130: What’s in a number… when it comes to foodservice marketing?

OK, the following are really not trick questions!  But let's have some fun and test your knowledge of how the foodservice marketplace really works...

Question 1:  When it comes to attracting an audience for your foodservice product... when does an audience of  1,667  actually EQUAL THE SIZE of 50,000? 

Question 2:  What is the #1 reason why foodservice marketing campaigns fail?

No, this is not new math... or some algebraic breakthrough.   Influencing 1,667 DSRs actually offers more impact than trying to reach 50,000 operators (say through an advertisement). 

Here's why.  On average, a DSR meets and influences 30 operator customers every week.  So, those 1,667 DSRs directly impact 50,000 operators?  This is not passive awareness like advertising... DSRs are literally in the face (or ear by telephone) of operators every week.

But let's say you want to reach those 50,000 operators in other "direct" ways.  Direct mail.  Food shows.  Your own sales force.  Brokers.  Sure, you can do it... but these options are cost prohibitive to execute on a weekly basis (believe us, your brokers are not reaching 50,000 customers each week).

That means you'll probably consider "indirect" ways, like advertising, websites or other communications vehicles to deliver your message.

When you back out readership among chain operators, a large publication may reach 50,000 independent operators.  That may sound like a lot... but it's a pretty small number within a total universe of roughly 450,000 independents. 

We say all this not to pick on trade publications.  Rather, we're simply illustrating a point that raw numbers are often misleading without context as to their importance.  In other words, the "impact" of reaching 50,000 operators with an ad or reaching 1,667 DSRs through training is equal - even if the raw numbers may seem to suggest otherwise.

Now let's be generous and say half of all 50,000 independents actually read the exact trade pub in which you advertise every other week... or month or whenever you get around to placing an ad.  So, you're realistically reaching 25,000 independent customers on the occasion the pub arrives with your ad in their mailbox. 

On the other hand, a VIP team of just 834 loyal DSRs will reach that same 25,000 audience of independent customers with personal visits every week.  Helping operators with their menus, solving product-cost problems and brainstorming on limited time offers.  And eventually making a product recommendation (hope it's your product!).

The bottom line is DSRs provide your product much of the benefit of a "direct" approach... but at lower cost than an "indirect" approach like advertising.  Plus, you can independently measure the response and progress of 834 DSRs.  It's pretty straightforward... they either have increased sales or not!

This isn't to say advertising is a bad idea.  Ads can be powerfully effective... and certainly a key to building brand awareness.  We simply compared a common marketing approach (advertising) to illustrate the cost effectiveness of an often untapped marketing approach - a strong DSR program.

Ah, but what about question 2... why foodservice marketing campaigns fail.  You could execute a flawless marketing campaign - including phenomenal DSR program - and still go down in flames.  Why?  Because your product is and may never be in the local distributor's warehouse! 

Product placement in distributor houses is the critical success factor of your marketing campaign!  #2 is DSR awareness. Don't set your marketing initiatives up for failure because distribution isn't lined up. 

Listen as DSR Live! co-hosts DSR Dave Miesse and Bill Hornung yak more about the two topics of DSR empowerment and distribution obstacles that mess up many a great marketing campaigns.