April 2006

Internal Marketing to Maximise

Point of Sale Results

Julie BromleyNational Training and Human Resources Manager

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Do you see an old woman or a young one ?

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Do you see many ships or a bridge ?

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Marketing campaigns guaranteed to work – right?

Franchisees hated them

Brought in “one-off” customers that stores didn’t convert into

regulars

Store staff didn’t know about them

Promo stock didn’t arrive in store in time

Stores couldn’t deliver on the promise

Badly executed , poor stock levels, low compliance

It affected business and Franchisee perception of future campaigns

Sales and profits just didn’t happen

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So what caused things to go “pear-shaped”?

After all, Marketing develops the plan, the strategy, the vision.

Its up to others to deliver on the rest – right?

Surely your team did their job but others let the side down

•Operations failed to execute the plan

•Procurement didn’t manage their timelines

•Franchisees didn’t see the big picture

•Store teams just didn’t deliver

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Internal marketing generates success

Helps internal partners understand your “product”

Helps anticipate and resolve problems

Maximises the expertise of other disciples

Ensures the marketing plan is solid and defensible

Internal marketing involves engaging other departments,

stakeholders, supply chain partners and above all Franchisee and

store teams in your marketing campaign

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•Store teams ARE your brand to the customer

•Well trained, motivated staff recognise opportunities to grow sales

•Staff who care about the business make great product and promote our offers

•Informed staff understand our product benefits and don’t hard sell

After all, in a crowded retail marketplace if store teams don’t know what set’s our product or service apart how can our customers?

Franchisee teams will determine YOUR marketing success

Therefore it is in all our interest to ensure our internal partners understand our “product”

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How has RFG made this happen?

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Introducing RIOT (RFG Information & Online Training)

Brand specific online training platform

•Better, faster, cheaper than paper or on-one one methods.•Employees access any time, reducing in-store training time and owner costs.•Increase communication between franchisor, business owner/s and employees •Easy staff (and Franchisee!) monitoring •Learners progress at their own speed and revise material to refresh their skills.

Ideal for high turnover / casualised workforces

Overcomes poor franchisee training skills and retail environments focused on sales not learning

7485 people engaged in RIOT training across our brands

91,477 hours of brand training in 7 monthsThat was previously not happening

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Internal marketing in action – Brumby’s Low GI

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Data on the system’s best and worst – before the promo

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Marketing, Training and Operations working together

• Business goal to increase coffee sales by 2% • The customer experience needed to live up to

the marketing promise• Identified barriers to promo success• Poor customer perception of brands coffee

credentials, franchisee cynicism , previous coffee focus had “average” results

• Only 7% of stores had qualified Barista’s

DK Royal Bean – An integrated internal marketing campaign

• Identified our success stories and what stoped stores succeeding

• Rolled out new coffee training program PRIOR to promo launch

• Strong training, operations and marketing follow- up

• Focused primarily on staff NOT franchisees

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Level 1 Introduction to Coffee

Level 4 Coffee Guru

Level 3 Barista

Level 2 Coffee Maker

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Accredited over 250 qualified Baristas and 636 qualified Coffee

Makers in under 12 months

Royal Bean coffee sales volume increase of 9%

Stimulated a poor performing category, improving Franchisee

and Franchisor return

Created a coffee culture in a brand of casual staff with an

expanding customer base

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Internal Marketing includes Key Suppliers!

•Identified main success factor (and previous issue!) was the key supplier

•Focused on understanding what caused their issues(High staff turnover, low skills base, education and literacy)

•Our strategy had to include “selling” our strategy to them and helping overcome their obstacles

• Worked across departments to develop solutions for all stakeholders and different communication strategies

Michel’s Patisserie re-launch of online ordering by introducing the new cake range

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Internal Marketing – So how do we make it happen ?

•Don’t forget the past – learn from the good, the bad and the ugly!

•Understand that demanding it , doesn’t make it happen

•Harness the power of mutual self-interest

•Consult, consult, consult!

•Leave time to plan and implement the strategy

•Be realistic – an integrated approach just isn’t possible all of the time

•Practice tough love

•Track, talk about and leverage success

You needs all departments working together

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Marketing

Store Teams

Training Operations

Just Remember – You Can’t Do It Alone!

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Thank You