Presentation Transcript

1. Marketing MathExecuting Local Store Marketing

   Facilitator: David Buckley, CMO, Sears Hometown & Outlet Stores @DavidJBuckley Panelists:  Jason Mann, Owner/Area Representative, Planet Smoothie & Tasti d'Lite Randy DuBoise, Owner, Meineke; Christina Coy, Director of Marketing, Pie Five Pizza @piefivepizza
2. Most Franchisees have local marketing plans 72.5% of respondent’s Franchisees HAVE a Marketing Plan 17.4% Do Not Have a Marketing Plan 10.1% of respondents don’t know if their Franchisees have a marketing plan. zcubator.com | info@zcubator.com | 1.800.280.8305
3. 50.7% Set Specific Goals For Each Local Promotional Campaign SOMETIMES 21.7% ALWAYS set specific goals 18.8% NEVER set specific goals 8.7% DON’T KNOW if specific goals are set for each local promotional campaign zcubator.com | info@zcubator.com | 1.800.280.8305
4. Results are across the board when it comes to satisfaction with their 2013 Local Marketing Strategy, though 32.4% are Somewhat Satisfied, followed by 31.1% Satisfied. zcubator.com | info@zcubator.com | 1.800.280.8305
5. Do you measure the return on investment (ROI) that is achieved from the dollars you spend on your local marketing campaigns in these areas? zcubator.com | info@zcubator.com | 1.800.280.8305
6. What are your top THREE greatest local franchise marketing challenges? zcubator.com | info@zcubator.com | 1.800.280.8305
7. 4 Tier Marketing Strategy Corporate Responsibility Franchisee’s Responsibility
8. Contributions to Local Advertising Media 2% National Marketing 1% Local Store Marketing 1% Regional Advertising Co-Op
9. National Marketing Fund
10. Co-op Budget Allocation 70% Traditional Advertising DMA wide Coupon Drops in the Orlando Sentinel Supports NMF Promotions on a direct Local Level Reach 380K 4 x’s a year 25% Events Support Participation in events of 1000 people or more 15 + events or more with an average of 2500 participants
11. LSM Budget Allocation 90% Support Collateral and Tools Coupons Support tools i.e. Tent, table clothe, flags, banners 10% Loyalty Program
12. Coupon or Discount Marketing Purpose - to drive trial and frequency Advantages: Easy to track Instant gratification Tangible results Drives traffic Disadvantages: Cutting price to gain customers Customers loyal to discounts may not be loyal your business Measuring tools - Sales Comps, Customer Count, Ticket Average General Cost: $10 to $25 per 1000 people hit Return: 1- 5% of total drop depending on aggressiveness of discount and type of coupon guide
13. Event Based Marketing Purpose - Build brand awareness, drive traffic and create loyal customers Advantages: Direct touch of potential customers direct dialogue Product sampling opportunity potential catering opportunity Disadvantages: Labor intensive returns may not be instant hard to track impact Measuring tools: immediate coupon redemption from the event, customer count increase over time General Cost: Tools $1000 with tent, table clothe, flags (add $2500 for wrapped vehicle); $75 to $400 an event including product and labor (entry fees extra) Return: Based active event marketers 8 to 15% per year growth
14. Loyalty Program – Plum Rewards Purpose – Reward the frequent and VIP customers with direct communication of offers and messages Advantages: Text based technologically relevant Rewards customers building loyalty instant ability to drive traffic 100% electronically tracking Highly targeted campaign 0-30,60,90,120 etc… Disadvantage: Discount and coupon based marketing drag down ticket average and food cost Measuring Tools: Cloud based real time activity and measurement based tools Cost: $25 – $250 + per month depending on number of offers sent out Return: Direct customer impact 40 to 60 customer per campaign
15. Loyalty by the #’s
16. Loyalty by the #’s
17. 2014 Transition: Discount Marketing to Brand Loyalty Hired an Advertising Agency Initiatives: Consolidate Facebook pages in the region and have all social media managed Manage all map based and review based searches i.e. Yelp, Google, etc Move away from traditional couponing and move towards Digital Marketing Manage all other types of Marketing efforts Event budget will increase Social Media will become an integral piece of our social media efforts
18. not your average pizza Individual pizzas ordered “sandwich style” One size, one price, unlimited toppings in under 5 minutes Four crusts to choose from, including gluten free and whole grain 7 sauces & over 25 toppings to create your perfect personal pizza 20 locations & commitments for 160 more!
19. National vs. Local Marketing Spend National Marketing Spend Brand Strategy Public Relations (Natl. & Local) Consumer Research Customer Loyalty National Promotions/LTOs Local Marketing Spend Local Store Marketing Community Involvement Event Marketing
20. A little work = a lot of new customers Objective: Look for ways to attract new customers within 3-5 mile radius of restaurant. Tactic: Contacted largest apartment complex near the restaurant to find a marketing opportunity. Placed ad in resident magazine. Offer: Residents were given a FREE pizza (regular price $6.79) when they brought in the ad. Cost: $1,443 (includes cost of ad in publication & food cost) Revenue: $1,920 Result: ROI 33% Redeemed 7.3%
21. Pie-Advocates are a Portion of the Pie Objective: Look for ways to increase brand awareness & sales at two locations near college campuses. Tactic: Hired two students to be brand advocates (aka “Pie-Advocates”) for 14 weeks with specific goals per week. Offers: $5 pizza and BOGO. Cost: $3,900 (includes food cost, cost for promotional materials & hourly wage) Revenue: $5,458 Results: ROI of 153.6% Brand awareness at school functions and “walking billboards” New opportunities discovered for future marketing efforts
22. Loyalty is the New Discount Objective: Reduce discounts& increase frequency Tactic: Implement loyalty program to incentivize customers to visit more often. Offers: Points based (2 points per pizza purchase. 20 points = free pizza) Implement double points days to increase frequency & traffic Results: Double points increased traffic an average of 15% Double points increased sales an average of 9% Discount percent went down by 2 points Testing new offers such as triple points & points for add-ons, which have also proven to increase traffic & sales