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Topic: Advertising/PR

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Help For A Failing Retailer

Posted by weeza100 on 125 Points
I have been asked to prepare a marketing plan for a failing retailer (butcher).
Situation: New retailer in small sub regional shopping centre. Brand new fit-out, located outside a large supermarket in a medium traffic flow area.
Product: All meats, restaurant quality, not cheap.
Demographic: Mostly over 50's. Above average per capita income in area
Competition: high level competition in immediate trade area
Problem: Not making sales! Has suffered from poor staffing and customer service. New employees have been put in place, better but not great. Is suffering from lack of identity, branding and awareness. The owner does not want to heavily discount prices and give the impression they are selling cheap product.

How then can I implement a strategy to increase sales and where do I even start? Budget = unlimited!

  • Posted by Steve Hoffacker on Accepted
    weeza100,

    Maybe walk-in business is not the answer initially. Instead, look at other ways to generate business and then maybe the public following will come. For instance, maybe your client becomes more a specialty, delivery business for discerning families and consumers, high-end restaurants, clubs, etc. Possibly he can cater some business functions. Get the name out there as a quality meat market, then people will travel to it. If you rely just on foot traffic, I think it's too much to ask.

    Steve
  • Posted by weeza100 on Author
    Thanks Steve,
    The shop has been selling to some restaurants but you're right, these opportunities should be used as marketing opportunities to get the name out there. The only problem being that sales to restaurants, functions etc provide a much lower profit margin than walk-through traffic.
    I definitely think that in this case the main issue is getting the name/brand out there as customers will travel and will be loyal...but branding a butcher is proving to be harder than I had thought!
    I have just been brain-storming a little and was thinking that a repetitive media spend (it is in a regional area where local press is very effective) over a few months that could include a recipe tips column or the like may be effective?
    Any other ideas?
    Thanks,
  • Posted by Marketing-Riot on Accepted
    Internally, what programs have been developed to retain and train the best employees? That's a great place to start on the sales/customer service side of things.

    Catering is a great idea - many of our most popular shops where I am located have entered the catering field.

    You will definitely need to brand and promote. I can think of 3 butchers in my immediate area who are know for their quality products and they have built their reputations over time.

    Do they offer any type of special services such as order ahead and home delivery. Could go with a promotion about being a "cut above" the rest...for the discerning taste, etc. Similar to Omaha Steaks programs if you are familiar with them.

    Also, offering specialty semi pre-prepared meats (bracciole and similar) has helped local shops - can't get the product elsewhere.

    How is the shop set up/decorated? We have a "country butcher" that does very well because of the selection of other specialty products available in the store plus the homey, old-time general store feel of their shop.

    MarketingRiot
  • Posted by CarolBlaha on Accepted
    You will have to focus on what differentiates you. Why choose your store vs the local chain grocer. Everything you/he does is marketing, so make sure the employees "get it" and the look of the store conveys "this place is different".

    Recipe ideas is good, feature products that the supermarket doesn't have. I could see it as a regular feature in a local radio spot or newspaper. People get confused over meats and how to cook.

    For example, I wanted to do a pig roast-- the chain grocer looked at me like I had two heads when I inquired about buying a whole pig. The grocer knew how to order it and tell me exactly how to cook it. I didn't even try the chain for a standing rib roast-- a very pricey piece of meat.

    I'd try "freezer specials", bundling cuts of meat for saving packages. Chains can't do that. Add marinades. There is a meat store in South Denver, Colorado called Tony's-- very successful in this niche-- always packed. I'd learn more about their model and see what you can incorporate in this store.

    People will spend more for quality and service. The employees should know their product inside and out.

    Hope that helps, Carol
    Sell Well and Prosper tm

  • Posted by NoStressXpress on Accepted
    In my opinion the lack of traffic can be attributed primarily to your client's proximity to a large supermarket. Since you say your client's prices are high most people over 50 will buy their meat from the supermarket! Of course, that is just my opinion but I am reminded that LOCATION, LOCATION, LOCATION are the 3 most important things to a brick and mortar business.

    In order for your client to attract restaurants as customers more effectively he/she should consider becoming a wholesaler. I've seen wholesalers located in some of the dumpiest areas and yet they have a steady flow of traffic that is quite enviable.

    Also, if your client is targeting baby boomers I would suggest that he/she start offering products that are perceived to be more healthier such as "organic" meats, poultry, and fish. This will do a lot to justify the higher prices.

    With regards to employees I am finding it hard to see why poor customer service is responsible for lack of traffic/sales IN THIS PARTICULAR CASE. You did mention that the client hired new employees with no significant change in results. Could it be that the lack of traffic convinced your client that poor customer service was the cause? Is the root cause something else? (advertising, price, promotion, merchandising, internal/external marketing communications, USP, value proposition, etc, etc?). Or, does the client believe that his/her business is satisfying an "unmet" need in the minds of the customers?

    I can empathize with your task of developing a marketing plan for your client. I can consider it to be very challenging and I suggest you increase your chances of success by (1) determining the "root" cause of the problem and (2) developing a plan that eliminates the cause(s) that your client will take ownership of.

    I hope this helps.

    Conrad



  • Posted by jcrooks on Accepted
    This suggestion isn't as sophisticated as some of the others you've received, but a similar shop in my area tried offering a package deal which I believe was successful.

    Following the lines of a "stock-up sale", they put together a sampling of steaks, roasts, hamburger patties, pork chops, sausage, etc. for a $99.99 price. The quantity of items included made it seem like a great deal, and all those who tried it saw the difference between their product and the adjacent Wal-Mart's meat selection. It was a powerful way to encourage local residents to try them out, and ultimately switch.

    Just a thought,
    jcrooks
  • Posted by peanutpeanut on Accepted
    the deal here is service service service and of course a great selection. and once a week they should have specials on a bunch of items. Also why not give seniors let's say anyone over 60 a discount of 10 oer cent a week.
    I do not think the location is all that important if you make the shop a destination shop and that will work if the area has the population base and the service and the product. i speak from personal experience. there is a major butcher shop where you shop for our meat. the location is not great but the service, the quality of the product is outstanding and boy do they do a roaring business. One example of service. My wife and wanted veal to make veal scallopini, they did not have it but they got it in for us within one day and phoned when it was ready. we always will remember that and of course we have become regular customers. the chain stores for the most part do not offer that service.
  • Posted by MONMARK GROUP on Accepted
    A. He is failing.
    B. He refuses to lower prices as it would seem to lower his value proposition.
    C. Refer to "A".

    Business is hard. One must accept the facts of business, and one of those facts is that your competitor knows your weaknesses, and is capitalizing on them.

    When was the last time he performed a marketing audit of his company? Has he performed a SWOT? It seems that he does not understand his competitor. Tiger Woods was asked in a recent interview: "When you approach a tournament, do you believe you are going to win?" The answer is "Yes, of course". But, more than that, he acknowledged..." I am out to destroy my competition, not just beat them."

    He has a differentiator or two that his competitors do not have: 1) the strongest ability to win. 2) the strongest commitment to win. He understands the weaknesses of his competitors, and capitalizes on them.

    Your butcher must do the same. Where are the weaknesses? How can he capitalize on them? Quality, Old Fashioned Family Service, Home Delivery? Who knows.

    As has been suggested, find the differentiator and capitalize on that.

    Randall
    WMMA
  • Posted by Tracey on Accepted
    I agree whole-heartedly with marketingriot. The good news is, the "foodie" market, who appreciates high-quality meats is really big today. Especially if you're located in/near a metropolitan area. You can justify high cost but you have to show that you are not selling the same product as the grocery store. Words that come to mind -- organic, grass-fed, boutique, specialty cuts, etc.

    Catering and semi-prepared foods is a great idea.

    The grocery store chains Whole Foods and Bristol Farms do a good job of marketing high-end foods like this. I would take a look at what they're doing. Bristol Farms, for example, offers special events in the store like wine tastings. Perhaps you could have some sort of sampling event? If your store isn't an appropriate location, maybe you could co-host an event with a restaurant you supply meat to.

    A newsletter with recipes and articles on specialty meats would be cool - something I would read. You could also appeal to the healthy eaters who are concerned about hormones in their meat.

    Again, I think the biggest point you have to drive home is that this isn't just meat for your average Tuesday dinner - it's gourmet. IMHO, your marketing should follow suit -- it should be very classy. My guess is that elegant events and news items would be a better fit than coupons and sales.
  • Posted by weeza100 on Author
    Thank you Sooo much for your responses, I couldn't get to my computer until today and I was overwhelmed, it's really great.
    They have prompted me to think that the root of the problem is in the owner...he has gotten in so deep now that he is dejected and has absolutely no drive or motivation. He is considering just handing the keys to the business to someone else and walking away.
    So, I really first need to increase his motivation as there is really no point constructing a fantastic marketing plan for someone who does not have the drive to complete it.
    Any ideas of how to achieve this?
    I was also thinking, since it is an absentee owner, he needs to introduce some kind of incentive based system for his employees to ensure they are achieving set goals.
    Again, thanks so much for feedback, it's great
  • Posted by MONMARK GROUP on Member
    Absentee owners generally check the bottom right-hand corner of the P&L, as their primary guidance in business decisions. They, in my opinion, are not close enough to the true market to make rational decisions, early enough to realize what is happening to their business, to their industry.

    I am very close to one of the largest, independent grocery chains, in the US. I have learned to understand many of the intricacies of this industry. I know that a company, such as your client's firm, if not aggressive and competitive in the market, will absolutely fail. I know that most people will purchase their meat from the supermarket where they usually shop. It is unfortunate, but specialty butchers and markets are rapidly going away.

    But, you know this.

    The incentive based system you suggest, can be created and implemented, but I do not believe it can be truly realistic without its insertion into a comprehensive marketing plan. Otherwise, he is creating incentives based upon his judgment, which you described, and as I have understood, is not the best in the industry.

    His employees, who are committed to the company, and are working diligently for its success, regardless of what ownership is doing, deserve to have a strategy, based on the reality of the market. They may even know more about it than the owner...I would use them for my research.

    Start with a marketing audit. It will tell you a lot about the market and the marketplace. From this, you can create your MPlan.

    All the best.

    Randall
    WMMA
  • Posted by CarolBlaha on Member
    You can't increase his motivation. That is an internal decision. And it shows-- you mentioned the employees really aren't doing their best.

    Create a plan-- and I don't believe he has to compete on price and price alone. Create a plan that differentiates. And be up front-- tell him if he isn't committed to turning this around-- pay you for your time and make the plan part of the package to the new owner.

    Carol
    Sell Well and Prosper tm
  • Posted by carrie77 on Moderator
    Hi Everyone,

    I am closing this question since it's more than 2 weeks old. We do this to reward the contributions of participants in a timely manner + to give increased visibility to the newer questions.

    Thanks for participating!
    Carrie (Production Editor)
  • Posted by carrie77 on Moderator
    Hi Everyone,

    I am closing this question since it's more than 2 weeks old. We do this to reward the contributions of participants in a timely manner + to give increased visibility to the newer questions.

    Thanks for participating!
    Carrie (Production Editor)

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