{New Marketing Tactics for Chili's and TGIF}

All of us are caught up in the discussion about how bad the current economy is and how we will survive this tough time. Recently, I experienced a practice by two brands who are doing things a “tad” differently to beat these tough times.

First, Chili’s.
Chili’s has a new promotion for two in which you get an appetizer, two entrees, and one dessert for $20. Of course it is a very strong offering, but like all brands, Chili’s also must be facing a reduced media budget. So what does Chili’s do? As I was driving by the Arapahoe and Parker Road intersection (in a Denver Colorado suburb), I saw a man passionately shaking a banner promoting Chili’s new deal. Wow. A brand like Chili’s, who always relied on TV promotions, is now taking their battles to the street corners and trying to drag customers into the parking lot, one car at a time. Simply an amazing adaptation to survive the modern times.

Next, TGIFriday’s.
No one will be surprised to see this offer from TGIF. But when I was recently in a Best Buy store, I saw a promotion to buy select in-store movie titles and included was a buy one entree, get one free coupon valid at TGIF. The titles listed in the promotion include Wanted, The Incredible Hulk, and other family movies. They’re on sale for $12.99 each.

So what are TGIF and Best Buy selling together? A great evening experience for the whole family: eat, have fun, and save a lot. That is bound to make a customer feel good about the brands making life easier for them.

Hence, the challenge is not the lack of resources, but how can we still make customers enjoy a fun moment with limited budget. If you think of similar deals, please let me know as my daughter and I would love to plan a fun father daughter evening with it.

{Does Marketing have a right to overpromise for Operations?}

Many a time when I think about Marperations, I think about Operations not being consistent. My recent experiences with my iPhone made me start thinking, when Marketing over-promises, does Operations even have a chance?

The AT&T dropped call story
Being a single dad and small business owner, most of the time I am on my cell. Lately, AT&T has made that a challenge. When I leave home and get to the intersection of Chambers and Crestline, my calls drop every time. As I drive on, I have discovered six spots within five miles of my home. AT&T has now made my life challenging. I am constantly trying to find new routes or have shorter conversations so that I do not drop a call before I get to the next drop spot.

Now look at these ads. They clearly state more bars and fewer dropped calls. Wake-up AT&T marketing! Why would you pick the one benefit to promote that you cannot deliver on?

McDonald’s Sampling
I think sampling is an age-old, proven method to introduce a new product. But does a brand realize that a promotion like this means Operations needs to have the flexible capacity to meet the demand? There could be one person or one thousand. Operations needs to fulfill every sample order to perfection, as only then will the customer decide favorably to come back and buy from McDonald’s.

JetBlue's Human Touch
Most airline employees other than Southwest employees have forgotten to smile. With the uncertainty of the economy and the airlines constantly coming in and out bankruptcy, I do not blame employees for being stressed. They are performing their tasks with fewer employees (it is called efficiency).
But in that context, when Jet Blue promises the human touch, it raises an eye brow. What were they doing before? Are they going to be any more human now? When my flight is delayed will they listen to me and make a sincere apology and walk me down to the nearest Starbucks at the airport and buy me a tall non-fat chai? No they will not. Then why the promise?

Domino’s / McDonald's Smiles
Domino’s pizza and McDonald’s have been advertising over the last few years that they serve smiles. Yes, it is good to find a pizza delivery driver who is professional and has a smile on his face as he/she delivers my pizza on time. But when was the last time a pizza delivery person smiled at you, unless you tipped him/her generously. Same with McDonald's. When I go through the drive-thru, after I survive the screeching noise made by the speakers, where I have to repeat my order three to four times, and make it to the pick-up window, finding either me or the employee smiling would be liking playing Where's Waldo. There is nothing wrong with a McDonald’s employee, but as they try to be efficient and gather all my food items and take the orders from the cars behind me, do they have an opportunity to pause for me and share a genuine smile?

Best Buy Knows

The Best Buy ads of informed “better than WalMart” employees always fascinated me. Hence this Saturday, I visited a Best Buy to purchase a GPS system for my car. As I entered the store, I realized it was going to be a challenge to find the “men and women in blue”. As I got to the car accessories section, found the GPS systems, and shortlisted my choices to three models, I needed help. I remembered the ads showing me these helpful “men and women in blue” who knew it all. When I finally found and flagged down a Best Buy employee, she looked at the GPS systems for a minute, and then explained to me that she would go get me the “right person”. After a wait, the "right person" came to save the day. He looked sharp and had a smile on. When I told him I needed his help choosing one of the three models, he started reading the information signs below each product. When he was ready, he started by reading aloud the information sign from the first GPS system. As he was reading about “lifetime traffic”, I pointed out to him that the other two also has the same text on their respective info sign. He paused for a second, looked at me, and said, “You are right.” Somehow, this time I was not happy to know that I was right. Finally his advice came down to, “this one looks like it has a bigger screen.” Now that is not what the ad promised. Why would Best Buy marketing advertise its informed team members, when in this down economy they, like every one else, are trying to stay profitable by controlling labor? The false promise goes even further to make Operations' life difficult.

Taco Bell and the Fresh Fruit Fable

This to me is the best example of a “over promise”. I saw the ad and went to Taco Bell for fresh fruit in my smoothie. I have to admit, if they had fresh fruit in any form, I would have been dancing on cloud nine. But instead I saw the team member add a spoonful of liquidy fruit filling to my drink. That was not real fresh fruit, at least to me.

When I look at each of the above examples, I realize the following three things:

1. In each case Marketing has chosen a fantasy message that will really connect with customers without taking into account Operations, who has very little chance of fulfilling the promise.
2. Marketing, in each of the examples, believes in getting customers in the door, but does not take ownership of the disappointment caused by over promising advertising.
3. A true test of marketing would be to identify what they can actually offer, that customers love, that will differentiate the brand.

We all know in the advertising world in U.S., puffery goes unchallenged. I can get away with advertising the world’s best pizza but cannot say that my pizza is better than Pizza Hut’s pizza. But does that still mean that marketing has the right to over-promise? Or does that mean that we consumers have become so smart that we can see through the ads and filter what is true, just as we see through a little child who walks in and tells us that he saw a blue monster in the street.

{Non-Profits: Seven Steps to Maximizing Fundraising}

1. Relevant awareness of non-profit

The target must know all relevant information about the non-profit. Here are some key issues to consider as the non-profit builds awareness:

The information should come to target first hand and not filter through second or third hand audience. That builds a connection.

The communication should be on-going and not one time.

The communication should start and precede any request for funds. Those who are made to feel like "insiders" will contribute more.

RECOMMENDATION:

EVALUATE CURRENT AWARENESS OF THE NON-PROFIT

 

2. Personal/social connectivity

It is very important that each target audience has an answer to the question: "Why is the non-profit important to me and why do I need to step up for the building of the non-profit". Many times when a target audience develops a "soft connection" with a cause they feel the following:

There are "many others" who will donate.

The non-profit will happen with or without my support.

After they take my money, I will not be in the loop any more.

RECOMMENDATION:

BRAINSTORM ON HOW TO BUILD THE CONNECTION

 

3. Replace current recipient of $/smaller contribution amount

It is a common fact that when a new cause is considered by a target, he/she usually starts by thinking "what can I do less, in order to accommodate this cause?" Hence it is very important to break down the contribution element into smaller chunks. E.g. for less than $14 a day, for only one year, you can make a lifetime contribution to the community by being a donor for this non-profit.

Facts like this, instead of a "high threshold of $5,000" will make the target audience think and see what he/she can do to include this cause in his/her choice set.

RECOMMENDATION:

REPOSITION SOME OF THE CONTRIBUTION AS PER DAY OR PER MONTH NUMBERS, INSTEAD OF IN ONE-TIME $.

 

4. Ongoing connection with the non-profit

Ongoing connection, both in the form of involvement and contribution keeps the "habit of participation" alive. This can be accomplished by:

Making contributions in installments

Sending periodic update of progress to the target (and treating him/her as a stakeholder in the non-profit)

Creating a website where the target can check progress anytime he/she wants

RECOMMENDATION:

WEBSITE WITH REGULAR UPDATE

MONTHLY REPORTING ON LOCAL WEBSITES

 

5. Issue/cause reaching out on a personal level (not mass communication)

The non-profit and its office-bearers reaching out personally offer the best chance for contribution. Mass-emails hardly work, unless forwarded by a neutral peer.

RECOMMENDATION:

CONTINUE TO REACH COMMUNITY LEADERS ONE AT A TIME

PENETRATE COMMUNITY LEADERS AND LOCAL BUSINESSES

 

6. Fundraising is full time job

Based on past experience, full time fundraisers are significantly more effective than part-time fundraisers (especially those who are not into sales).

RECOMMENDATION:

HIRE HIGH SCHOOL STUDENTS TO MAKE CALLS

BASE SALARY PLUS BONUS

 

7. The target receives a gift that he/she can display to mark the beginning of a commitment

This initiates a commitment (similar to an engagement ring) that:

Makes the target proud of his/her action

Acts as a reminder to his/her commitment

Helps him share his/her good deed with others in the community

RECOMMENDATION:

WHAT CAN WE GIVE TO DIFFERENT LEVELS OF DONORS?

WEBSITE RECOGNITION

MAGNETS (WITH NON-PROFIT NAME)

{Calling All Pizza Brands: Differentiate!}

In 1988, when I got my first job offer to work for Pizza Hut corporate in Louisville, I was introduced to the complexities of the pizza wars.  It is amazing to see that the members of the Pizza Hut team of 1988 are now at CMO level positions in at least seven major restaurant chains.  Outside marketing, the influence of COO Pat Williamson left a mark in my mind as a visionary who put guest experience first. Pizza Hut, as part of the YUM family, always took pride in being most marketing intelligent. If any brand could out market its competition, Pizza Hut could.

One of my corporate career's last stops was at Papa John's in Louisville, KY where I got to work Papa John's founder of John Schnatter. John's strength is his simplicity and focus on delivering an uncompromised product to customers.  When the guy whose name is on the box is the best pizza maker in the company and is focused on nothing but quality, the brand gets "better ingredients better pizza" rooted in its trenches.

Since starting consulting, I've had the opportunity work with Domino's to assist them with their database and online strategy.  Domino's to me is completely different than the other two pizza brands, as they are focused on delivery first.  In simple layman's terms, if it cannot be delivered efficiently, Domino's doesn't touch it.  No wonder they came up with hot delivery bags and the 30 minute guarantee (which is even used outside the U.S. by Domino's and their key competition).

I've also had the chance to learn from Sarah Grover of California Pizza Kitchen at MEG meetings. Sarah brings an added dimension to the industry as she, along with being a Marketing and Operations visionary, also focuses on harnessing operations to best offer an upscale pizza experience. 

In addition to these big name pizza brands I have consulted with smaller regional pizza chains around the country. With all this diversity of talent, expertise and vision, I expected the pizza category to be quite differentiated when I looked at 2009 Leaky bucket research results.  I was surprised to find out that the pizza category is becoming more undifferentiated.  The big three in the pizza category, led by Pizza Hut, drives the price points for most brands, hence price/value is at par for all brands, which suggests that in the mind of the consumer, no "one" brand has a better price/value proposition than the others. Even though half the category is composed of regional and local players, in the broadest sense, the category seems to be following the big three. Collectively, food and menu are the biggest drivers of non-positive future visit intent. (To review the leaky Bucket information visit http://www.zenmango.com/leakybucket.html.)

As I sit back, I think that if I were king of the pizza category for a moment, this is the direction I would move category to:

1. Pizza Hut:  Continue to focus on great pizza variety at a good value.  If a book is ever written on alternate forms of pizza, Pizza Hut would be in best position to write that.  Bring more new news to the category, Pizza Hut.
   
2. Papa John's:  Go back to the "Better ingredients and better pizza" (BIBP) strategy. I recognize that the BIBP strategy may be a decade old, and the rest of your competitive brands have reduced the gap on better ingredients, but I feel there are considerable rewards to be reaped by going back to BIBP.  Do what you do best, raise the bar Papa John's.  John, if you are listening, America needs to you make our pizzas better.  We are waiting as "Better" is never a destination, it is an ongoing journey.
   
3. Domino's: Stop trying to imitate Pizza Hut and offer new products that do not work.  What was that pizza-pasta combo thing?  Aside from being a great source for a carb-overload, that is not what we need you for.  Go back to being the leader in delivery.  Focus on delivery and be America's Pizza Delivery Company by offering great and speedy value consistently, every time.
   
4. Regional chains:  Try to free yourself from the shadow of the big three. Get to know your local tastes. Own regional events.
   
5. Local pizza places: Offer an experience that the big three cannot offer. Get personal and serve one customer at a time.  Be the "Cheers" of the neighborhood, where you know the name of every customer.