Archive for March, 2010

A ‘New America’ Calls For New Messaging

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diversityimageAs I read through a recent issue of Nation’s Restaurant News, I came across an article titled ‘Feeding the Needs of a New America‘. It discussed the upcoming US census and the data points that were likely to be revealed. The concept that the ‘average American’ has ceased to exist (from a marketing perspective) was pervasive throughout the article. In essence, our population has become so diverse that we’re unable to pinpoint a universal set of traits or behaviors that are applicable across the country. Thus, we can no longer send the same message to everyone. While this isn’t exactly a new concept, it looks as though we’ll now have the hard data to support it. The changing population centers, current economic conditions, demographics, and tastes are all impacting how we make decisions. So– what are we to do? The answer seems simple enough: alter your products and messaging to speak directly to the tastes and preferences of the respective local market. Ideally, marketing and messaging should be store-specific– the execution, however, is not that simple. You can read more on this subject in our local marketing series.

I’m curious: what are your thoughts on these findings? And– how are you keeping up with the ever-changing market?

Synergy of Services in Action

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synq-anatomyofpromoThe execution of large scale POP marketing programs has been a challenge for decades. Most retailers respond to these hurdles by developing extensive processes and procedures that are considered today to be the “proven” approach. While these entrenched methods may be perceived as safe, most oftentimes they are far from ideal as they have not evolved with changes in the retail environment. Are your proven approaches really the lowest risk if they harbor waste and inefficiency?

The execution of POP campaigns can be divided into several overlapping phases:

  1. Marketing Strategy – The practice of determining which products are of interest to consumers and how they will be sold, communicated and packaged.
  2. Creative Development – The process that translates the marketing strategy into graphic messages that can be published for printing or online use.
  3. Profiling – The process of matching specific marketing messages and POP elements to each store.
  4. Production – The translation of the creative work into actual POP elements.
  5. Fulfillment – The assembly of a group of specific POP elements that match the exact needs of a retail location into a POP “kit.”
  6. Shipping – The transportation of each POP kit to each retail location.
  7. Receipt and Installation – The receipt of the kit followed by the installation of POP elements prior to the start of the promotional campaign.

In practice, these steps tend to be chaotic and very dynamic; it is not unusual for retailers or QSRs to have hundreds of changes throughout the course of a single campaign. Meanwhile, the traditional buying practices of these companies tend to fragment these processes further as they seek to buy at the lowest price. The individual components may be at the lowest cost, but the net result is an inefficient and wasteful workflow.

Consider these opportunities:

  • Speed – Based on my experience, more than half of the time consumed to execute a POP campaign is spent waiting for one party or another. What is speed-to-market worth to you?
  • Cost – So much focus is placed on the per-piece cost of POP materials, and so little is placed on the total quantity ordered. Does every location require exactly the same items? What is the cost of the “extras” left over after a campaign because you are afraid to run out?
  • Time and Focus – How much time does your organization spend trying to coordinate the overall process? Would that time be more valuable spent on your customers?
  • Effectiveness – Do your marketing messages speak to local preferences? Are you keeping your campaigns simple just so they are easier to execute?

Consolidating the execution of multiple phases into a single qualified supplier provides the focus that is necessary to attack the inefficiencies inherent in this chaotic process. The cost and time savings that are derived can be sizeable; I have seen some companies save over 20% of the cost of their POP program by rethinking the entire process.

The consequences of something going wrong in a POP campaign can be very ugly, so it’s natural to want to hold on to your tried and true approach. However, the retail environment is changing and the opportunities for cost savings and improved speed, flexibility and effectiveness can make it worthwhile to leverage the synergy of services.

Menu Labeling Compliance: Qdoba Case Study

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qdoba2In this post, I’ll expand on the topic of menu labeling with a particularly relevant case study of one of our clients, Qdoba. Qdoba called on Synq Solutions to handle the printing, kitting, and fulfillment for the January 2010 promotion of their new ‘Craft 2′ and enhanced Kids Menu rollouts. The new Craft 2 menu displays a variety of smaller portion entrees for customers to choose from, with a number of combinations that are 600 calories or less. Qdoba also caters to health-conscious customers by offering a nutritional calculator on their website.

Qdoba’s requirements to present caloric information as well as the varying menu options and price points presented a complex production and fulfillment challenge. To prepare for the Craft 2 and Kids Menu rollout, Synq navigated through the variable data for the pricing and caloric requirements specific to the new menu offerings. In order to accurately account for menu variations within approximately 500 Qdoba locations, our system created over 3,000 unique print-ready files. Our intelligent profiling incorporated every variation imaginable, from price points, caloric information, nutritional verbiage and beverage options. Another challenge was the unique menu board and merchandising hardware per location (33 different sizes needed to be produced to accommodate the various hardware).

Synq’s unique Intelligent Profiling solution captured all of the individual store attributes and allowed Qdoba to rollout the Craft 2 and Kids Menu promotion successfully and within compliance to the various regulations specific to each locale, state, and city.

New Calorie Posting Requirements

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It took our government nine pages of the health care bill that was signed by the president on Tuesday to establish a single national nutritional standard for menus and menu boards. And this doesn’t include additional regulations the Federal Drug Administration is required to propose one year from now.

At least the new federal standards will eventually supersede the patchwork of existing menu labeling requirements. For national restaurants (defined as 20 or more locations), this legislation will require a change in menu design, unless existing local and state requirements already caused operators to undertake this exercise.

The good news for restaurateurs is that the national standard does not go into effect until next year. The bad news is that operators in California, Maine, Massachusetts, New Jersey, Oregon, Philadelphia, and a dozen other localities will be required to comply with varying local and state regulations until that time.

Tell us how you feel about the new federal menu labeling requirements.

The New Consumer

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The “New Consumer” is generating a lot of buzz in the retail community, but who exactly are they talking about? The term is being used to describe a range of changing consumer behaviors that are the result of several trends colliding:

  • Generation Y (ages 10-27) is beginning to drive retail trends
  • Social media has become integral to social interaction
  • The Internet is the starting and ending point for most purchases

Gen Yers are becoming influential because of their numbers (they are the offspring of Baby Boomers) and their ages (teens and twenty-somethings have incredible buying power).  Because of their emerging leadership position, nearly everything they want or purchase becomes fashionable.

Gen Yers are quick adopters of technology and have made the Internet and social media a way of life. They are more likely to text someone than to call them; they use social media such as Facebook and Twitter more than email; and they spend much more time surfing the Internet than watching TV, according to Forrester’s report, “Building Gen Y’s Multichannel Media Profile.”

Many consumers now use the Internet for virtually every purchase. They research products online, often using blogs and forums for additional product information or reviews. They use the Internet to purchase products they will pick up at a brick-and-mortar store (including QSRs). And whether consumers like the product or not, many are eager to post their opinion online, influencing thousands of peers in minutes.

This different way of communicating and socializing is creating some New Consumer needs and eliminating others. It is also changing the retail game when it comes to marketing to these New Consumers. How do you respond to this changing environment? Localizing your store messaging based upon store-specific profiles is one way to speak to New Consumers.

In my next blog, I will explore some ideas about responding to New Consumers.

Synergy of Services

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Even the most creative in-store promotion won’t be successful unless it’s executed properly – and that means it’s quickly delivered to the right place, in the right quantities and in perfect condition. This seems simple enough, but large QSRs and retailers who have thousands of locations, that are all unique in some way, understand the complexity of this task. The critical components of execution — print, fulfillment and shipping – must work together in what I like to call a “synergy of services.”

Throughout the month, we will be examining the issues around “synergy of services,” and how it can lead to greater efficiencies, reduced costs and more time to focus on your core business. We’ll be hearing from industry experts about best practices and innovative solutions that can help your business grow. So join the discussion. We want to hear from you!

National Menu Labeling Legislation

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*image from Center For Science in the Public Interest

With a national standard for menu labeling and supporting legislation up in the air due to the uncertainty surrounding the status of the health reform bill, several local jurisdictions are forging ahead with previously enacted legislation of their own.

For example, Philadelphia is requiring that nutrition information be disclosed on menu boards, and is fining chain restaurants $150 for violations of the city’s new menu law that requires caloric content be posted. Additionally, by April 1st, Philadelphia will require that menus disclose information on saturated fat, trans fat, carbohydrates, and sodium. Other states and jurisdictions have enacted similar menu labeling ordinances, including New York City, Maine, Massachusetts, Nashville, TN, Oregon, and Maryland.

Needless to say, we’re hoping that the federal standards will be implemented before more states and localities are forced to launch countless varieties of requirements. In the meantime, the patchwork of local menu labeling standards doesn’t have to slow down marketing processes. Just as POP, menu boards, take-out menus, and brochures can all be tailored to the respective restaurant’s unique needs (including products offered, pricing, location information, and physical layout), so can required nutritional information.

I’d like to hear from you: how is your brand or organization handling the challenges of menu labeling and nutrition compliance?