LOCAL STORE MARKETING

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1 What is Local Store Marketing? Local Store Marketing is a specific plan targeted to a specific group or groups of potential customers within a trading area to create awareness and initiate trial purchases of your product or service with potential customers right in your own backyard - the three to five-mile radius around each store location. Noah s Bagels Local Store Marketing efforts were a major part of growing Noah's number of stores. Duke Marketing developed a template to use in any new store location and programs to replicate and provide overall consistency and drive traffic to the stores. Grand opening materials and events were customized for each store and followed a chain-wide formula, which made each store part of its community from day one. Duke Marketing directed store opening special events for Los Angeles, Seattle and Portland markets Duke Marketing. All Rights Reserved. All trademarks are the property of their respective owners. 1

2 Why is Local Store Marketing important? Local Store Marketing is one of the most valuable tools a sales plan arsenal and is frequently overlooked. Many companies budget their local marketing efforts around Advo's, Val-Paks, and door hangers without examining the trade areas for sales opportunities. While using other marketing resources can produce results, Local Store Marketing is one of the most cost effective and proven tools to achieve long-term business relationships with customers and the community. Starbucks Coffee Company Duke Marketing developed a strategic marketing plan for Starbucks Southwest region. This plan included the development and execution of community relations plans and promotions. We also consulted on Starbucks Local Store Marketing template Duke Marketing. All Rights Reserved. All trademarks are the property of their respective owners. 2

3 Local Store Marketing programs are created to: Enhance the store's image in the community Increase customer loyalty Build brand awareness Grow store traffic, sales and awareness Develop involvement and recognition within the local community Rubio s Fresh Mexican Grill Duke Marketing handles public relations and Local Store Marketing for the 150-unit, publicly held, quick-casual restaurant chain, Rubio s. Duke Marketing develops specific target store marketing programs, provides General Manager training, and new menu introduction promotions as well as grand openings. Duke Marketing created a business to business catering program for Rubio's locations in Orange County and Los Angeles for the holidays. The sales, following the General Manager regional training and execution of the program increased 15%. Duke Marketing executed the grand opening programs for new stores. Their most recent, Folsom, has the most successful sales in the system Duke Marketing. All Rights Reserved. All trademarks are the property of their respective owners. 3

4 Local Store Marketing Partners The key to success with Local Store Marketing is creating community partners. Partners should include all of those business and nonbusiness organizations that interact with potential customers in the trade area. One can choose to reference the Yellow Pages, the Chamber of Commerce, local community newspapers, and even the building department to gather this information. Select businesses or non-profit organizations that fit with the type of service or products that business offers. Determine what kind of potential customers frequent the potential partner's place of business or interact with the activities of the potential partner. Focus on partner's whose customers/employees you would want to make their own. McKesson Corporation HealthMart & Valu-Rite Pharmacies Duke Marketing directed marketing, advertising and public relations for 5,500 Valu-Rite and 800 HealthMart pharmacies nationwide for the retail marketing group of McKesson Corporation, a Fortune 100 company. HealthMart and Valu-Rite pharmacies are licensed locations which sell branded products made by McKesson Corporation. The licensees are independent pharmacists. Duke Marketing created new brand positioning, national television, print and radio advertisements, and the first website for the brands and licensees. We created a Local Store Marketing plan, materials, advertisements and led regional meetings to present the concepts to the licensees Duke Marketing. All Rights Reserved. All trademarks are the property of their respective owners. 4

5 Public Relations and Local Store Marketing An effective public relations program consists of regular, and consistent contact with the editorial community. Regular contact with the editors to keep them informed about the product, business and direction, keeps the business in the news and the brand top of mind with customers. Strings Italian Restaurants Duke Marketing created a Local Store Marketing guide for this multi-unit (30) franchise/companyowned Italian Restaurant chain's franchisees including logos, artwork for advertisements, press releases and materials to assist each store with their marketing efforts. Duke Marketing produced radio and television commercials, and supplied each franchisee with locally tagged copies to run in their own markets. Duke Marketing also placed the media buys for the franchisees Duke Marketing. All Rights Reserved. All trademarks are the property of their respective owners. 5

6 How does Local Store Marketing work? Local Store Marketing is an on-going process intended to build sales over time in new stores, target stores or any store. It requires a consistent on-going effort and commitment. Local Store Marketing plans need to be specific, measurable, planned, coordinated, executed all year long, with every store, consistently. This process ingrains the brand in the local community and the customer's minds. If one builds or opens a store expecting guests to come in automatically becoming loyal guests immediately - the store will suffer. Local Store Marketing needs to be part of the store's life. It is about building relationships, giving back to the community, creating a venue for activity or entertainment, and serving the needs of customers within the 3-5 mile radius around the store for many, many years. HQ Business Centers Duke Marketing directed all marketing and sales aspects of HQ Business Centers, a 186-unit, $250 million, global franchise network of executive business suites. Local Store Marketing manuals, programs and tools were created for franchisees. Duke Marketing created a packet to attract new franchisees as well as a multi-media CD- Rom. The CD-Rom attracted new franchisees and worked as a PR tool. It generated so much interest that Tri-Com Pictures did a national television program "International Business Perspectives" with HQ Business Centers which aired in the U.S. and abroad Duke Marketing. All Rights Reserved. All trademarks are the property of their respective owners. 6

7 How do you execute Local Store Marketing plans and programs? Local Store Marketing plans and programs must be done with the operations team--regional, district, store managers, and franchisees. Determining their needs and ability to execute as well as timing is crucial to success with Local Store Marketing. The Local Store Marketing efforts should not burden the operators, but support them. Many marketing teams do not include this crucial role of operations, and the best plans and programs never see the light of day. Ultimately, it is about buy-in. Il Fornaio Restaurants Duke Marketing manages Il Fornaio, the 28-store Italian restaurant chain, public relations and Local Store Marketing in specific markets. One Local Store Marketing project was the reopening of the Hyatt Sainte Claire in San Jose, CA. Duke Marketing worked with the Hyatt Hotels, the City of San Jose and the redevelopment department of San Jose to create a 250 person event including a ribbon cutting by Mayor Ron and seven of his council members. The most recent Local Store Marketing project Duke Marketing is handling for Il Fornaio is the re-introduction of a 100 year old historic landmark hotel, Il Fornaio at the Alta Mira in Sausalito, CA, that will be home to Il Fornaio's private catering venue and Sunday brunch, 2006 Duke Marketing. All Rights Reserved. All trademarks are the property of their respective owners. 7

8 If Local Store Marketing is so great, why doesn t every chain use it? Local Store Marketing is challenging. In fact, most advertising agencies do not offer this service to its multi-location clients because it is difficult and is a long term project and requires a great deal of effort. It takes on-going commitment, creativity, and lots of work. However, the best part of Local Store Marketing is its rewards. Local Store Marketing can make such an impact on a community and drive sales, frequency, loyalty and awareness, that it can eliminate the need for other forms of advertising expenditures. Here is an example: ADVERTISING BUDGET McDonald s McDonald s has a tremendous advertising budget to create awareness, drive traffic, and increase sales. They spend little resources on local store marketing activities. Advertising is more short term. Stores in non-media markets suffer. LOCAL STORE MARKETING EFFORT Savvy Company The Savvy Company spends more effort on LSM to drive sales and awareness than it does on advertising. For one location or non-media markets, LSM is more cost effective. Advertising mediums are becoming more & more segmented, LSM is more cost effective. LSM is long term. LOCAL STORE MARKETING EFFORT ADVERTISING BUDGET Round Table Pizza Duke Marketing provided Local Store Marketing and developed programs for Round Table Pizza corporate stores, the fifth largest pizza franchise firm in the nation, with over 500 franchised and company owned stores operating in the Western U.S. We directed focus groups and research studies to determine the trade area market needs and created promotions and materials for events and programs Duke Marketing. All Rights Reserved. All trademarks are the property of their respective owners. 8

9 GET LOCAL STORE MARKETING STARTED! To get particular locations sales to grow and to generate awareness, a Local Store Marketing plan needs to be developed for store locations or trade areas. Objectives: Determine locations needing Local Store Marketing. Research areas and locations for plan development. Meet with GM's, franchisees, area managers to determine what has worked in the past, and gather information regarding store area, customer profile, etc. Create a test area of stores to test programs with strong store managers. Provide feedback from test stores. Develop specific Local Store Marketing tactics for stores/areas. Put together communications plan for store and work with GM to plan and communicate particular events to staff. Provide training for execution and implementation of programs. Execute Local Store Marketing plans per store and area. Evaluate results and determine next steps. Provide feedback to headquarters. Bear Rock Cafes Duke Marketing has developed local store marketing programs for Bear Rock Cafes with over 30 locations across the country. Duke Marketing also provides new store openings and public relations for the chain Duke Marketing. All Rights Reserved. All trademarks are the property of their respective owners. 9

10 Arby s Restaurants Duke Marketing was hired by Arby s largest regional franchise to provide local store marketing training to more than 40 store managers. Duke Marketing developed a tool kit and letter for managers to use to drive sales in their local markets. Jenny Craig Jenny Craig, the largest weight management service company in the world with over 648 company-owned and franchised Centres, hired Duke Marketing to provide local center programs for all U.S. locations. Duke Marketing created a new Local Center Marketing program for Jenny Craig to encourage doctors to refer patients. Duke Marketing created a doctor s brochure and patient brochures Duke Marketing. All Rights Reserved. All trademarks are the property of their respective owners. 10

11 WineStyles WineStyles, the nation s leading retail wine store franchise, with over 100 locations and more on the way, hired Duke Marketing to work with area developers on new store openings and local store marketing. Direct mailers, print advertising and events were developed and lead to several very successful store openings. Massage Envy Massage Envy is the nation s leading franchise provider of massage therapy services. Duke Marketing was hired to develop new store opening and local store marketing plans for California area developers. VIP parties, direct mail, complimentary neck massage and fundraisers were used to garner press, awareness and open these unique and convenient spas to the public Duke Marketing. All Rights Reserved. All trademarks are the property of their respective owners. 11

12 Pasta Pomodoro Duke Marketing was hired by Pasta Pomodoro, the 50-unit Italian quick-casual chain to provide Local Store Marketing and public relations including a store-wide community relations and local restaurant marketing guide. Duke Marketing also handled new store openings and fundraisers. Daphne s Greek Cafes Duke Marketing is currently working with Daphne's, the 50-unit Greek quick-casual chain to provide Local Store Marketing and public relations in the Northern California market, a new area of growth. Duke Marketing developed branded store opening events Big Fat Greek Fundraisers which raised money for non profit groups and awareness about the delicous food. Duke Marketing handles direct mail, events, community relations and store openings for this growing chain, 2006 Duke Marketing. All Rights Reserved. All trademarks are the property of their respective owners. 12