Focaccio\'s Marketing Presentation

$Page 1: Focaccio\'s Marketing Presentation$
B Y A A R O N B L A N C H

Fall Festival Three Product Line Market Test Results

Executive Summary

Launch the Ciabatta line internationally

Ciabatta ranked the highest in the test market survey

Ciabatta had a steady average return of 3.69%

Fall Festival Survey Results

Ciabatta had the best overall survey results (about 67%)

Café Classic only did best on Value $ - with 68% vs. 58%

Fall Festival Market Test Research Research Weights

Line Ciabatta Holiday Café Weight 1 Weight 2 Weight 3

Overall Liking 72% 65% 42% 20% 20% 15%

Value $ 58% 36% 68% 10% 10% 10%

Overall Appearance 64% 68% 41% 10% 10% 10%

Overall Taste 81% 75% 54% 10% 10% 10%

Amount of Food 78% 84% 61% 10% 10% 10%

Future Purchase Intent 59% 56% 37% 20% 15% 20%

Visitation Impact 63% 50% 26% 20% 25% 25%

Average 68% 62% 47% 100% 100% 100%

Weight 1 67% 61% 43%

Weight 2 67% 60% 43%

Weight 3 66% 60% 43%

Ciabatta had the fewest strong negative responses (6%)

Café Classic had the most strong negative responses (17%)

Fall Festival Market Test Research Research Weights

Line Ciabatta Holiday Café Weight 1 Weight 2 Weight 3

Overall Liking 7% 8% 41% 20% 20% 15%

Value $ 14% 23% 14% 10% 10% 10%

Overall Appearance 5% 17% 27% 10% 10% 10%

Overall Taste 2% 6% 14% 10% 10% 10%

Amount of Food 5% 2% 13% 10% 10% 10%

Future Purchase Intent 4% 18% 11% 20% 15% 20%

Visitation Impact 0% 2% 3% 20% 25% 25%

Average 5% 11% 18% 100% 100% 100%

Weight 1 5% 10% 18%

Weight 2 5% 10% 17%

Weight 3 4% 10% 16%

Café Classic and Ciabatta showed positive pre/post net control results from the test

Average Pre/Post Net Control

Line DMA Avg Pre/Post Net ControlLine Avg

Ciabatta Miami 3.65%

Denver 5.35% 4.65%

Indianapolis 4.95%

Holiday Sacramento -4.05%

Hartford -1.74% -2.42%

Portland -1.45%

Café Classic Las Vegas 6.28%

Seattle 5.18% 6.71%

San Diego 8.66%

Café Classic Pre/Post Net Control & Breakeven Comparison

Café Classic showed a 5.54% increase in traffic above the break even

Café Classic Performance

Company Avg CM 5.21$

Line Weighted CM 4.74$

Loss Per Sale 0.47$

Avg Plates Sold In Test 550.77

Total Loss 259.78$

Line Margin 4.76$

Break Even In Additional Customers 54.61

Company AW Guest Count 4672

Break Even In Customers 1.17%

Pre/Post Net of Control 6.71%

Net Above/Below Breakeven 5.54%

Ciabatta

Ciabatta showed a 3.69% traffic increase above the break even

Ciabatta Line Perfomance

Company Avg CM 5.21$

Line Weighted CM 4.55$

Loss Per Sale 0.66$

Avg Plates Sold In Test 309.82

Total Loss 204.48$

Line Margin 4.57$

Break Even In Add. Cust. 44.74

Company AW Guest Count 4672

Break Even In Customers 0.96%

Pre/Post Net of Control 4.65%

Net Above/Below Breakeven 3.69%

Conclusion

The Café Classic line shows great traffic increases but had very poor test market survey results

The survey data showed that Ciabatta was ranked the highest in the test market survey and Ciabatta had a 3.69% return

Recommendation

Launch the Ciabatta line nationally to avoid gambling with the Café Classic line

Reasoning: The Café Classic line seems to involve somewhat of a gamble according to the test market survey data, while the Ciabatta line seems to be a more sure long term gain

Appendix

How company average CM was derived

How the average product line CM was derived

Pre/Post Net Control Methodology

How The Company Average CM Was Derived

Company Avg Contribution Margin

Sandwiches Avg MarginAWPC Percent Weighted CM

Toulouse Turkey 5.30$ 101 8.09% 0.43

Chicken Salad 4.54$ 127 10.17% 0.46

Old World Veggie 4.95$ 88 7.05% 0.35

Black Forest Ham & Swiss 5.51$ 148 11.85% 0.65

Swiss Dip 5.27$ 64 5.12% 0.27

Classic Reuben 4.97$ 106 8.49% 0.42

Prosciutto & Asiago 5.27$ 104 8.33% 0.44

Manet's Seaside 5.19$ 87 6.97% 0.36

Portabello Panini 4.89$ 120 9.61% 0.47

Sicilian Salami 5.21$ 67 5.36% 0.28

Cordon Bleu 5.74$ 141 11.29% 0.65

Parmesan Beef 5.54$ 96 7.69% 0.43

Totals 5.20$ 1249 100% 5.21$

How the Average Product Line Contribution Margin Was Derived

Took the weighted averages of the sandwiches in each product line

Took the weighted averages of the three DMA’s for the product line

Ciabatta Avg. Cont. Margin

DMA Cont. Margin

Miami 4.55$

Denver 4.59$

Indianapolis 4.53$

Average 4.56$

Miami Ciabatta Weighted Average Contribution Margin

Avg Weekly Plate Count Plates Percent CM Weights

Rosemary Chicken 232 54.0% 4.57$ 2.4678

Garden Mozz 69 16.0% 4.68$ 0.7488

Glazed Pork 129 30.0% 4.46$ 1.338

Totals 429 100% 4.57$ 4.55$

Pre/Post Net Control Methodology

Miami Ciabatta Pre/Post Net Control

Avg Pre Growth Avg Pre Avg Post Avg Post Pre/Post Pre/Post Net Control

-80 -1.90% 80 1.50% 3.40% 3.65%

Miami DMA Avg Weekly Traffic

2010 2011

Wk 1 3510 3468

Wk 2 3615 3559

Wk 3 3998 3934 -63.9713 -1.60%

Wk 4 3865 3775 -89.7894 -2.32%

Wk 5 3960 3872 -88.4831 -2.23%

Wk 6 3915 3820 -95.2966 -2.43%

Wk 7 4145 4057 -87.3947 -2.11%

Wk 8 4298 4213 -85.43 -1.99%

Wk 9 4399 4313 -85.9736 -1.95%

Wk 10 4341 4225 -116.169 -2.68%

Wk 11 4416 4318 -97.7289 -2.21%

Wk 12 4465 4376 -89.5742 -2.01%

Wk 13 4471 4438 -32.2339 -0.72%

Wk 14 4591 4566 -25.0687 -0.55%

Wk 15 4665 4640

Wk 16 4804 4796

Wk 17 4865 4871

Wk 18 4861 4907 46 0.94%

Wk 19 4922 4982 61 1.23%

Wk 20 5222 5297 75 1.44%

Wk 21 5296 5384 88 1.65%

Wk 22 5434 5520 86 1.58%

Wk 23 5520 5614 94 1.70%

Wk 24 5520 5614 94 1.70%

Wk 25 5521 5618 97 1.76%

• Took the average change from pre/post periods, subtracted the average pre period change from the post period to get the Pre/Post numbers.

• Then I net the pre/post with the average pre/post change of the control which was derived using the same method.

Ciabatta Collection: Miami DMA

Miami DMA Avg Weekly Traffic Miami Ciabatta Weighted Average Contribution Margin

2010 2011 Avg Weekly Plate Count Plates Percent CM Weights

Wk 1 3510 3468 Rosemary Chicken 232 54.0% 4.57$ 2.4678

Wk 2 3615 3559 Garden Mozz 69 16.0% 4.68$ 0.7488

Wk 3 3998 3934 -63.9713 -1.60% Glazed Pork 129 30.0% 4.46$ 1.338

Wk 4 3865 3775 -89.7894 -2.32% Totals 429 100% 4.57$ 4.55$

Wk 5 3960 3872 -88.4831 -2.23%

Wk 6 3915 3820 -95.2966 -2.43%

Wk 7 4145 4057 -87.3947 -2.11%

Wk 8 4298 4213 -85.43 -1.99%

Wk 9 4399 4313 -85.9736 -1.95%

Wk 10 4341 4225 -116.169 -2.68% Miami Ciabatta Pre/Post Net Control

Wk 11 4416 4318 -97.7289 -2.21% Avg Pre Growth Avg Pre Avg Post Avg Post Pre/Post Pre/Post Net Control

Wk 12 4465 4376 -89.5742 -2.01% -80 -1.90% 80 1.50% 3.40% 3.65%

Wk 13 4471 4438 -32.2339 -0.72%

Wk 14 4591 4566 -25.0687 -0.55%

Wk 15 4665 4640

Wk 16 4804 4796

Wk 17 4865 4871

Wk 18 4861 4907 46 0.94%

Wk 19 4922 4982 61 1.23%

Wk 20 5222 5297 75 1.44%

Wk 21 5296 5384 88 1.65%

Wk 22 5434 5520 86 1.58%

Wk 23 5520 5614 94 1.70%

Wk 24 5520 5614 94 1.70%

Wk 25 5521 5618 97 1.76%

Ciabatta Collection: Denver DMA

Denver DMA Avg Weekly Traffic Weighted Average Contribution Margin

2010 2011 Sandwhich Plates Percent CM Weights


Wk 2 3412 3475 Garden Mozz 72 26.0% 4.68$ 1.2168

Wk 3 3774 3848 74.23443 1.97% Glazed Pork 33 12.0% 4.46$ 0.5352

Wk 4 3648 3733 84.79058 2.32% Total 277 100% 4.57$ 4.59

Wk 5 3738 3775 36.50285 0.98%

Wk 6 3696 3746 50.46058 1.37%

Wk 7 3912 4004 91.6618 2.34%

Wk 8 4057 4120 62.72296 1.55%

Wk 9 4152 4204 52.47956 1.26%

Wk 10 4098 4165 67.43164 1.65% Pre/Post Net Control

Wk 11 4168 4265 96.70858 2.32% Avg Pre GrowthAvg Pre Avg Post Avg Post Pre/Post Pre/Post Net Control

Wk 12 4215 4285 69.71453 1.65% 72 1.79% 346 6.89% 5.10%

Wk 13 4220 4310 89.50623 2.12%

Wk 14 4334 4418 83.81691 1.93%

Wk 15 4403 4533

Wk 16 4534 4689

Wk 17 4592 4742

Wk 18 4589 4789 200 4.36%

Wk 19 4646 4908 262 5.64%

Wk 20 4929 5317 388 7.87%

Wk 21 4999 5428 429 8.58%

Wk 22 5129 5552 423 8.25%

Wk 23 5211 5598 387 7.43%

Wk 24 5210 5595 384 7.38%

Wk 25 5212 5503 292 5.59%

5.35%

Ciabatta Collection: Indianapolis DMA

Indianapolis DMA Avg Weekly Traffic Weighted Average Contribution Margin



Wk 2 3480 3548 Garden Mozz 27 12.0% 4.68$ 0.5616

Wk 3 3849 3927 78.22238 2.03% Glazed Pork 116 52.0% 4.46$ 2.3192

Wk 4 3721 3798 76.94394 2.07% Total 223 100% 4.57$ 4.53

Wk 5 3812 3890 77.89537 2.04%

Wk 6 3769 3849 80.42805 2.13%

Wk 7 3990 4069 79.21089 1.99%

Wk 8 4137 4219 81.7156 1.98%

Wk 9 4234 4326 92.34631 2.18%



Wk 12 4298 4370 71.09582 1.65% 81 2.00% 340 6.70% 4.70%

Wk 13 4304 4395 91.27967 2.12%

Wk 14 4420 4505 85.47762 1.93%

Wk 15 4491 4623

Wk 16 4624 4782

Wk 17 4683 4849

Wk 18 4680 4963 283 6.06%

Wk 19 4738 5048 310 6.54%

Wk 20 5026 5477 451 8.97%

Wk 21 5098 5536 438 8.58%

Wk 22 5231 5573 342 6.54%

Wk 23 5314 5624 310 5.83%

Wk 24 5314 5605 291 5.48%

Wk 25 5315 5612 297 5.59%

4.95%

Holiday Classic: Sacramento DMA

Sacramento DMA Avg Weekly Traffic Weighted Average Contribution Margin


Wk 1 3641 3561 Roast Apple Pork 15 26.0% 4.12$ 1.0712

Wk 2 3750 3655 Turkey Cranberry 42 74.0% 4.17$ 3.0858

Wk 3 4148 4040 -107.839 -2.60% Total 56 100.0% 4.15$ 4.16

Wk 4 4010 3917 -93.1454 -2.32%

Wk 5 4108 4016 -91.7903 -2.23%

Wk 6 4062 3963 -98.8584 -2.43%

Wk 7 4299 4219 -80.1855 -1.87%

Wk 8 4459 4370 -88.6231 -1.99%

Wk 9 4563 4492 -70.5429 -1.55%

Wk 10 4503 4369 -134.021 -2.98% Pre/Post Net Control

Wk 11 4581 4434 -147.193 -3.21% Avg Pre Growth Avg Pre Avg Post Avg Post Pre/Post Pre/Post Net Control

Wk 12 4632 4521 -110.988 -2.40% -102 -2.32% -367 -6.63% -4.30%

Wk 13 4638 4512 -126.195 -2.72%

Wk 14 4763 4689 -73.6352 -1.55%

Wk 15 4839 4765

Wk 16 4983 4925

Wk 17 5047 5104

Wk 18 5043 4844 -199 -3.94%

Wk 19 5105 4838 -267 -5.23%

Wk 20 5417 5068 -349 -6.43%

Wk 21 5494 5128 -366 -6.65%

Wk 22 5637 5210 -427 -7.58%

Wk 23 5727 5286 -441 -7.70%

Wk 24 5726 5285 -441 -7.70%

Wk 25 5728 5284 -444 -7.76%

-4.05%

Holiday Classic: Hartford DMA

Hartford DMA Avg Weekly Traffic Weighted Average Contribution Margin




Wk 3 4533 4588 55.84181 1.23% Total 185 100.0% 4.15$ 4.15

Wk 4 4382 4456 73.79065 1.68%

Wk 5 4490 4578 88.1971 1.96%

Wk 6 4439 4512 73.41344 1.65%

Wk 7 4699 4757 58.07408 1.24%

Wk 8 4873 4969 96.38094 1.98%

Wk 9 4986 5037 50.06389 1.00%


Wk 11 5006 5085 78.8006 1.57% Avg Pre Growth Avg Pre Avg Post Avg Post Pre/Post Pre/Post Net Control

Wk 12 5062 5136 73.705 1.46% 74 1.54% -27 -0.46% -2.00%

Wk 13 5068 5163 94.23955 1.86%

Wk 14 5205 5280 75.10853 1.44%

Wk 15 5289 5370

Wk 16 5446 5530

Wk 17 5515 5522

Wk 18 5511 5476 -35 -0.64%

Wk 19 5579 5527 -52 -0.93%

Wk 20 5920 5865 -55 -0.92%

Wk 21 6004 5965 -39 -0.65%

Wk 22 6160 6154 -7 -0.11%

Wk 23 6258 6248 -11 -0.17%

Wk 24 6258 6251 -6 -0.10%

Wk 25 6259 6252 -7 -0.12%

-1.74%

Holiday Classic: Portland DMA

Portland DMA Avg Weekly Traffic Weighted Average Contribution Margin




Wk 3 3744 3623 -121.01 -3.23% Total 75 100.0% 4.15$ 4.16

Wk 4 3620 3486 -133.346 -3.68%

Wk 5 3709 3562 -147.025 -3.96%

Wk 6 3666 3532 -133.971 -3.65%

Wk 7 3881 3756 -125.596 -3.24%

Wk 8 4025 3865 -160.115 -3.98%

Wk 9 4119 3995 -123.735 -3.00%


Wk 11 4135 3988 -147.802 -3.57% Avg Pre GrowthAvg Pre Avg Post Avg Post Pre/Post Pre/Post Net Control

Wk 12 4182 4037 -144.514 -3.46% -140 -3.54% -259 -5.24% -1.70%

Wk 13 4187 4025 -161.578 -3.86%

Wk 14 4300 4152 -148.034 -3.44%

Wk 15 4369 4214

Wk 16 4498 4294

Wk 17 4556 4323

Wk 18 4552 4300 -252 -5.54%

Wk 19 4609 4368 -241 -5.23%

Wk 20 4890 4629 -260 -5.32%

Wk 21 4960 4694 -266 -5.35%

Wk 22 5089 4829 -260 -5.11%

Wk 23 5170 4902 -267 -5.17%

Wk 24 5169 4905 -264 -5.10%

Wk 25 5171 4906 -264 -5.12%

-1.45%

Café Classic: Seattle DMA

Seattle DMA Avg Weekly Traffic Weighted Average Contribution Margin


Wk 1 3313 3376 Classic Chicken Salad 182 42.0% 4.70$ 1.974

Wk 2 3412 3475 Classic Club 199 46.0% 4.77$ 2.1942

Wk 3 3774 3848 74.23443 1.97% Classic Egg Salad 52 12.0% 4.80$ 0.576

Wk 4 3648 3733 84.79058 2.32% Total 433 100% 4.76$ 4.74

Wk 5 3738 3842 103.7892 2.78%

Wk 6 3696 3783 87.41721 2.37%

Wk 7 3912 4004 91.6618 2.34%

Wk 8 4057 4160 103.2941 2.55%

Wk 9 4152 4246 93.9982 2.26%



Wk 12 4215 4327 111.8636 2.65% 89 2.24% 360 7.17% 4.93%

Wk 13 4220 4310 89.50623 2.12%

Wk 14 4334 4383 49.146 1.13%

Wk 15 4403 4533

Wk 16 4534 4689

Wk 17 4592 4742

Wk 18 4589 4793 204 4.45%

Wk 19 4646 5053 407 8.77%

Wk 20 4929 5238 309 6.27%

Wk 21 4999 5268 269 5.38%

Wk 22 5129 5352 223 4.35%

Wk 23 5211 5390 179 3.44%

Wk 24 5210 5855 645 12.38%

Wk 25 5212 5853 641 12.29%

5.18%

Café Classic: Sand Diego DMA

San Diego DMA Avg Weekly Traffic Weighted Average Contribution Margin



Wk 2 4270 4332 Classic Club 164 38.0% 4.77$ 1.8126

Wk 3 4723 4792 69.28815 1.47% Classic Egg Salad 74 17.0% 4.80$ 0.816

Wk 4 4566 4636 69.58639 1.52% Total 432 100% 4.76$ 4.74

Wk 5 4678 4761 83.1089 1.78%

Wk 6 4625 4688 63.15097 1.37%

Wk 7 4896 4962 65.75366 1.34%

Wk 8 5077 5141 63.70158 1.25%

Wk 9 5196 5262 65.67771 1.26%



Wk 12 5275 5362 87.24713 1.65% 75 1.51% 619 9.92% 8.41%

Wk 13 5281 5340 59.20331 1.12%

Wk 14 5424 5529 104.8961 1.93%

Wk 15 5511 5673

Wk 16 5675 5812

Wk 17 5747 5934

Wk 18 5743 5998 256 4.45%

Wk 19 5814 6498 684 11.77%

Wk 20 6168 7049 880 14.27%

Wk 21 6256 7281 1025 16.38%

Wk 22 6419 7147 728 11.35%

Wk 23 6521 7137 615 9.44%

Wk 24 6521 7002 481 7.38%

Wk 25 6522 6803 280 4.29%

8.66%

Café Classic: Las Vegas DMA

Las Vegas DMA Avg Weekly Traffic Weighted Average Contribution Margin



Wk 2 4770 4682 Classic Club 283 36.0% 4.77$ 1.7172

Wk 3 5276 5172 -103.783 -1.97% Classic Egg Salad 16 2.0% 4.80$ 0.096

Wk 4 5101 4982 -118.541 -2.32% Total 786 100% 4.76$ 4.73

Wk 5 5226 5029 -197.362 -3.78%

Wk 6 5167 4941 -225.546 -4.37%

Wk 7 5469 5232 -237.534 -4.34%

Wk 8 5672 5471 -201.129 -3.55%

Wk 9 5804 5615 -189.458 -3.26%


Wk 11 5828 5634 -193.479 -3.32% Avg Pre GrowthAvg Pre Avg Post Avg Post Pre/Post Pre/Post Net Control

Wk 12 5893 5677 -215.316 -3.65% -196 -3.49% 173 2.54% 6.03%

Wk 13 5900 5657 -243.128 -4.12%

Wk 14 6059 5808 -250.475 -4.13%

Wk 15 6156 5975

Wk 16 6339 6249

Wk 17 6420 6403

Wk 18 6415 6637 222 3.45%

Wk 19 6495 6804 310 4.77%

Wk 20 6891 7185 294 4.27%

Wk 21 6989 7225 237 3.38%

Wk 22 7171 7339 168 2.35%

Wk 23 7285 7389 105 1.43%

Wk 24 7284 7312 27 0.38%

Wk 25 7286 7308 21 0.29%

6.28%

Control

Control Avg Weekly Traffic - All Non-Test Markets

2010 2011

Wk 1 3300 3333

Wk 2 3399 3439

Wk 3 3759 3804 44.63132 1.19%

Wk 4 3634 3678 44.05547 1.21%

Wk 5 3723 3769 45.83432 1.23%

Wk 6 3681 3722 41.33808 1.12%

Wk 7 3897 3943 46.54579 1.19%

Wk 8 4041 4092 50.51325 1.25%

Wk 9 4135 4182 46.44095 1.12%


Wk 11 4152 4203 51.15239 1.23% Avg Pre GrowthAvg Pre Avg Post Avg Post Pre/Post

Wk 12 4198 4249 50.89512 1.21% 48 1.20% 47 0.95% -0.25%

Wk 13 4203 4254 50.98061 1.21%

Wk 14 4317 4364 47.58315 1.10%

Wk 15 4386 4437

Wk 16 4516 4569

Wk 17 4574 4625

Wk 18 4570 4622 51 1.12%

Wk 19 4627 4675 48 1.04%

Wk 20 4909 4965 56 1.13%

Wk 21 4979 5034 55 1.10%

Wk 22 5109 5146 37 0.73%

Wk 23 5190 5239 48 0.93%

Wk 24 5190 5231 42 0.80%

Wk 25 5191 5228 36 0.70%

Documents

Focaccio\'s Marketing Presentation