New Marketing Idea

Hey guys,

Here’s something new I wanna throw at you. Please give me some input if you’ve ever done this before (and results) and if you have ideas to make it better. The idea would be something like a “NEIGHORHOOD OF THE WEEK” where you advertise with neighborhood-specific flyers and doorhang with them. The special will be valid for the entire week… delivery, dine in, or carryout.

As far as special pricing is concerned, I was really thinking about giving something they would take advantage of at least twice during this week’s time. I remember a few years ago we went completely nutty and delivered two large pepperoni pizzas for $9.99. Of course, the week the ad hit we had a huge icestorm that knocked everyone’s power out and we went from $6300/week to $12,500/week almost overnight. Now I’m not saying the ice didn’t hurt… but how much did it help?

Here’s some numbers:

Avg. neighborhood size…500 homes
Decent return…10%
Good return…20%

So, with an average ticket of around $14.00 per order I can expect these sales increases:

Decent Return…$700 sales increase
Good Return…$1,400 sales increase

I know it doesn’t sound like much of an increase, but the big picture would include the possible addition of new customers.

The costs:

printing…$20-$40
Distribution (5 hours)…$30

Total cost…$70

R.O.I. (Decent Return)…10:1
R.O.I. (Good Return)…20:1

What do you think? -J_r0kk

I’m in the process of developing something exactly like this.

A special for a specific neighborhood - limited to specific streets, etc. The special will be something really crazy - like a 14" one topping for $2.49 - about 80% food cost for me.

I will run the specials for one week. I plan on doing areas that are very close to the store - within a 5 minute delivery drive. My intent is to attempt to gain business close to the store.

Worst case is that it takes something away from the competitors for that week - its going to be hard to pass up such a deal, and I can’t imagine too many people in the special area will order from anyone else.

Registered Guest,

Definitely keep me posted on your progress. I’m going to be designing my idea in Microsoft Publisher, but it can be saved as a jPeg (if you don’t have it). I’ll shoot you a copy when I’m done to maybe give you an idea of my thought process. Would you do the same for me?

-J_r0kk

j_r0kk,

Would you be able to send me a copy of what you are coming up with? I do everything in Microsoft Publisher (it is my favorite software!) I’m thinking your idea would work great for us because the name of our place is The Neighborhood Pizza Parlor. So we are always looking for ways to tie in the “Neighborhood” theme.

Thanks for the idea and if I think of anything to go along with it, I will pass it along.

Sara

D@MN! I had this one stashed away for next month myself. We have a very quartered city that will allow us to do meighborhood weekly specials . . . or neighborhood NIGHTS where they get some premium. The night special would be to try to cluster deliveries in areas for simplicity. We’d give them free delivery or soft drink or something with their order.

I really like your jumping on this all by yourself. It let’s us know that someone else4 out there thinks it’s a good idea, and it could work. We have not developed the flyer yet, but we’ll share it when we do.

we did that & it was reasonably successful…all we did was put up a few yard signs @ the entrance/exits…

WOW! Yard signs = GOOD IDEA! I forgot about that one!

-J_r0kk

IMO, it’s a bad idea to give them free delivery - in fact, I’m going to be using this as an opportunity to explain WHY we charge for delivery - and compare our prices with delivery to our competitors prices with “free” delivery and/or a delivery charge les/mores than ours.

In fact, that is what I’m working on now - the wording of that section of the flyer. With gas at $3.25, I think this is a perfect time to educate customers on the true costs of delivery.

Can I seriously suggest that you flyer the neighborhood mid-morning on a Saturday in an Elmo costume holding a pile of menus in one hand an custom balloons in the other? You won’t regret it!

MAN!! I don’t know how we missed out on that one, too. We will get some key customers to put signs in their yards for some sort of ‘payment’. All along the road leading to and from the shop . . . and into the subdivisions!

We did a similar idea years back with apartment complexes. We had door hangers printed up reading Congratulations Reflections(or any other apartment name) you have been selected as one of Five Star Pizzas most valuable aprtments. To reward you we are offering you a 16" large 1 topping pizza for only $xx.xx. We would go out and hit every complex over a few days and rock for the next week. It works so much better than just a regular doorhanger with the same special because there is a reason for the advertisement. I don’t see why it won’t work for neighborhoods as well. I have given up doorhanging with just plain jane logo and specials. Put a theme to the ad and the response is so much greater. My newest theme is gas prices. My next doorhangers will be 2 sided with the front side saying “Gas prices got you down? Stay at home and let Five Star Pizza deliver dinner to your door!!!” I have magnets coming in with this same slogan and we’ve started using it in our print ads as well.

Ok here is my question. Why do you discount your product? Would you not be better off doing valu added promotions for eg buy a 12" pizza and recieve a 2l pop and breadsticks for FREE etc. I personaly think that if you sell it for less people will think that is what it is worth.

pizzaguy writes:

Ok here is my question. Why do you discount your product? Would you not be better off doing valu added promotions for eg buy a 12" pizza and recieve a 2l pop and breadsticks for FREE etc. I personaly think that if you sell it for less people will think that is what it is worth.

Good question. Though there are arguments for both sides, I’ll of course, argue on the side of discounting with some examples:

[b]When a car dealership offers 0% interest or $5,000 cash back, do you think the car is worth less?

When Red Lobster has the “All the Shrimp you can eat for $9.99” do you automatically think the quality is poor?

When Burger King sends out direct mail coupons offering “Buy one Whopper, Get one Free” specials do you not take them up on the deal because you think the burgers must be crappier?

When Best Buy has their big Christmas blowout the day after Thanksgiving do you think nobody starts standing in line at 2 am because they think the quality of the items on sale is poor?

When Papa John’s does their anniversary special every year do you think the public thinks their pizza must be a lot worse than it was the previous week?[/b]

The answer to all these questions is a resounding “NO”. The reason they offer these big promotions is because they want to create an “EVENT”. They want to fill there dining rooms and showrooms to capacity and create such a stir, people will be talking about it for days.

And pizzaguy, I COMPLETELY see where you’re coming from and there’s nothing at all wrong with your stance. There are a great many operators out there who refuse to discount. Each has their own reason. There are also a great many operators out there who “safely” discount their products to generate an extra little push in sales.

I, of course, am one who likes to create huge turnouts with impact advertising. So when you ask

Why do you discount your product?
When you put everything to do with business (like customer retention, and projected returns, and return on investment, and new customers gained, etc.) to the side and you get right down to the point… it’s fun.

-J_r0kk

I’ve heard this argument a million times. If you sell it for x amount today, thats all it’s worth tommorow. What makes giving something else away with it any different. If a large pizza and breadstix are only worth x amount today, why would the large pizza without the breadstix be worth the same tommorow. But to answer the question why discount instead of adding free add ons, it’s about giving the customer what they want. If all the customer wants is a pizza, I’ll sell it to them for a price that puts a profit in my pocket. But I will certainly try to upsell them on more items.

Hey I hear ya loud and clear but I can tell you I dont go to BK when the price is more I also wont buy the car if I dont get 0% or 5000 back and I always wait for the big sale on the 52" plasma TV! I guess what I am trying to say is do you not think people will always be looking for the discount prices? I am not saying what you do doesnt work but I guess because I have never done it I have a hard time grasping why I would want to start. Do you only do this a few times a year cause that would make more sense to me or is this an ongoing marketing plan where something is always discounted? My market is not very competitive (thank goodness) we only have 2 chains in town and only one of them does discounting and the pizza is crap so we dont really have to worry so I am just trying to wrap my brain around the discount idea. Thanks for your feedback

When I do coupons for box topping I tend to use the added value principle. But maybe it is different than yours.

I would take a 14 two topping (normally 11.99) and add a house salad (normally 5.99) and sell it for 14.99. So I actually do still discount but the purpose of me adding the salad is to go from a 14 two topping for 8.99 to a ticket price of 14.99. So maybe I mis understand the added value concept but it is like a guaranteed suggestive sale.

As for a big promotion I would definately discount even just a pizza. When you door hang you have under a minute to grab the attention of the potential customer. A great deal on a pizza grabs their attention so instead of walking in the house to the trash they will either put it on the fridge or table.

It doesn’t de value the pizza in fact it hooks them on our great product. I don’t think a week from now people will remember they paid 8.99 for a 14" they will remember how good the pizza was. After all do you remember exactly how much you paid for your last meal out…most would answer no.

Jrock I love the idea and had never thought of it so I will put it on the list of things to try.

How’s the new store coming?

<<Bells, whistles, sirens, flasshy lights and dancing midgets!!>>

Here is what will draw people faster than any free pizza . . . FUN and PLAYFULNESS!! You give people a good time with their food, and they will remember the good time faster than the price. We are actually trying to capture entertainment as well as dining dollars with our marketing. People I talk to would pay more to go to a more enjoyable place than save money at an unpleasant hole in the ground.

I am not talking about flashy, upscale looking as a reason. I am talking about enjoyment. You think Chuck-E-Cheez has the world’s greatest pizza? Nope . . . entertains the kids, which is enjoyable for the parents.

chucky cheese is a great concept, bring the kids wind them up wear them down so there tired when they get home…when you tell a five year old we ar going to chuky cheese thee EYES LIGHT UP, oh and beer for the parents!!

It’s a good one J_Rokk.
I’ve done them for years. the best part of this is that you can do it on any scale. Sometimes I’ll go all out, hire a doorhanging company and put out 5,000 flyers, and others I’ll send my AM driver out to do 2 or 3 streets. The best part is that you can offer a delivery-friendly special without adding drivers–cause they’re all going to the same area. I like to do a $3.99 medium, with free delivery if they order 4 or more. Put out a ton of flyers to start, then leave it up to your manager to knock out 3 streets a day. It loses its effectiveness if you do it too often, though. I recommend hitting your area once every 6-9 months. I’m trying a new type next week, using a large pizza special with a newer location that I opened 3 months ago. Still in the works, but I’ll let you know how it goes.

No, I get to the restaurant and figure it out :slight_smile: