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IHOP
Does anyone know why our agency McCann is pitching for the Applebees business. This seems like a huge conflict of interest.
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Barbarians At the Gate
I understand why McCann-Erickson would want it. They can leverage their creative resources. Ad agencies do it all the time - if they are allowed to.
I understand why Applebees would want it. They can borrow the IHOP consumer magic that has made IHOP pop while Applebees wheeze. (And Brinker is a stinker).
But why, oh why, would IHOP want it?
While IHOP's wise franchisees sound the alarm, barbarians at the IHOP gate are about to be given the marketing keys to the magic kingdom by the McCann Ad clan. Will Chief Julia Stewart sleep in a deep slumber, exhausted from a hard days work? Stay tuned, dear reader.
Frankman
P.S. IHOP only owns 11 stores. The rest are franchises. IHOPs savviness in outmaneuvering big chain competitors shows the valuable insights and advantages of a well-performing franchise network. Right, Lipoof?
IHOP Applebees conflict
I DO NOT like the idea of Applebees having our agency. it doesn't make any sense. Hasn't anyone ever heard of conflict of interest. Applebees shouldn't have been allowed to work with McCann but now that they are, we should work with a different one. Of course...the McCann people will already know how we think...which will benefit the Applebees franchisees...who are trying to steal our customers.IHOP & Applebee's: All In The Family
Now that IHOP has bought Applebees lock, stock and barrel, is it alright to use the same ad agency to reach economies of scale?
Since you are part of the same family, you don't steal customers, you share them, right?
IHOP and Applebees
if you are a shareholder...you might like that...but if you own a couple of IHOPs with a couple of Applebees in proximity...this is a bummer.
Bob, You IHOPed Me.
Tit for Tat - Frankman, that is the very point that I was about to make.
The cross marketing opportunities, the ability to focus each concept vs. competing and the economies of scale all come into play.
IHOP has indicated that they anticipate Applebee units who have been open for 18 months or longer to see a 2 to 3% increase in sales this year vs. a 4% drop last year in part due to better marketing.
It is also the plan of IHOP to sell the 508 Applebee's locations and then lease them back, which will help to reduce the acquisition debt and provide substantial cash to invest into system improvements.
I eat quite often at both IHOP and Applebbe's but seldom do I consider the two of them at the same time. I'm usually either in the mood for IHOP or I'm in the mood for Applebee's. I believe that utilizing the same agency will allow the two to maximize their marketing dollars, and further refine the distinctions between the two concepts.
If I owned either owe, I'd be looking at the synergy which can be created, not the naturally competitive environment of having a sister company accross the street or down the road.
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
www.fransynergy.com
THERE AINT NO ECONOMIES OF SCALE
There aint no economies of scale.
Richard Solomon
www.FranchiseRemedies.com
Explanation?
Please explain why you might feel this way.I got Hopped
One of the reasons I'm concerned is this - McCann would take us through research and strategies and creative - and they would tell us that Applebees was a competitor - and now - they're servicing who they labeled a competitor - time will tell as it always does but i just don't feel good about it.
Hopped.. 2-things
Your concerns are both understood and justified. At the end of the day, there are two things to remember:
If you haven't gone and met with the Applebee's owner, I'd encourage you to do so. There's a good chance that s/he has many of the same concerns.
In the past you've each had unique customers and common customers, by working together you can increase the percentage of common customers, increase frequency of customer interactions and averge ticket sizes.
There's an old saying about sometimes it's better to have your enemy in your tent pissing out than outside pissing in. If I were in your situation, I'd be looking for ways to work with each other and with a now united corporate office to compete and smash the other competition while working together to build and grow the IHOP/Applebee's brands and your respective businesses.
Nevertheless, I do understand that YOUR loving parents have just adopted your arch enemy - and now you must find a way to get along harmoiously. I also believe that you should be thankful that IHOP acquired Applebee's vs. it being the other way around.
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
www.fransynergy.com
re: Hopped...2 things
thank you, DalePost new comment