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Marketing Math Executing Local Store Marketing Facilitator: David Buckley, CMO, Sears Hometown & Outlet Panelists: Jason Mann, Owner/Area.

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Presentation on theme: "Marketing Math Executing Local Store Marketing Facilitator: David Buckley, CMO, Sears Hometown & Outlet Panelists: Jason Mann, Owner/Area."— Presentation transcript:


2 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

3 72.5% of respondents Franchisees HAVE a Marketing Plan 17.4% Do Not Have a Marketing Plan 10.1% of respondents dont know if their Franchisees have a marketing plan. Most Franchisees have local marketing plans | | 1.800.280.8305 3

4 21.7% ALWAYS set specific goals 18.8% NEVER set specific goals 8.7% DONT KNOW if specific goals are set for each local promotional campaign 50.7% Set Specific Goals For Each Local Promotional Campaign SOMETIMES | | 1.800.280.8305 4

5 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. | | 1.800.280.8305 5

6 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 TypeAlwaysSometimesNeverWe dont use this channel I dont 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% Flyers26.2% 30.8% 8.5%20.0%4.6% Coupons25.0%28.1%9.4%32.8%4.7% | | 1.800.280.8305

7 What are your top THREE greatest local franchise marketing challenges? Local Franchisee Marketing Challenges 123 Lack of budget 59.4% 21.9%18.8% Lead generation 43.8% 37.5%18.8% Franchisee compliance26.1% 47.8% Disparate systems to handle all media channels that dont talk to each other / dont work together well 18.2% 63.6% Hard to keep up with all of the new media channels20.0% 50.0% 30.0% Hiring marketing talent at the corporate level23.1%30.8% 46.2% Marketing to my franchisee customer database18.2% 72.7% 9.1% Oversight over what franchisee is doing for marketing efforts23.1% 42.3% 34.6% Other 40.0% 20.0% 40.0% Dont know / N/A12.5% 75.0% 7 | | 1.800.280.8305


9 NMF Brand Awareness Strategy System Promotions Annual Calendar Co-Op Market-wide LSM Local Advertising Market-wide Sponsorships PR Local Consumer National Consumer Event Marketing Grand Opening Trade LSM Grassroots Mktg Community Oriented Field Mktg Support LSM Programs/Tools Corporate Responsibility Franchisees Responsibility

10 2% National Marketing 1% Local Store Marketing 1% Regional Advertising Co-Op Contributions to Local Advertising Media

11 National Marketing Fund

12 70% Traditional Advertising DMA wide Coupon Drops in the Orlando Sentinel Supports NMF Promotions on a direct Local Level Reach 380K 4 xs a year 25% Events Support Participation in events of 1000 people or more 15 + events or more with an average of 2500 participants Co-op Budget Allocation

13 90% Support Collateral and Tools Coupons Support tools i.e. Tent, table clothe, flags, banners 10% Loyalty Program LSM Budget Allocation Location SchoolsGyms Apartments ChurchesBusiness

14 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

15 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 Event Based Marketing

16 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 Program – Plum Rewards

17 Merchant New Custs Cust VisitsCouponsGCs Cust Activities Total Visits Total Custs Receiving CouponsRC % Loyalty OnlyLO %Points Planet Smoothie - Crane's Roost 33820315632825929419216.17 %2173783.83 %38 Planet Smoothie - Sports Authority Ctr 45760611850917611276215.68 %1484984.32 %54 Planet Smoothie - Waterford Lakes 64060815152824390406316.66 %2032783.34 %39 Total1313514017426365679301101716.22 %5691383.78 % Loyalty by the #s

18 Campaign Type Coupon Text TypeSentRedeemedRatioBegin DateEnd DateSent Date myPR Regular Campaign We MISS U, come see what's new at ur Planet Smoothie, 50% OFF ur purchase! Exp 1/26 SINGLE USE2835702.47% 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 TART! 20% off any smoothie. Exp 11/14 SINGLE USE1353382.81% 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 USE2081512.45% 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 Summer Smoothies! 20% OFF exp 7/25 SINGLE USE2077693.32% 7/23/2013 12:00:00 AM 7/25/2013 11:00:00 PM 7/23/2013 11:56:42 AM

19 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

20 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! not your average pizza

21 National vs. Local Marketing Spend National Marketing Spend Brand Strategy Public Relations (Natl. & Local) Consumer Research Customer Loyalty National Promotions/LTOs Local Store Marketing Community Involvement Event Marketing Local Marketing Spend

22 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% A little work = a lot of new customers

23 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

24 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

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