I love gelato.
So I've watched closely the relative success of the two gelato stores within walking distance. One is living on borrowed time, despite similar, if not higher, quality, selection and service, and competitive prices.
The successful store pays three times the rent of the other. The business-savvy owners determined that traffic, not cost, was the primary objective. They located in the heart of high traffic pedestrian outdoor mall, with good signage. The wares are easily visible to passers-by through the glass storefront. And, a few tables outside the store where patrons sit, consume and people watch entice more customers on warm evenings. The store is always packed.
The one that is failing is located in a residential neighborhood, on the corner of a busy street, with no parking and, despite the outdoor tables, rarely has any customers. In fact, the empty tables create the wrong message.
The owner says she couldn't afford the rent of the other location. She'll save all the way to failure.
The marketing tool set has expanded greatly since E. Jerome McCarthy proposed the four Ps (product, price, promotion and, of course, place) in 1960. But none of the sophisticated techniques make a difference if you don't get the basics right.
Experience matters.
So I've watched closely the relative success of the two gelato stores within walking distance. One is living on borrowed time, despite similar, if not higher, quality, selection and service, and competitive prices.
The successful store pays three times the rent of the other. The business-savvy owners determined that traffic, not cost, was the primary objective. They located in the heart of high traffic pedestrian outdoor mall, with good signage. The wares are easily visible to passers-by through the glass storefront. And, a few tables outside the store where patrons sit, consume and people watch entice more customers on warm evenings. The store is always packed.
The one that is failing is located in a residential neighborhood, on the corner of a busy street, with no parking and, despite the outdoor tables, rarely has any customers. In fact, the empty tables create the wrong message.
The owner says she couldn't afford the rent of the other location. She'll save all the way to failure.
The marketing tool set has expanded greatly since E. Jerome McCarthy proposed the four Ps (product, price, promotion and, of course, place) in 1960. But none of the sophisticated techniques make a difference if you don't get the basics right.
Experience matters.
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