FAST CASUAL FINAL RFP
JHENI GIBSON EXECUTIVE SUMMARY
What do we want to do? How will we do it? What’s the timeline?
• Wendy’s would like to reposition its • We will address Wendy’s • This campaign plan will run for brand as “Fast Casual” offering higher quality foods and lite service millennial target audience by the full 2018 Fiscal Year. coupled with the convenience of exploring their habits, budget, • All testing will be completed quick output. lifestyle and priorities. within the first 2 months of • Competitors such as • We’ll test and launch campaigns the FY. Chipotle, Shake Shack, and that highlight Wendy’s fresher • Progress will be measured Smashburger have adopted ingredients, sourcing, nutrition, monthly to incrementally the fast casual business analyze success and optimize model and continue to and our new Fast Casual dining attract millennials taking experience. Channels used will towards goals through the market share from “fast be Advertising, PR, Sponsorships year. food” restaurants like and Promotions. • Final success metrics McDonalds, Wendy’s and • Creative and copy will will be gathered at the Burger King. feature fresh and end of the fiscal to • The Fast Casual dining observe if goals and experience provides a progressive images of modern, comfortable and new menu options and objectives have been inviting aesthetic where millennials enjoying a met. customers can enjoy a more quick and nutritious meal. upscale dining experience. • Food is locally sourced, honest and made to order.
• . "Everybody in the world is talking about fast casual… It just has a broad appeal.”
BONNIE RIGGS – INDUSTRY ANALYST WITH NPD GROUP
(The Washington Post) BUSINESS SITUATION
• With the success of fast casual restaurants, its evident that customers prefer an in- store, upmarket experience. • Fast Casual restaurants are growing faster than fast-food and full service restaurants with 10-11% sales growth YoY (Washington Post) • Fast – food is only seeing 3-4% growth in sales • Full service restaurants are seeing 1.5-2 percent sales growth • Customers also prefer high quality foods and brand transparency in knowing where food is sourced. • As Wendy’s works operationally to rebrand, we will explore the best marketing tactics and strategies to raise awareness and customer loyalty as we reposition. BUSINESS SITUATION - SWOT
Strong Brand Traditionally Unhealthy New Customers Competition Menu Repositioning gives the brand Wendy’s faces an abundance of Wendy’s is an Historically, Wendy’s menu opportunity to reach new competition not only from similar established and strong, has consisted of burgers, fries customers – especially business models like McDonalds and Burger King but from well known brand and other foods that could be Millennials. established fast casual restaurants world wide. considered unhealthy. This that have established customer makes the brands transition to Threats loyalty like Chipotle and Shake healthier options less Customer Loyalty Strengths Shack. Quality Ingredients believable for the consumer. Transparency allows new and existing customers to Wendy’s has taken Weaknesses experience the brand in a Health Conscious Trends Target Audience Customers are becoming more pride in quality Opportunities fresh way as they’re abele not Wendy’s has also neglected to only taste, but see the quality health conscious and desire ingredients and market its products to of food, and benefits of meals tailored to fit that lifestyle. customer satisfaction This could potentially hurt the millennials creating a lack of supporting Wendy’s because demand for fast food products since its inception in consumer knowledge and of its social responsible and and suppliers like Wendy’s. 1969 loyalty among our target sustainable agenda. audience. TARGET AUDIENCE
As a fast food restaurant, Wendy’s has many potential target audiences. As we reposition to Fast Casual, however, its important to focus towards Millennials who are currently dictating the trends of the market as they frequent Chipotle, Shake Shack and other competitors who Demographics: have increased in market share posing a • Millennial men and women in college • Ages 18-25 threat to traditional fast food chains like • HHI 14.4k+ – often rely on parents and financial aid for supplemental income (Nation a Wendy’s. Center for educational Statistics) TARGET AUDIENCE MEET CUSTOMER, MELISSA…
Melissa is a 21 year old college senior. She majors in computer technology and works on campus in the school library to make extra cash. She has no children and plans to finish her degree in hopes of beginning a rewarding career. In the meantime, financially she depends on her parents and any left over federal aid for supplemental funds.
She’s tech savvy, health conscious and on a tight budget. In her free time, she frequents social media sites like Twitter, Instagram, Snap Chat and Pinterest.
Mellissa finds businesses that bare social responsibility, environmental friendliness and sustainability alluring and considers it a key motivation to buy. She is less inclined to buy from business that she feels lack transparency and decency. Between work and school she doesn't have much time to wait in long lines and values convenience and customization. She wants nutritious food she can trust, on the go. CONSUMER INSIGHTS ON MILLENNIALS
• Enjoy convenience • Many college aged millennials like to find quality foods, goods and services for • They are tech savvy – they use multiple phone applications from social media less to apps assisting in everyday activities • Food Integrity; Millennials are in search of convenient eco friendly food • ie. Dating, ordering food and shopping options that promote a healthier, balanced lifestyle. The care to know where • Snapchat, Facebook, Twitter and Instagram are among the most popular their food is coming from and how its made; They prefer healthy menu social media sites for millennials (Statista) options (Forbes)
• Millennials end up spending more on apps like Grub hub and Seamless due to • They spend most almost half of their income eating out - as they grow older surcharges and minimums (Forbes) and income rises , their funds spent on food will increase (Forbes)
• Millennials seek convenience and tend to gravitate to apps/innovations that make everyday tasks easier and faster
• Its important to them that company’s core fundamentals are based in socially responsibility • ie. The company supports/gives/ sponsors philanthropic/eco -friendly causes • The company adheres to a higher code of ethics
• no child labor/cruelty to animals etc.
• Its important that corporations are transparent and honest MAIN GOAL AND OBJECTIVES
Problem Objectives Fast casual restaurants like • Increase market share by 15% with in the Chipotle and Shake Shack are fiscal year • Increase sales by 30% by the next FY gaining momentum and • Increase Wendy’s app usage by 20% within replacing the tired, traditional Goal the next FY • Increase in-store foot traffic by 30% within fast food category, posing a the FY huge threat to Wendy’s, Reposition the McDonalds, Taco Bell and KFC. Wendy’s brand as a reputable and trusted fast casual restaurant. CAMPAIGN DETAILS
• To achieve our Goal, we have planned a year long campaign using strategies and data to best notify the public of Wendy’s repositioning.
• We’re using marketing channels to engage and create a customized experience. Wendy’s is partnering with millennials to crate an interactive marketing experience catering to that audience and making them feel involved and in charge.
• The following marketing strategies will be integrated into a multi-channel campaign to reach current and potential customers: • Advertising • PR • Sponsorship • Promotions CAMPAIGN SLOGAN
A STEP ABOVE THE REST.
Value Proposition: Great Value, On the Go. We aren't your average fast food restaurant. Wendy’s Provides fresh, quality food you can trust at your speed. Stop in and get comfortable or grab food to go, with the same great taste, every time. CAMPAIGN DETAILS – ADVERTISING
• During the Introduction period of our new and relaunched product line lifecycle, paid digital advertising, TV and Radio commercials will be utilized to raise awareness of products, and overall fast casual experience which includes the restaurants new formats and consciousness behind practices and operations. General messaging will convey the brands new menu options, slogan and the relaxed, trendy Fast Casual experience along with creative that aligns with the brands new and improved direction.
A step above the rest. CAMPAIGN DETAILS – ADVERTISING
DIGITAL ADVERTISING Example Ad 1 Example Ad 2 • Most millennials spend large portions of their day on the web, particularly social media. In our attempt to increase visibility among millennials, we will place brand dollars towards digital advertising.
• Strategy includes:
• Ads and video will feature lite, healthy options and some old favorites to show variety and attract health conscious millennials.
• Depicting Millennials enjoying a meal with friends inside in a relaxing, trendy atmosphere at an on-campus Wendy’s location. – this better targets college aged millennials with limited budge still seeking quality meals.
• Quality ingredients, great taste, and locally sourced products will be the focal point of Ads.
• All Ads will undergo a test to ensure they display menu variety, the fast casual atmosphere, trendy updated aesthetic, new menu options, the Wendy’s app for easy ordering, great customer service and tasty food prepared quickly and on the go
• Wendy’s banner ads to run on sites that attract food lovers, millennials and college students on all desktop mobile and tablet. A step above the rest. • Ad copy and creative will be tested on a small group of millennials. Testing will determine which ads are most enticing to buy, easy to read, understand and best convey the messaging of Wendy’s new fast casual space and improved ingredients.
• Once ads are approved, they will also be run on social media including:
• Snap Chat
• Twitter (via the brand page) • Instagram A step above the rest. CAMPAIGN DETAILS – ADVERTISING CONT.
DIGITAL ADVERTISING Example Ad 1 Example Ad 2
• All Ads will link to the Wendy’s website where customers will be prompted to try our easy ordering App
• Wendy’s will also launch a viral video depicting college students on campus enjoying new menu items while utilizing the ordering app as they travel to the gym, class, work and leisure.
• Depicting students as they busily go about the day, eating varied menu items helps to feature the versatility of the menu while targeting busy millennials.
• Video will be sure to show, salads, shakes, sandwiches, and burgers. A step above the rest. • Duration of video will be 1 minute – Video will be launched on YouTube and social media channels
• All digital Advertising will launch simultaneously
A step above the rest. CAMPAIGN DETAILS – PUBLIC RELATIONS
• Wendy’s will hire Influencers with a large social media following to further target millennials
• Chosen influencers appeal to a younger audience. They are health conscious, known to associate with socially responsible companies, fashionable, young, creative, knowledgeable about food, and well traveled.
• Influencers are used for their reach; to increase brand recognition and awareness of new products and Fast Casual Experience.
• Growing brand recognition aids in increasing both market share and ultimately, sales.
• During the Introduction period, Wendy’s will send coupons and informative materials to industry influencers/ foodies monthly to consistently make good mention of the product on social media and to peers online.
• Influencers Include:
• Alana “Alanakysar” – Food influencer and blogger based in California who’s reach is best used towards millennials
• Patrick Janelle @aguynamedpatrick – Influencer and urban blogger based in NYC who shares shots of his travels, fashion and food
• Roy Choi – Korean /American Chef and one of the founders of the Food Truck Movement
• Jessica Alba – Celebrity Actress, mother and founder of The Honest Company who’s known best for ethical consumerism
• Influencers will be asked to post about their Wendy’s experience, share photos of Wendy’s food and restaurants, and engage followers. They will also be paid to post about current Wendy’s promotions. Promotional budget will allocate an additional 5k per promotional post.
• Influencers must include Wendy’s in their post 5 times per 3 months. Frequency cap is used to preserve the perceived authenticity.
• Influencers may not post negatively about Wendy’s or its products
• Influencers must use the Wendy’s ordering App and share their experience using it to entice others to download
• App appeals to millennials on the go making service faster and more convenient
• Each influencer is paid on a varying scale depending on number of followers at the time of posting. They are paid per post.
• Rates per general posts range from $1000-3000
• Promotional posts pay an additional 5k. CAMPAIGN DETAILS – PUBLIC RELATIONS/SPONSORSHIP
• Lastly small promotional events will be planned and executed for local Wendy’s locations. They will engage consumers, familiarize customers with new menu options, build a rapport with potential customers and ultimately increase market share, sales, and foot traffic throughout the fiscal year.
• Events will feature samples of new menu items, coupons to be used in store and online (in app), friendly staff, and information on locally sourced food items.
• Small promotional events will be held across all major markets quarterly. A promotional team will chose a local park or other public location to set up within a 0.5 mile vicinity of the closest Wendy’s to attract both current and potential customers. Each event will be advertised in store 2 months prior to bring awareness.
• In an effort to raise brand awareness, Wendy’s will also sponsor major events tied to philanthropic causes in urban. Wendy’s will set Creative for Susan G Komen Sponsorship up small tents at the events listed below featuring healthy shakes, water and salads to go for guests and participants.
• Increased presence within philanthropic events and causes positions Wendy’s as a socially conscious corporate company with morals that align with millennials. Philanthropic sponsorships Include:
• Susan G Komen – Race for the Cure
• Habitat for Humanity – Home Builders Blitz
• Big Brothers Big Sisters of New York- Race for the Kids
• As a partner to the above charities, Wendy’s will feature charity logos on promotional materials including coupons and local sourcing cards. A Susan G. Komen Partner • Wendy’s will partner with these charities for the full fiscal year.
• The above PR tactics and Sponsorships will help to build buzz during the Introduction stage through Maturity. Sponsorships are limited Offer Expires 12/31/2018 to 2 per quarter.
• Promotions and Sponsorship have a budget of $480,000. $20k is allocated to each promotional event. $50k is allocated to each sponsorship. CAMPAIGN DETAILS - PROMOTION
• Throughout the product lifecycle and marketing plan (over a course of 1 FY) a variety of promotions will be launched using interactive methodology to increase participation from college aged millennials and in store foot traffic. Promotions will be tied to national holidays and seasons that resonate with millennials. All promotions will be shared via social media by Wendy’s brand pages and influencers to inform the consumers. All promotional creative will be completed in house to save costs.
• Chosen influencers will be paid to make mention of promotions via social media at 5k per post.
• Holiday Promotions Include • Halloween – Come in with a friend, in costume and receive 1 free burger of your choice • St Patrick's Day – Come in wearing anything green to receive a free frosty • Exam Season Promo – Show your school ID during finals/Midterm season to receive BOGO promotion on any combo meal
• One – Off Promotions • This is modeled after Fast Casual competitor Chipotle, who used random promotions to increase foot traffic, awareness and sales after their food safety incident that caused a great decrease in sales at the beginning of 2016 (AdAge) • Spontaneous one-off promotions serve as quick deals to quickly increase in store traffic. It also entices customers to bring a friend, and buy. • These offers encourage fun, participation and urges consumers to anticipate the next promotion or visiting Wendy’s again on any given day.
• Promotions will be limited to in store redemption to increase foot traffic. While in store, participating customers will receive a coupon redeemable only through the Wendy’s app to increase App use. Test Agenda MEDIA PLAN - MIX Media will be tested during a 2 month testing period to • Radio and TV promotion will be used throughout the determine most effective life cycle of the campaign to reach millennials in home Podcast Radio Script and on the go. creative and copy. Once each are finalized, TV and Radio media • Both Satellite and Podcast radio will be utilized. This episode is brought to you by Wendy’s. Stop in at Wendy’s and stay a while! Try their new, fresh – made mix will launch for the duration • Satellite and Podcast radio media channels are of the campaign. immerging platforms that millennials frequent. salads with hand picked veggies or a refreshing chocolate Many Millennials not only listen to podcast but have taken initiative to create their own. or vanilla frosty to cool off on a hot summer day. To get out in a flash download the Wendy’s quick ordering app • Traditional TV is still effective in reaching 57% of millennials. and use offer code ___ (insert the name of the podcast) to receive $5 off of your order. Wendy’s, a step above the • In radio15-30 second scripts will be given to radio personalities/podcasters to read. For television 30 rest. second commercials will be produced. Each will feature copy encompassing the new culture of Wendy’s; new menu items, local sourcing and fast casual dining.
TV Commercial creative and copy Messaging includes new slogan which separates Wendy’s from its competitors by stating superiority. Creative depicts young millennials enjoying tasty, A step above the rest. quality food within a comfortable environment. COMPLETE CAMPAIGN CALENDAR Total Budget: $2,890,400 BUDGET Allocation ALLOCATION Advertising Viral Video - 50k Banner ads - 90k Social Media Creative - 15k TV – 1.8M Radio – 230.4k PR Influencer Budget - 180k Promotions Events and Sponsorships - 480k Promotions/Deals – 40k Advertising
Viral Video –Views, likes and shares
Banner ads – Impressions, Clicks, CTR
Social Media Creative – Likes, shares and percent increase in app use and downloads LETS MEASURE TV – Increase in sales post launch SUCCESS Radio – Increase in sales post launch PR
Influencer Budget –Views, likes, shares and percent increase in app use and downloads
Promotions Events and Sponsorships – Participation
Promotions/Deals – Percent increase of coupon use, App use, sales and foot traffic at time of promotion APPENDICES
• Gallup News - http://news.gallup.com/poll/163868/fast-food-major-part-diet.aspx • Wendy’s - https://www.wendys.com/en-us/about-wendys/brand-transformation • RFP - file:///Users/jhenigibson/Downloads/Fast%20Casual%20RFP%20Summer%202016%20Final%20(2).pdf • Business Insider - http://www.businessinsider.com/wendys-strategy-to-attract-millennials-2014-5 • NBC News, Food Inc - http://www.nbcnews.com/id/11205903/ns/business-us_business/t/wendys-target-younger-generation/#.WfUvZBNSzy8 • Forbes - https://www.forbes.com/sites/alexandratalty/2016/10/17/millennials-spend-44-percent-of-food-dollars-on-eating-out-says-food-institute/#186406e43ff6 • Forbes - https://www.forbes.com/sites/geoffwilliams/2016/12/31/how-millennials-will-shape-food-in-2017/#17824b16a6df • Ad Age - http://adage.com/article/media/half-young-consumers-watching-content-traditional-tv-study/310564/ • Washington Post 1 - https://www.washingtonpost.com/lifestyle/food/fast-casual-nation-the-movement-thats-changing-how-we-eat/2017/08/28/23f6d710-86c5- 11e7-961d-2f373b3977ee_story.html?utm_term=.6249b2b06900 • Washington Post 2 - https://www.washingtonpost.com/news/wonk/wp/2015/02/02/the-chipotle-effect-why-america-is-obsessed-with-fast-casual- food/?utm_term=.a4cde0d2fba1 • BizFluent/National Center for Educational Statistics - https://bizfluent.com/info-7934153-average-college-students-income.html • Statista - https://www.statista.com/statistics/199242/social-media-and-networking-sites-used-by-us-teenagers/ • Ad Age - http://adage.com/article/cmo-strategy/chipotle-s-marketing-menu-2017-biggest-campaign-fewer-promos/307461/