Offline business in an online world

12 replies
We have discussed recently the amount spent in offline ad activities vs online ad spend. As I was clipping the mesh from my Turkeys today, there is the cooking direction printed piece. I actually opened one today. A simple little 3 fold piece of paper.. with cooking directions, thawing directions ( a little late for that LOL ) and 2 of the 6 panels were ads.

One of them being visit Butterball for coupons for more products, and the other being $30.00 off a Turkey deep fryer.. this one being a little odd to me being it was an online offer. Its not like I opened this up 2 weeks ago in time to order a deep fryer to use today. I opened the package today, and the offer is basically useless. Like I would think "Oh..I better get online now and take advantage of this great offer for next year" Didn't happen.. I wonder what the conversion rate for this was?

What was missing.. an actually clip / cut physical coupon. They want you to go online to print out the coupon... As a Marketer, what I find interesting here is that you can literally just print out the coupons.. no hoops, no loops no friction. But one has to question why they are not "requiring" an e-mail address to get to the offer, so they could stay connected with their customers, and send more offers in the future. I would say a big disconnect.

In the States this time of year the McRib is out for a limited time.. no coupons for this, but in the advertising they suggest taking a picture and sharing it. THIS is an example of an offline to online connection that actually works. " Experiential Marketing " at its finest.

Large Corporations down to little ity bity mom and pops.. the focus in todays marketing sector seems to be more about how to get offline conversions to online funnels.. and more often than not ( From this marketers viewpoint ) the efforts are massive fails.

Why the failure? Butterball as an example... there is NO funnel!. There is no interaction.. there is no relationship building.

I think the key to offline success is relationship building. be it selling services, or selling products. The exact same holds true for online endeavours.. building relationships is the essential key to any business' success.

When we as Marketers are out there in the cold cold world.. just start the conversations.. let those conversations build into relationships, and from there Selling becomes so much easier. And then from this place we can better understand our clients needs - and better understand what relationships have to be built for THIER success!

The same holds true in online market spaces. Creating the connection between YOU and the end user is paramount. Be it the story or the motivation behind what you are selling.. or how the product or service plays in a broader scope of your beliefs and understanding. Its this connection that ultimately creates the desired effect... the sale.
#business #offline #online #world
Avatar of Unregistered
  • Profile picture of the author rhealy29
    Originally Posted by savidge4 View Post

    Why the failure? Butterball as an example... there is NO funnel!. There is no interaction.. there is no relationship building.


    Isnt it a bit of a leap to judge butterball's efforts as a failure when you have essentially zero information beyond what you can glean from a superficial inspection of the coupon?
    {{ DiscussionBoard.errors[11258582].message }}
    • Profile picture of the author Alex Cohen
      Originally Posted by rhealy29 View Post

      Isnt it a bit of a leap to judge butterball's efforts as a failure when you have essentially zero information beyond what you can glean from a superficial inspection of the coupon?
      The OP's judgment was made based on his knowledge of successful marketing techniques. Printed coupons have proven themselves over the years. As has email marketing.

      Alex
      {{ DiscussionBoard.errors[11258673].message }}
    • Profile picture of the author savidge4
      Originally Posted by rhealy29 View Post

      Isnt it a bit of a leap to judge butterball's efforts as a failure when you have essentially zero information beyond what you can glean from a superficial inspection of the coupon?
      The fail is not within the offer itself... its missing the opportunity to start a relationship with a buying customer. Butterballs product line is more than just Thanksgiving turkeys. What gets kinda interesting is they are very specialized in what they offer... its turkey turkey and turkey with a hint of chicken.

      What happens on thanksgiving? you eat a lot right? and then you add on a few pounds.. and guess what? You want to shed that Holiday weight... Turkey is pretty much considered a health food is it not? High in protein low in fat... and nobody does turkey like butterball.... Works for KFC.. why not Butterball?

      Then you have the social fail... No take a photo.. or share you favorites or nothing.

      a few big big big wins this year in regards to food.... KFC with exactly 11 followers.. 11 guys named Herb, and the spice girls.. that would be 11 herbs and spices. Straight up genius went viral, and got a lot of attention.

      McD's with the McRib photos.. blew it out of the park!

      Taco Bell... did you see the Old Spice Taco bell transaction of tweets? Obviously designed and killer crushed it for the pair of them....

      There is no question that Butterball holds a fair amount of market share for the holidays ( 30% overall ) ... but the holidays being 1 day in November and 1 day a month later in December.. they have another 363 days to think about gaining ground. Based on the data I can look at the average market share for Butterballs "Lunch Meat" sector is 7% on a good year.. there is a ton of room for growth
      Signature
      Success is an ACT not an idea
      {{ DiscussionBoard.errors[11258877].message }}
  • Profile picture of the author JohnMcCabe
    Regarding the fryer offer...

    One of the big reasons people give for not buying/cooking more whole turkeys is the time and hassle. They put up with it for Thanksgiving because of tradition.

    Now, in the midst of all that tradition, they get hit upside the head with an idea for removing much of the hassle while yielding an often-better product. (Deep fried turkey is done in a fraction of the time, and stays moist and juicy.)

    That fryer ad may not have been in time for this meal, but for the right segment of the market, it could end up selling a lot more whole birds throughout the year - even when the stores aren't competing to be the cheapest.

    Think about it. If they can sell a discounted fryer from a coupon on a $0.59/lb bird, then sell a few more 10-20 lb birds at $2-3/lb during the year, are they really that dumb?
    {{ DiscussionBoard.errors[11262427].message }}
    • Profile picture of the author eccj
      Originally Posted by JohnMcCabe View Post

      Regarding the fryer offer...

      One of the big reasons people give for not buying/cooking more whole turkeys is the time and hassle. They put up with it for Thanksgiving because of tradition.

      Now, in the midst of all that tradition, they get hit upside the head with an idea for removing much of the hassle while yielding an often-better product. (Deep fried turkey is done in a fraction of the time, and stays moist and juicy.)

      That fryer ad may not have been in time for this meal, but for the right segment of the market, it could end up selling a lot more whole birds throughout the year - even when the stores aren't competing to be the cheapest.

      Think about it. If they can sell a discounted fryer from a coupon on a $0.59/lb bird, then sell a few more 10-20 lb birds at $2-3/lb during the year, are they really that dumb?
      I was listening to the radio on the Saturday before Thanksgiving and heard a radio interview/ad with the marketing guy from Masterbuilt.

      So apparently Masterbuilt has really good social media marketing AND they are the builders and marketers of the Butterball Turkey Fryer.

      It's a JV between the companies. The Masterbuilt guy even said the words "joint venture."

      It's possible the venture happened late in the season so that put the marketing back. But long term, making turkey easier to make would be a big deal for Butter Ball
      {{ DiscussionBoard.errors[11262536].message }}
  • Profile picture of the author savidge4
    I totally get what you are saying... but if I may.. let me show you the disconnect in epic proportions.

    Before I really get into this.. let me say I am a Conversion junky.. I watch many marketspaces to see what they are doing and how. Some of the markets I watch closest happen to be food related, being fast food, and seasonals, and many others.

    Like many food categories, there tends to be an association that is "Supposed" to help in terms of product image. Some that come to mind real quick. Florida Orange growers, or California cows or Wisconsin Cheese, or grapes.. not branded by company name.. branded by product. I would say overall this is genious.

    So lets look at some of these:

    Turkey Org: Eatturkey.com On a scale of 1 to 10 is it possible to be a negative? this may be the case and point to make such an argument. A product that it so American iconic.. its really hard to understand ( If you are not familiar with the others, as you look at those you will understand )

    Florida Orange Growers: https://www.floridacitrus.org/orange-juice-ca/growers/ Killer killer killer. Nice video... They go the route of personalizing the product.. meet the farmer, Here is where are the farms are located. They really drive home the concept of Passion, Care, and family - just plain ol good stuff.

    Wisconsin Cheese: Wisconsin Cheese | Eat Wisconsin Cheese Somewhat like the Orange Growers.. a bit more product driven.. they are taking more the education approach than say the Orange farmers trust building approach. still very good overall.

    California cows: http://www.realcaliforniamilk.com/ This one is less specific by product.. ( milk makes lots of stuff ) Unless you lived under a rock - I am sure you have seen the iconic happy cows commercials... Just really good at boosting overall product knowledge, but also targeting regional growers ( California ) to compete with say Wisconsin cheese as an example.

    Grapes: https://www.grapesfromcalifornia.com/ Gone are the days of the iconic "heard it through the grape vine" commercials... but visiting the site you see how they are targeting.. "Grown by Families For Families" A very solid approach in todays market space.

    So back to turkeys.. I will flat out say the National Organization that is supposed to be in it to win int for the farmers is failing... I will say that as a brand, Butterball could be doing way better and I will tell you why.

    Of all the brands of "Frozen" Turkeys, Butterball is in my mind the only brand that sticks out. So looking at their site: Fresh & Frozen Turkey, How To Cook Turkey, Turkey Recipes | Butterball® no where do you see the personal connections.. like meet the farmers. Or do you see mention where their farms are Mid west by the way - many in Ohio. You don't even get an idea of the company's history indicating the 75+ years of producing turkeys.

    Look at all of the other examples and you can CLEARLY see where Butterball or more specifically the turkey industry is so off base. I will say it again an Epic marketing fail.

    So lets back up even further for a sec... Turkeys are an interesting product in the food world... they are basically Loss leaders. meaning they are sold at a loss to bring consumers in to the store so they will buy all the things that go along with a "Traditional" Holiday meal.

    What gets interesting here, is the idea of loss leader... Does the Turkey industry charge less ( remember Demand is high ) or is he industry as a whole collecting the same ( at the wholesale level ) year round? and its actually the retail outlet taking what appears to be a financial hit?

    I did some number checking... The average retail side profit on a Turkey is .40 cents a pound.. as compared to Pork or Beef that are both over $2.00 a pound. Back to sliced goods and generally product there is "Keystoned" a fancy word for the price is doubled. so at the very least for the pre packaged stuff there is a $2.00 or more per pound, and the Deli meat, one can assume there is even more.

    As a Conversion specialist, and looking at a site, one of the things I have to determine is where to start. Profit is obviously a place I look to as an indicator. Another is possibility of growth. When I look at things like market share.. Butterball has 30% market share with whole turkeys, and only 7% with sliced meats. Where is the greatest possibility of growth.

    Understanding a bit about profit of these 2 products ( Whole vs Processed / sliced ) I know there is also greater profit in the sliced product. So if they were to hire me tomorrow, unless something would change getting all of the "inside" information, I would be pushing sliced product, and setting a goal of 10% market space to start with.

    Something I look at a lot, is Amazon.. type "sliced lunch meat" into Amazon and see what happens... its all of the industry leaders.. and butterball no where to be found. As a matter of fact there are no turkey based products listed ( Just saying )

    I honestly feel for Masterbuilt in all of this.. You would think Butterball and Masterbuilt would be a dream JV. Seriously big win for Masterbuilt. But then you look at the delivery.. Masterbuilts offer is on the wrong side of the buying cycle.. kinda like which comes first the chicken or the egg? in this case the fryer or the Turkey. I would say the Fryer.

    At the very least they are gaining brand recognition.. the question is can they sustain that til next October early November next year, when demand increases and they can then be on the right side of the buying cycle.. time will tell.

    An interesting side note.. looking at Butterballs site... no where do you see Masterbuilt, but look at Masterbuilt.. well the product itself has Butterballs name on it LOL . I would say that Butterball is not doing their part to increase off season gains. ( seems to be a pattern )
    Signature
    Success is an ACT not an idea
    {{ DiscussionBoard.errors[11262826].message }}
    • Profile picture of the author eccj
      Originally Posted by savidge4 View Post

      I totally get what you are saying... but if I may.. let me show you the disconnect in epic proportions.

      Before I really get into this.. let me say I am a Conversion junky.. I watch many marketspaces to see what they are doing and how. Some of the markets I watch closest happen to be food related, being fast food, and seasonals, and many others.

      Like many food categories, there tends to be an association that is "Supposed" to help in terms of product image. Some that come to mind real quick. Florida Orange growers, or California cows or Wisconsin Cheese, or grapes.. not branded by company name.. branded by product. I would say overall this is genious.

      So lets look at some of these:

      Turkey Org: Eatturkey.com On a scale of 1 to 10 is it possible to be a negative? this may be the case and point to make such an argument. A product that it so American iconic.. its really hard to understand ( If you are not familiar with the others, as you look at those you will understand )

      Florida Orange Growers: https://www.floridacitrus.org/orange-juice-ca/growers/ Killer killer killer. Nice video... They go the route of personalizing the product.. meet the farmer, Here is where are the farms are located. They really drive home the concept of Passion, Care, and family - just plain ol good stuff.

      Wisconsin Cheese: Wisconsin Cheese | Eat Wisconsin Cheese Somewhat like the Orange Growers.. a bit more product driven.. they are taking more the education approach than say the Orange farmers trust building approach. still very good overall.

      California cows: http://www.realcaliforniamilk.com/ This one is less specific by product.. ( milk makes lots of stuff ) Unless you lived under a rock - I am sure you have seen the iconic happy cows commercials... Just really good at boosting overall product knowledge, but also targeting regional growers ( California ) to compete with say Wisconsin cheese as an example.

      Grapes: https://www.grapesfromcalifornia.com/ Gone are the days of the iconic "heard it through the grape vine" commercials... but visiting the site you see how they are targeting.. "Grown by Families For Families" A very solid approach in todays market space.

      So back to turkeys.. I will flat out say the National Organization that is supposed to be in it to win int for the farmers is failing... I will say that as a brand, Butterball could be doing way better and I will tell you why.

      Of all the brands of "Frozen" Turkeys, Butterball is in my mind the only brand that sticks out. So looking at their site: Fresh & Frozen Turkey, How To Cook Turkey, Turkey Recipes | Butterball® no where do you see the personal connections.. like meet the farmers. Or do you see mention where their farms are Mid west by the way - many in Ohio. You don't even get an idea of the company's history indicating the 75+ years of producing turkeys.

      Look at all of the other examples and you can CLEARLY see where Butterball or more specifically the turkey industry is so off base. I will say it again an Epic marketing fail.

      So lets back up even further for a sec... Turkeys are an interesting product in the food world... they are basically Loss leaders. meaning they are sold at a loss to bring consumers in to the store so they will buy all the things that go along with a "Traditional" Holiday meal.

      What gets interesting here, is the idea of loss leader... Does the Turkey industry charge less ( remember Demand is high ) or is he industry as a whole collecting the same ( at the wholesale level ) year round? and its actually the retail outlet taking what appears to be a financial hit?

      I did some number checking... The average retail side profit on a Turkey is .40 cents a pound.. as compared to Pork or Beef that are both over $2.00 a pound. Back to sliced goods and generally product there is "Keystoned" a fancy word for the price is doubled. so at the very least for the pre packaged stuff there is a $2.00 or more per pound, and the Deli meat, one can assume there is even more.

      As a Conversion specialist, and looking at a site, one of the things I have to determine is where to start. Profit is obviously a place I look to as an indicator. Another is possibility of growth. When I look at things like market share.. Butterball has 30% market share with whole turkeys, and only 7% with sliced meats. Where is the greatest possibility of growth.

      Understanding a bit about profit of these 2 products ( Whole vs Processed / sliced ) I know there is also greater profit in the sliced product. So if they were to hire me tomorrow, unless something would change getting all of the "inside" information, I would be pushing sliced product, and setting a goal of 10% market space to start with.

      Something I look at a lot, is Amazon.. type "sliced lunch meat" into Amazon and see what happens... its all of the industry leaders.. and butterball no where to be found. As a matter of fact there are no turkey based products listed ( Just saying )

      I honestly feel for Masterbuilt in all of this.. You would think Butterball and Masterbuilt would be a dream JV. Seriously big win for Masterbuilt. But then you look at the delivery.. Masterbuilts offer is on the wrong side of the buying cycle.. kinda like which comes first the chicken or the egg? in this case the fryer or the Turkey. I would say the Fryer.

      At the very least they are gaining brand recognition.. the question is can they sustain that til next October early November next year, when demand increases and they can then be on the right side of the buying cycle.. time will tell.

      An interesting side note.. looking at Butterballs site... no where do you see Masterbuilt, but look at Masterbuilt.. well the product itself has Butterballs name on it LOL . I would say that Butterball is not doing their part to increase off season gains. ( seems to be a pattern )
      That last part kills me. I went into Lowe's and noticed the same thing. The outdoor cooking is right when you walk so I went to look at this amazing thing I heard about on the radio.

      Masterbuilt was nowhere to be found on the box. That I don't get. If I didn't listen to the whole interview I wouldn't have known to look for the Butterball fryer.

      Maybe Butterball is a pain in the arse to deal with as a company and they screwed the whole thing up for them and Masterbuilt?

      That's interesting that a whole turkey is a loss leader. Perhaps that helps explain why whole turkeys don't sell well all year; price shock. Why pay more, or charge more, for turkey one part of the year but not the rest? No idea if that is true or not since I don't buy the groceries.

      On the contrary to the Butterball fiasco is The Big Green Egg.

      They have a huge cult like following and incredible interaction with their users. Their magazine is high quality and people are constantly looking for new things to cook in their egg.
      {{ DiscussionBoard.errors[11263821].message }}
      • Profile picture of the author savidge4
        Originally Posted by eccj View Post

        On the contrary to the Butterball fiasco is The Big Green Egg.

        They have a huge cult like following and incredible interaction with their users. Their magazine is high quality and people are constantly looking for new things to cook in their egg.
        Like I said in the OP.. its about the relationship between the product and the consumer. BGE does indeed knock it out of the park... # this and that.. Photo Friday.. they are on fleet.

        The best part is the product innovation... they have a screaming hoard of consumers that have the product.. they say "Hey, I want to make pizza" and they turn out an add on to do so... "Hey I want to make Stew!" Voila a dutch oven. "Hey I want to bake".. and out comes a series of baking pans.

        unlike any other product I can think of.. the strength is in the interaction and fulfilment of needs / desires of the users. Its actually pretty cool to follow.

        Score 1 for some southern boys! LOL
        Signature
        Success is an ACT not an idea
        {{ DiscussionBoard.errors[11264010].message }}
  • Profile picture of the author max5ty
    On the contrary to the Butterball fiasco is The Big Green Egg. (Quote from another post above)

    180,000 FB followers for the Big Green Egg compared to about 630,000 for Butterball...hmmm.

    Anyways, earlier in the month I read an article about Butterball marketing:

    Q&AA: Butterball's Branding Stroke of Genius | Q&AA - AdAge

    This was in Fortune:

    Butterball Introduces Organic Turkey | Fortune

    I thought this quote was interesting from the above article:

    "Despite growing demand for organic products, however, Butterball doesn't plan to heavily market its new organic birds. Butterball COO Jay Jandrain told USA Today that the company is "not particularly promoting the items," as it wants to avoid a "situation where we're overselling what we produce."

    And from their about:

    "Headquartered in Garner, N.C., Butterball is the largest producer of turkey products in the U.S. - producing over 1 billion pounds of turkey each year. For more than 60 years, the company has provided foodservice and retail products to customers and consumers around the world. As an industry leader in quality and food safety, the company employs numerous processes to ensure the health of flocks and implements recognized prevention measures to exceed food safety standards. Butterball products are currently distributed throughout the U.S. and in more than 30 countries."

    Not all advertising is equal.

    I've heard people in the past knock brand advertising...but usually they've no real concept of advertising.

    Brand advertising is important because the manufacturer of the product, Butterball Turkeys in this case, has a sales department that gets the product into grocery stores, etc. They do not care to sell the product directly from their factories.

    Since their product is carried by outside retailers, all the marketing Butterball does is based not only on people hearing about their product but also increasing the odds that consumers will buy from the retailers that carry their product.

    Based on their name and reputation alone I'm quite sure it's an easy sale getting their product into stores.

    Butterball's marketing is massive. Every year they have tons of articles about them in almost every major magazine and they have stories broadcast about them on every major news network in the world.

    The more important take away from this post is something I haven't heard mentioned...

    ...the store that sells the Butterball Turkey should be getting info from their customers so they can continue to send them more offers. The store is the one selling the product directly to the consumer, so they're missing an opportunity if they're not following up. Most stores do have marketing plans that follow up.

    I completely understand direct response marketing...but I also understand DR marketing doesn't always take the form that seems to get tossed around.

    As far as fast food joints...the competition among them is fierce...it's a dog eat dog world and it's one that will continue to demand huge sums of cash to compete.

    On a side note..thought this article from a couple years ago was interesting:

    The $3,500 Butterball turkey stock - Nov. 26, 2014

    I believe the stock is up to around $4400.00 now.

    Thank you for the post. It made for some interesting conversation.
    {{ DiscussionBoard.errors[11264350].message }}
    • Profile picture of the author eccj
      Originally Posted by max5ty View Post

      On the contrary to the Butterball fiasco is The Big Green Egg. (Quote from another post above)

      180,000 FB followers for the Big Green Egg compared to about 630,000 for Butterball...hmmm.

      Anyways, earlier in the month I read an article about Butterball marketing:

      Q&AA: Butterball's Branding Stroke of Genius | Q&AA - AdAge

      This was in Fortune:

      Butterball Introduces Organic Turkey | Fortune

      I thought this quote was interesting from the above article:

      "Despite growing demand for organic products, however, Butterball doesn't plan to heavily market its new organic birds. Butterball COO Jay Jandrain told USA Today that the company is "not particularly promoting the items," as it wants to avoid a "situation where we're overselling what we produce."

      And from their about:

      "Headquartered in Garner, N.C., Butterball is the largest producer of turkey products in the U.S. - producing over 1 billion pounds of turkey each year. For more than 60 years, the company has provided foodservice and retail products to customers and consumers around the world. As an industry leader in quality and food safety, the company employs numerous processes to ensure the health of flocks and implements recognized prevention measures to exceed food safety standards. Butterball products are currently distributed throughout the U.S. and in more than 30 countries."

      Not all advertising is equal.

      I've heard people in the past knock brand advertising...but usually they've no real concept of advertising.

      Brand advertising is important because the manufacturer of the product, Butterball Turkeys in this case, has a sales department that gets the product into grocery stores, etc. They do not care to sell the product directly from their factories.

      Since their product is carried by outside retailers, all the marketing Butterball does is based not only on people hearing about their product but also increasing the odds that consumers will buy from the retailers that carry their product.

      Based on their name and reputation alone I'm quite sure it's an easy sale getting their product into stores.

      Butterball's marketing is massive. Every year they have tons of articles about them in almost every major magazine and they have stories broadcast about them on every major news network in the world.

      The more important take away from this post is something I haven't heard mentioned...

      ...the store that sells the Butterball Turkey should be getting info from their customers so they can continue to send them more offers. The store is the one selling the product directly to the consumer, so they're missing an opportunity if they're not following up. Most stores do have marketing plans that follow up.

      I completely understand direct response marketing...but I also understand DR marketing doesn't always take the form that seems to get tossed around.

      As far as fast food joints...the competition among them is fierce...it's a dog eat dog world and it's one that will continue to demand huge sums of cash to compete.

      On a side note..thought this article from a couple years ago was interesting:

      The $3,500 Butterball turkey stock - Nov. 26, 2014

      I believe the stock is up to around $4400.00 now.

      Thank you for the post. It made for some interesting conversation.
      Butterball is an amazing company for sure. They get how to drive distribution in grocery stores.

      Selling turkey fryers is a whole other ball game that they still need to work on.

      But just take a look at their numbers. A small gain in the number of people who buy 1 turkey a year to 2 whole turkeys a year is massive amounts of money.

      With these new fryers, smokers, and inferred cookers, turkey could become the next chicken when it comes to home cooking.
      {{ DiscussionBoard.errors[11264697].message }}
    • Profile picture of the author savidge4
      What I love about numbers... they can help you, they can hurt you, or you can just twist the daylights out of them and make them work the way you want them to..

      Originally Posted by max5ty View Post

      180,000 FB followers for the Big Green Egg compared to about 630,000 for Butterball...hmmm.
      Throw this into scale BGE has been around since 1974.. but it really wasn't till 1995 that they started producing their own product. Based on what I have read in recent years they are selling between 20 to 30k units per year.. so for the last 23 years we will over estimate that they have sold 20k per year so overall have sold 460,000 units. So the 180,000 followers.. that represents 39% of everyone that has bought one. If you follow at all you would understand that your average BGE owner has more than one. so the overall percentage is actually even greater.

      Butterball on the other hand with 630,000 followers and has been selling turkeys since 1940. 1 Billion pounds of turkey per year.. works out to 16.8 lbs PER HOUSEHOLD. As of 2014 there are 115,227,000 households in the USA. Then you can say there are 2.59 people per household giving you 259,437,930 people then roll out the 40% market share factor leaving you with 103,775,172 people that have "eaten" the product - and again we are talking PER YEAR here... So when rubber hits the road .6% of the people that use the product have liked the Butterball page.

      Scale is everything!

      Originally Posted by max5ty View Post

      Anyways, earlier in the month I read an article about Butterball marketing:

      Q&AA: Butterball's Branding Stroke of Genius | Q&AA - AdAge
      Creating a call center that handles 100,000 calls per year, is not really what I would call "Marketing" as much as I would call it "customer service" ( I would consider this in the frame work of customer retention before I would place it in the customer acquiring category ) And this is not anything new, it started in 1981... I would consider this aged corporate thinking in terms of marketing.. in todays environment, this really isn't a USP its a norm

      Originally Posted by max5ty View Post

      This was in Fortune:

      Butterball Introduces Organic Turkey | Fortune

      I thought this quote was interesting from the above article:

      "Despite growing demand for organic products, however, Butterball doesn't plan to heavily market its new organic birds. Butterball COO Jay Jandrain told USA Today that the company is "not particularly promoting the items," as it wants to avoid a "situation where we're overselling what we produce."
      Read this: Is the Butterball Turkey Shortage for Real? - Mother Jones and there are indications of something else.. I know its dated.. I know there isn't a shortage today, but read about the data on the increasing size of the turkeys... Boosted turkeys and Organic are not a good combination. Mr. Jandrain spun the snot out of thatstatement. Reading between the lines one might read that Butterball is not pushing Organic, because of the nature of the product overall returns would be minimal.

      Originally Posted by max5ty View Post

      And from their about:

      "Headquartered in Garner, N.C., Butterball is the largest producer of turkey products in the U.S. - producing over 1 billion pounds of turkey each year. For more than 60 years, the company has provided foodservice and retail products to customers and consumers around the world. As an industry leader in quality and food safety, the company employs numerous processes to ensure the health of flocks and implements recognized prevention measures to exceed food safety standards. Butterball products are currently distributed throughout the U.S. and in more than 30 countries."

      Not all advertising is equal.

      I've heard people in the past knock brand advertising...but usually they've no real concept of advertising.

      Brand advertising is important because the manufacturer of the product, Butterball Turkeys in this case, has a sales department that gets the product into grocery stores, etc. They do not care to sell the product directly from their factories.

      Since their product is carried by outside retailers, all the marketing Butterball does is based not only on people hearing about their product but also increasing the odds that consumers will buy from the retailers that carry their product.

      Based on their name and reputation alone I'm quite sure it's an easy sale getting their product into stores.
      I'm going to flat out say it and say that this portion is way off base. You have to understand how "Super Markets" work.. the reality is the tables are a bit turned... In many locations the Manufacturer "PAYS" for product placement - kinda like rent for the shelf space.

      An aspect here that is a bit misunderstood... you have to understand that the parent company "Seaboard" also owns 'Smithfield" who is a player in the Turkey market as well. If you look here: https://www.uspoultry.org/economic_d...yCompanies.pdf you notice that "Smithfield" isnt mentioned on the list.. not because they don't sell enough to be included, it is because the numbers are buried within the name "Butterball" So "Seaboard" may be huge, but how big is butterball? - more on this in a minute

      Originally Posted by max5ty View Post

      Butterball's marketing is massive. Every year they have tons of articles about them in almost every major magazine and they have stories broadcast about them on every major news network in the world.
      Butterballs EXPOSURE may be massive... their marketing... eh not so much. But this is Big Corporate Brand thinking.. why pay when everyone else is doing it for you? Seen a Cream of Wheat Commercial Lately? Still a huge brand.... still holding market share. No need to do anything right?

      How about Mr Coffee.. H U G E right? Yeah until 1998 when Keurig came in and threw them around like a rag doll... not only taking a H U G E chunk of market share in the mechanical side of the market, but flat out crushing it on the consumables side. Then in 2006 Green mountain bought the whole thing out becoming the top dog in the Machine side as well as the consumables side....

      Folgers was advertising.. Maxwell house was advertising.. and guess what - they were "branding" and not creating relationships... Keurig crushed the GIANTS of modern industry - I would say right now Watch Nespresso.. they are going to consume some market space

      Originally Posted by max5ty View Post

      The more important take away from this post is something I haven't heard mentioned...

      ...the store that sells the Butterball Turkey should be getting info from their customers so they can continue to send them more offers. The store is the one selling the product directly to the consumer, so they're missing an opportunity if they're not following up. Most stores do have marketing plans that follow up.

      I completely understand direct response marketing...but I also understand DR marketing doesn't always take the form that seems to get tossed around.
      I don't know where to start here... A store with 10K products cant do what you think they should be.. Target of the big boys kinda does with data.. but I don't think so much on a "product" level. They are looking for buying patterns and far wider than specific items they have in the store. They are more concerned with depts.

      You have to remember for every product out there.. there are umpteen separate brands offering the same thing.... Its not up to the "Store" to push an item, its up to the Manufacture to create the brand recognition and ultimately the sale. - and I say this specifically about the food sector primarily

      Originally Posted by max5ty View Post

      On a side note..thought this article from a couple years ago was interesting:

      The $3,500 Butterball turkey stock - Nov. 26, 2014

      I believe the stock is up to around $4400.00 now.

      Thank you for the post. It made for some interesting conversation.
      And here is where things get fun.... "Butterball" is not a stock you can buy. Butterball is actually owned by 2 companies meaning there is a 49 / 50% split.( 1% I believe is held by the original owner ) the $4400 a share company that owns 50% of Butterball is Seaboard. name may sound familiar... think Cargo ship, its generally their name on the side of the shipping containers. They are also very big in the Pork market space among other things... very diverse.

      So in terms of butterball... I ask that you goto page 20 here: https://www.seaboardcorp.com/wp-cont...ual-Report.pdf So the article you are referring to makes Butterball sound awesome right? 2014.. they L O S T $54,000,000 wasn't any better in 2015 either - not to good in 2016 either actually...

      numbers... they can help you, they can hurt you, or you can just twist the daylights out of them and make them work the way you want them to.
      Signature
      Success is an ACT not an idea
      {{ DiscussionBoard.errors[11264800].message }}
  • Profile picture of the author max5ty
    Couple things...

    ...first I've discovered way too much about Butterball Turkeys this year. I pity the fool that even mentions the word Butterball at one of the Christmas dinners. I'll seem way more intelligent than I really am.

    I don't know where to start here... A store with 10K products cant do what you think they should be.. Target of the big boys kinda does with data.. but I don't think so much on a "product" level. They are looking for buying patterns and far wider than specific items they have in the store. They are more concerned with depts.


    Wasn't saying they should try to sell more turkeys...was saying most have frequent buyer cards etc. Somewhere in my past life on here I did a post about the study of buying habits and how they're tracked.

    Don't know much about coffee, but I know Kraft owns either Maxwell house or Folgers and Smuckers owns the other. Few years ago I heard where Kraft was making pods for the Keurig. Now I see Keurig advertises Folgers Folgers® | Classic Roast® Coffee | K-Cup | Keurig, and Folgers advertises Keurig https://www.folgerscoffee.com/coffees/k-cup-pods. I don't really drink coffee so I don't keep up on it.

    So in terms of butterball... I ask that you goto page 20 here: https://www.seaboardcorp.com/wp-cont...ual-Report.pdf So the article you are referring to makes Butterball sound awesome right? 2014.. they L O S T $54,000,000 wasn't any better in 2015 either - not to good in 2016 either actually...

    Actually their income in 2014 was $54 million...not a loss...and their income for 2015 was $103 million...not a loss. They post a $10 million dollar loss for 2013 but they explain below about it having something to do with a factory.

    I'm going to flat out say it and say that this portion is way off base. You have to understand how "Super Markets" work.. the reality is the tables are a bit turned... In many locations the Manufacturer "PAYS" for product placement - kinda like rent for the shelf space.

    Yes, they sometimes do. There's slotting fees, co-op ad fees, etc., etc.

    There was a post on here somewhere once about co-op ad revenue. It's an often forgotten benefit to small businesses. A person can actually probably make money this way by just informing small businesses about free advertising. Can't remember what all the post on here said, but I remember it being quite interesting.

    Anyways, often the big guys determine where the product is placed.

    https://cspinet.org/news/supermarket...urers-20160928

    I do know that after almost 37 years in the business world, I've discovered the food industry is one of the toughest...which is why I usually always hear the phrase on Shark Tank, "The big boys will crush you like a cockroach" whenever someone is wanting to bring a food product to market.

    Thanks for your reply.
    {{ DiscussionBoard.errors[11265868].message }}
Avatar of Unregistered

Trending Topics