FMCG suppliers and restaurant retailers, the pizza and ice cream combo
Written by Rafa Pulido ·
Pizza for dinner and ice cream for dessert, the perfect hassle-free meal for a night in at home. Whether it is pepperoni, cheese or some other kind of combination, everyone has their own preference. The same can be said for pizza brands. Consumer loyalty for a pizza brand is highly related to their expectations being met. If a particular pizza chain is capable of delivering the ideal pizza experience from touch point to touch point, consumer loyalty remains high. However, generating consumer loyalty is not the only type of close relationship pizza chains need to develop to boost performance. What about the FMCG suppliers who help them to add variety to their portfolio? Yes, we’ve circled back to the ice cream.
FMCG suppliers, the after dinner treat
A pizza chain’s partnership with an FMCG supplier is as intricate as their relationship with the final consumer. The pizza retailer is the final segment of the supply chain making them the perfect partner for ice cream brands to increase sales within their target markets. How do they do this?
Channel partnership agreements with retailers
As pizza and ice cream are the ideal tandem, both pizza restaurant retailers and ice cream FMCG suppliers have a common interest in working with one another. Oftentimes, the pizza chains and FMCG manufacturers will negotiate channel partnership agreements through a form of co-branding. In this relationship, the retailer agrees to sell the FMCG product as a way to expand their offering. When a certain pizza chain’s target market is a good fit with that of an FMCG supplier’s, the partnership is a “two birds with one stone” kind of deal where each party benefits.
However, this concept is not to be confused with co-branding between retail franchises. When two franchises allow their franchisees to co-brand (known as piggyback franchising), both brands are equally present. Franchisees sell the brands’ products in one establishment to add unit revenue and reduce operational costs. Franchise co-branding does not form part of the channel partnership agreement spectrum as it concerns two retailers and is not between the manufacturer and retailer. A common example of retail franchise co-branding is the Cinnabon and Carvel Ice Cream partnership.
Browsing the menu and special discounts
There are several pizza chains and FMCG ice cream brands whose channel partnerships are easily identifiable. Just by perusing the items on the menu, you can guess as to which FMCG suppliers the pizza brand is working with. Let’s have a look:
Telepizza and Ben & Jerry’s
The Spanish pizza restaurant chain, Telepizza, announced its franchise expansion into the UK in 2016 that is being led by Karali Ventures, one of the largest franchisee groups of Burger King in the region. As can be observed from their online menu, their channel partnership agreement with Ben & Jerry’s has also internationally expanded from Spain to the UK—boding well for both the FMCG supplier and franchise brand to increase market share internationally.
Pizza Hut and Häagen-Dazs
Another way to detect a channel partnership agreement is by paying attention to the marketing specials launched by the retail chain. In 2015, Pizza Hut launched a special sales promotion in which loyal customers won a free tub of Häagen-Dazs ice cream when they spent a certain amount on Pizza Hut products.
Complementing channel partnerships with Location Intelligence
While channel partnerships are a highly effective way to add value to product offerings, there are also complementary technologies to facilitate the process. Location Intelligence is one of them. By deriving meaningful insight from geolocation data, both retail channel partners and FMCG manufacturers can understand the factors that affect the sales of products offered on a restaurant menu. Maybe a certain type of pizza or ice cream is only popular amongst a certain age demographic? Location Intelligence technology will tell you.
Screenshot of the various geolocation factors that affect different points of sales
This type of “intelligence” can even be used to launch targeted marketing promotions. What about a pizza and ice cream special for delivery orders during an important football match? With Location Intelligence, these brands can anticipate this type of demand by studying the purchase behaviour of people at certain times and in specific places and capitalise on it with a geomarketing campaign. Taking advantage of seasonal events is always a strategic way to generate more revenue.
And so, to complete the pizza and ice cream combo, Location Intelligence is cherry on top of the sundae to reinforce any channel partnership strategy.
Would you like to learn how Location Intelligence can help strengthen your channel partnerships with retailers or FMCG suppliers? Ask for a demo and we will be happy to show you how.