Article

Lost in translation: Changing AORs isn't always the best answer

Many QSRs have recently sought new creative agencies to answer their sales woes.  

December 16, 2010 by Alicia Kelso — Editor, QSRWeb.com

As the dust begins to settle on the most dramatic economic downturn since the Great Depression, some businesses are still scrambling for answers – miracles, even – to remedy slow sales.

Although the quick-service industry was less impacted by the recession than other segments, it certainly wasn’t immune. And whether on impulse, out of desperation or by necessity, many chains have replaced their creative agencies within the past year or two.

Among the brands recently or currently switching up their AORs are Arby’s, Taco Bell (digital), El Pollo Loco, Sonic, Hardee’s and Carl’s Jr.'s parent company CKE Restaurants, and Bojangles.

Coincidentally, within that time frame, sales at Wendy's/Arby's Group, Inc. continued to decline, however the company remains optimistic that its turnaround efforts are taking hold. In the summer, Sonic’s net sales were down a whopping 34.5 percent. Also, Carl’s Jr. continues to search for strong footing after the sale of its distribution business in July led to a $39.7 million drop in 3Q10.

Such a quickly-revolving door is dizzying, but why is it happening? While hesitating to call it a “trend,” Lori Walderich, chief creative officer at IdeaStudio, a chain restaurant marketing and promotions firm, attributes this wave of AOR replacements to our inherent need to come up with a quick fix.

“When sales are down, I see chains immediately point to the creative and ad campaign. It’s the easiest thing to say that a message isn’t appealing and that getting a new creative firm will solve everything; that having a fresh new idea will save us,” she said.

Of course it goes both ways – if sales are great, nobody is going to ditch their agency. How much the creative messaging has to do with slow sales opens up a whole new debate, however.

“Sometimes, when sales are slow, the message is wrong. But often we see a bigger problem in that the brand has just lost touch with its audience,” Walderich said. “Then, they end up choosing a new agency that will have little or no impact because that wasn’t the problem in the first place.”

Whether or not this is the situation with the latest AOR changes in the QSR market is yet to be seen. Demonstrating a clear understanding of the brand played a big part in Arby’s AOR search, which began in August after the company parted ways with Merkley + Partners after six years. This came about a year after parent company Wendy’s/Arby’s Group rewarded Kaplan Thaler Group the up-for-grabs account Wendy’s account.

Arby’s search for a new AOR was admittedly part of its turnaround plan, outlined in March. The chain's new agency, BBDO New York, will leverage Arby’s brand positioning around the tagline, “Exciting tastes you can feel good about … every day,” to be introduced during the first quarter of 2011.

“We are very excited about the talent (BBDO New York) brings to making Arby’s a relevant and contemporary brand. The selection of BBDO New York is an important step in our turnaround plan. They demonstrated a clear understanding of the Arby’s brand, our positioning and our target customers,” said Arby’s president Hala Moddelmog.

Getting a firm pulse on the brand’s audience is by far the most important effort an agency can make and, conversely, the most important aspect a chain can look for in its search, according to Walderich.

"Restaurants might be looking for quick solutions when they hire a new agency on impulse, but agencies do a good job of making chains believe they have that lightning bolt solution, too,” Walderich said.

If any decision needs to be made swiftly, however, it’s the decision to conduct an extensive customer study, she added.

“Otherwise, it’s like going to the doctor and saying you need medication because you have a headache and the doctor saying ‘here, take this,” without checking your head to see what the issue may be,” Walderich said. “You may have a great agency, but they just don’t have all of the information or direction they need to make the message work. They need that first.”

If the powers-that-be are applying pressure for something to happen soon, it could easily backfire.

“A lot of times chains are getting pressure from their investors saying there is no time to wait, they need butts in seats now. But you can’t do a comprehensive study in 30 days,” Walderich said. “If an agency isn’t given enough information or resources to work with, it’s just a guess for them to see if something sticks. And it might, but it’s just dumb luck if it does.”

Such information comes from not only a customer study, but also a tour of the company’s facilities and suppliers’ facilities. If it’s a multinational brand, it will take longer to repair a creative disconnect.

Walderich said ideal messaging comes from a full-circle formula:

• A brand creates the message;
• The message puts out an expectation;
• Customers get an experience;
• Customers build a relationship with the brand, after their experience;
• Customers build loyalty to the brand;
• Customers’ loyalty goes back to the message.

“Where many companies mess up is by focusing on the message all the time. They should start with the experience. What are we offering our guests? How do they use it and why? Then craft a message to set up the correct expectation,” Walderich said. “Agencies are not magic. They’re not miracle workers. The message should be a scientific process. If the brand can’t figure it out, the agency and the customers won’t, either.”

About Alicia Kelso

---

None

Connect with Alicia: