A proper Store Tailoring Plan will build transactions using each store’s strengths.
When you’re a regional QSR, everywhere you turn you’re being outspent. Turn on the TV and you don’t just see one of your McGiant competitors’ spots. You see two or three different versions for two or three different dayparts.
So, how do you compete?
The answer is Store Tailoring and geo-targeting. The McGiants are simply too large to go this route, plus they have the budgets to carpet bomb with their messaging.
You’re in business. You have customers who like, and even prefer, your brand. But in most of your markets, you don’t have the store penetration to effectively execute a one size fits all campaign. And now, more than ever, there are very effective ways to identify each of your stores’ strengths and geo-target the messaging.
You may have read my post on using Store Tailoring to compete in breakfast. Now it’s time to apply it to all dayparts and all products. Why?
Here are 3 good reasons:
- Because it works.
- Because many of your competitors are either too lazy or think they’re too busy to implement it.
- Because it positions each of your stores to win on its strengths.
Think about the marketing possibilities if you could group your stores in categories, such as:
- Ethnic stores that over index in certain products.
- Stores that over-index for breakfast sales.
- Stores that over-index for late night sales.
- Stores that over-index for sales of seasonal products.
- Stores that over-index for your signature product.
- Stores that over-index for your highest margin product.
You get the picture. With this information, you can implement geo-targeting strategies against the stores that offer you the best ROI against a specific demo, product or daypart. The reason you’ll achieve the best ROI is because you’ve identified stores that, for some reason (location, demographic makeup, competitive landscape, etc.), are already winning against a specific demo, product or daypart. You’re just stoking the fire.
So grab your best analyst and proceed as follows:
- Cumulatively index all stores (the chain) against your most marketable factors. Start with daypart mix and products.
- Then index each store against the chain’s cumulative indexes on the most marketable factors.
- Now you can easily group the stores that index highest on the most marketable factors.
You are now ready to develop your geo-targeted plan. If you have performance tracked against product or daypart promotions you’ve run in the past, you can use this to forecast your results.
Think about it. With Store Tailoring and geo-targeting, you could run your most effective breakfast promo against your breakfast stores at the same time you’re running your most effective lunch product promo against those stores. All your stores will now have increased transactions and success.