Breaking into a new market isn’t always easy.
Just ask Papa Murphy’s. The brand’s unique take-and-bake concept, in which customers personalize their toppings in the store and bake the pizza at home, has helped to set the brand apart from the competitive pizza industry for more than 30 years.
“There isn’t a brand in the entire pizza industry that even comes close to duplicating the take-and-bake model that Papa Murphy’s has perfected,” said Jayson Tipp, chief development officer and senior vice president of technology for Papa Murphy’s. “By providing our customers with their customized combinations of the best ingredients possible, we give them the opportunity to enjoy a homemade pizza without any of the work or mess. They’re getting exactly the pizza they want when they want it.”
But despite the brand’s growing popularity, Tipp found that it’s often harder to sell Papa Murphy’s uniqueness to new markets—and that’s because people simply aren’t aware of the advantages of their high-quality and convenient take-and-bake pizzas.
“Sometimes it’s hard to convince people to try Papa Murphy’s in markets where take-and-bake is a new idea. Our objective in new markets is to get as many people as possible to try it. Because once they do, they’re a believer and we have very loyal customers from there,” Tipp added.
To help franchisees make a bigger splash in new markets, Papa Murphy’s unveiled its model market program back in 2015. This program focuses on markets with affordable broadcast media costs. With the investment provided by Papa Murphy’s, franchisees are able to use broadcast media to boost awareness across their market, buying a critical mass of advertising weeks throughout the year. While terms of the program vary, it generally requires franchisees to contribute six percent of net sales to their marketing cooperative group for the purchase of media. The marketing funds are then supplemented by the brand fund to enable the qualifying market to purchase media at a level consistent with more developed markets.
“For our model market program, we take markets that we believe are significantly under-penetrated but yet have a lot of potential to grow in the next three to five years. We invest national marketing dollars in order to fund a meaningful annual schedule of television advertising,” Tipp said. “The hope is that by oversaturating media outlets, we’ll be able to create greater buzz around Papa Murphy’s and get new customers through our doors. We’re increasing the initial demand with high-impact marketing.”
For potential franchisees, Papa Murphy’s Model Market Program showcases just how heavily invested the brand is in helping its new locations thrive.
“There’s room for Papa Murphy’s in every neighborhood, and we want to give our franchisees everything they need to excel. We realize that our brand’s success hinges on our franchisees’ success, so we’ll do everything in our power to support strategic, thoughtful growth that sustains our strong company growth,” Tipp said.