Lucky Winners at Kingsland. The purpose of business is to create a customer who creates customers INSIDE THIS ISSUE

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1 Night n Day Foodstores Ltd June 2015 Volume 3, Issue 118 INSIDE THIS ISSUE Lucky Winners at Kingsland Message from CEO...2 Marketing Operations Procurement.7 The purpose of business is to create a customer who creates customers

2 MESSAGE FROM THE CEO Franchisee Meeting I have now circulated to everyone the meeting notes from the Franchisee meeting held last month. I have tried to cover off what was discussed and with limited feedback I can only assume the information was clear enough. A number of topics were covered in the notes and my update this month will continue to build on that communication. If you want to discuss anything further regarding the franchisee meeting I will be in all stores over the next three weeks. System There is little to add regarding the progress of Infinity. As explained last month we are waiting on Triquestra to complete the agreed changes and release them in their next core release mid June. Some time this month has been taken up getting a test environment set up ready for testing. We are also planning what change would make sense and how to best cleanse and manage the data requirements. News Three weeks ago a male customer was seriously assaulted in the Wanaka store. The two males accused of the vicious attack have been charged with attempted murder. The victim remains in a coma but we are hopeful he will make a full recovery. The staff member involved did a great job calling police and getting assistance as soon as possible. Our thoughts are with the victim and the Wanaka team. Bracken Bracken online learning is progressing and we are planning on releasing the system at conference. The team have been putting in a huge effort over several months to review and develop the required content. It will advantageous to show the broader picture at conference and then use the workshop sessions to help everyone walk thr0ough the system and how it operates. The advancement of Bracken is exciting so we look forward to conference and getting it live and underway. Marketing Bronson has recently provided information on the 24/7 promotion. I implore you to review the information and provide feedback particularly on the Night n Day items we plan to give away or sell as buy one get one free. I am concerned thought will be applied by you all at the time when the vouchers are being redeemed rather than now. We can t change anything once the vouchers are printed and in the bags i.e provide your feedback now or forever hold your peace. Financial and strategy visit Over the next three weeks we will be visiting all stores to review the: - Financial statements for the year ended 31 March (or prior period for non standard accounts) - Budget for the forthcoming year - Strategy and objectives you have set yourself for the next 12 months Please apply some thought to what you want to achieve in the next 12 months including goals and objectives that cover the full spectrum of your business. I will be trying a slightly different approach to previous years but ultimately am aiming to get the same result which is helping you get a clear sense of direction. 2

3 MARKETING... $2 Pies Results It was a great result for the $2 pies in May compared to the previous Tuesday pie special. There are a number of factors that we believe have resulted in increased sales including: Tuesday specials are now a regular feature that is understood by the majority of our customers and staff The pies are substantially better and customers are very complimentary of the quality Big Ben XXL pies were available and on special at a number of other stores at the same time. Having a unique offer means there is no direct comparison on price (and quality) The marketing campaign was focused through using social media and adwords proven marketing mediums that we know work. Since the introduction of Kai Pie sales have increased (in some cases substantially). Date Week 1 Week 2 Week 3 Week 4 Total Tuesday Sales Total Month Sales 1st 27th May May ,850 44,991 May ,069 21,237 The result is customers know we have great pies and at $2 they are seen as real value This result highlights the effort that has been put in across the group and the fact we are prepared to change to meet the markets needs to ultimately get the results. If we consider the pie campaign was televised last year, it is a real positive! $1 Hot Dogs in June The buy in price for hot dogs are the same as usual for the month of June but each store will receive a 3 cent rebate per Golden Goose Hot Dog sold on the Tuesdays during June. This will happen upon the completion of the promotion. You should receive your promotional materials by the end of this week. Last year we sold 25,167 on the Tuesdays and 36,303 during the entire month. Your collective mission is to sell more than this. 3

4 Tuesday deals are here to stay, but first... Due to Get Lucky 24/7 there will be a gap in July with no Tuesday special. We want the limelight to be placed on the 24/7 promotion so are removing the possibility of distraction. MARKETING... Based on franchisee feedback and customer demand we will be bringing back the Tuesday specials every month from August 2015 to December That will be 17 months of Tuesday specials (unless we decide to not to run the specials in July again). During July you will get a lot of customers asking Why don t you don t have a Tuesday deal this month?. You will need to explain to them about Get Lucky 24/7 being our biggest promotion of the year and to encourage them to come in on that day. Also advise the Tuesday deals will be back in August and will be here to stay for some time yet! The Tuesday specials will be promoted on alternated months due to both budget constraints and some prearranged partnered initiatives with suppliers. This means that in alternating months you will only be given A4 posters for the POS promoting the Tuesday deal. There will also be a decrease in national marketing spend. Tuesday has created a trend and is now well known therefore we are keen to gauge if customers will still come in regardless of the advertising and marketing material. Please give us your ideas for Tuesday Deals. 4

5 MARKETING... Goodman Fielder Partnership Next month we are teaming up with Goodman fielder for a free tote bag promotion. The deal is a tote bag will be given free to every customer who purchases a 1 litre white meadow fresh milk and 750gm Natures Fresh bread. I do not expect sales to increase much but this will reward the customers who do purchase these lines. It is hoped the campaign adds an additional item to the basket, gets the Night n Day brand circulating in the market through the tote bag being reused several times and create some goodwill for stores.. Bronson Local Marketing Reimbursements Can stores please issue an invoice from their store to SISC if they need reimbursement for paying an advertising invoice. A copy of the paid invoice from the supplier will also need to accompany the stores invoice. Some stores always do this but there are a number you don t Also.. Could stores also send their vouchers through for reimbursement on a regular basis. It appears some stores are holding on to them and sending a few months worth through at once. It is very time consuming to reconcile these so we would appreciate them being send in on a more regular basis. Thank you in advance! Jos 5

6 Washdyke Lending a Helping Hand LOCAL MARKETING IDEAS... A recent article appeared in the Timaru Herald outlining the sponsorship Mary from Washdyke has provided Talented music students are getting a helping hand to reach the right notes in the form of music sponsorship. Music teacher Jannette Aldridge has set up a trust fund to provide monetary assistance to gifted musicians to develop their skills. She began the trust because she couldn't keep giving free lessons and paying staff. "I needed to get help for these kids." So far, Aldridge has received help from Rotary, Mary Moir from Washdyke Night 'n Day, Timaru Bridge Club and others whose children had finished studying music and still wanted to help others. The average cost of music lessons was $345 a term, $1380 a year. Another reason Aldridge wanted to help the children was because of her own experience growing up. She learnt music on an "old pub piano" in a garage, with other people helping when her parents couldn't afford her music expenses. "Everyone has the right to learn music." Although Aldridge is a music teacher at Bluestone School and runs Mrs A's Music School, the trust is available to anyone learning music. The only proviso was anyone receiving the support needs to be performing and making use of it, Aldridge said. She said once children with talent were given the chance, other people started to invest in them and the students themselves gained self respect. Aldridge found that if a child was given a hand out in one term they wouldn't need it the next and someone else was able to benefit. The fund has been in place since the beginning of the year. 6

7 OPERATIONS ATTENTION North Island Stores Lamson cash tube - parachute bags are no longer supplied from NISC. These can be purchased direct from Lamson phone 0800Lamson or They come in a box of 1000 bags. We strongly advise to use the lamson cash tube parachute bags as they are designed for the Lamson chute s, and are reusable. Should you use any other bags they may get stuck and this could be costly to retrieve. Rippa bags There continues to be many sites using alternative bags for the bulk confectionery than the rippa bags from packaging house. Please use only Rippa Bags code is from packaging house Denise B PROCUREMENT Tip Top Ice Cream 2L $7.99 Everyday Low Price Please ensure that this special price label is not removed at the end of each month. It is an everyday low price promotion and the only way this price point will remain is if we meet sales volume targets. This is not occurring in stores without the price label and therefore jeopardising this low price into the future. The low pricing has been very well received by customer / retailer / manufacturer and it is important that we back this fully as a group. It took a very long time to receive a commitment to this price point and a substantial discount similar to supermarkets, we have increased the volume (and it is continuing to rise) but to ensure longevity the everyday low price ticketing need to displayed at all times. 7

8 Remember... Night n Day Foodstores Support Centre 268 Stuart street PO Box 5769 Dunedin, New Zealand