What do you do with visitors when they’re lining up? Try giving them an alternative storyline that they can pursue while waiting on the interactive space, which will keep them from wandering off.

“If they’re waiting in line, they could be watching a video or reading a graphic mural with smaller text that can be read up close. You want to make the most of their time in your space,” says Image 4 project coordinator Cara Conti.

4. Make it Measurable. Your client will be most happy when they see the value of the program. Value can be activations or cash receipts or web hits. Work with your fabricator to integrate the feed-back mechanisms that allow you to refine and extend the program. n

To upgrade your agency’s pop-up store experiences, visit image4.com or email popup@image4.com 5To upgrade your agency’s pop-up store experiences, visit image4.com or email popup@image4.com

6 To upgrade your agency’s pop-up store experiences, visit image4.com or email popup@image4.com

Pop-up Store SuccessFour common reasons pop-ups go over-budget, and three tips for wildly successful client outcomesSuccessful pop-up stores are a direct results of many moving parts—understanding those parts can mean the difference between a hit and a miss. Four ways pop-up stores go over-budget:

1. Bad planning. Every project needs a detailed timeline and plan that everyone on the team works to. The program manager should align the plan, assign responsibilities and have a project manager with the authority and responsibility to make sure it all happens accordingly.

Conducting a detailed site survey once a footprint is secured for the pop-up is the first and most important step in getting it right. Scrutinizing the small details such as door sizes, ceiling heights, electrical load access, and access issues to reflect the Americans with Disabilities Act requirements is essential before space design gets underway.

Remember that big problems occur when components for a store are built and won’t fit into a site. Spending up front for your build partner to come out and do a detailed site survey can save 10 to 20 times the cost of fixing mistakes later on.

2. Bad communication and coordination Bad communication and coordination. This starts with the first big project meeting—laying out all of the goals and how the team plans to bring your pop-up to life.

The team needs to identify who has ultimate responsibility for the project, which partners and team members the rest of the team will speak to when problems arise, and who has financial and legal responsibility for the project. All your support group must be able to contact the team leader for decisions – don’t launch a project and head for the South Sea Islands without delegating responsibility and authority. Once everyone knows who is responsible for what, and who to reach out to for solutions, the process will operate much more smoothly.

3. Change orders. Last minute changes to a plan kill timelines and budgets. Make sure a change order is absolutely necessary before going through with it, because they are always expensive.

4. Over-designing. Take a look at what the value of the environment itself is to the project. If the look and feel of the physical environment is extremely important to the brand experience, focus hard on the detail and visual impact of the space. Figure out what the space will be used for; if it’s a retail space, fixtures, cash wraps, changing rooms may be needed. Conversely, if the purpose of the pop-up program is to create an emotional response and a grand, overall WOW!, perhaps architectural details can be dialed back and large graphics, lighting and sound systems are part of the package.

Here’s a few thoughts about creating a perfect, repeatable program.

1. Clear scope. Developing a clear scope of project with indicated deliverables from each partner—including the client—is critical. This document makes everyone responsible to the outcome of the project, so put in the effort and create a detailed Scope of Project document. The most successful projects start with long hours in the meeting room, but pay off when the project opens on time and on budget. Involve, trust, listen and act upon your partners’ input.

2. Client management. Don’t let the client run the project from their office. For agencies, having brand marketers trying to run a project over the phone can create problems. Clarifying who is responsible for what in a project is important when trying to move a pop-up along quickly and efficiently. When clients call partners and builders directly to find out what’s going on, confusion nearly always results. Make sure clients and suppliers know who to turn to for answers.

3. Choose good partners. You really do get what you pay for. Use proven, practiced partners because they are cheaper in the long run. Paying less for shoddy work can result in less than spectacular results or last-minute re-work, so make sure partners are truly up to the task of bringing a pop-up vision to life before signing them on. “Value engineering” is a catch-phrase of end-user clients, but your partners see more of these projects than you do—check that lower priced solutions are engineered and built to the demands. n

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IMAGE 4

About us. Image 4 is the only exhibit and graphics provider specializing in pop-up store environments. We offer a turnkey assortment of pop-up experience solutions, from design and build to décor and graphics to installation of walls, floors, signage, counters—pretty much everything you’d ever need in a temporary pop-up environment. As an independently owned partner, we pride ourselves on client service and flawless execution—just ask our clients!

What we offer. Image 4 offers a full menu of pop-up store solutions, including:

n Pop-up store traffic analysis, layout, design and concept renderings

n Site execution of program metrics such as dwell time, traffic count, etc

n Fabrication of walls and floors – rent, lease or buy

n Full exterior and interior engineering, graphics and signage

n Counters, kiosks, furniture, merchandise fixturing – catalog and custom

n Technology offerings, from touchscreens and monitors to social media kiosks and photo/video activation

n Freight Management and tracking

n Installation, breakdown and storage

The only ‘reform’ provider. Image 4 is the only North American provider of the ReForm pop-up store modular system used throughout Europe. The ReForm modular store solution is the Lego™ set for pop-up stores. Give us your pop-up store specs and we’ll marry ReForm’s wall, floor and display modules together, creating an instant fit for nearly any pop-up! It’s fast, it’s easy, it’s green and it’s the most affordable retail-grade pop-up solution in the industry.

Anywhere, everywhere. From a Times Square storefront to an in-store store in Los Angeles, we provide full service for

any pop-up, anywhere. Whether you’re rolling out just one store or 50, our design team and fabrication crews can make creating your pop-up environment quick and easy.

Location sourcing. If you know you want to pop-up but don’t know where, we can leverage our powerful network of partners to determine the best location demographic, get you available store inventory, show you some options—even help you set up conversations with retail landlords.

The Go-To Partner. We work with event agencies across the country and are proud to be the trusted pop-up partner for them and their clients. We’re happy to help you with a design or take your design and roll with it. We can help you prep a client pitch and support the win with clear invoicing, on-site support and real-time reports and updates. We also provide 24/7 service during pop-up store load-in and take down.

Where Else Can I Pop-Up? Good question. While the majority of our clients use us for retail store environments, we’re helping a growing number of companies set up pop-up-type experiences at:

n Airports

n Malls and Street-level retail

n Inside existing full-time retail and department stores

n Concerts, fairs and festivals

n Trade shows

n Hotels

n Lounges

n Bars and Nightclubs

n …And more!

Quick Estimates. We know you get frustrated by long estimate times, which is why we turn around quotes fast—often in 48 hours! Tell us what you want, we’ll give you what you need. n

To upgrade your agency’s pop-up store experiences, visit image4.com or email popup@image4.com 7To upgrade your agency’s pop-up store experiences, visit image4.com or email popup@image4.com