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Case Study Follow-Up: What Firehouse Subs Learned
Posted by Ed Teixeira
Firehouse Subs franchisees were facing declining sales and agreed to drop its 2-percent-of-sales fee for local advertising. It let franchisees keep the money with the expectation that they would do their own marketing. After poor results by a number of the franchisees Firehouse changed its strategy and hired a new ad agency to develop a series of radio spots
The results were reported in the NY Times article.
In the weeks after the campaign, the comparable sales of Firehouse Subs went from negative 5.8 percent the previous year to positive 2.4 percent. In markets where the chain broadcast the radio ads, sales jumped by more than 10 percent.
I had previously blogged about Firehouse Subs and how refreshing it was to see a franchisor actively engage its franchisees in developing a marketing strategy that works.
Posted on September 29, 2010 at 10:41 AM
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