Tully’s Merchandising and Messaging System [ Retail History-Case Study]

NOTES FOR OUR MAJOR MERCHANDISING AND COMMUNICATION PROMOTIONS

 

Focus:

Creating store brand differentiation through “signature products”, focused communication and customer interactive promotions

 

Objective:

• To establish merchandising objectives to clearly define Tully’s “signature” products
• To discuss how each product  and promotion should be merchandised for optimum impact
• To insure we have a buying plan that ensures we maximize the sales of these “signature” items and promotional activity
• To engage all senior management in defining and deciding next steps to ensure we can execute these efforts

 

Visual Presentation:

• To include unique and consistent visual element
• To include enough merchandising space that the products and messages stand out
• To include enough merchandise planning to ensure full merchandising throughout the fall season

 

When:

• Mid-September through Mid-January

 

Where:

• All stores with some adjustments based upon display (counter/wall) space limitations
• Information gained from the store audit

 

How:

• We need better stories for each of these “signature” products and promotions, and need to have a Q&A and story sheets created

 

Contests:

• We can create associate sales contests for these products and promotions

 

Management Focus:

• Each of these key “signature” efforts and promotions will be graded both as an individual store and a group store audit every two weeks (October 1 – December 20)

 

 

 

SIGNATURE PRODUCT / PROMOTION EFFORTS

OVERVIEW

 

1.  The Tully’s Quality Coffee Story (Dec. / Jan.)

• Images of roasters, why Tully’s is better, 6 steps to a better cup of coffee
• Need pictures of Roasters and staff on the wall, handouts 4 page, brochure of coffee drinks, handouts 4×11, 6 steps, plus Tully’s difference

 

2.  Bag Coffee Merchandising to pricing programs (Sept.)

• Buy any 1 pound bag of coffee and get a free drink today
• Bean of the week/month (2 weeks to 1 month), buy one get second at 50% off

 

3.  Coffee Brewing Systems (Nov.)

• Focus on three systems for a great cup of coffee
• Keurig, French Press, 8 cup family.  Need merchandising space, bold prices, and Buy $100 at Tully’s and get one pound of coffee free

 

4.  Holiday Bonus (Nov.)

• Buy over $100 of Tully’s merchandise and get a free bag of coffee of your choice

 

5.  Tully’s Signature Items (ASAP, Late September – on)

• These selected items will be the next level of Tully’s difference to all other coffee businesses
• We are different because of our coffee and these specific products offerings

 

6.  Fall Signature Drink Program (Sept.)

• In production, execute as planned

 

7.  Tully’s – Your Community Gathering Place (Oct.)

• This effort will be to clearly differentiate Tully’s from other coffee operations
• We need the 10 reasons Tully’s is your community gathering place
  • Great coffee
  • Light Food
  • Free WiFi
  • Lots of places to sit
  • Great background music, but you can still talk
  • You can reserve a table
• We need a series of “Pay Part Specific Product Menus” that have order forms to support customers’ parties and meetings

 

8.  Tully’s Breakfast Items (ASAP)

• We need 2-3 breakfast signature items and up to 4 other items that exclusively Tully’s (Oct.)

9.  Tully’s a la Mode (Nov.)

• We need 3-4 items we bundle as a la mode and or fudge products (Nov.)

 

 

 

10.  Tully’s Lunch Box Program (Jan.)

• At 11:00 am, we need to change our focus from bakery to food (Sept.)
• Create a lunch box product offering (Jan.), complete box lunches, 4-5 offerings

 

11.  Tully’s Fresh (Oct.)

• 5:00 pm sell selected bakery and food products at 50% off

 

12.  The Other Drink Case (Sept.)

• More Tully’s items plus distinct items not at the other guys – (Jones Soda / Tully’s own)

 

13.  General Merchandise  (Oct.)

14.       •    Get new assortment

15.       •    Add Tully’s Customer marketing package “I’d rather be drinking coffee at Tully’s”, The Tully’s Party Pak and “I forgot the gift, thank goodness for Tully’s”(Nov.)

 

16.  Gift Card Promotions (Oct.)

• Current loyalty customer offer “buy $30, get 10% extra”
• Membership organization offer based upon signed agreement with a membership organization that charges dues (dues paying members get 20% bump, i.e., load $30, get 20%); we get contract that requires the membership organization to communicate the Tully’s deal and one product message monthly to its members

 

Community Building Programs (Nov. – Dec.)

 

17.       •     Apple Cup:  The Space Needle will again have an Apple Cup promotion.  Tully’s will also be promotion for the two weeks prior to Apple Cup.  In partnership with WSU and UW, give 10% of all sales of either Cougar or Husky product to the alumni associations for student scholarship products (Nov.)

• 12 oz or 1 lb coffee
• Drinks
• Bake Case
• Coffee Mugs

During this two week promotion, we will offer our associates the ability to wear T-shirts promoting this effort (50% Cougar, 50% Husky)

 

18.       •     United   Way:  Late November and two weeks in December we need a United Way   End Homelessness and Early Childhood Development promotion

• Load $30 and we will give 10% to the United Way effort in the County where the store is located (need to define how this will work with membership program as non-membership buyers will choose to give Untied Way the $3)

 

 

 

19.  Alki Product Launch (Nov.)

• Although we will try to improve individual items in the bake case ASAP, we will add a major effort to co-brand Tully’s retail identity to Alki product identity.

 

20.  Customer Appreciation (Oct.)

• This one week promotion would include a customer survey, customer-employee-investor newsletter, and a new customer promise sign.

 

 

Summary of Special Pricing Promotions – Oct.

1. 1.       Buy 1 lb. coffee (any roast), get a free drink today
2. 2.       Featured Coffee – Buy one, get the 2^nd at 50% off
3. 3.       Buy $100 Tully’s merchandise, get a free bag of coffee

Gift Card Promotions – Loyalty plus membership program

1. 4.       Bakery Product 50% off at 5 PM – Selected Products
2. 5.       Gift Card Bonus – Base level: Load $30, get a $3 bonus, Tully’s Partner level: Load $30, get a $6 bonus.
3. 6.       Tully’s Fresh – Selected 50% off Bakery items at 5 PM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WHAT WE WANT OUR CUSTOMERS

TO NOTICE OVER THE NEXT 150 DAYS

 

The message beat and new product should make sure our old customer and our new ones know Tully’s is alive and well and getting better every day

 

Customers notice these primary messages by month

 

September

Early Sept: New fall drink offerings, Bag coffee pricing programs

Late Sept: Re-merchandise lunch efforts at 11 AM, The Other Drink Case merchandising

 

October

Early Oct: Customer appreciation week, new general merchandise

Mid Oct: Tully’s Breakfast menu, Tully’s Fresh, Tully’s Signature item merchandising and signage

Late Oct: Fall drinks and other drink assortment changes, Tully’s Holiday Gift/Loyalty card program / Membership Loyalty program

 

November

Early Nov: Two week Apple Cup promotion, Coffee System merchandising

• Customer market kits, party kits, and “I forgot your gift” promotion

Mid Nov – Alki Bakery launch; Tully’s a la Mode program, Customer Marketing, Party Paks & Gift Program, Tully’s Holiday Bonus program

Mid Nov-Thanksgiving: Gift card promotions, membership, loyalty, and United   Way promotion

 

December

Drinks and gifts, featured items to be determined

 

January

Early Jan – Tully’s Quality Coffee Story, Tully’s Box Lunch Program, Your Community Gathering Place – Need Breakfast Menu/order form plus signage and handouts

 

Conclusion:

This is a very aggressive promotional effort and we need to be clear on our ability to execute but this is what we must become to put Tully’s in the black.