Marketing Non-Secrets 312 Nov 2009
I promised that as the marketing initiatives we learned about at our franchisee meeting in October were released, I'd mention them here. Has anyone noticed the new initiative, or more correctly, the old initiative that was rebranded this week?
Back to my letter codes: S is for "SMS". The value menu segment (the German equivalent of the US Dollar Menu) has been renamed to "Schnell Mal Sparen" (which is hard to translate, maybe "quickly save now"). The products and the prices are the same as before, and the new logo is very similar to the old one. I'm sure that most customers haven't even noticed the difference.
So what is the difference exactly? Other than that "SMS" is recognized by the world as a quick and easy form of communication? After all, the old name was very well recognized, why change?
The old name had a fatal flaw. It included the number "one" (twice even), and implied that the prices of the value items would always and forever be exactly 1.00€. The SMS name no longer promises a price, and is thus flexible to include items that do not cost exactly 1.00€. If things go as planned, we'll be adding an item or two that cost a bit more than 1.00€ to the SMS menu in the coming months.
Are we going to raise the price of the existing SMS items? No, that would be stupid in the middle of a worldwide economic crisis that's just now hitting Germany with full effect. But we're using the economic climate to rebrand the value menu now to have the flexibility to adjust the menu in the future. That's a luxury we have as a brand that is growing while the total QSR market (and thus our competitors) are shrinking. We'll be able to use SMS as a marketing vehicle for years to come, irregardless of increasing costs or inflation.