CREATING A MARKETING PLAN PART 3
November 23, 2015
There are plenty of choices for people when it comes to food service. For years the “Dollar Menu” worked … you could go in and order 3 items knowing it would cost $3 and change … every time.
Then some very bright execs felt the concept was outdated so they updated it to a menu closely resembling the dollar menu, but cost more.
The “New Marketing Plan” caused customers with $3 and change to try to find somewhere else their $3 and change could get them 3 items. So they went to the competitor and they were surprised to find $3 couldn’t get it done there either and they went to the next one, same result.
Now all of a sudden there was a new “player” in the game. You could go in and out, pay a little more but was good food, so they piled in to get a taste of the new guy’s products and fell in love with the burgers and fries. Then came bottomless fries, with it’s appeal of endless servings.
Next there came the double drive-thru burger business with the checker board look and the pretty flags blowing in the gentle wind. Their burgers, with the delicious toppings, became an instant hit. No need to get out of the car, it was all drive-thru service.
The “Burger War” was in full bloom…
The only thing way to win the “Burger War”, not a battle here and there, would be to create the “Best Marketing Plan” the burger world had ever seen. That is what is going on right now … the “Best Marketing Plan” the burger world has ever seen is in overdrive.
So after all the distractions and failed attempts to get people into the doors … burger companies came to realize one indisputable fact, “It’s the price” and has always been “the price”. When the companies realize the cost matters to the consumers and fully market their products with that fact in mind, their cash registers will once again go “Ching Ching”.
While customers were wondering around looking for alternatives … they became familiar with food with no meat … WOW! Then came “Organic” food .
Then came “Casual Dining” (cost a little more) with a burrito wrapped or in a bowl where you pick the items you want or you could order double portions. The ambiance included little tables where you can be up close and personal with your friends or sit on a bar stool … like you had at home when growing up.
The “Marketing War” with it’s demands for more while paying less was in high gear. This “war” was self-inflicted by the “Giants” of the industry.
Look where they went…
Go by a Chipotle at noon or at 5pm, you will see the results of marketing at it’s best. Chipotle’s marketing plan is what we are going to call “Word of Mouth” marketing. In other words they only spend about 2% of their revenue on traditional marketing. Their marketing really works … even with some food issues in some markets … it still works … Word of Mouth Marketing works.
Word of Mouth Marketing works for many reasons including not talking about the food but about “Cause Marketing” … responsible farming. They promote the responsible practices used by suppliers and not their own products. This marketing appeals to the well educated clients or customers whose interest is in what is in the products, who supplies the food, and whether or not the products are filled with chemical injections.
Chipotle has a marketing plan that connects and the crowd of past “Burger” customers proves it works. Chipotle let their customers do the talking for them … what a master Marketing Plan.
Now back to the “Burger Wars” …
Faced with the new arrivals looking for the same dollars … the 3 top “burger” providers have decided to go back to the original concept of the “Dollar Menu”. With the “Dollar Menu” … a person could turn 3 or 4 dollars into a meal … and get a drink in the deal.
Wendy’s got it right … $4 get you 4 items including the drink … a type of or variation of the “dollar menu”. Their competitors have some variations of the “dollar menu”. However, a spot check of consumers we asked had one message for the top three, “Bring back the Dollar Menu and we will come back” … the real “Dollar Menu”.
Lesson here: If you use a marketing “hook” to get them in the door … for increased profits. That’s business. When you change that Marketing Plan, after years of using it … you will, more often than not, lose market share and mostly same store profits. The very reason you created the Marketing Plan in the first place was for additional profits and now with these changes, more profits appear to be elusive.
Once people are comfortable with your products, service and price … your Marketing Plan has to factor this in, especially in this economy. Any doubt? Look at the top three scramble to get customers in the door.
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