Strategic ad spending is important even during economic downturns. While cutting costs seems prudent, reducing marketing can be a mistake as competitors may decrease spending, making your brand stand out. This was demonstrated when Firehouse Subs, after rapid expansion, saw slowing growth and returned local ad fees to franchisees instead of marketing. Sales declined further, showing this was the wrong strategy. Firehouse then asked franchisees to double local ad spending to participate in an $8 million national campaign, which experts say showed courage during tough times and helped turn business around.
Strategic ad spending is important even during economic downturns. While cutting costs seems prudent, reducing marketing can be a mistake as competitors may decrease spending, making your brand stand out. This was demonstrated when Firehouse Subs, after rapid expansion, saw slowing growth and returned local ad fees to franchisees instead of marketing. Sales declined further, showing this was the wrong strategy. Firehouse then asked franchisees to double local ad spending to participate in an $8 million national campaign, which experts say showed courage during tough times and helped turn business around.
Strategic ad spending is important even during economic downturns. While cutting costs seems prudent, reducing marketing can be a mistake as competitors may decrease spending, making your brand stand out. This was demonstrated when Firehouse Subs, after rapid expansion, saw slowing growth and returned local ad fees to franchisees instead of marketing. Sales declined further, showing this was the wrong strategy. Firehouse then asked franchisees to double local ad spending to participate in an $8 million national campaign, which experts say showed courage during tough times and helped turn business around.
Strategic ad spending is important even during economic downturns. While cutting costs seems prudent, reducing marketing can be a mistake as competitors may decrease spending, making your brand stand out. This was demonstrated when Firehouse Subs, after rapid expansion, saw slowing growth and returned local ad fees to franchisees instead of marketing. Sales declined further, showing this was the wrong strategy. Firehouse then asked franchisees to double local ad spending to participate in an $8 million national campaign, which experts say showed courage during tough times and helped turn business around.
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Strategic ad spending: Advertising can cost a chunk of money to any organisation
and the financial conditions might not be conducive to undertake such a huge ad expenditure every time. But forgoing ad spending in favour of better profits can be a mistake. Experts say that in a slump, one of the high-quality things you can do is adopt or enlarge your marketing approach to appeal to customers. During a recession, this is particularly true, as there would be a surge in cutting back on the ad spending by many organizations, make your voice even extra outstanding to customers. After seven years of boom, increasing from 30 to 300 locations, Firehouse Subs' boom fizzled, and organization leaders realized they had to come up with a solution. So they returned local advertising fees collected from franchisees, not to put in their pockets, but to take hold of their own local marketing. Consequently, sales fell, even more, revealing that this was not an appropriate strategy at the time. Firehouse reclaimed their local marketing fee, and then gave franchisees the option to take part in a new marketing campaign, requiring them to pay double for local marketing, but in return, becoming part of an $8 million advertising campaign poised for success. Experts commend Firehouse for having the courage to ask franchisees for more money where it was needed, even when times were tough.
