As many restaurant chains struggle to ride out the most challenging foodservice industry climate in recent history, Papa Murphy's Take-'N'-Bake Pizza chain seems to be offering the right formula at the right time: convenient yet fresh and reasonably priced meal solutions. And from the marketing perspective, a local, community-oriented, franchise-owner approach facilitated by corporate has been no small factor in driving awareness and uptake of an already of-its-time concept, a chain executive tells Marketing Daily. The Vancouver, Wash.-based Papa Murphy's chain, which uses fresh dough and toppings to create pizzas that consumers take home and bake themselves, is bucking the declining traffic/sales trends impacting so many restaurant chains and independents. Those trends reflect both consumers' reductions in dining out in favor of at-home meal preparation and food retailers' aggressive moves to compete with restaurants by expanding into fresh, easy-to-prepare-at-home convenience foods. Indeed, a growing number of food retailers, as well as restaurant chains, are emulating Papa Murphy's take-home-and-bake pizza concept, according to a new Packaged Facts report on fresh convenience foods in the U.S. Papa Murphy's -- which was acquired by Lee Equity Partners in second-quarter 2010 and currently has more than 1,200 locations in 36 states and Canada -- reported that its 2009 system-wide sales grew more than 7% to $630 million, and that same-store sales grew more than 2%, even as trade media estimated the pizza restaurant category to be down by about 6% to 7%. According to the newly released annual Nation's Restaurant News (NRN) "Top 100" census report, that sales performance -- as well as Papa Murphy's new-store growth -- outpaced all pizza-industry competition for the year, and made the brand the only pizza chain among the top 10 in NRN's overall chain rankings. Now the fifth-largest U.S. pizza chain, Papa Murphy's opened 83 locations in 2009. Papa Murphy's has been voted "Best Pizza Chain in America" for seven consecutive years by U.S. consumers in Restaurants and Institutions ' "Consumers' Choice in Chains" survey, and is a four-time winner of Pizza Today's "Chain of the Year" award. The chain's ability to offer prices typically lower than dine-in, delivery or traditional carry-out restaurants is part of its appeal to consumers, notes Packaged Facts. Furthermore, its concept reduces overhead (no ovens, freezers or delivery trucks/drivers), providing relatively low-cost entry for franchisees. In Franchise Business Review's 2009 franchisee satisfaction ratings, Papa Murphy's ranked high among the top 100 major foodservice brands. Like other pizza chains, Papa Murphy's -- created out of two small West Coast chains in 1995 by entrepreneur Terry Collins -- relies heavily on print coupons/promotions delivered through mass-mailer coupon distribution programs, according to Evan Evans, VP, field marketing and corporate communications for Papa Murphy's. In addition, the chain encourages franchise owners to get local/designated marketing area TV spots that emphasize its differentiating message of "value, quality and freshness" -- prepared when the consumer/family wants to eat, rather than being determined by delivery services or pick-up times -- onto the air as quickly as possible once a new location opens, Evans tells Marketing Daily. But in marketing terms, Papa Murphy's biggest strategic differentiator from major pizza/QSR chains is local store marketing, says Evans. Corporate provides the 500+ franchisees, who on average own about 1.5 stores (only about 30 of the chain's locations are company-owned) with a library of promotional concepts/materials and training that enable them to create promotional partnerships with local, non-competitive businesses. For example, says Evans, a pizza franchise owner might provide a nearby dry cleaner with hanger coupon tags for a Papa Murphy's special deal or freebie, with the dry cleaner in return getting exposure for its own offers/promo materials in the Papa Murphy's outlet. Or a local dentist might receive promotional exposure in the local Papa Murphy's in return for handing out PM "reward" coupons to kids who have completed their dental checkups ... or a local hardware store might provide a Weber grill for a raffle, with entry tied to a purchase or offer at the local Papa Murphy's. "We are not a stand-alone destination -- our locations are about 1,200 square feet, on average, and typically located within strip malls," explains Evans. "But as mom-and-pop operations, we can take marketing to a much more personal level than a typical pizza chain or QSR. That personal touch takes us out of the 'chain' equation in consumers' minds, making us part of the community." Papa Murphy's also started an e-club several years ago, and offers promotions/deals in twice-per-month emails to a database that has now reached about a half-million brand fans, according to Evans. The chain is relatively late to social media, but has attracted about 25,000 fans since it launched its Facebook page in February, and is regularly engaging with these heavy brand users and monitoring/ learning from their "99% positive" comments, Evans says. Twitter is new to the chain, which plans to focus on leveraging that channel to a greater degree later this year or early next year, he says. "We also looked into Foursquare, but we don't think that's a great fit for us, because we don't have the several-times-per week frequency" of Starbucks or other coffee house/snack/breakfast formats, Evans adds.
Drury Inn & Suites, Hilton Garden Inn, Homewood Suites, Microtel Inns & Suites, Omni Hotels and The Ritz-Carlton rank highest in customer satisfaction in their respective segments, according to the newly released J.D. Power and Associates 2010 North America Hotel Guest Satisfaction Index Study. As the hotel industry begins to recover from the economic downturn, overall satisfaction among hotel guests has improved considerably from 2009, according to analysts. Many hotel chains were able to sustain relatively high satisfaction levels during the previous 12 months, despite contending with revenue declines and cost pressures caused by the economic downturn. "As the industry recovers and guest volumes increase, it will be critical for hotel chains to focus on effectively managing and delivering consistently high levels of products and services," says Mark Schwartz, director of the global hospitality and travel practice at J.D. Power and Associates. "When guests experience variation in service within a hotel property or across different hotels within the same brand, there is a notable detrimental effect on overall satisfaction." Now in its 14th year, the study measures overall hotel guest satisfaction across six hotel segments: luxury, upscale, mid-scale full-service, mid-scale limited service, economy/budget and extended stay. Seven key measures are examined within each segment to determine overall satisfaction: reservations; check-in/check-out; guest room; food and beverage; hotel services; hotel facilities; and costs and fees. Each of the six segments has improved in satisfaction in 2010 compared with 2009, with extended stay properties and mid-scale full-service hotels demonstrating the greatest gains. Across all segments, satisfaction with the costs and fees, reservations and guest room measures improve most notably. Notably, Microtel Inns & Suites ranked first for a ninth consecutive year in the economy/budget sector. Drury Inn & Suites ranked first for a fifth consecutive year in the mid-scale limited-service segment. Hilton Garden Inn ranked first for a second consecutive year in the mid-scale full-service category. The study finds that the proportion of hotel guests who make reservations online has increased in 2010, to 58% from 54% in 2009. Guests of extended stay-properties are the most likely to book their reservations on the Internet, while guests of economy/budget hotels are the least likely. Overall, hotel guests are more likely to book online using the hotel brand's Web site rather than an independent travel Web site. "Guests who make reservations directly through the hotel -- whether via phone or Web site -- are notably more satisfied with their overall experience than guests who book through an independent travel website," said Schwartz. "Most hotel guests who make reservations through an independent travel Web site indicate they do so because of price. However, twice as many guests experienced problems with their reservation when booking through independent sites, compared with hotel brand Web sites." The study is based on responses gathered between June 2009 and June 2010 from more than 53,000 guests who stayed in a hotel between May 2009 and June 2010.
Not only will consumers finally be spending more on back-to-school shopping this year, they'll be doing it in decidedly different ways. A new back-to-school survey from Deloitte reports that 28% of consumers plan to spend more this year than they did last year, and only 17% plan to spend less. "The overall tone was a little surprising, and very upbeat," Alison Paul, Deloitte's vice chairman and retail sector leader in the U.S., tells Marketing Daily, "with 8 out of 10 expecting to spend the same or more. Consumers told us they would buy some more expensive items, including PCs and cell phones, and we believe that is the result of their not having bought those things for two or three seasons." The study also found evidence that, in some ways, families are relaxing some of their financial vigilance -- with 58% saying they will buy more items on sale, for example, down from 90% in 2008, and 70% in 2009. "But more than two-thirds tell us they will either pay with cash or debit cards, so they are still very conscious of not wanting to overspend," she says. Families also plan to shop differently -- with 29% saying they will use their mobile phones to make shopping more efficient, up from 6% last year, and 30% intending to tap into social networking sites for shopping ideas, up from 10% last year. Consumers are heading back to department stores, with 31% planning to shop there, up from 26% last year. And while discount/value stores continue to be the most popular spot for back-to-school items, with 89%, office-supply stores moved into the second-most-popular shopping destination, while dollar stores -- the darling of the recession -- slipped. Only 33% of those surveyed will do some back-to-school shopping there, down from 40% last year. The back-to-school season is always considered a critical part of the retail calendar, but experts are watching the results even more closely this year, to see just how sturdy the tentative recovery in retail really is. Brand Keys, a customer loyalty consultancy, expects consumers to spend $584 for back-to-school clothing and supplies this year, a 10% jump. (A study released by the National Retail Federation earlier this month also predicted a 10% gain, with spending expected to rise to $606.40 per family.) But other experts are more tempered in their outlook. "We'll see a little bit of an uptick in spending this season compared to the prior year," Ted Vaughan, a partner in BDO's retail and consumer product practice, tells Marketing Daily, "but that's due in large part to just how bad last year was. We expect consumers to continue what they've been doing, like reusing -- 'Does last year's backpack really need to be replaced?'-- and cutting back, 'Do we really need to buy all these clothes and shoes?'" He also expect retailers to be extremely promotional in their efforts to win over back-to-school bucks. "That's why stores are already out there tempting consumers with special deals, including buy-one-get-one-free offers and other enhancements," he says. Kohl's is touting an additional 15% off school uniforms, for instance; Target is offering 10% off many college essentials; and Walmart.com is offering free shipping on dorm essentials and school uniforms. "The idea, for retailers, is to get 'em in early and build customer loyalty," he says, "not have them waiting for last-minute markdowns."
Michelin, which launched its first-ever global ad campaign last fall, is in the middle of rolling out -- so to speak -- the next phase of the effort. The latest element of the campaign, "The Right Tire Changes Everything," borrows a theme that is common these cash-strapped days in other segments of the after-market business. It is not that often one sees it in the tire segment, however, where the focus is usually on safety, fuel-economy benefits, weather benefits, and performance. But as companies in the motor oil, coolant, and of course, auto OEM arenas have done, Michelin is touting the virtues of product longevity. The new spot puts the Michelin Man in an animated world where the inhabitants face challenges brought on by failing to use Michelin tires. The rotund mascot helps motorists replace their current tires with Michelin tires that he extracts from his own body -- the message being that his tires help drivers to go farther. The campaign focuses on Michelin HydroEdge tires, the company's 90,000-mile warranty, and Michelin's assertion that the tires last 3,000 miles longer than a leading competitor. The company says 33,000 miles is about 10 times across the country, and that the average American puts about 13,500 miles per year on their tires. The ads in the new campaign are running on television, print media and on the Web. The company has been running the new spot, which breaks this week, on Facebook, and its YouTube channel. The global campaign, via TBWA, hit the road last October, first in the U.S. then in 55 other countries starting early this year. In addition to longevity, the campaign also focuses on the safety and fuel-saving benefits of the tires. Michelin is one of the two largest tire companies. The other one, Bridgestone, is also upping the ante. The company, which is deeply involved in sports sponsorships, has signed a five-year deal extending its relationship with the National Hockey League, which includes title sponsorship of the NHL Winter Classic.
Well, it's not surprising, but it's still a bit shocking. In the past year, Tiger Woods' likability appeal has been surpassed by feelings of negativity toward the scandalized golfer. According to Marketing Evaluations (a/k/a The Q Scores Company), Woods' appeal among sports fans is down by a third, and by 50% with the general population. In a year-to-year comparison, Woods had a positive Q score of 30% among sports fans, down from 44% in 2009. At the same time, his negative score rose to 39% from 15%. "The real question was, 'How far had he fallen?'," Steven Levitt, president of the Q Scores Company, tells Marketing Daily. "The answer is, he fell quite a bit. The speculation is that it's not going to get better soon, if ever." The picture is even bleaker among the general population. In February 2010, Woods' positive Q score was 16%, compared with 32% from a year earlier; his negative Q score rose to 49% from 16%. "When you start out being as high as he was, and then he has a tumultuous fall, 'What could possibly make it better?'," Levitt asks, rhetorically. "What's left? His personal life has been trampled on. His success on the golf course has evaporated." Last fall, Woods became enmeshed in a scandal that dominated headlines throughout the holiday season after the golfer admitted to multiple extramarital affairs, and received treatment for sex addiction. Several sponsors -- including Gatorade, Accenture and AT&T -- dropped Woods as a product spokesman, although some, like Nike and EA Sports, continue their relationships with him. Earlier this year, Woods rejoined the professional golf circuit only to underperform according to expectations. With his sinking Q score and golf's limited appeal among the general, non-sports fans population, it's unlikely that Woods' endorsement power will ever reach the heights it did pre-scandal, even if he does go on a winning streak, Levitt says. "Kobe Bryant has never regained his earlier numbers. He's been clean and good and successful, and his numbers never returned," Levitt says. "Where is [Woods] going to get his future endorsements? Golf apparel manufacturers, perhaps. The overall consumer products world is not likely to regain interest in him."
We all understand the need for Marketing to positively and directly impact the sales cycle and win ratio. This is still an area of challenge for many marketers. Two studies this past spring, the CSO Insights 16th annual sales performance study of 2,800 companies and an Aberdeen study conducted with 472 participants, brought to the light the need for marketing to do a better job when it comes to both quality and quantity of leads. When these are out of kilter, sales cycle increase and the lead-to-conversion ratio declines. Both of these are critical metrics for marketing to monitor, measure and manage. Our ability to affect these metrics is indicative of how well Marketing is affecting business results. Sixty-three percent of the respondents in the CSO Insights study reported that the quality and quantity of leads generated by marketing need improvement. The Aberdeen study found that 59% of the respondents don't convert enough leads to sales. The Aberdeen study revealed that Best-In-Class companies convert 44% of the leads to sales compared to an industry average of 26% and have experienced 8.4% year-over-year reduction in the sales cycle time compared to a 1.3% reduction by the industry average. What do the Best-in-Class do differently? Best-in-Class Marketing organizations embrace performance analytics, invest in training and technology, and streamline their processes in order to shrink lead turn-around time and response to customers. And they improve their understanding of the customer buying process and organize their marketing and sales processes around the way customers' buy. These six steps will help you engineer your pipeline around the customer buying process:
1. Create a detailed list of your customer's entire buying process. (customers in different industries or different sizes may have different processes, so one process may not "fit all.") 2. Organize the list in the order you think they occur. 3. Validate the process with your customer advisory council or board or other "friendly" customer. 4. Reconfigure your opportunity pipeline stages using the customer buying process so that your stages are linked to specific observable incremental customer buying behaviors. 5. Revise your lead scoring methodology to match the customer process to improve the handoff between sales and marketing, reduce leakage, and improve the conversation rate. 6. Synchronize your marketing and sales activities with the customer process.The Value of Pipeline Engineering Pipeline engineering helps identify where bottlenecks or gaps exist. For example, maybe there are too many contacts and the organization cannot process them quickly enough. Or there is a dearth of qualified leads indicating that the sales team won't be able to produce the needed number of deals. We can also use the pipeline to compare a program's performance to industry standards. Pipeline engineering allows you to calibrate your marketing and synchronize marketing and sales efforts. It truly is the first step in marketing and sales alignment. This methodology also allows you to take a more scientific approach to opportunity and customer development enabling you to understand what is happening in the buying process and where to make adjustments. Pipeline engineering enables you to manage opportunities and improve the lead-to-win ratio.