101: SOBs... the 42% of operators that foodservice marketers ignore

dsrinsightsplaybuttonjpgEPISODE 101

By DSR Dave Miesse and Bill Hornung
Co-hosts, DSR Live

Has anybody noticed that the foodservice market is sucking wind? 

"No" is the answer you'll get from the innovative distributors out there.  In fact, their business has been growing pretty much on target.   Their secret can be found in the 42% of the independent operator market largely ignored by most brands. 

First, here is what most brands tell us that they are focusing on:

  • Chains which provide lots of volume and little margin.
  • Large Local Operators. Two thumbs up for whoever coined the LLO term... nearly every brand spits out this segment as a "core strategy." Which leads us to wonder if it's everybody's strategy, how is it unique and differentiated (ah, but that's another topic for later)?
  • Everything else which means let's advertise, promote and pray that some of the other operators hear about us. Oh, and do it with fewer brokers! 

SOBsthumbnail1jpgBrokers and corporate sales reps are fighting tooth-and-nail for chain and LLO business (in between pleading with distributor buyers to take on the latest product).  Meanwhile, the unwashed masses of other operators plod along without fanfare. 

Let's call this the SOB market... Smaller Operators Begging (for attention).  Hey, we can come up with nifty terms, too!  These operators generally offer high-margin, high-loyalty opportunities... hence the reason street smart DSRs have become the SOBs' most-trusted business partners. 

What's this all got to do about marketing?   Well, SOBs represent one of the only growth markets for most brands in the foreseeable future... by stealing your share from a stagnant foodservice market from your competitors.  

If you want build (or maintain) brand recognition, preference and, ultimately, grow your share... DSRs have to be  your communications channel of choice.  Why?  They reach SOBs everyday... and understand their characteristics:

  • SOBs don't have time to read trade pubs because they literally are the chief cook, bottle washer, HR person, purchasing manager and interior designer. Does that mean you stop trade advertising? Absolutely not... but measuring the advertising impact among this group is going to be tough.
  • DSRs often personalize and deliver news to their SOB customers based on their individual concepts. DSRs are becoming mini trade-media resources... just imagine if you arm them with valuable content?
  • Few products are ever considered that aren't already on the SOB's weekly order guide... so, knowing how to get on this prestigious list is usually the magical formula bottled up by DSRs.
  • The vast majority of SOB's are serviced by Greenhorn DSRs (less than 2 ½ years in sales). The Greenhorns have little brand loyalty due to their lack of experience. But the newbie DSRs are globs of clay ready to be molded into your image (sounds like a marketing job to us!).
  • The DSR vets probably already know and have an opinion about your brand. And they are the major influencers of not only the Greenhorns, but probably some of the more successful SOBs in any market. Influence the vets and you get double bang for your marketing dollar. 

Simply put... to steal your share, you need awareness among DSRs.  To gain awareness, you need to target DSRs like any other audience with the appropriate messages and "calls to action."  

Now, with the consolidation of brokers into large regional (even national) groups... the SOBs (and the DSRs who serve them) are likely to fall even further off the radar screen.  This is not the brokers fault... they're being asked once again to do more with less.   So, who's going to fill the gap? 

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