how to increase foodservice sales at retail

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A presentation dedicated to the BIG 4 of getting uptick and success in Foodservice Selling. - Selling Strategies - On Premise Marketing - Swanky Design - Powerful Unified Branding This presentation is geared toward C-Stores, Branders who wish to sell more food at retail, Supermarkets & Restaurant Chains

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  • 1. 2013 VGS Inc. All Rights Reserved

2. 2013 VGS Inc. All Rights Reserved 30 years Experience Visual Communication & Signage Specialists in multiple markets: Architectural C-Store Corporate Cultural Education Financial Healthcare Hospitality/Recreation Restaurants Retail Stadiums & Arenas Transportation BA VGS Today 3. 2013 VGS Inc. All Rights Reserved 105,000 Sq. Feet Manufacturing 150+ Employees Single Source Design, manufacturing, installation and maintenance all under one roof Innovation Expertise Proprietary technologies, design engineering & breadth of manufacturing capabilities BA VGS Today 4. 2013 VGS Inc. All Rights Reserved Design Capabilities 13 Full Time Designers Branding Environmental Design Store Dcor & Identity Programs Signage Systems Communication Strategy POP Systems Store Planning Interior Design 5. You need to take a brutal, honest assessment of your current environment and your level of customer service. What can possibly be more important than avoiding what fails and figuring out what works? 6. Some Questions To Ask Yourself 1. What are my current customers, or desired customers, perception? The customers perception is reality. How am I looking to change it? Social media and perception go hand-in-hand. If your customers experience is negative, their overall perception is negative. Social media reviews are instantaneous & can make or break you. 2. Are we taking risks? Why NOT? A mistake is a chance to improve the company Are there any opportunities to turn past or current failures into opportunities for course-correction and growth? 7. Some Questions To Ask Yourself 3. Are we making the customer feel important? If not, how can we improve to build repeat business? 4. Are we successful at the art of listening? Are we effectively using customer feedback to improve their experience? Are we even gathering customer feedback? 5. Are we thinking like our customers? What level of service do you expect when you are the customer? 8. Lets talk about how you lose customers Are we guilty of any of the following? Putting money or profits ahead of service Complacency by success (getting fat) Not listening (anticipating the answer before hearing the situation from your customers) 9. People buy for their reasons, not yours. There is only one point of view that matters, only one perspective that matters and there is only one perception that matters. The customers. Jeff Gitomer 10. Understanding the Convenience Store Shopper Research from the NACS Convenience Tracking Program (CTP) based on 15,000 shopper interviews at 600 stores across 40 states Every shopper out there has a mental Rolodex where they actually go and scorecard every retailer, said Kelsey Leroy Kelsey, director of industry analytics at NACS. And whether you become part of their consideration set is a reflection of how well you meet or exceed expectations. You are being judged on your ability to make that connection.* Findings from the second annual Technomic study on c-store foodservice show that significant gaps exist between chains doing a great job and those that arent. Some chains are solidly outperforming others in areas that matter to c-store consumers. *NACS Magazine, State of the Industry Summit Results, June 2013 11. Understanding the Convenience Store Shopper These glaring disparities exist in some of the following criteria that consumers say drive their choices: Food taste, visual appeal and flavor Clean, inviting and safe environment Service and hospitality of the staff Ability to provide value through high-quality menu items You cant know what your strengths are until you acknowledge your weaknesses *NACS Magazine, State of the Industry Summit Results, June 2013 **CSP Magazine, Thats a Mouthful, Angel Abcede and Abbey Lewis, May 2013 12. WOW is your ability to differentiate yourself in the market; to get your customers attention. How To Build On Your Strengths and Aim For 13. Branders in Foodservice Environment 14. Soup Variety Is A Key Driver of Menu Incidence Bakery/Cafs sell as much or more soup than any sandwich shop; Panera significantly more. Sandwich Shops vary widely (1.3% to 9.5%), with Quiznos at higher end of range at 6.9%. Average Subway stores sell less soup than other Sandwich Shops. High Soup vol. Subway stores sell more like competitive Sandwich Shops. source NPD Crest 3/09 data provided) *(source Campbells from APT) ** (Other Sandwich default NPD/Crest = 1.3%) *** (other Bakery Caf default NPD/Crest = 9.5%) Low Soup Incidence High Soup Incidence Groups: Subway Sandwich Shops Bakery/Cafes Retailer Avg. Soup Vol. High Soup Vol. Fire- house Pot Belly Quiznos Cosi Tim Hortons Atlanta Bread Au Bon Pain Panera % Soup Menu Incidence 1%* 3.5%* 1.3%** 1.3%** 6.9% 9.5%*** 5.0% 9.5%*** 9.5%*** 34.6% Avg. # soup varieties daily (audits) 1.4 1.9 1 2.1 3.3 2.8 3.9 6 8 5.7 1% 1.3% 3.5% 6.9% 9.5% 34.6% Avg. Soup stores High Soup vol. stores 5.0% 15. Diminishing Returns # of Varieties and Soup Menu Incidence 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 6 7 8 9 %SoupMenuIncidence Avg.# of varietiesAvg. Soup stores High Soup vol. stores Source: NPD Crest 3/09 data provided) for Menu Incidence. # Varieties from Edgewood retail audits Strong correlation with # of soup varieties offered and % soup menu incidence With exception of Panera, diminishing returns appears to set in after six varieties 16. Define Your Message Branders in Foodservice Environment 17. Execute at Multiple Touch Points (results were measured at 1500 test sites) 18. Final tagline selected was Square Meal- Round Bowl Subway decided on a single touch point strategy at the actual point of sale and decision making zone. The chosen product selected was the tasting kettle Concept allowed for trial - before purchase- and also caught the customer at the point before they are even choosing their bread for their sandwich and weighing what combo they wanted to go with Test locations moved up to 4 soup selections with rotations on flavors- which were also marked magnetically on the kettle. Final results- low volume stores increased to a 3% incidence and high volume stores moved to 6% soup incidence. In line with that of the target and closest competitor Quiznos. Final Selections and Results 19. Technology-Driven Strategy 20. Identify sales goals Sell more coffee- across multiple day parts Minimize the waste of product Build shopping basket with complimentary sales Developed digital messaging system, along with changeable seasonal and promotional graphics for on the fly change, day parting and vendor support. Expanded day part messaging and built basket with complimentary add-on products at the point of decision. Chose to brew differently for different day parts- am full selection, other day parts reduced selection- but promoted flavoring with recipes. Find their unique selling proposition and effectively communicate it That Solution was a New tagline: Coffee Made Personal Technology-Driven Strategy 21. Why use Technology? There must be a reason or objective for it- not just for the sake of technology. Examples such as Day Parting strategy Frequent Price changing Strategy A way to monetize the technology with sponsor support A better way to communicate promotions and a mix of some animation and moving content It should be simple and basic and focus simply on produc, price and promotion It should be easy and cost effective to use- especially hidden long term maintenance and licensing costs Technology-Driven Strategy 22. Magnetic Alignment Technology & Simplicity 23. Magnetic Alignment Technology & Simplicity 24. Establish concrete goals Define your positioning Deliver that message consistently across different platforms and multiple touch points Invest in technology to respond immediately to customer needs & program changes 25. You always hear corporate speak about service and quality, but WE must turn our attention to EXPERIENCE. Creating a well designed experience is the beginning and end of value added. Brands like Apple dont sell computers, they sell an experience Love at first Sight; I have to have that or try that Design for the 5 senses; see it, hear it, smell it, taste it, feel it Reinvent / break from existing paradigms When attempting to differentiate yourself in the market, always lead with what you want your customers experience to be. 26. Reinventing the Drive-Thru Experience 27. Reinventing the Drive-Thru Experience 28. Reinventing the Drive-Thru Experience 29. Former Ferrari CEO- Gian-Luigi Buitoni coined the term DreamKeting. So- What is DreamKeting? Its the marketing of dreams A dream should startle and surprise you It is the art of telling a story and entertaining Promote the Dream - not the product Building Buzz create gotta have it/try it 30. Re-imagine your new project assignment and do not rest until it delivers the test of DreamKeting. Take this example of Maxwell House business process vs. a Starbucks business process Coffee Experience 31. Marketing Dementia *Convenience Store Products Magazine, Marketing Dementia, Gordon Wade, May 2013 Gordon Wade, Managing partner and director of best practices, Category Management Association, explains a new phenomenon with Todays marketers described as marketing dementia, which is defined as the loss of memory about what has worked and what has not worked in the store. According to Gordon, We never analyze anythingand when the promotion is over, we forget about the measurement. Then the next year, we do the same thing all over again. If you recall, the definition of insanity: is doing the same thing over and over again and expecting a different result 32. From the entrance to the exit, each sign, point-of-purchase display, menu board & graphic plays a crucial role when communicating to your customer. When used together, they create a powerful visual communications system that can educate, inform and direct your customer, while enhancing your brand. The Trade [TM] Marque Signage System was created specifically for the institutional foodservice market. The goal is to bring the retail look and feel to the non commercial caf setting.. This type of holistic system provides multiple customer touch points, along with a hierarchy of messaging two key components to a successful marketing campaign and in store communications program. System Selling Increase sales and brand image with a complete Visual Communications System 33. Institutional Foodservice Promotion 34. Watch for signage pollutionmonitor the signage all around you for examples of clear direction vs. clutter and mis-direction Each organization should have a posse of design cops they should be looking after your brand to stomp out all criminal enterprises of Lousy design and poor communication. My goal even as a signage manufacturer and designer is to sell you less signs you should be able to reduce your overall messaging, and buy/post less signs because the program is focused, organized, clear and effective 35. Power of Promotion- National Burger Days May 30th and 31st Promotion & Measurement Develop Tools to replicate or course correct Total system revenues increased an average of 6% over the previous weekj with a number of locations increasing sales between 14-17% System retail revenues increased by an average of 75% on the second day of the promotion, over the first day The burger promotion itself, generated a gross profit of 49% Every sites revenue increased over the prior weeks two day time period 36. Another Promotional Strategy- If you can get a customer to laugh or smile, you can get them to buy. Nothing builds rapport faster than humor. 37. Aim to market dreams and experiences Shoot for the WOW factor Have a sense of humor & entertain Promotion, advertising or in store systems should have a measurement protocol attached to it Post a subtraction box in your company, like Wal-Mart, and aim for clear messaging and clarity 38. Most people consider design as a surface thing, a way of just making things prettier; an after-the-fact cosmetic makeover thing. But good design is the opposite of that. Design should come first. Design drives and defines your enterprise and your basic value proposition 39. Coffee Concept Development 40. Coffee Concept Development 41. Coffee Concept Development 42. With great Design, consistency is key- it should be unified, organized and well thought out Its the small details that make a Design compelling Design should always- Attract, Inform & Motivate Design should create calls to action NOT just prettifying 43. Branding is about MEANING not MARKETING. You need to start by defining yourself, for this is the heart of BRANDING. 44. Who are you or who do you want to be? What is your service or product all about? How are you unique? If you are not unique, why bother? How can you make a dramatic difference in your category? Define yourself 45. C-Store Branding & Design 46. friendly, fresh, fast, with a New England feel. Seasons not only serves the traditional c-store customer (on the road, traveling through), but their unique offerings also attract a wider audience, including college students, techies, working moms and white collar professionals. Much like the seasons within New England, Seasons Corner Market is ever-evolving and offers a great selection of c-store staples, as well as supermarket-quality choices and seasonal offerings- all delivered at a c-store pace. Overall Positioning 47. The grab-n-go food and beverage quality and selection is excellent, fresh and price-competitive It offers convenience along with fresh supermarket essentials all with an upscale twist Value Proposition 48. The stores are clean and bright with great lighting, unique colors, assorted textures and materials such as warm woods, slate and stone The bathrooms are immaculate, with special locks that provide assurance of safety and security. After I grab my essentials what I need from inside the store, I can also fill-up my tank with gas at competitive prices. Seasons Market employees are friendly and attentive, with a focus on being helpful and offering fast service. The Experience 49. C-Store Branding & Design 50. C-Store Branding & Design 51. C-Store Branding & Design 52. C-Store Branding & Design 53. C-Store Branding & Design 54. 2013 VGS Inc. All Rights Reserved Page 63 Project Showcase 55. 2013 VGS Inc. All Rights Reserved Page 64 56. 2013 VGS Inc. All Rights Reserved Page 65 57. 2013 VGS Inc. All Rights Reserved Page 66 58. 2013 VGS Inc. All Rights Reserved Page 67 59. 2013 VGS Inc. All Rights Reserved Page 68 60. 2013 VGS Inc. All Rights Reserved Page 69 61. 2013 VGS Inc. All Rights Reserved Page 70 62. 2013 VGS Inc. All Rights Reserved Page 71 63. 2013 VGS Inc. All Rights Reserved Page 72 64. Find your unique positioning statement and selling proposition Keep the message simple and consistent Lead by keeping your word and brand promise Treat branding and design as the Soul of your company or product 65. Commit yourself to design, creativity & unique solutions Be a leader & take risks Be memorable in all you do Most importantly, have fun