WELCOME! Lollypotz Mini Conference Saturday 17 th July 2010.

WELCOME!Lollypotz Mini Conference

Saturday 17th July 2010

Louise Curtis

Welcome and Address – Where Lollypotz has come in the last 12 months and what the future holds.

New Website in Development

New Website Development

How do your wrapping skills measure up?

Chocolate Wrapping Competition

Head Office Expenses

MARKETING CONTRIBUTIONS - 1/7/09 to 30/6/10

Lollypotz Sales 9-Oct 2010 $1,984,000

Marketing Fund 3% $59,520

Admin/Royalties 12% $238,000


MARKETING EXPENDITURE 08/09 Google $62,000

TV Advertising $119,000

Print Advertising $18,000

Photography $4,000

PR Marketing $13,000

RSVP & Other Expos $13,000

TOTAL $229,000

Amount contributed by Franchise Owners $59,520

Amount contributed by L Curtis $169,480


SAMPLE OF HEAD OFFICE FEES 09/10Wages (excluding wage to L Curtis) $262,000 Merchant Fees $12,000

Freight $85,000 Website Design fees $80,000

Rent $22,000 Insurances $6,000

Travel $38,000 Bank Fees $4,000

Telephone $18,000 Computer Equipment $16,000

Legal Fees $53,000 Graphic Design Fee $24,000

Bookkeeping/Accountancy frees $16,000 Miscellaneous expenses – electricity, printing etc $45,000

TOTAL $681,000

Amount contributed by Franchise Owners $238,000Amount contributed by L Curtis $443,000


Total Shortfall of operating expenses - Marketing & Admin = $612,480

THIS IS WHY YOUR BUSINESS MUST SUCCEED TO ENSURE THE SUSTAINABILITY OF LOLLYPOTZ HEAD OFFICE

Minutes to be taken by Jane Rogan

Formal Meeting regarding Marketing Fund

At least 70% of the group must agree that we are happy with the way the Marketing Fund is being run and agree NOT to have an external company audit our Marketing Fund.

If we do not come to this agreement, the costs of the audit will come from the Marketing Fund.

Marketing

WHAT IS MARKETING?

Marketing is the process by which companies create customer interest in products or services. It generates the strategy that underlies sales techniques, business communication, and business development.

Marketing

WHAT IS ADVERTISING?

Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideals, or services.

Marketing

WHAT IS A CALL TO ACTION CAMPAIGN?

A call to action is an advertising and marketing concept, a request/direction to ‘do something’—often the next step that a consumer could take toward the purchase of a product or service.

“A call to action answers the [unspoken] question, ‘That’s interesting. Now what?”

Marketing

WHAT IS A CALL TO ACTION CAMPAIGN?

In real world media (print, radio, TV, etc.), example calls to action include:◦ ‘Phone our 1300 number to be put in contact with your local retailer.’ ◦ ‘Send in this coupon a receive a free sample.’ ◦ ‘Visit www.lollypotz.com for more details.

Marketing

WHAT IS A BRANDING CAMPAIGN?

Brand campaigns are built on an understanding that the relationship will be mutually beneficial and most importantly, that it will be a relationship. You have built an unknown relationship between your consumer and your business without the consumer realizing it.

It develops dependability, reliability, excellent product or service – a perception that you are the biggest and best.

Marketing

An example of Branding

When you think of ordering a pizza who do you think of?Pizza Hut or Dominos

When you think of buying a washing machine or a TV where do you think you will go?

Harvey Norman

Marketing

An example of Branding

When you think of buying a Hamburger?McDonalds, Hungry Jacks

So in the consumer’s minds you are the first port of call. So your responsibility is to plant the seed in your consumer’s mind so when they need a gift, who do they think of?

Lollypotz

Marketing

EXPECTATION FROM A CALL TO ACTION?

Marketing

EXPECTATIONS FROM A BRANDING CAMPAIGN?

Marketing

WHY YOU NEED BOTH?

Juley Troy – Newcastle, NSW

1. You have to spend money to make money.2. Radio advertising – my number 1 marketing tool 3. Seek the Business – it doesn’t ALWAYS just come to

you4. Work for your business; not just in it5. You cannot do it alone - get help when you need it

Tabitha Veness – Pakenham and Bayside, Vic

1. Greet the customer. People like to be acknowledged.


2. Find out what their needs are. Believe it or not, they are only a little bit interested in the product itself...they are mostly interested in what the product can give them. For example happiness, love, acceptance, alleviate guilt, more babysitting...


3. Listen to the customer. Talk to them in their language. Listen for “hot” words, and reflect them back.


4. Smile, be friendly and be genuine. People like to be around happy people, and you have to feel it!


5. Know when to back off. You’ve already sold the product; they just need time to consider their options.

LUNCH

Please ensure that you are ready to begin our next session at 1:15pm

Christmas Preparation

HOW MUCH DO YOU WANT TO TURNOVER?

HOW ARE YOU GOING TO ACHIEVE THIS?


EXAMPLE 1

PROJECTED TURNOVER - $100,000

CORPORATE $25000(Driven by FO – Direct Marketing & Brochures)

CASUAL LEASING $50000INTERNET & PHONE $25000 (Driven by Brochures/Google/Casual Leasing/Direct Marketing)


WHAT ARE YOUR COSTS?

WHAT IS YOUR BOTTOM LINE?


COMPARISON - Example

TURNOVER $100,000Less costsBrochure Mailout (30000) $6,000 Casual Leasing rent (A Grade) $8,000 Staff $6,000 Royalties $15,000 Stock $25,000

NET BALANCE TO YOU$40,000

TURNOVER $30,000Less costsBrochure Mailout (10000) $2,000Casual Lease ( C Grade) $2,500Staff $1,500Royalties $4,500Stock $7,500



HOW DO YOU DO ACHIEVE THIS?

MANAGE YOUR BUSINESS $100,000 worth of Bouquets @ $45.00 Average cost per sale = 2,222 Bouquets.

The bulk time is taken wrapping the chocolates

Pay staff (school kids 16+ or Uni students) to wrap your chocolates – 2222 x 20 chocolates on average = 44,440 chocolates to be wrapped

44,440 Chocolates/ 576 = 77 boxes of Ferrero @ $80.00 per box = $6172.22 staff costs


NOW YOU ARE MANAGING YOUR BUSINESS – WHY NOT TURNOVER MORE?

TURNOVER $250,000Less costsBrochure Mailout (60000)

$12,000Casual Lease (A Grade) $38,000Staff

$30,000Royalties

$37,500Stock

$62,500


TURNOVER $150,000Less costsBrochure Mailout (40000) $8,000Casual Leasing rent (A Grade)

$14,000Staff

$15,000Royalties

$22,500Stock

$37,500



THE FIVE “P”s OF PREPARATION

PERFECT PREPARATION PREVENTS PITIFULL PERFORMANCE


QUESTIONS TO ASK YOURSELF – WORKSHOP

When do I start marketing to corporates – how?

How many brochures do I print – who do I distribute them to ?



Where, When and How long do I casual lease for….or how am I going to drive business to my shop?

How much stock do I need? What do I need to prepare? When do I buy my stock?



How are you going to buy your stock. How much money have you got working capital to buy stock?

How is this going to be managed re Staff, how much are you going to pay your staff?

Where are you going to store them?



Who is going to deliver them while you are at casual leasing?

How are you going to keep them out of heat?



How much can you turnover in a Casual Lease per week?

What were the best sellers last year?


HANDOUTS

Christmas Brochure Christmas Brochure order form - TO BE RETURNED TO THEIVANI BY

31/7/10 Christmas Plan work sheet - TO BE RETURNED TO THEIVANI BY 31/7/10 New Stock Order Form Christmas Stock Projection Sheet - TO BE RETURNED TO THEIVANI BY

31/7/10

Awards Presentation

Casual Leasing

Mystery Shopper Reports – Invited CommentsLollypotz National Average Mystery Shopper Results SWOT Analysis from Mother’s Day Casual Leasing

Casual Leasing

POSITIVES

I went in as a mystery - shopper and now I’m a loyal customer!

Everything about my experience was with a WOW factor – If I had a business I would want this lady working for me!

Product – beautiful – staff fantastic – what a great experience!

Casual Leasing

POSITIVES

I was approached within a minute and she was so enthusiastic, it was catching!

This lady was experienced in retail that was obvious.I bought the branded chocolates because she had some open

for me to try – I would have felt guilty not buying!

Casual Leasing

POSITIVES

I decided I’d be buying from this lady whether she had the right product or not because she was so great at what she did – I offered her a job! (direct feedback to franchisor from Customer)

It was like an explosion of colour in the shopping centre – it looked amazing, it was like a mini shop.

There were so many people queuing up at the same time and the staff kept everyone entertained! It was a fun experience.

Casual Leasing

POSITIVES

They were giving out postcards and Potz club cards – they were busy!

Such a pink experience with the uniform and signage - it looked so professional.

The shelving units framed every Lollypotz – it was so easy to browse and enjoy the experience.

Casual Leasing

NEGATIVES

I wasn’t sure who was staff – there wasn’t anyone wearing uniform

I wasn’t greeted at all! No offer of service and after 12 minutes I took the bouquet to the counter.

She said Hello and then walked off – I had no offer of assistance at all, I don’t know how long I would have been left just looking – after a few minutes I took the bouquet to the counter.

Casual Leasing

NEGATIVES

You could tell the lady was new to retail – she was nice but made no attempt to add on or even mention OZ wide delivery.

There was no offer of a receipt or bagThey were behind the counter with a mobile phone – they

weren’t keeping their eye out for customers.

Casual Leasing

NEGATIVES

The area looked a bit empty – I think they could have had another shelf unit.

There was no mention of the branded chocolates at all!I wasn’t spoken to about the Potz card – although I only spent

$26.50

Casual Leasing

NEGATIVES

I think the trestle tables made it look like a church fundraiser rather than a national company.

The grey shelving units were really old looking and stained, dusty and dirty looking.

Casual Leasing

SWOT

STRENGTHS

An great opportunity to make $$$$$Fantastic exposure of the product - not only to retail

customers but to CorporatesThe strong signage represented the brand really well

SWOT

STRENGTHS

The product is so impressive displayed in volumeThe shelving translated to a more professional imageFirst opportunity for customers in my territory to see my

product

SWOT

STRENGTHS

Great marketing opportunity - We had lots of postcards to hand out – people were really grateful to be able to take away the web-address

The wide price range of products The range had something for everyone

SWOT

STRENGTHS

The mini bouquet price pointThe stand was manned by the owner so there was passion

with the serviceSeasonal and festive changes make for something different to

present with each lease – keeps the customer interest

SWOT

WEAKNESSES

Could have made more $$$$ - I ran out of stockWasn’t prepared well enough so I had the issue of making

more product at night and just didn’t have enough time to meet the demand – plus I was exhausted!

At rush times I couldn’t get to every customer

SWOT

WEAKNESSES

I was at home making bouquets during the day to meet the demand and had to have family with minimal training manning the stand – I know I lost money!

I really wasn’t confident trying to add on.It was hard for me to be demanding on my friends/family that

were helping me when it comes to the service levels – I could have had better results had I been.

SWOT

WEAKNESSES

The location wasn’t right! I couldn’t get the site I wanted!I was unsure of the best way to position shelving at first.I didn’t have enough pink shirtsI was unsure of how to display the stock at its best on the

trestle tables

SWOT

OPPORTUNITIES

I can make more $$$$$ - I can be better preparedI am able to use the data base I have started to let my

customers know when I am leasing againI can have better results if I let people know I am here –

perhaps a TV or radio campaign

SWOT

OPPORTUNITIES

I can recruit staff – I had a lot of people ask if they can leave their résumé

I could run a competition for a Pot to take even more data base info

Follow-up on customers from clubs, corp. and weddings

SWOT

OPPORTUNITIES

Get a banner specific for that peak periodI can get better sales results if I put more time into staff

training and expectations. Perhaps incentivize it!Just to learn from each lease and apply lessons

SWOT

OPPORTUNITIES

Develop my own customer service skillsCreate customer loyalty by regularly appearing in that

shopping centre

SWOT

THREATS

Could lose loyalty from customers if I don’t have enough of the right product and the right service

Need to lock in location so that I don’t sacrifice turn-over by being unorganized

Giving others the idea to then copy!

SWOT

Location – Presentation - Service levels

Casual Leasing

TEAM MEMBER TRAINING

Casual Leasing

PRESENTATION

The IKEA shelving is clearly the easiest presentation to manage

Trestle tables are the hardest to display on and manage and the customer perception is not the one we are trying to engender – No to Trestle tables

With the other centre-provided display equipment

Casual Leasing

LOCATION

So when looking for the right location consider the following:

Try and get close to a MAJOR – Big W, Target, K-Mart – general stores that would expect a high volume of customers at the time you are leasing

Try to stay a safe distance away from a florist – could get dangerous when they see how much business you are doing – especially for Mother’s Day

Casual Leasing

LOCATION

Look at the flow of foot traffic –entrances from car parksLook at the price or grade on the info from the centre – the

more expensive the site the busier the site – generally!Has the site got a balustrade which could act like a back wall –

enabling the desk to be positioned at the back - better security and this type of site allows the “Shop style” of layout

Casual Leasing

LOCATION

Is the site on a wide thoroughfare? Too narrow and not conducive to browsing – can feel stressful with people streaming past but unable to browse for fear of causing a pileup!

With storage options – check on proximity to the lease area and likely temperature

Visit Centre – watch and assess area

Casual Leasing

FOOD FOR THOUGHT QUESTIONNAIRE

Casual Leasing

ROLE PLAYSLOLLYPOTZ

“TERRITORY OF ORGIN”NSW

VERSUS WA, VIC & QLD

Thank you for joining us today

Safe travels and Happy Christmas Planning!!

WELCOME! Lollypotz Mini Conference Saturday 17 th July 2010.

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Transcript of WELCOME! Lollypotz Mini Conference Saturday 17 th July 2010.