Local Store Marketing - Enabling Breakthrough Local Store Marketing

Enabling Breakthrough
Local Store Marketing
Throughout 2010 and Beyond
For franchise organizations, national brands and product manufacturers

As a franchisor, enabling effective and efficient local store marketing is critical to the success of your brand and business.

Putting the correct systems in place, to allow your local stores to effectively and efficiently drive local demand generation, should be a clear extension of your national brand efforts.

After all…
Successful,happy and confidentfranchisees directly impact your bottom line by driving healthier royalty revenue.
What’s more, satisfied franchisees are a huge selling point for future franchise development.

You know how importantconsistentlocal store marketing is to the success of both your businessand that of your local franchisees...
…and yet, you’re not currently successfully doing it.
Why not?

LSM Scorecard
First - Lets take a step back and look at your unique situation.
Answer the following questions to determine your current LSM score.

LSM Scorecard

Evaluation:
If your Local Store Marketing efforts scored less than 30 points, you need to reconsider your approach for 2010.

What will 2010 bring?
First things first.
In order to effectively revamp your 2010 approach, take a moment to consider the following 2010 predictions projected by the International Franchise Association….

IFA - 2010 Franchise Outlook
Half of the franchise business leaders surveyed expect employment levels to stay about the same, while 45% say they plan to increase employment.

Nearly three-quarters (72.5%) expect same store sales to increase in 2010, while less than 5% expect to see any decrease.

While 78% expect unit increases, franchise business leaders are less optimistic about opening new units in 2010 than they were a year ago (86%).

While the franchise industry is a diverse one, there are two commonly shared focus-points…
Marketingand Advertising
Brand Image: Corporate vs. Local
Successful Franchises?

For franchisors and their franchisees, effective marketing is of paramountimportance.
Franchisors need to ensure that their brand is receiving the national attention it requires, while franchisees need to generate local demand efficiently.
Simply put, your franchise organization's national and local marketing efforts need to be cohesivein order to maximize both salesandbrand awareness.
Marketing, Marketing, Marketing

As the corporate franchisor, you’ve spent significant marketing dollars developing and nurturing your brand.
Yourbrandand its consistencyis the core of your businessand that of your franchisees’.

Enabling your local franchisees to customize corporate-approved marketing materials to suit their marketing needs will allow them to drive demand-generation at the locallevel, while remaining in concert with your national brand (thereby, supporting your national advertising efforts).

The key to developing an effective Local Store Marketing strategy is to ensure it strives to maintain the integrity of the national brandwhile simultaneously supports and drives demand at the local level.
You must effectively combine local strategic planning across both direct and indirect media with powerful creative, that is easily customizable for local marketing.

Building a Local Store Marketing Strategy?
A local store marketing strategy is comprised of the tools, processes and guidance you provide to enable franchisees to drive demand generation in their local markets.
The primary elements of a local marketing strategy are:
Creative template development
and local customization
2. Local marketing planning and implementation
3. Reporting

Building a Local Store Marketing Strategy?
The most effective LSM strategies implement a closed-loop process that drives feedback from the local market back into an iterative LSM strategy development plan.
Note: In this ideal, closed-loop LSM process, the franchisoris driving the overall LSM strategy by enabling franchiseesto implement their local marketing efforts in the most effective, efficient manner possible.

Local Store Marketing Strategy
While this approach is strategically sound, most franchise organizations run into major roadblocks at implementation as a result of not having one single, integrated Local Store Marketing Platform.

CommonCo-op Marketing Strategies
Typically, franchisors implement their LSM strategy in one of three ways:
Develop and distribute LSM templates
Maintain multiple creative platforms
Implement a Local Store Marketing Platform

CommonLocal Marketing Strategies
Develop and Distribute LSM templates
Often due to the challenge of supporting a large franchise, franchisors resort to this classic “spray and pray” model
Positives:
+ Resellers receive a selection of templates to use locally
Negatives:
Franchisees must find their own vendors, develop their own marketing plans, negotiate media rates, etc. (all of which require skills that many smaller franchise owners lack)
Pricey – the additional steps required by your franchisee quickly add up quickly
Overall: This is the least effective method because it leaves franchisee almost entirely on their own to find vendors, develop local marketing plans, negotiate rates and finally implement local efforts.

2. Maintain Multiple Creative Platforms
Franchisor contracts with multiple media vendors to deliver marketing solutions to their franchises (often in the form of multiple medium-specific web portals)
Positives:
+ Involves multiple media forms (direct mail, pay-per-click, online, TV, etc.)
Negatives:
Incredibly time-consuming (when new media vehicles are added to the mix, the franchisor must create an additional portal, and franchisees must establish yet another new vendor relationship)
Places the burden of executing a true integrated marketing campaign on the franchisee while also tying them to specific fulfillment vendors (regardless of their level of service or price)
Fails to address the critical component of giving both the franchisor
and franchisee clear visibility into overall local marketing efforts
Overall: Overly time-consuming and fails to provide the franchisor with a comprehensive viewpoint of all local marketing activities

3. Local Store Marketing Platform
In this model, franchisees use a single system to access, customize and launch their local marketing activities across all media forms
Positives:
+ Brings world-class marketing and media to the local level by providing franchisees access to full-service media buying and planning experts
+ With interchangeable fulfillment vendors, franchisees are able to consistently receive the best level of service and price
+ Provides aggregated reporting functionality back to the franchisor – allowing for continual strategy analysis and improvement

Benefits of Implementing a Comprehensive Local Store Marketing Platform:
Full Visibility. Comprehensive insight into all local marketing activities across the network of franchisees including total spend, media selection and results reporting
Improved effectiveness of local marketing activities. Applying world-class strategic media buying and planning to local markets has increased the effectiveness of that local spend by over 40%
Lower marketing costs. National marketing costs are reduced up to 30% by dramatically reducing creative and distribution costs. For franchisees, creative and production costs can be slashed by up to 90% by eliminating the need for local production
Reduced marketing complexity. By sharing best practices across the network of dealers and simplifying marketing at the local level, franchisees are able to focus on what they’re best at—running their business
The Ultimate Solution - Benefits
< Continued >

Benefits of Implementing a Comprehensive Local Store Marketing Platform:
Increased franchisee participation in national marketing programs. A single LSM platform makes it quick and easy for franchisees to adopt the national marketing program(s). With an easy-to-use platform, franchisors can expect to double the number of franchisees participating in their national programs.
Heightened Brand Consistency. An LSM platform effectively maintains brand consistency across all local marketing activities, ensuring the national brand retains its value to the business over the long term, while still allowing for substantial local customization.
Improved Franchise Development. Offering a comprehensive, proven LSM platform is a very powerful tool for franchise sales professionals. Potential franchise owners are attracted to an organization that has local marketing “figured out”.
The Ultimate Solution - Benefits

Key Elements
What makes a Local Store Marketing Platform Breakthrough?
When considering implementing an LSM platform, consider the following crucial components:
Centralized Creative Asset Management
Full Cross-Medium Creative Customization (Ad Builder)
Local Media and Marketing Planning
Local Media and Marketing Buying
Direct Marketing Engine
Comprehensive Reporting

Key Elements - Checklist
CENTRALIZED CREATIVE ASSET MANAGEMENT
All creative assets should be available in a single location, including store logos, POP in-store material, photography, package designs, ad layouts, collateral material, audio, video or any other digital file.
FULL CROSS-MEDIUM CREATIVE CUSTOMIZATION (AD BUILDER)
Allow franchisees to quickly and easily customize all
creative assets for usage in their local market. Add custom photos, logos, copy, pricing, video/audio and other variables to corporate-approved creative market-ready materials.
DIRECT MARKETING ENGINE
Comprehensive list-management for existing customers and list-acquisition to generate demand drives business at the local level.

Key Elements - Checklist
LOCAL MEDIA AND MARKETING PLANNING
Comprehensive local media and marketing plans ensure franchisees are making the most efficient use of their local marketing dollars.
LOCAL MEDIA AND MARKETING BUYING
Engagement and negotiation with local media outlets and national marketing vendors ensures the best rates and most effective placement. In addition, it frees up franchisees to focus on running their business.
COMPREHENSIVE REPORTING
Complete reporting at both the national and local level ensures marketing dollars are driving true return-on investment and gives the franchisor clear visibility into all local marketing efforts.

Additional Elements to Consider
Integrated Marketing Calendar
Cross-medium Support
Interchangeable Back-end Vendor Management
CRM Functionality
P.O.P. Management
Creative Services At National And Local Level
Automated Alerts
Account Management
Franchise-specific Media Buying

Once you have selected a LSM platform, outlining your launch plan is immensely important.
Even the most advanced and innovative LSM Platform will failif your franchisees (i.e. the end-users) don’t adopt the platform.

Successful Implementation
Therefore, it’s critical to drive franchisee engagement before, during and after launching the platform.
The more franchisees you have involved the better! (A closed-loop LSM Platform becomes exponentially more valuable as more data is fed into the system by your franchisees – both lowering overall costs and improving your future LSM Strategy development).

Successful Pre-Launch
PRE-LAUNCH CHECKLIST
Involve the franchisee leadership council (directors, marketing council, key players) early in the definition and selection of an LSM platform. Early support by key players in the system will facilitate quicker adoption into the broad base of franchisees.
Identify several of your franchisee “leaders” and get them in the system early as testers.
Effectively design creative templates for brand consistency and local customization.
Analyze any barriers to entry and address them fully and prior to launch.

Successful Launch
LAUNCH CHECKLIST
Provide your franchisees with full access to training – they must feel comfortable using the system for true success. Utilize webinars, support lines and live trainings to get them engaged.
Capitalize on any early adopters of the system and quickly generate success stories and best practices that focus on how the system is driving business at the local level
Position your platform as a fundamental key to success for the franchisees and a major benefit provided by national marketing
Consider developing incentive programs to aid adoption

Moving Forward
An effective Local Store Marketing Strategy can and will drive incremental revenue for both franchisors and franchisees.
It is time to make LSM a strategic priority.

To learn more about LSM strategizing visit the Balihoo website www.balihoo.comor to partake in one our daily live demonstrations of our end-to-end LSM platform contact us directly at (877) 212-8019 Ext. 1.

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Local Store Marketing - Enabling Breakthrough Local Store Marketing

by Balihoo, Inc. on Jan 28, 2010

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Local Store Marketing - Enabling Breakthrough Local Store Marketing — Presentation Transcript