Spending More on Ads To Overcome a Slump

[vc_row][vc_column][tm_heading custom_google_font=”” text=”Project Infomation” font_size=”lg:30″][tm_spacer size=”lg:40″][vc_row_inner][vc_column_inner width=”7/12″ offset=”vc_col-md-8″][tm_heading tag=”div” custom_google_font=”” text=”Robin and Chris Sorensen, brothers and former firefighters, opened their first Firehouse Subs restaurant in 1994. They emphasized their firefighter heritage by featuring red furnishings, colorful murals of firefighters in action and sandwiches like the hook-and-ladder sub.”][tm_spacer size=”lg:26″][tm_heading tag=”div” custom_google_font=”” text=”Firehouse Subs is a 16-year-old restaurant chain based in Jacksonville, Fla. It emphasizes a firefighter theme and has more than 390 restaurants that serve specialty submarine sandwiches.”][tm_spacer size=”xs:40″][/vc_column_inner][vc_column_inner width=”5/12″ lg_spacing=”padding_left:70″ md_spacing=”padding_left:15″ offset=”vc_col-md-4″][tm_attribute_list attributes=”%5B%7B%22name%22%3A%22Client%20%3A%22%2C%22value%22%3A%22Insight%20Studio%22%7D%2C%7B%22name%22%3A%22Date%20%3A%22%2C%22value%22%3A%2220%20Feb%2C%202018%22%7D%2C%7B%22name%22%3A%22Skills%20%3A%22%2C%22value%22%3A%22Project%20Planning%22%7D%5D”][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][tm_spacer size=”lg:70″][tm_gallery image_size=”570×385″ gutter=”30″ row_gutter=”30″ images=”246,247″ columns=”xs:1;sm:2;lg:2″ image_rounded=”5px”][tm_spacer size=”sm:50;lg:100″][tm_heading custom_google_font=”” text=”Challenge & Solution” font_size=”lg:30″][tm_spacer size=”lg:30″][tm_heading tag=”div” custom_google_font=”” text=”THE CHALLENGE Facing declining sales throughout its system, the chain sought a new marketing strategy in the depths of the recession. By 2001, the chain had grown to 30 company-owned restaurants in Florida and switched to a franchise model to expand into new markets. By early 2008, the company had expanded to 300 locations in 17 states, mostly in the South and Southeast. But then growth fizzled.”][tm_spacer size=”lg:30″][tm_list icon_type=”ion” icon_ion=”ion-flash” columns=”xs:1;lg:1″ items=”%5B%7B%22item_title%22%3A%22Advertising%20through%20chain%20stores%22%2C%22item_desc%22%3A%22At%20first%2C%20Mr.%20Sorensen%20balked.%20But%20when%20the%20ad%20agency%20laid%20out%20data%20showing%20that%20some%20competing%20chains%20were%20spending%20more%20on%20advertising%20per%20store%2C%20he%20began%20to%20change%20his%20mind.%22%7D%2C%7B%22item_title%22%3A%22Alternative%20subway%20franchisees%22%2C%22item_desc%22%3A%22Subway%20franchisees%2C%20for%20example%2C%20pay%20an%208%20percent%20royalty%20and%20a%204.5%20percent%20advertising%20fee%3B%20Quiznos%20franchisees%20pay%20a%207%20percent%20royalty%20and%20a%204%20percent%20advertising%20fee%2C%20according%20to%20those%20companies.%20%22%7D%2C%7B%22item_title%22%3A%22Creative%20campaign%20and%20radio%20ads%22%2C%22item_desc%22%3A%22Zimmerman%20developed%20a%20creative%20campaign%20and%20radio%20ads%20that%20emphasized%20the%20food%20and%20the%20portion%20sizes%2C%20but%20offered%20no%20discounts.%20The%20agency%20used%20the%20Sorensen%20brothers%20as%20spokesmen.%20%22%7D%5D” lg_spacing=”padding_left:34″ sm_spacing=”padding_left:15″][tm_spacer size=”sm:40;lg:80″][tm_heading custom_google_font=”” text=”Our Process” font_size=”lg:30″][tm_spacer size=”lg:30″][tm_heading tag=”div” custom_google_font=”” text=”That March, comparative sales for the entire system declined from the previous March. “In our entire history, we had never had a period like that when our entire system was running negative sales,” said Don Fox, the chief executive. “It was something completely foreign to us.””][tm_spacer size=”lg:52″][tm_gradation items=”%5B%7B%22text%22%3A%22Improve%20sales%20%26%20operations%20%26%20production%20planning%22%7D%2C%7B%22text%22%3A%22Determine%20the%20right%20inventory%20level%22%7D%2C%7B%22text%22%3A%22Optimize%20the%20supply%20chain%20for%20perfect%20order%20planning%22%7D%2C%7B%22text%22%3A%22Improve%20sales%20%26%20operations%20%26%20production%20planning%22%7D%5D”][tm_spacer size=”sm:90;lg:130″][/vc_column][/vc_row][vc_row][vc_column offset=”vc_col-lg-5 vc_col-md-6″][tm_heading custom_google_font=”” text=”Result Driven” font_size=”lg:30″][tm_spacer size=”lg:40″][tm_heading tag=”div” custom_google_font=”” text=”The ad program ran only in markets where all franchisees agreed. Those who did not agree paid the 2 percent fee. With a new marketing war chest, Firehouse Subs and Zimmerman started an $8 million advertising campaign in September 2009. (Credit: nytimes.com)”][tm_spacer size=”lg:24″][tm_list list_style=”circle” columns=”xs:1;lg:1″ items=”%5B%7B%22item_title%22%3A%22Reduced%20lead%20time%20by%2043%25%22%2C%22icon_fontawesome%22%3A%22fa%20fa-snowflake-o%22%2C%22icon_ion%22%3A%22ion-alert-circled%22%2C%22icon_themify%22%3A%22ti-angle-double-up%22%2C%22icon_flat%22%3A%22flaticon-smiling-baby%22%7D%2C%7B%22item_title%22%3A%22Decreased%20variability%20by%2050%25%22%2C%22icon_fontawesome%22%3A%22fa%20fa-adjust%22%2C%22icon_ion%22%3A%22ion-alert%22%2C%22icon_themify%22%3A%22ti-arrow-up%22%2C%22icon_flat%22%3A%22flaticon-heartbeat%22%7D%2C%7B%22item_title%22%3A%22Lowered%20the%20risk%20of%20back-order%20by%2095%25%22%2C%22icon_fontawesome%22%3A%22fa%20fa-adjust%22%2C%22icon_ion%22%3A%22ion-alert%22%2C%22icon_themify%22%3A%22ti-arrow-up%22%2C%22icon_flat%22%3A%22flaticon-heartbeat%22%7D%2C%7B%22item_title%22%3A%22Increased%20stock%20for%20finished%20goods%20by%2010%25%22%2C%22icon_fontawesome%22%3A%22fa%20fa-adjust%22%2C%22icon_ion%22%3A%22ion-alert%22%2C%22icon_themify%22%3A%22ti-arrow-up%22%2C%22icon_flat%22%3A%22flaticon-heartbeat%22%7D%5D”][tm_spacer size=”sm:50″][/vc_column][vc_column offset=”vc_col-lg-offset-1 vc_col-md-6″][tm_line_chart datasets=”%5B%7B%22title%22%3A%22Item%2001%22%2C%22values%22%3A%2215%3B%2010%3B%2022%3B%2019%3B%2023%3B%2017%22%2C%22color%22%3A%22rgba(105%2C59%2C255%2C0.55)%22%2C%22fill%22%3A%22custom%22%2C%22fill_color%22%3A%22rgba(105%2C59%2C255%2C0.55)%22%2C%22point_style%22%3A%22none%22%2C%22line_type%22%3A%22none%22%2C%22line_style%22%3A%22solid%22%2C%22thickness%22%3A%22thin%22%2C%22line_tension%22%3A%2210%22%7D%2C%7B%22title%22%3A%22Item%2002%22%2C%22values%22%3A%2234%3B%2038%3B%2035%3B%2033%3B%2037%3B%2040%22%2C%22color%22%3A%22rgba(0%2C110%2C253%2C0.56)%22%2C%22fill%22%3A%22custom%22%2C%22fill_color%22%3A%22rgba(0%2C110%2C253%2C0.56)%22%2C%22point_style%22%3A%22none%22%2C%22line_type%22%3A%22none%22%2C%22line_style%22%3A%22solid%22%2C%22thickness%22%3A%22thin%22%2C%22line_tension%22%3A%2210%22%7D%5D” legend_position=”right”][/vc_column][/vc_row]