Tag Archives: marketing ideas

Marketing 101: Social Store Meets Local Store

On Thursdays, I have been focusing on content management. For today, rather than going into the next step in managing your content, let’s take a step back and focus on something every franchisor is trying to master: Local Store Marketing.

Local store marketing, in many cases, can be the difference between a make and a break for your franchisees. Similar to the art of networking, local store marketing is all about building a connection with your community and maintaining it for better branding, better sales, and better image over the competition (the list goes on, and on, and on).

I was talking with the general manager of an Atlanta-based sports bar franchise last weekend at a bbq at my apartment and thought some of this insight would provide valuable to those trying to master the art of local store marketing.

“We have had some difficulties generating a buzz for our location,” he said. “There’s a new restaurant opening in our area, which will cause some difficulties for us, as well.”

“No it won’t,” I fire back.

“No?” he asks, puzzled.

“Absolutely not. You want more restaurants to take up empty real estate by you because it will drive traffic. Right now, your location is crap. It has no other pulls. Sure, you have a steady flow of customers during convention season (the location is in a convention center complex), but now, you have another anchor who can potentially introduce your brand to a whole new breed of customer – locals.”

“Interesting,” he said, obviously hooked.

“Now is your time to capture some of the local audience before that restaurant opens. If you ever needed to market your location, now is the time. Go to all businesses in the area and give them a free appetizer. You could even offer them a free, open bar happy hour from 5 p.m. to 6 p.m. Get them in the door, tell them they have to bring a minimum of 10 people for free beer and wings. The cost of product is worth it to have these people snack for an hour and then stick around for more drinks and food for the game. Now, just as important is what I call Social Store Marketing. Do you have a personal Web site?”

“No, just corporate.”

“Get permission to create a MySpace, Facebook, and blog page where you can connect with new and existing customers, inform them of specials – including your open bar happy hour party – and grow the brand locally. What will happen is you will have a foot ahead of the new restaurant opening because now you will be the local place to go. And you will be connecting with new customers who didn’t even know you had a location there. Plus, you are sports, they are not. Go eat dinner there and come for drinks at your bar. Figure out a way to connect their guests to your brand – picket your location on Friday nights. Hand out cards for the big Sunday game. Get in front of their audience.”

Sometimes giving to get is the simplest way to form the bonds. And now, local store marketing is not limited to just in-person – it can be done virtually, and should be done virtually to capture the widest range of customer.

Denny’s Offers Eggs to Go. Good or Bad?

It seems to me that more and more restaurant chains are leaning on the success of others to improve sales in a bumpy economy. First Baskin adds soft serve, modifying the culture and concept its success was built upon. And now, Denny’s is trying to capture takeout audiences. While, on the surface, it makes sense to try to pull some of revenue McDonald’s controls, however, are these chains facing an expensive uphill battle?

WHY IT COULD WORK?

Well, from a PR perspective, the idea was great. It will ultimately create some revenue stream because of the media attention this story is collecting. Both national media and local media are interested in this angle because of Denny’s name recognition, and because it is a big move.

Right now, quick takeout breakfast options are limited. Mom and pops are scattered throughout the category, but McDonald’s and Starbucks seem to have a firm grip with chains like Burger King and Panera competing as well. Chains like Bob Evans are offering a similar distribution, but not on a huge national scale.

McDonald’s seemingly controls the category and fast casual breakfast segment, which means Denny’s will have an upward climb. Perhaps, though, it isn’t necessarily about making a ton of money. Perhaps it is more about creating a stunt to drive buzz and attention to the brand. Perhaps Denny’s doesn’t care if they sell one to-go order. Perhaps what they are focused on is creating brand awareness in the breakfast segment so that people remember they are a choice for that morning (or 24/7) breakfast option.

“More than half of time pressed Americans eat their meals on the go, but are forced to choose fast food because of busy lifestyles and time constraints,” the company said in the Forbes story.

True, but ultimately, doesn’t this turn into a fast food option? They say the to-go menu is limited, but then those items will be created in mass production. Hmm.

Denny’s marketing executives, take this another step. If you really want to create buzz, create a unique marketing link to the promotion. Rather than just offering to-go orders, revolutionize the way ordering takes place. Offer customers the ability to text their orders five minutes before pulling up and have a runner ready to bring their food to the car. Now, you are playing into new technology, speed, and customer service.

WHY IT MIGHT FAIL?

It’s going to be tough to compete with the McDonald’s of the world. I guess if you can snag a little of their revenue, you are still in good shape. The question is: At what cost?

Denny’s is launching a national advertising campaign (cost: millions), and will have to do a ton of promotion and marketing to educate consumers of this new trend. Now, if Denny’s launched a new prototype with a pick-up window, there might be something there.

Creating buzz costs money. Denny’s will have to weigh the positives and negatives of a campaign. Sure, with a rocky economy, chains must spend to make, but they are now entering a very tough to crack segment.

BOTTOM LINE?

If it’s a marketing ploy to drive brand awareness and the expectations are controlled, I believe this could work.

Could it have a better marketing spin like text message ordering or a new prototype launch?

Absolutely.

Would it make sense to challenge a segment in a better economy?

Probably not. The timing seems right because in a good economy, everyone is trying to get a step ahead.

Will I get a to-go order?

Probably not. Mainly because there is no Denny’s on my way to work. If there was, I might be willing to test it out as long as the service is quick.

But, the PR seems to be good.