The Pitch. How To Channel Mad Men s Don Draper On Behalf of Your Downtown. Presentation IDA Fall Conference / Sept Mike Berne MJB Consulting

Transcription

1 The Pitch How To Channel Mad Men s Don Draper On Behalf of Your Downtown Presentation / Sept. 2012

2 National retail consulting firm Offices in New York City and the San Francisco Bay Area Active across the U.S. and Canada Working on retail recruitment efforts in many cities and Downtowns Identifying and pitching specific prospects Training an in-house retail recruiter 2

3 Mad Men Critically-acclaimed AMC series Madison Avenue advertising firm in late 50 s and 60 s Don Draper, Creative Director, as protagonist 3

4 Mad Men Things to know about Don He smokes and drinks heavily (Lucky Strike, Old Fashioned) He is an unfaithful husband and a serial womanizer He has a keen understanding of human psychology Of both the consumer and the Client 4

5 Our Focus Retail recruitment role Canvasses for prospects Pre-qualifies possible operators Makes initial pitch for metro area, Downtown Steers interested tenants to landlords/brokers of available spaces which meet their criteria 5

6 First Steps Retail positioning and tenanting strategy Extensive outreach to landlords, brokers To secure buy-in to role and strategy Up-to-date database of available spaces District-wide leasing brochure Builds a general case Canvassing for specific prospects Training modules on pitching retailers Speaking the language of leasing 6

7 Our Focus Direct appeal via /phone Smaller niche nationals Regional and local chain-lets Local franchisees of larger brands not at an ICSC conference and/or with large nationals Calls for a different approach 7

8 Our Focus Introductory , follow up with phone call Less anxiety (than a cold call) Allows you room to make your case Tenant not put on the defensive, has time to process Kris will discuss the Elevator Speech 8

9 Our Focus Cities and downtowns like (most of) yours 9

10 Research Creating Detail Sheets Concept Price Point Target Market History Locations / Comparables Operator / Ownership Expansion Plans Site Requirements 10

11 Research Knowing where they are headed Making sure they are in fact expanding, and to other markets (with the necessary infrastructure) Understanding what they look for Seeing the concept through their eyes Might not always be accurate Pushing their buttons 11

12 Getting Personal Offering thinly-veiled appeals to their ego 12

13 Getting Personal Understanding who they are as individuals Recognizing their lifestyle and worldview Speaking their language 13

14 Getting Personal Understanding what drives them 14

15 Crafting The Pitch Need to sell the retailer on The overall market (i.e. metro area) Arguably a bigger decision (or should I further saturate home market?) The business district The specific location Landlord/broker responsibility 15

16 Crafting The Pitch The overall market Size and critical mass (of metro) Eye-opening comparables (like their home metros) Population growth Employment stability Government, universities, etc. High-integrity references 16

17 Crafting The Pitch The overall market Evidence of retail vitality Presence of blue-chip retailers Performance of bell-weather brands Under-supplied concept Tenant-specific demographic data Number of students Cultural like-mindedness 17

18 Crafting The Pitch The overall market Cultural like-mindedness Shared values and sensibilities 18

19 Crafting The Pitch The business district Is their core customer there? Presence of similar co-tenancies With sales volumes if possible (and references to comparables) Draw of existing anchors and other traffic drivers Quantify to the extent possible (and reference to comparables) 19

20 Crafting The Pitch The business district Is their core customer there? (align with peak day-part) Restaurants: high-volume entertainment draw, daytime pop. Comparison retailers: other successful comparison retailers, weekend foot traffic Conveniences: worker/resident density, supermarket anchor 20

21 Crafting The Pitch The business district Is their core customer there? (latent demand) Framing of demographic data Using absolute numbers (not averages) Pointing to population densities» Via drive time (versus land area) Referencing comparable locations 21

22 Crafting The Pitch The business district Is their core customer there? Framing of demographic data Second Time Around and who they see as their core customer (Downtown New Haven) 22

23 Crafting The Pitch The business district Is their core customer there? Psycho-graphic sub-markets Co-tenancies, traffic drivers 23

24 Crafting The Pitch Comparing your Downtown to other districts/centers Understand whom you are competing with Analyze how your Downtown matches up Anticipate tenant s likely concerns without explicitly mentioning them 24

25 Crafting The Pitch Downtown is the one and only place for Tenant s core customer (including psycho-graphic) No real competition elsewhere in the metro Specific traffic drivers Employment base, entertainment draw, etc. Aligning with tenant s sensibilities Preference for Downtowns, historic fabric, trendy quarter, etc. 25

26 Crafting The Pitch Downtown is the better/best for A particular type of retail The premier destination for Access and centrality Maximizing the draw Occupancy costs versus revenue potential 26

27 Crafting The Pitch Downtown as the it neighborhood Hot, up-and-coming, about to pop Recent development, projects in construction Bell-weather retailers (with testimonials) Reference to broader retail ecology 27

28 Crafting The Pitch Downtown as another viable sub-market (of many) Reading the competition correctly 28

29 Rejoinders Still using old, outdated reference points Highlighting recent development, new retailers Re-framing demographic data 29

30 Rejoinders Downtown not ready yet ( insufficient critical mass ) Point to commitment of existing backers, sponsors, investors Bell-weather retailers (with merchant testimonials) Reference other districts that followed such trajectories and explain how yours is similar Describe retail recruitment effort ( jumping together ) Note that rents are still low, incentives high 30

31 Rejoinders Yes, dining and entertainment, but shopping? Existing success stories (with merchant testimonials) Daytime population (e.g. office workers, students) Retail recruitment effort ( jumping together ) Co-tenancy by psycho-graphic niche 31

32 Rejoinders Worried about parking Specifics on number of spaces, when free, etc. Comparisons to suburban centers Mention of (similar) retailers that have been successful there References to other successful districts Ones where they already operate, or at least in same metros 32

33 Rejoinder What is your role exactly? Explain what your organization does Composition of your Board Serving as middleman with buy-in from landlords, brokers Do not represent any one particular landlord Do not have a financial stake Do not want you (tenant) to fail 33

34 Conclusion Part of a larger recruitment effort Including other similar retailers Note targets that have shown interest without compromising confidentiality 34

35 Conclusion Rolling out the red carpet Property owners Generous terms, build-out assistance Municipality/public sector Incentives Downtown organization Expediting 35

36 Conclusion Invite for a site visit Guided tour of Downtown and environs Include stops at possible spaces, with interested landlords Some local food and hospitality Testifying merchants 36

37 Conclusion Non-responsiveness/perseverance We really want you Even the feedback would be helpful Must admit I am a bit puzzled Can be a real bulldog Sorry for being a bother -- I just want to do whatever I can to make this happen. 37

38 Conclusion Developing relationships (even if frustrated) When would you be ready to talk? Congratulations, best of luck, etc. Making clear you are always there to help Not about numbers, but people 38

39 Conclusion (for you) Retail recruitment is a marathon, not a sprint 39

40 Contact Info With any comments or questions Michael J. Berne President, 85 Fourth Avenue / Suite 6A / New York, NY Forest Avenue / Suite W / Berkeley, CA Phone mikeberne@consultmjb.com Web

41 2012