Marketing Math
Executing 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
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?
Campaign Type
Always
Sometimes
Never
We don’t use this
channel
I don’t know
Pay Per Click
46.9%
21.9%
9.4%
18.8%
3.1%
Email Campaigns
44.4%
33.3%
14.3%
4.8%
3.2%
Direct Mail
40.0%
32.3%
7.7%
15.4%
4.6%
Flyers
26.2%
30.8%
8.5%
20.0%
4.6%
Coupons
25.0%
28.1%
9.4%
32.8%
4.7%
zcubator.com | info@zcubator.com | 1.800.280.8305
7
What are your top THREE greatest local franchise
marketing challenges?
Local Franchisee Marketing Challenges
1
2
3
Lack of budget
59.4%
21.9%
18.8%
Lead generation
43.8%
37.5%
18.8%
Franchisee compliance
26.1%
26.1%
47.8%
Disparate systems to handle all media channels that don’t ‘talk’
to each other / don’t work together well
18.2%
18.2%
63.6%
Hard to keep up with all of the new media channels
20.0%
50.0%
30.0%
Hiring marketing talent at the corporate level
23.1%
30.8%
46.2%
Marketing to my franchisee customer database
18.2%
72.7%
9.1%
Oversight over what franchisee is doing for marketing efforts
23.1%
42.3%
34.6%
Other
40.0%
20.0%
40.0%
Don’t know / N/A
12.5%
12.5%
75.0%
zcubator.com | info@zcubator.com | 1.800.280.8305
Corporate Responsibility
NMF
Franchisee’s Responsibility
Brand Awareness
Strategy
System Promotions
Annual Calendar
PR
Local Consumer
National Consumer
Co-Op
Market-wide LSM
Local Advertising
Market-wide
Sponsorships
Event Marketing
Grand Opening
Trade
LSM
Grassroots Mktg
Community Oriented
Field Mktg Support
LSM Programs/Tools
Contributions to Local Advertising Media
2% National Marketing
1% Local Store Marketing
1% Regional Advertising Co-Op
National Marketing Fund
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
LSM Budget Allocation
 90% Support Collateral and Tools
— Coupons
— Support tools i.e. Tent, table clothe, flags, banners
 10% Loyalty Program
Schools
Business
Gyms
Location
Churches
Apartments
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
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
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
Loyalty by the #’s
New Cust
Merchant Custs Visits
Coupons
GCs
Cust
Activities
Total
Visits
Total Receiving
Custs Coupons
Loyalty
RC %
Only
LO % Points
Planet
Smoothie Crane's
Roost
3
38
2
0
3 156328 25929
4192 16.17 % 21737
83.83 %
38
Planet
Smoothie Sports
Authority
Ctr
4
57
6
0
6 118509 17611
2762 15.68 % 14849
84.32 %
54
Planet
Smoothie Waterford
Lakes
6
40
6
0
8 151528 24390
4063 16.66 % 20327
83.34 %
39
13
135
14
0
17 426365 67930
11017 16.22 % 56913
83.78 %
Total
Loyalty by the #’s
Campaign Type
Coupon
Text
Regular
Campaign
We MISS U,
come see
what's new
at ur Planet
SINGLE USE
Smoothie,
50% OFF ur
purchase!
Exp 1/26
2835
70
2.47%
1/22/2014
12:00:00 AM
1/26/2014
10:00:00 PM
1/22/2014
9:25:13 AM
Regular
Campaign
Chilly or not
we are HOT,
try our
CHERRY
SINGLE USE
TART! 20%
off any
smoothie.
Exp 11/14
1353
38
2.81%
11/13/2013
12:00:00 AM
11/14/2013
11:30:00 PM
11/13/2013
11:35:16 AM
Regular
Campaign
Go GREEK!
$2 off ANY
Greek
Yogurt
Smoothie
exp 9/27
SINGLE USE
2081
51
2.45%
9/19/2013
12:00:00 AM
9/27/2013
11:30:00 PM
9/19/2013
9:36:45 AM
Regular
Campaign
REFRESH ur
SUMMER
with our 3
Blazing
SINGLE USE
Summer
Smoothies!
20% OFF
exp 7/25
2077
69
3.32%
7/23/2013
12:00:00 AM
7/25/2013
11:00:00 PM
7/23/2013
11:56:42 AM
Type
Sent Redeemed Ratio
Begin Date
End Date
Sent Date
myPR
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
 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!
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
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%
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
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