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Our best marketing efforts happen when excellent service is delivered at the store itself.” Heather Neary Chief Marketing Officer Auntie Anne’s, Inc. auntieannes.com Insights for brands whose marketing execution relies on independently owned and operated distribution channels Auntie Anne’s CMO Heather Neary shares how her forensic understanding of their customer and aligning brand assets along their purchase path allows Auntie Anne’s to thrive in, and beyond, the mall environment. by Philip St. Jacques, President, St. Jacques Marketing | January 2015 Leading and innovating the marketing strategy for a 1300 location franchise concept in a highly competitive industry and retail environment is a monumental challenge in itself. For almost ten years Heather Neary, CMO at Auntie Anne’s, and her team continue to lead Auntie Anne’s to new levels of growth year over year. As part of the FOCUS Brands ® International family of brands owned by parent company Roark Capital, how does a simple product concept evolve into a ubiquitous brand that becomes a category leader and, more importantly, what are the keys to her success? We spoke with Ms. Neary as she shares candid insights into her unique perspective on her marketing approach, the relationship between national marketing strategies and how thousands of franchisees unify to execute locally against the single goal. CMOO: Food offerings are evolving rapidly in malls. Food courts, brand names, dining options, various food formats, retail. How does Auntie Anne’s contend with the increased competition? Heather: “We do this in several ways. Contrary to what many may think, our best marketing efforts happen when excellent service is delivered at the store itself. When our crew members are engaged, enthusiastic and passionate about their work, they are truly our front line marketers. Also, our menu innovation team has been phenomenal at staying on top of trends and shifting dining habits. We offer a variety of items that can be considered either a snack or a meal, depending on how our guest is using the product. We continue to look for ways to evolve our menu through new items like our mini pretzel dogs and our ever changing lineup of lemonade flavors. Look for several flavors next summer, too!”

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“Our  best  marketing  efforts  happen  when  excellent  service  is  delivered  at  the  store  

itself.”    

Heather  Neary  Chief  Marketing  Officer  Auntie  Anne’s,  Inc.  auntieannes.com  

Insights for brands whose marketing execution relies on independently owned and operated distribution channels

           Auntie  Anne’s  CMO  Heather  Neary  shares  how  her  forensic  understanding  of  their  customer  and  aligning  brand  assets  along  their  purchase  path  allows  Auntie  Anne’s  to  thrive  in,  and  beyond,  the  mall  environment.      by  Philip  St.  Jacques,  President,  St.  Jacques  Marketing    |  January  2015  

   Leading  and  innovating  the  marketing  strategy  for  a  1300  location  franchise  concept  in  a  highly  competitive  industry  and  retail  environment  is  a  monumental  challenge  in  itself.  For  almost  ten  years  Heather  Neary,  CMO  at  Auntie  Anne’s,  and  her  team  continue  to  lead  Auntie  Anne’s  to  new  levels  of  growth  year  over  year.  As  part  of  the  FOCUS  Brands®  International  family  of  brands  owned  by  parent  company  Roark  Capital,  how  does  a  simple  product  concept  evolve  into  a  ubiquitous  brand  that  becomes  a  category  leader  and,  more  importantly,  what  are  the  keys  to  her  success?      We  spoke  with  Ms.  Neary  as  she  shares  candid  insights  into  her  unique  perspective  on  her  marketing  approach,  the  relationship  between  national  marketing  strategies  and  how  thousands  of  franchisees  unify  to  execute  locally  against  the  single  goal.   CMOO:  Food  offerings  are  evolving  rapidly  in  malls.  Food  courts,  brand  names,  dining  options,  various  food  formats,  retail.  How  does  Auntie  Anne’s  contend  with  the  increased  competition?  

Heather:  “We  do  this  in  several  ways.  Contrary  to  what  many  may  think,  our  best  marketing  efforts  happen  when  excellent  service  is  delivered  at  the  store  itself.  When  our  crew  members  are  engaged,  enthusiastic  and  passionate  about  their  work,  they  are  truly  our  front-­‐line  marketers.  Also,  our  menu  innovation  team  has  been  phenomenal  at  staying  on  top  of  trends  and  shifting  dining  habits.  We  offer  a  variety  of  items  that  can  be  considered  either  a  snack  or  a  meal,  depending  on  how  our  guest  is  using  the  product.  We  continue  to  look  for  ways  to  evolve  our  menu  through  new  items  like  our  mini  pretzel  dogs  and  our  ever-­‐changing  line-­‐up  of  lemonade  flavors.  Look  for  several  flavors  next  summer,  too!”  

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 CMOO:  The  mall  environment  is  changing.  Shopper  traffic,  buying  habits,  the  demographic  shift  of  the  shopper.  How  does  Auntie  Anne’s  adapt  and  stay  current  or  ahead  of  these  changes?    HN:  “Understanding  the  customer  journey  that  our  guests  embark  upon  before  they  choose  Auntie  Anne’s  is  critical  to  determining  our  marketing  strategy.  If  we  assume  that  a  guest  simply  walks  past  our  store,  sees  a  pretzel,  and  buys  it,  we  are  simplifying  the  process  and  missing  out  on  lots  of  opportunities  to  engage  with  the  guest  in  meaningful  ways.  The  snacking  space  is  definitely  an  impulse,  there’s  no  doubt  about  that.  Keeping  Auntie  Anne’s  top  of  mind  when  a  guest  is  ready  for  a  snack  is  critical  for  our  continued  success.”    “Understanding  why  people  come  to  malls  is  critical.  Is  it  social?  Is  it  for  exercise?  Is  it  to  browse?  We  understand  that  our  guests  often  window  shop  while  they’re  in  the  mall  and  then  perhaps  make  their  purchase  online  or  elsewhere.  It’s  critical  for  us  that  we  stay  top  of  mind  while  our  guests  are  in  the  mall.  Despite  the  decrease  in  mall  traffic,  we  believe  we  have  a  good  opportunity  to  make  sure  we’re  the  snack  of  choice  when  a  guest  is  in  the  mall.  Our  new  mobile  app  is  really  helping  us  on  this  front.”          CMOO:  Mall  shoppers  are  not  specifically  there  to  patronize  Auntie  Anne's.  They  are  there  for  another  primary  purpose  so  engagement  must  start  before  the  counter.  Are  there  ways  to  engage  customers  beyond  the  counter?  

HN:  “I  don’t  want  to  give  away  all  our  secrets,  but  ultimately,  understanding  how  a  guest  makes  a  decision  about  their  snacking  or  meal  choices  helps  us  understand  when  and  how  we  talk  to  our  guests.  Our  social  space  is  very  important  to  us  and  we  love  to  engage  with  guests  through  social  media  in  both  an  informative  as  well  as  a  chatty  way.  Our  app  also  helps  us  to  stay  top  of  mind  for  our  guests.  With  our  app,  we  can  understand  when  our  guests  are  coming  to  us  and  create  offers  that  are  tailored  for  that  specific  guest.  

“Guests  do  have  a  voice.  With  the  advent  of  social  media,  engagement  with  your  guests  is  immediate.  How  you  react  to  that  feedback,  positive  or  negative,  and  what  voice  you  use  to  respond  to  them  can  mean  the  difference  between  a  long-­‐term,  happy  guest  who  will  gladly  talk  positively  about  you  to  others,  and  a  guest  who  is  disgruntled  and  uses  social  media  to  attack  your  brand.  Don’t  use  corporate  speak,  use  the  voice  of  your  brand.  Be  genuine.  We  really  enjoy  engaging  with  our  guests  in  the  social  space.  It’s  fun  to  see  their  passion  and  energy  for  the  brand  and  it  also  helps  us  to  recognize  our  crew  members  who  are  doing  the  right  thing.  Conversely,  it’s  very  helpful  to  quickly  understand  where  we  have  opportunities  to  improve  and  address  those  issues  with  our  guests.  Those  social  conversations  are  really  important  for  the  growth  of  the  brand  and  we  value  our  guests  taking  the  time  to  connect  with  us  in  that  space.”    

CMOO:  What  is  the  franchisees  role  in  the  growing  of  the  customer  base  for  Auntie  Anne’s  locations?  

HN:  “Our  franchise  advisory  council  is  heavily  involved  in  all  our  marketing  efforts  and  their  input  is  critical  for  the  success  of  the  brand.  Our  franchisees  also  work  with  us  to  develop  

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meaningful  local  marketing  programs  that  cater  to  the  unique  nuances  of  each  of  our  locations.”  

 CMOO:  How  does  your  team  correlate  national  and  franchisee  initiatives?    HN:  “We  typically  publish  an  annual  calendar  and  share  that  broadly  with  our  franchisees.  We  ask  that  they  use  the  general  themes  for  the  year  to  develop  their  local  marketing  plans.  We  have  local  marketing  specialists,  too,  who  are  here  to  help  our  franchisees  fine-­‐tune  their  local  marketing  plans  and  also  work  with  franchisees  who  may  be  geographically  close  to  one  another  to  execute  co-­‐op  programs,  which  are  also  quite  successful.”      For  Auntie  Anne’s  and  Ms.  Neary,  the  intense  listening  needed  to  understand  the  guest  purchase  cycle  and  engaging  them  both  at  the  point  of  sale  and  when  they  are  carrying  on  the  course  of  their  lives  is  critical  to  staying  relevant  with  their  most  valuable  asset.      If   you   would   like   more   information   or   are   interested   in   participating   in   an   upcoming   CMO   Outlook  please  address  inquiries  to  [email protected]