Archive for February, 2010

Why Local Marketing?

why-local-marketing

It occurred to me that my previous posts on the subject of Local Marketing have been directed at the ‘what’ and ‘how’ of local marketing, but really didn’t address the ‘why.’ It is easy to assume that most people appreciate the value of local marketing; however, I think in reality many are far less certain.

Most local marketing activities are initiated by individual store managers or franchisees on trial and error basis to increase revenue during slow periods or increase loyalty with the local consumer. Their methods are often not ideal, and their means to measure results are limited; however, when they find something that works for them, they stick with it.

I see the rationale for local marketing falling into several distinct categories:

  • Coverage: Some local marketing approaches provide an added medium for communicating with customers that aren’t covered by national campaigns (i.e. flyers handed out to local businesses or schools)
  • Conditions: Local marketing provides a means to speak to specific market conditions (i.e. competitor is offering a special across the street, local high school makes the playoffs, etc.)
  • Community: Local marketing enables store managers to customize the store experience to match the interest and tastes of local customers. (i.e. Spanish signage in heavily Hispanic areas, etc.)

While the first two reasons tend to be the primary drivers for campaigns, I am beginning to believe that the third may be the most important. Changing consumer interests, fed by social media trends, are leading buyers to expect a more personalized experience at the retail locations they frequent. These ‘New Consumers’ are favoring locations that have a buzz; how you create and maintain the buzz is the challenge.

In my next post, I will share ideas that I have collected about New Consumers. While much of this information offered by ‘experts’ is speculative, it does raise some interesting possibilities. And now, I’d love to hear from you—what are your thoughts on the ‘whys’ of local marketing?

If you liked this post, you may want to take a look at my commentary on Local Marketing – Setting Goals.

In-Store Local Marketing: CKE Case Study

in-store-local-marketing-cke-case-study

I’m proud to say that we’ve partnered with CKE brands for more than ten years now as their in-store marketing execution provider. What’s great about this partnership is that it truly illustrates the power of a one-stop shop approach for printing, fulfillment, shipping and technology solutions to reduce costs and increase efficiencies. We’ve published a two-part case study on CKE brands titled “Synq Solutions Provides Series of Innovative Solutions to Hardee’s® and other CKE brands”. The study focuses on Hardees in particular, and reveals how ‘intelligent profiling’ enabled them to reduce their inventory costs by 18%. We hope that our study provides you with some insight as to how your business can execute its marketing campaigns more efficiently.

As always, we invite you to post comments or questions and share your thoughts on the subject.

If you liked this post, you may want to take a look at Doug’s blog post on Local Marketing Profiling.

BBF87CV8QCDH

February is Local Marketing Month

february-is-local-marketing-month

This month, Synq is focusing on Local Marketing. We believe it’s a topic that is more relevant than ever. Given current economic conditions, local operators have expressed the urgent need to market directly to their customers’ unique preferences and react to local opportunities. If you’re wondering how Local Marketing can be leveraged for your business, be sure to read Doug Fergusson’s blog series on local marketing. He covers everything from “What is Local Marketing?” to how campaigns should be executed. Our guest blogger, marketing consultant and QSR magazine contributor, Roy Bergold, argues in his post that local marketing should be a part of every national marketing campaign. Later this month, we’ll be publishing a white paper on the tools needed for a successful Local Marketing campaign.

Trends Affecting Local Store Marketing

trends-affecting-local-store-marketing

I’d like to talk about trends in the QSR business and how they will affect Local Store Marketing. Now, you all know about technology, nutrition labeling, green, sustainability, and all those other easy ones. But, there are others.

Let’s start with the building. We began by serving people out of a window. There was no enclosure or even a canopy for the rain. We knew we had to do something when we found several customers frozen to the benches on the side when the spring thaw came. So, we enclosed the window with a winter front. There were still no seats or tables, so we built a restaurant for them to sit in. Customers were in too much of a hurry to sit around, so we built a drive thru. Now they could sit in one line, talk to a box instead of a person, and waste gas. They love it because they can come as they are and get their hamburgers. So, that’s the trend. It’s all about the drive thru.

How about trends in food? It used to be hamburgers, fries, and drinks. But then we had to eat more healthy food. What’s wrong with meat, bread, potatoes, and milk? Okay, so salads. Now mom can get lettuce with two packets of ranch dressing.

At McDonald’s, there was the McLean Deluxe — 93 percent fat free and 99 percent taste free until you put on some cheese and there goes the fat free.

Then there was breakfast. We couldn’t leave nature alone so we made the bacon round and the eggs square. It was an interesting problem in the commercials. Portions became huge like bladder busting drinks. Luckily we are becoming much more sensitive to portion size both from a food cost
angle and nutritionally.

And, then there was Ethnic: Mexican, pizza, fleas knees with your choice of dipping sauce. We have found out that we can’t serve everything, so we are returning to simpler menus, which is helping to speed up service. By the way, breakfast all day is also a trend.

Packaging should be all about food safety, temperature, and convenience, not marketing. Why should your logo turn up in somebody’s rose bushes?

And, then there’s advertising and promotion. You used to promote your store in your trading area. Then the company did it for you with television. Pretty soon the commercials were costing more to produce and run than the profit they brought in. And, 30 percent of viewers have the technology to skip your ads.

You’ve got the same problem in promotion. It used to be you could put Charley Brown’s face on a glass and have an instant success. Then customers figured out they could get a glass at the Dollar Store and it was costing them a lot more to get it at their QSR. So, no added cost promotions now. We are into discounting, dollar menus and competitive comparisons. Loyalty programs are the next trend along with charitable give back programs.

From all the ad and promo trends that are occurring, the answer seems obvious. You have to promote your own store the way you used to, Local Store Marketing. Get back to the basics.

In the old days, the operator was king. He made mistakes but he was never wrong. Unfortunately, there is a new king, Wall Street, the stock price. So, marketing is slave to sales and sometimes profit is forgotten in the confusion. We do dollar sandwiches, dollar any size drinks, and free fries. Can’t make money that way. Promotions that increase sales must also increase profits. And, that’s where Local Store Marketing
comes in.

The operator must become integral to the community. We must get back to speaking at service clubs, sponsoring community events, cleaning up around the stores, being sensitive to local food tastes like condiments. But, most importantly companies must provideLocal Store Marketing ideas and materials with every national program, geared to profit.

We need to find a signage and promotional material solution that allows the store to change its message on very short notice, so the store can react to a competitor or any other situation.

Point of purchase suppliers must profile stores and send only those materials that the store wants, needs, or can actually use. The LSM program must be linked to where the store is both ethnically and economically.

We need to become totally involved with the schools. One hundred dollars spent in a classroom brings you total loyalty. One hundred dollars to a national charity won’t even get you a thank you postcard.

But, don’t forget profit. One day I got a call from a manager in Milwaukee. He had a line out the door and around the building. I congratulated him but he said he was about to go out of business. In an attempt to sell more cheeseburgers, his owner was wrapping a dollar in each sandwich. Cheeseburgers cost about 39 cents at that time. His sales were great, but his profits weren’t.

Number of customers, number of visits, and what they buy equals sales and profits.
LSM can deliver all three if you plan your programs. You market your store today and don’t depend on anyone else. You become Mr. Restaurant in your community.

Roy Bergold is available for speaking engagements. Contact him at roybergold@yahoo.com.