This was the IMC marketing plan that my colleague and I developed in my MBA program for Wendy's. It earned us the first ever 100% grade on an IMC plan for the course.
2. Table of Contents
Executive Summary ....................................................................................................................................... 3
Assumptions .................................................................................................................................................. 4
Segmentation Strategy ................................................................................................................................. 5
Segmentation Variables ................................................................................................................... 5
Target Market Definition and Size ................................................................................................... 7
Positioning Strategy ...................................................................................................................................... 8
Competitive Analysis Grid: The Four P’s .......................................................................................... 9
SWOT Analysis ............................................................................................................................... 12
Perceptual Map .............................................................................................................................. 13
Marketing Objectives .................................................................................................................................. 14
Marketing Mix ............................................................................................................................................. 15
Product Strategy ............................................................................................................................ 15
Pricing Strategy .............................................................................................................................. 16
Distribution Strategy ...................................................................................................................... 16
Advertising .................................................................................................................................................. 17
Communication Objectives ............................................................................................................ 17
First Year Projected Sales ............................................................................................................... 17
Advertising Budget ......................................................................................................................... 17
Advertising Objective ..................................................................................................................... 18
Budgeting Method ......................................................................................................................... 19
Copy Platform ................................................................................................................................ 20
Media Plan .................................................................................................................................................. 23
Media Objectives ........................................................................................................................... 23
Media Strategies ............................................................................................................................ 23
Media Mix ...................................................................................................................................... 23
Media Budget ................................................................................................................................. 28
Competitive Media Assessment .................................................................................................... 28
Media Scheduling and Buying ........................................................................................................ 30
Website ....................................................................................................................................................... 31
Direct Marketing ......................................................................................................................................... 32
~1~
3. Sales Promotion .......................................................................................................................................... 33
Point-of-Purchase (POP) ............................................................................................................................. 34
POP: Displays ................................................................................................................................. 34
Support Media: Banners ................................................................................................................ 34
Public Relations ........................................................................................................................................... 35
Consumer Public Relations ............................................................................................................ 35
Viral Strategies ............................................................................................................................... 35
Sample Press Release..................................................................................................................... 37
Event Sponsorship....................................................................................................................................... 38
Event Sponsorship and Sales Promotion (samples, coupon)......................................................... 38
Branded Entertainment (Product Placement) ............................................................................... 38
Evaluation of Promotional Plan .................................................................................................................. 39
IMC Budget ................................................................................................................................................. 41
Appendix ..................................................................................................................................................... 43
~2~
4. Executive Summary
The Wendy’s Fast & Fit menu is a healthy, fast option for people who want to eat right even when
they need to eat fast food. The menu offers soups, salads, hot and cold sandwiches, and wraps that
that emphasize more vegetables and lean meats, and less salt and fat.
All consumers can benefit from healthier food choices; our plan focuses on adults 25-54 who presently
control their diet – which is more than 49 million strong. This group is college educated, employed,
makes a higher than average salary, and has slightly more females than males.
Fast food is not a high involvement decision and is often made on the fly, which is why increasing
awareness to 80% of our target market is so important to achieve our goals of 25% trial use and 10%
repeat purchase rate.
The following integrated marketing communication (IMC) plan introduces the Fast & Fit menu through
multiple media and non-media options. Coordinated television, print, and online advertising will
increase awareness, the first step towards trial use and eventual repeat purchasing. Non-media
strategies include a free sample event, event sponsorship, banners, and updated signage, all
coordinated with advertising to further reinforce awareness and increase trial use. A press release will
be used to attract press coverage of the menu and the free sample event, increasing both awareness
and trial use. Coordinated images, words, themes and colors will reinforce the connection between
Wendy’s and the Fast & Fit menu.
The menu will be launched in November of 2010, timed to coincide with a normally very busy time of
year for most Americans: the upcoming holiday season. Awareness established during this time will
carry over to January of 2011, when the focus on healthier eating is at its peak.
To achieve our awareness, trial, and repeat purchase goals, ____% of our estimated first year sales will
be devoted to the IMC plan resulting in a first year budget of $______________.
~3~
5. Assumptions
1.
2.
3.
4.
5.
Assume there is demand for healthier fast food options
Market for healthier fast food is growing
Assume there are adequate funds available to promote this plan.
Wendy’s enjoys slightly better perceived quality
Rock N Roll Marathon Series event owners/promoters will not disclose specific
sponsorship costs. Corporate sponsorship cost assumed to be $350,000. Expo booth
space assumed to be $5000 (per city). Cost of materials for booth decorations, etc.
assumed to be $5000.
6. Cost of shipping one banner assumed to be $10.
7. 75% of Rock N Roll Marathon Expo 707,000 attendees will try a free sample.
8. Cost of one sample $1 (product, wrapper, etc.)
9. 6,200 US Locations out of 6,650 total international locations
10. 100 free samples accepted per location during free sample promotion period (not
everyone will want to try it).
11. 20% usage rate of coupon distributed at Rock N Roll Marathon series
12. Average ad production cost for a 30-second spot in 2001 was $358,000 (Appendix). Cost
is assumed at 2% annual inflation today.
13. The Biggest Loser television show is assumed to attract health conscious individuals.
14. Females are more inclined to want healthier options in fast food and have purchasing
influence over others in household.
15. The repeat purchase rate is based on achieving 80% awareness and 25% trial rate.
16. Professionals and business people are the most common occupational demographic
because they are frequently on-the-go and require quick, inexpensive meal options
when away from home or the office.
17. It is possible to produce a unique code for every customer coupon in email that will
allow for tracking of the coupon in a database and prevent multiple use of the same
coupon.
18. Facebook and YouTube will be able draw millions to see the option to join the Facebook
Fanpage, but the percentage of people signing up will be much lower. Based on the 5.5
million fans on Will Smith’s Fanpage, it is assumed that Wendy’s through an effective
and entertaining viral contest on YouTube will be able to attract at least half as many
fans, especially considering how many people would want healthier options in fast food.
19. 2/3 of people have email features enabled on Facebook Fanpages.
20. 1/4 of people receiving emails or downloading coupons directly will redeem the coupon.
~4~
6. Segmentation Strategy
Segmentation Variables
CUSTOMER
CHARACTERISTICS
Geographic
Demographic
Segmentation
Variable
Typical Breakdowns
Other Info
Region
All Wendy’s locations
Easier to roll out to
the whole company
than try to pick and
choose the best
places
City Size
Density
Main Dimension
Any size with Wendy’s
All
Age
24-54
Sex
Mostly female, specific
male groups
Any
Mostly young married;
also singles, divorced
Child age 6-17
Any
$40,000-$149,999 Annual
Household Income
Family Size
Stage of family cycle
Ages of children
Children under 18
Income
Occupation
Education
Race
Businessmen, Managers,
Salesmen, Professional
and Technical, business
owners, Employed
persons frequently away
and on-the-go
Some college to masters
Any
Home Ownership
Own Home
Dwelling
House or Condo
~5~
44,234,000 Ate at
Wendy’s in past 6m
42,649,000 Wendy’s
Customers in past
6m
Whites make up
78.9% of current
customer base,
blacks account for
12.2%
70.8% of customer
base
7. Psychographic
Personality
Ambitious, goal-driven,
well-informed, compulsive
Health-conscious, active,
busy, traveling, on-the-go,
prefer healthy living,
athletic, frequents gym,
vegetarian, semivegetarian
Life-style
BUYING SITUATION
Benefits
Product features
Premium ingredients,
wraps, soups, salads,
sandwiches
Economical, fast, on-thego, low calorie
Heart-healthy, smart/right
choice, animal friendly,
compliments active
lifestyle
Healthier choices in fast
food, more options for
people on-the-go with
dietary wants/needs
Advantages
Benefits
Needs
Usage
Rate of use
User states
Medium to heavy user
Regular user, potential
user, converted customer
Awareness and Intentions
Readiness to buy
Desirous buyers, ready to
buy healthy options,
dissatisfied with
competitor offerings
Familiar, recognize brand,
familiar with competitor
offerings
Brand familiarity
Buying Condition
Type of buying activity
Kind of store
~6~
Minimum effort
Wendy’s restaurants
8. Target Market Definition and Size
The target customer for Wendy’s Fast & Fit menu is male or female, between the ages of 25
and 54, owns their own home and lives in the city. Typically, he or she is married, has a family
with kids and makes between $40,000 and $150,000 annually (Appendix). Professionals and
business people are the most common occupational demographic because they are frequently
on-the-go and require quick, inexpensive meal options when away from home or the office.
(Assumption) They’re tired of the same unhealthy options in most fast food restaurants, but
don’t have time to go to a sit-down restaurant and don’t want to pay sit-down prices on a
regular basis. The Wendy’s Fast & Fit customer wants premium food options that are healthy,
and complement an active, busy lifestyle, and won’t break the pocketbook.
Target Market Size: 49,024,000 (based on MediaMark: American adults that presently control
diet) (Appendix)
~7~
9. Positioning Strategy
The Wendy’s Fast & Fit menu will utilize a benefit positioning theme that focuses on product
attributes.
Interest in healthy food choices has increased significantly in the last decade and thus creates
an opportunity in the market. Fast food establishments are often criticized (and even blamed)
for contributing to obesity and other health conditions with their large portion, high calorie,
high fat, and high sodium menus. However, consumers still need fast, convenient food options.
Fast food can be healthier, and the recent increased focus on healthy eating means it is an ideal
time to add this product line and create a point of differentiation for Wendy's.
Even though many consumers are interested in improving their diet, they are faced with limited
options when eating out. It is even more difficult for business travelers when they arrive in a
strange city at unusual times and must choose from easily located chain restaurants, many of
which are fast food with limited healthy dining options. The Fast & Fit menu will offer salads,
soups, and hot and cold sandwiches and wraps (including meat-free options) to give healthconscious adults an option for eating better when eating out. This will be the main point of
differentiation between typical fast food menus and Wendy’s Fast & Fit menu.
Strategy:
The Fast & Fit menu is a low-cost, convenient, and healthy option for dining out so busy, healthconscious adults can feel good about their food choices and ultimately improve their quality of
life.
~8~
10. Competitive Analysis Grid: The Four P’s
Competitors:
By Market Share
Products
Price
Place
1.
Hamburgers
Cheeseburgers
Fish sandwich
Chicken sandwiches
Chicken McNuggets
Chicken Selects
French fries
Premium salads
Milk shakes
McFlurry desserts
Sundaes
Soft serve cones
Pies
Cookies
Soft drinks and other
beverages
Kid’s meals
Egg McMuffin
Sausage McMuffin
Hotcakes
Biscuit
Bagel sandwiches
Muffins
Fried chicken
Mashed potatoes
Corn
Potato
wedges/French fries
Desserts
Pizzas/Breadsticks
Pasta
Salads
Sandwiches
Breads and crusts
Tacos/Burritos
Gorditas
Chalupas
Quesadillas
Snacks
Hot dogs
Burgers/fries
Onion rings
Rootbeer
Hamburgers
Chicken sandwiches
$1-$10
32,500
international
locations
$1-$20
36,000
international
locations
McDonalds
12.7%
2.
YUM! Brands:
KFC, Pizza Hut,
Taco Bell, A&W,
Long John Silver
9.7%
3.
Wendy’s/Arby’s
Group
Promotion
(Advertising
Spending/%
of revenue)
(Millions)
$1201/4.0
Total
Revenue
(2008)
(Millions)
Other Information
$30,025
Currently investing
heavily in McCafe
concept: specialty
coffee beverages,
breakfast pastries,
etc. Has introduced
various healthier
options in last several
years, including salads
and wraps. Now
offering “gourmet”
burger items. Scope of
market share hard to
beat. Many customers
are loyal.
$961/5.2
$18,500
Increase in “colocated” restaurants
to increase options
for customers; for
example, KFC and
A&W in one building.
Limited healthy
options on menu,
depending on the
specific restaurant.
Basic side salads are
available; otherwise
the menus focus on
standard pizza and
fried foods.
$453/4.0
$11,335
(Wendy’s =
Wendy’s was recently
purchased by Arby’s,
U.S. KFC:
5,253
U.S. TacoBell:
5,588
U.S. PizzaHut:
7,564
$1-$10
6,333 mainly
US locations
~9~
11. 6.6%
4.
Burger King
5.1%
5.
Subway
(Doctor’s
Associates, Inc.)
5.0%
6.
Jack in the Box
4.7%
Chicken nuggets
Chili
Baked/French fried
potatoes
Freshly prepared
salads
Soft drinks/Milk
Frosty dessert
Floats
Kids’ meals
Sandwiches
Shakes
Sandwiches
Hamburgers
Cheeseburgers
Salads
Kid’s meals
Breakfast items
Hash browns
Coffee/Juice
Cookies/Pies
Soft drinks/Shakes
Fries
Onion rings
~$3,740M,
or 33% of
total)
$1-$10
11,565
international
(7,207 in U.S.)
$388/4.3
$9,125
Sandwiches
Salads
Pizzas
Breakfast
sandwiches
Soda
Cookies
Chips
Coffee
$3-$10
31,ooo
international
locations
432/4.5%
$9,600
Burgers
Fries
Drinks
Mozzarella cheese
sticks
Specialty sandwiches
Salads
Sauces and dressings
Shakes and desserts
Snacks and extras
Tacos and other
Mexican specialties
$1-10
2,158
n/a
$2,539
~ 10 ~
which should provide
operational
economies of scale.
2009 Zagat Fast Food
Survey rated Wendy’s
Top Food and Top
Facilities among mega
chains.Can use quality
perception to an
advantage when
introducing new
menu.
No radical/major
overhauls in menu.
Recent ad campaign
resurrected the
“Burger King” mascot
from the
1970s/1980s. Little
emphasis on healthy
menu options besides
a basic side salad. Still
promoting “Have it
your way” for custom
orders.
2009 Zagat Fast-Food
Survey rated Subway
as best provider of
“Healthy Options” in
Mega Chain category.
Subway also first in
the "Best Service" and
"Most Popular",
although second
overall behind
[14]
Wendy's.
Highly successful
advertising efforts
with resurrected
mascot “Jack”. Large
selection of burgers
and grilled
sandwiches.
Competition from
newly introduced
teriyaki rice bowls and
grilled sandwiches,
which offer healthier
options, as do several
salad options.
12. Market Share
Major Player
Market Share
Range
McDonald's Corporation
12.7% (2009)
Yum! Brands, Incorporated
9.7% (2009)
Wendy's/Arby's Group, Inc.
6.6% (2009)
Starbucks Corporation
5.9% (2009)
Burger King Corporation
5.1% (2009)
Doctor's Associates Inc
5.0% (2009)
Domino's Inc
1.9% (2009)
Other
53.1% (2009)
Source: IBIS World Industry Report, 2010
Industry Summary
The fast-food industry is in the mature stage of the product life cycle. The market is reaching saturation
for fast-food locations and price competition is high. Fast food chains focus on location, food quality,
presentation, service, brand differentiation, and feature diversification to maintain or increase market
share. The industry is sensitive to changes in consumer levels of disposable income and thus has seen
reductions in sales during the recent recession. However, because fast food is often low priced, in many
respects the industry has fared reasonably well despite the economic pressures.
McDonald’s is the industry leader, with the highest market share than any other major competitor, even
YUM! Brands with its five different restaurant chains. YUM! Brands has introduced many co-located
dining establishments (for example, a KFC and A&W located together). Wendy’s was recently purchased
by Arby’s. They are in essentially the same market share position with Burger King and Subway. Subway
offers many healthy options for customers and should be seen as a major competitor for Wendy’s new
healthy options product line, even though they have less market share.
Differentiation among major fast food players focuses on the type of product offered (i.e. Taco Bell vs.
Burger King). McDonald’s, Burger King, Wendy’s and Jack in the Box restaurants all focus primarily on
the burger/fries/soft drink menu. However, the market for healthier fast food is growing. (Assumption)
Changing demographics (aging of the population) and increased focus on healthy eating have resulted in
menus in most fast-food establishments that also offer salads, grilled meats, and wraps.
Fast food in general faces significant threats from substitutes, including other fast food restaurants, sitdown restaurants, pre-prepared foods in grocery stores, delis, and cooking at home.
~ 11 ~
13. SWOT Analysis
Strengths
Large scale operation
Diversified products
Value menu
Weaknesses
Operational efficiency
Not diversified internationally
Brand awareness
Lack of differentiation
Opportunities
Can grow in international markets
Can differentiate with new product lines
Can differentiate with improved
service/quality
Threats
Economic recession
Increased price and product competition
Wendy’s has considerable penetration in the U.S. fast-food industry. The recent purchase by
Arby’s group should result in improved operational efficiencies and greater resources (for
advertising, for example). Wendy’s (as all fast food restaurants) must differentiate itself with
new menu items. The ongoing and growing concern about the effects of fast food offer an
opportunity to capitalize on changing consumer demands. Introducing a “radically” different
product line has good prospects for Wendy’s. Healthier food options can also be seen as higher
quality, which is important to consumers.
Wendy’s must remain competitive on price and quality. Wendy’s enjoys slightly better
perceived quality, which should help in the long run. (Assumption) Brand awareness must be
maintained and improved if they expect to remain strong in such a highly competitive industry.
~ 12 ~
14. Perceptual Map
Prices across fast food establishments do not vary enough to be the main determining
factor for consumers. When consumers get to the point of choosing between fast food options,
quality of the food and convenience are the main drivers. Quality includes freshness and taste
and the variety of options available (including healthier options). Convenience includes
location, speed of service, and restaurant amenities.
*YUM! Brands restaurants have been separated out into individual establishments for easier comparison.
~ 13 ~
15. Marketing Objectives
Marketing Objective
In the first 12 months of introduction of the Wendy's Fast & Fit product line, total sales will rise
by 5% (based on first year Fast & Fit sales of $208M divided by total sales of $3740M = 5.5%)
through use of trials, advertising, and repeat monthly sales by 10% of the target market buying
at least once per month.
~ 14 ~
16. Marketing Mix
Product Strategy
•
•
•
The Wendy’s Fast & Fit Menu is a healthy alternative to ordinary fast food. It is intended
for individuals who are already making health-conscious decisions in their lifestyle,
whether it is being active or watching their diet. The current fast food industry heavily is
focused on being fast and inexpensive, which means good healthy options are limited.
Today, Subway is often seen as the healthiest choice for fast food. But with so many
options and decisions to be made by the buyer, Subway can barely claim the label of
being fast. In fact, Subway menu options are so complex that it is almost impossible for
them to incorporate a drive-thru lane into their business model. Without the option of a
drive-thru, this will limit the number of people that will be willing to buy due to time
crunches and busy schedules. Customers in a hurry do not want to park their cars, stand
in lines, and wait for their food among complex choices.
Wendy’s Fast & Fit Menu seeks to resolve this issue by offering healthy choices that are
fast, simple, affordable, and drive-thru ready. The options include varieties of soups,
salads, wraps, and hot and cold sandwiches that feature many vegetable varieties and
lean meats such as turkey and chicken. Condiments will include low-fat herb spreads
and dressings, salsa, and gourmet mustard. There are even meatless options that will
entice vegetarian preferences as well.
The menu is appealing and delicious and will target those with busy lifestyles that want
healthier options of food, faster and at low fast-food prices. That includes fitness
conscious, on-the-go professionals, and those seeking to manage their diet.
Items:
•
•
•
•
Soups
Salads
Wraps
Sandwiches
Key Features:
•
Vegetable varieties:
o Tomatoes
o Spinach
o Peppers
o Sprouts
~ 15 ~
17. •
•
o Lettuce
Lean meats:
o Chicken
o Turkey
o Fish
Low-fat condiments
o Herb spreads and dressings
o Salsa
o Gourmet mustard
Key Benefits:
•
•
•
•
•
•
•
Fast
Affordable
Healthy
Low-calorie
Simple
Drive-thru ready
Customizable to different needs and tastes
Pricing Strategy
•
•
Average Menu Item Price: $4-6
Fast & Fit Menu items will be competitively priced based on common pricing structures
of other fast food chains. That way it will achieve perceived value by not being
underpriced, yet affordable in comparison to other fast food options.
Distribution Strategy
Distribution will take place in Wendy’s restaurants nationwide, including large metro and urban
cities such as San Francisco, Los Angeles, San Diego, Seattle, Chicago, East Coast, Southern
States, and Alaska (Based on Lifestyle Analysis Report of People Who Like Trend Towards
Healthier Fast Food). (Appendix)
Pending a successful launch, international locations will be considered.
~ 16 ~
18. Advertising
Communication Objectives
1.
2.
3.
4.
5.
6.
Increase awareness and demand for the menu and the brand as a whole
Encourage brand switching while maintaining brand loyalty with current users
Increase trial use and convert one-time users to repeat purchasers
Curb market perceptions towards Wendy’s being a healthy alternative in fast food
Use of a competitive positioning strategy
Rely on primary advertising, sales promotions, and publicity in introduction phase
First Year Projected Sales
Assumptions:
•
•
•
Total target market: 49,024,000
25% trial in first 6 months
10% of original TM will become repeat purchasers, once per month, during second 6
months (Assumption 16)
49,024,000 (target market size) x 25% (trial) = 12,256,000 x $5 (average menu price) =
$61,280,000
$49,024,000 x 10% (repeat customers) = 4,902,400 x $5 (average menu price) x 6 (# of times
returning) = $147,072,000
Sum for first year = $61,280,000 + $147,072,000 = $208,352,000
Advertising Budget
Wendy’s currently spends approximately 4% of sales on advertising. (Appendix 4)
Floor: $208,352,000 x 4% = $8,334,080
Ceiling: $208,352,000 x 20% = $41,670,400
~ 17 ~
19. Advertising Objective
Target Market Size: 49,024,000
•
•
Awareness (80%): 39,219,200
Knowledge (70%): 34,316,800
o Awareness and knowledge will be affected primarily by Wendy’s current market
standing, targeted ad campaigns, and product promotions.
•
•
Liking (40%): 19,609,600
Preference (30%): 14,707,200
o Liking and preference will be impacted by customer enthusiasm towards healthy
fast-food alternatives. There are limited on-the-go healthy options in fast-food
today. Subway will, no doubt, remain a popular favorite for healthy fast-food,
but Wendy’s will control a different market niche by providing a variety of
options that differentiate their menu from others.
•
•
Trial (25%): 12,256,000
Use (10%): 4,902,400
o
Trial and use will be influenced by trials and promotions, advertising, word-ofmouth, returning customers, and converted customers.
~ 18 ~
20. Budgeting Method
Share of Voice
SOURCE: AdAge, 2009
According to AdAge, the top five brands are spending $3,435M on advertising:
Share of Voice (dollars in millions):
• McDonald’s = $1,201/$3,435 = 35%
• YUM! Brands = $961/$3,435 = 28%
• Wendy’s = $453/$3,435 = 13%
• Subway = $432/$3,435 = 13%
• Burger King = $388/$3,435 = 11%
• Advertising as a percent of sales (dollars in millions):
• McDonald’s = $1201/$30,025 = 4%
• YUM! Brands = $961/$18,481 = 5.2%
• Wendy’s = $453/$11,325 = 4%
• Subway = $432/$9,600 = 4.5%
• Burger King = $388/$9,023 = 4.3%
Online advertising data (below) show Wendy’s has a significantly lower share of online ad
presence.
~ 19 ~
21. Top online ad campaigns by fast food chains
Fact recorded on: July 17, 2008. Categories: Advertising, Internet usage, WWW, Web traffic.
Advertiser
McDonald’s
Quiznos.com
KFC.com
PapaJohns.com
Subway
Dunkin’ Brands
PizzaHut.com
SonicDriveIn.com
Wendy’s
Burger King
Source: comScore
Ad views,
000
295,884
98,041
84,974
82,298
8,150
71,713
60,327
45,064
43,344
21,493
Share of
ads
33.6%
11.1%
9.6%
9.3%
8.9%
8.1%
6.8%
5.1%
4.9%
2.4%
Unique ad viewers,
000
51,897
16,390
12,620
17,115
15,478
23,240
15,366
7,070
11,280
3,494
Frequency
5.7
6.0
6.7
4.8
5.0
3.1
3.9
6.4
3.8
6.2
http://www.itfacts.biz/top-online-ad-campaigns-by-fast-food-chains/10841
Copy Platform
A. Target Market (Appendix)
Demographic Dimensions
o
o
o
o
o
o
Age: 25-54
Sex: Female/Male
Income: $40,000-$149,000
Occupation: Businessmen, Managers, Salesmen, Professional and Technical,
business owners, Employed persons frequently away and on-the-go
Education: Some college; college graduates
Stage of Family Cycle: Young married, singles, divorced
Geographic Dimensions (first 12 months)
o
o
o
USA
Urban
Suburban
Psychographic Dimensions
o
Personality
o Ambitious
o Goal-driven
~ 20 ~
22. Well-informed
Compulsive
Technical
Lifestyle
o Health-conscious
o Active
o Busy
o Traveling
o On-the-go
o Affluent
o Prefer healthy living
o Athletic
o Frequents gym
o Vegetarian
o Semi-vegetarian
o
o
o
o
Target Market Benefits Sought:
o
o
o
o
o
o
o
o
o
o
Low-fat alternatives
Fast and healthy food
Low-calorie options
Meatless options
Low cost meals that are healthy
Meals that meet a fit lifestyle
Meals that fit a busy lifestyle
Meals that won't break to diet that a both fast and inexpensive
Healthy variety
Ability to choose
B. Objective:
- The goal is to increase target market awareness and demand so that customers notice
Wendy's efforts to bring healthier option fast-food into the market. Wendy's customers
will choose the Fast & Fit menu over those of its competitors because it is inexpensive,
healthier, quicker, easier, better tasting, and offers a better variety.
- The message objective is to link "healthier" fast-food to Wendy's (link a key attribute
to the brand name) to appeal to the target market, which is interested in making
healthier food choices even when they need to eat fast food.
C. Key Benefits:
•
The most important benefit to buyers is that the menu is healthy, fast, and
inexpensive.
~ 21 ~
23. •
The menu will solve the problem that there aren't enough healthy fast-food options
on the market today.
D. Key Product Attributes:
•
•
•
•
•
•
•
Low-calorie
Low in sodium
Several meat-free options/uses more vegetables
Heart-healthy
High in fiber
Nutrient rich (nutritious)
Whole wheat selection
E. Campaign Theme:
•
•
•
•
•
•
•
•
•
"The Fast & Fit Menu at Wendy's: Eat better. Live right."
And, “Fast food . . . without the guilt.”
The message conveys healthy eating without degrading the rest of Wendy's menu.
The message speaks to those that often feel guilty after eating fast-food.
Not feeling guilty carries a double-meaning with it being inexpensive.
The message speaks to the person who is on-the-go.
The message resonates with health-conscious people.
It also carries a social message that encourages people to not only eat healthier, but
to live right, or make better lifestyle choices.
Wendy's Fast & Fit menu is low calorie, low sodium, uses more fresh vegetables, and
is fast, fresh, inexpensive, and convenient.
Message Strategy (Message Objective and Type of Appeal):
-
The message objective of linking the key attribute (healthier fast food choices) to
Wendy's to persuade the target market to eat at Wendy's will be done through use
of unique selling proposition ads, high repetition, and increased awareness.
-
To increase impact of the message strategy, an integrated approach will be used for
all ad materials with regards to use of the logo, taglines, inclusion of the Wendy’s
URL, colors, and images. Cross promotion will be used in all materials, highlighting
applicable references to the web site, Facebook fan page, etc.
Print Ad Layout (Appendix)
TV Ad Storyboard (Appendix)
~ 22 ~
24. Media Plan
Timeline: The media plan covers the 12-month period from November 1, 2010 to October 31,
2011.
Media Objectives
1. Increase awareness, trial use, and repeat purchase of the Wendy's Fast & Fit menu to
men and women age 25-54 with income between $40,000 and $150,000 per year, who
presently control their diet.
2. Geographic scope of the media plan is national, but heavier in urban areas.
3. Message weight (gross impressions) – Through a 12-month advertising effort that
includes TV, print, and Internet advertising, the gross total of impressions will be
1,509,304,000 (Appendix). It is assumed that most of these impressions will be of
duplicated frequency, but the percentage of duplication is not known.
Media Strategies
1. Reach: Reach is 80 percent of the target market three to five times over an average fourweek period during the 12 months of the media plan, which is consistent with the
advertising objective of achieving 80 percent awareness.
2. Continuity: Pulsing. Higher levels of advertising in the first 8 weeks to increase
awareness and encourage first trial use. Ads will continue at lower levels for the
remainder of the plan.
3. Length/size of advertisements:
a. 30 second TV spots
b. Full color magazine ads (full page, 2/3 page, ½ page)
c. Facebook ads, online banner ads
Media Mix
A. TV
a. Television ads will be aired during primetime slots during TV shows
b. Television ads will be used for both reach and frequency.
The Biggest Loser
This show was chosen because it is assumed to attract health conscious individuals. The
reach for the show is large, and the viewer demographics match up very well to the
intended target market for Wendy’s, namely those people interested in controlling their
diet and finding ways to be healthy in a time-crunched lifestyle. The show has even been
known to sponsor certain products on the show and explain why they are effective. It
~ 23 ~
25. would be very beneficial to acquire a partnership with the show, if at all possible to have
the menu sponsored.
•
•
•
•
Frequency: Weekly (6 episodes in season 10; 18 episodes in season 11; 24 total
episodes)
Reach: 8.42 million viewers per episode
o 8.42 million TM view/49.024 million in TM
o = 17.2% of TM
CPM: $113,218 cost for 30 second ad/8.42 million x 1000
o = $13.45 cost per thousand in TM
Total Cost: $2,717,232
Grey's Anatomy
This show has a large audience consisting of a female majority. Females are more
inclined to want healthier options in fast food and are more influential in promoting it
via word-of-mouth. The show also has a very loyal audience and a huge reach. The
viewer ages also match up well with the Fast & Fit target audience.
•
•
•
•
Frequency: Weekly in first month, then monthly after that due to high cost (9
total episodes)
Reach: 10.9 million viewers per episode
o 10.9 million TM view/49.024 million in TM
o = 22.2% of TM
CPM: $326,685/10.9 million x 1000
o = $29.97
Total Cost: $2,940,165
Dr. Oz
Dr. Oz, like Biggest Loser, attracts an audience that is interested in health issues and
controlling their diet. Many viewers who watch the show are tuned in for advice on how
to live healthier, especially in the daily rush of life. The show also has a strong female
audience and a loyal viewership that will help in both frequency and word-of-mouth
promotion.
•
•
•
•
Frequency: Dr. Oz runs daily from fall through spring. We will advertise weekly (27
episodes)
Reach: 3.5 million viewers per episode
o 3.5 million TM view/49.024 million in TM
o = 7.1% of TM
CPM: $133,774/3.5 million x 1000
o = $38.22
Total Cost: $3,611,898
~ 24 ~
26. Extreme Makeover Home Edition
This show draws in viewers with families who own their own homes. These are some of
the key demographic qualities of our target market. MediaMark index numbers were
statistically significant for people that control their diet when paired with variables of
family size, home ownership, and household income (moderate to high). All of these
qualities are assumed prevalent in typical audiences of the show.
•
Frequency: Weekly for the first 6 episodes, then bi-weekly after that (16 total
episodes)
Reach: 9.71 million viewers per episode
o 9.71 million TM view/49.024 million in TM
o = 19.8% of TM
CPM: $200,347/9.71 million x 1000
o = $20.63
Total Cost: $3,205,552
•
•
•
B. Print
-
Print media were chosen based on index numbers above 100 for our chosen
demographic (male and female adults age 25-54 who currently control their diet),
which is assumed to be more receptive to the idea of healthy fast food, and ultimately
more likely to purchase from the Fast & Fit menu. Index values were balanced with the
total circulation of each vehicle, frequency, and cost. Though CPM is high (especially
for in-flight magazines), it is assumed the likelihood of purchase is higher with readers
of these publications because they may be weary of the poor fast food choices usually
available to travelers, or because they practice a healthy lifestyle in general. Print
media reach is lower than broadcast media, but increasing awareness is an important
part of our plan (because “healthy” fast food is not very common). To increase reach
we are using vehicles with a high pass along readership (especially in-flight magazines).
-
Airline magazines were chosen because they reach business travelers. Weight
Watchers magazine is highly targeted to people who are trying to lose weight by
eating better and living a healthier lifestyle. Time and Business Week reach business
people, who are assumed to be somewhat busy and may need to eat fast food on a
regular basis. USA Weekend was chosen to reach a wider scope of potential Wendy’s
customers.
* All data taken from MediaMark (Appendix)
US Airways Magazine (monthly)
•
Frequency = 1 per month (full page/full color)
~ 25 ~
27. •
•
•
Reach = 1.383 million view/49.024 million TM = 2.8%
CPM: $22,980 /1.383 million x 1000 = $16.61
Total cost = $275,760
Delta Sky Magazine (monthly)
•
•
•
•
Frequency = 1 per month (full page/full color)
Reach = 1.712 million view/49.024 million TM = 3.5%
CPM: $43,130/1.712 million x 1000 = $25.19
Total Cost = $517,560
Weight Watchers Magazine (6x's per year) (index = 141)
•
•
•
•
Frequency = Every other month, full page/full color
Reach = 6.087 million view/49.024 million TM = 12.4%
CPM: $66,420/6.087 million x 1000 = $10.91
Total cost = $398,520
Time (weekly)
•
•
•
•
Frequency = weekly for first 8 weeks, 2x's/month for next 4 months, monthly for
next 6 months (all full page/full color)
Reach = 9.158 million view/49.024 million TM = 18.7%
CPM: $287,440/9.150 million x 1000 = $31.41
Total cost = $287,440 x (8 + 8 + 6) = $6,323,680
USA Weekend (weekly)
•
•
•
•
Frequency = weekly for first 8 weeks, magazine size; 2x's/month for next 4 months,
3/5 page; monthly for next 6 months, 1/2 page (all ads full color)
Reach = 22.573 million view/49.024 million TM = 46%
CPM: $461,348 (average)/22.573 million x 1000 = $20.44
Total Cost = ($499460 x 8) + ($480250 x 2 x 4) +($385330 x 6) = $10,149,660
Business Week (weekly)
•
•
•
•
Freq = weekly for first 8 weeks, full page/full color; 2x's/month for next 4 months,
2/3 page/full color; monthly for next 6 months, 2/3 page/full color
Reach = 2.175 million view/49.024 million TM = 4.4%
CPM: $101,150 (average)/2.175 million x 1000 = $46.51
Total cost = $2,225,300
C. Internet choices
~ 26 ~
28. Facebook was chosen because it is practically a staple of daily online use.
Facebook also allows targeting to certain demographics. (Appendix) Online
banner ads were chosen for sites that reach travelers, business people, and
people who are interested in their health. Facebook index is not above 100, but
it can’t be ignored as an option for increasing awareness. All other online sites
have index above 100. (Appendix)
Facebook Ad:
•
•
•
•
•
Reach: 2.1M
Impressions: $100/$0.41 x 1,000 = 244,000 impressions per day
Frequency: 244,000 impressions per $100 ($0.41 CPM)
Budget: Max. $500/day for first 8 weeks, $300/day for next 16 weeks, $200/day for
next 28 weeks
Total cost: $100,800
o $500 x 8 weeks x 7 days/week = $28,000
o $300 x 16 weeks x 7 days/week = $33,600
o $200 x 28 weeks x 7 days/week = $39,200
Online Banner Ads:
•
•
•
•
WebMD.com
Reach: 7,197 million/49,024 million= 14.7%
Mapquest.com
Reach: 22,024 million /49,024 million = 44.9%
Expedia.com
Reach: 9,164 million /49,024 million = 18.7%
Msnbc.com
Reach: 8,051 million /49,024 million = 16.4%
•
•
•
Average CPM for food ads = $7.00 (Appendix)
Impressions per day per $1,000 = $1,000/$7.00 x 1,000 = 142,850 impressions
per day Budget: Max. $5,000/day for first 8 weeks, $3000/day for next 16 weeks,
$2000/day for next 28 weeks
Total Cost: $1,008,000
o $5000 x 8 weeks x 7 days/week = $280,000
o $3000 x 16 weeks x 7 days/week = $336,000
o $2000 x 28 weeks x 7 days/week = $392,000
~ 27 ~
29. Integration assessment
Media choices support reaching a target market of people who are presently controlling
their diet. All chosen media have index numbers above 100. All media serve to increase
awareness in the target market. Higher levels of advertising across all media in the first
two months will increase awareness and trial. We chose to focus on two major
demographic groups (business people, people who are active/healthy) and selected
media that would reach them in several ways: TV ads, magazines, and online. Use of
similar themes, words, colors, images, and references to wendys.com across all ads
reinforce our message through repetition, to create a strong association between
Wendy’s and the new menu.
Media Budget
•
•
•
•
•
Advertising Cost (TV/Print): $32,365,327
Media Production Cost (10% TV/Print cost): $3,236,532
Total Cost of Media: $35,601,859
Internet Advertising: $1,108,800
Total Cost of Advertising: $36,710,659
Competitive Media Assessment
Advertising to Sales Ratio:
•
•
•
Total Cost of Advertising: $36,710,659
Year One Forecasted Wholesale Sales: $208,352,000
A/S Ratio: 17.6%
Competitors Overall Advertising to Sales Ratio:
•
•
•
•
•
•
•
McDonald's: 4.0%
Burger King: 4.3%
Wendy's: 4.0%
Subway: 4.5%
YUM! Brands: 5.2%
Jack in the Box: n/a
Industry average: 4.4%
Wendy's is spending approximately the same overall percentage of sales as major
competitors. Introducing a new product will require higher percentage of sales in the first
year, both to increase awareness and to encourage trial use.
~ 28 ~
30. Share of Voice:
Wendy's has a much smaller share of voice than McDonald's and YUM! Brands. However,
Wendy’s has and equivalent share of voice with Subway, the strongest competitor based on
healthy options. Increasing share of voice will improve awareness, trial, and eventual repeat
purchasers. Increasing share of voice over Subway, which offers the "best known" healthy
menu, increases potential for brand switching to Wendy's for healthy fast food.
~ 29 ~
32. Scheduling and Buying
Website
Objective: The Wendy’s corporate website will function mainly as a background support vehicle
in the overall IMC plan. Fast food decisions are very low involvement and thus do not require
significant website support. There will be no online sales. The website will be used primarily to
increase awareness by promoting the new menu, providing nutritional information, and
providing information/contacts for media inquiries.
Site Layout: The Fast & Fit menu will be featured as a new product on the home page in
November, nutritional information will be added to the “Nutrition” section, and the press
release will be posted in the “News” section. (Appendix) No major changes need to be made to
the Wendy’s website to support the introduction of the Fast & Fit menu. No additional websites
are needed to promote the menu.
Integration with IMC: A corporate website is necessary in today’s market, but it serves as
mainly a support function for this product. It will support media inquiries and provide
nutritional information, and thus support efforts to increase awareness.
~ 31 ~
33. Direct Marketing
Wendy’s Fast & Fit Menu promotion will entail a consumer direct marketing plan. Due to the
nature of Wendy’s business, there will be no trade marketing involved. Direct mail would be
too expensive for the budget. However, email is a nice option that could be done effectively
and inexpensively.
Objective: The objective is to increase awareness of Wendy’s Fast & Fit Menu and encourage
trial use by way of coupons via email to targeted customers within the target market.
Strategy: Utilize emailing list generated through Fanpage members on Wendy’s Facebook
Fanpage and through viral videos on YouTube (see Viral Strategies section under Public
Relations). When customers visit the Wendy’s YouTube channel, they will have a link
encouraging them to become a fan of Wendy’s Fast & Fit Menu on Facebook. Everyone that
becomes a fan on Facebook will be able to download a coupon redeemable at any Wendy’s
location for $1 off of any Fast & Fit menu item (Appendix). Emails will be sent to fans that have
email from Facebook enabled in their settings. These emails will be sent to fans at the
beginning of the month for the first 6 months of the program’s introduction. The coupons will
have a unique code that allows Wendy’s to track usage and restrict multiple usage of the same
coupon (Assumption 17).
Reach: 3 million through Facebook recommendations and YouTube viral video sign-ups on the
Facebook Fanpage (Assuption 18). Of those 3 million, 2 million will have email options enabled
to receive the coupon or download it directly from the page (Assumption 19). Of those 2
million, only one quarter of them will redeem the coupon each month over the 6-month period
(Assumption 20). Therefore it is projected that 500,000 coupons will be used per month from
the direct marketing campaign, totaling 3 million coupons redeemed over the course of the
promotional time.
Cost: 3 million coupons redeemed x $1 per coupon = $3 million. Production and distribution
costs are zero.
Total: $3 million
Integration to IMC: This will continue to bring enthusiasm and positive word-of-mouth to
Wendy’s. People will tell their friends and recommend that they become members and view
the videos submitted on the YouTube page (see Viral Strategies). By using coupons, it will
encourage both trial and repeat purchasing of the product, while allowing Wendy’s a way to
physically track its effectiveness.
~ 32 ~
34. Sales Promotion
Objective: Encourage trial use by offering free samples from the Fast & Fit menu for a one-week
period in November.
Cost: 6,200 locations x 100 free samples accepted per restaurant x $1 per sample = $620,000
(Assumption)
Integration with IMC: Getting people to try the new menu is essential to future, repeat
purchases. A free sample overcomes barriers to trial use, such as cost and being unsure if the
food will actually taste good. Once people try it and see that it is good (and good for them), it
will increase trial and repeat purchases. Free samples specifically address our trial use goal of
25%. It will also create a specific event in consumers’ minds tying the new menu specifically to
Wendy’s and reinforce TV, print, and online advertising running during this period.
~ 33 ~
35. Point-of-Purchase (POP)
POP: Displays
Objective: The current Wendy’s in-restaurant/drive-thru menu signage will be utilized for
promoting the Fast & Fit menu to increase awareness and trial purchase (Appendix). Cost is
folded into corporate-wide budget for normal operating expenses incurred for updating
signage, etc. Updated signage will be provided for November 2010 launch.
Support Media: Banners
Objective: Hung outside individual Wendy’s restaurants from November through January to
increase awareness and encourage trial use. People would see the banners driving by
restaurants and when entering. Assume 6,200 U.S. locations.
Cost for 3’ x 8’ banner = $32 (Appendix) + $10 shipping (Assumption) = $42 each x 6,200 =
$260,400
Reach and frequency are dependent on number of drive-bys and customers visiting restaurant;
no data is available. However, it is safe to assume there would be millions of impressions across
the nation.
Integration with IMC: Direct target marketing through certain publications and TV shows is
advantageous, but there are also people who don’t realize they would like to have healthier
options when it comes to fast food choices. Increasing general awareness will increase the
likelihood that we will generate good trial use numbers, and ultimately good repeat purchase
numbers. Banners will directly link the Fast & Fit menu to Wendy’s and will use similar images,
colors, and words to reinforce other advertising. In addition, where to grab a quick fast food
meal is often made “on the fly” based on what presents itself at the moment (i.e. driving
around and realizing they are hungry, then seeing a Wendy’s). People may also be enticed to try
something on the Fast & Fit menu even if they had not intended to when they initially chose to
eat at Wendy’s.
~ 34 ~
36. Public Relations
Consumer Public Relations
Objective and strategy: Increase awareness of new menu with a press release, which will
introduce the new menu and encourage trial use with the announcement of a free sample
promotion. (Appendix)
Timing: Issue press release in November when ad campaign is launched.
Cost: Negligible cost for press release; see cost for sales promotion, above.
Integration with IMC: The press release is intended to increase awareness through free media
coverage of the new menu. The sales promotion event is to encourage trial use. It is an
effective way to build on the print and television advertising running in November and create a
sense of urgency to try it for free. Being able to sample the product for free decreases barriers
to trial use (cost, not sure if it will taste good) and (assuming customers like what they try)
increases chances for future, repeat purchases.
Viral Strategies
Objective: Increase product awareness of Wendy’s Fast & Fit menu by the use of a viral
YouTube video.
Strategy: At the introduction of Wendy’s new menu in November 2010, Wendy’s will introduce
a contest for college-aged students to create a YouTube video that will be uploaded directly to
the Wendy’s YouTube channel. This video should have a two and half minute limit, and should
be used only in the promotion of the new Wendy’s Fast & Fit Menu. All contestants must be
currently enrolled in a college or university, and they must be 18 years of age or older to be
eligible.
Timing: The video must be submitted by January 7, 2011. The winner will be announced on
January 31, 2011. The YouTube video will be featured on the frontpage of Wendy’s YouTube
channel and Facebook Fanpage on that date. It will then be available for all people to view and
share with their friends.
Grand Prize Award: A grand prize award will be awarded to the winner of the competition in
the amount of $75,000. The second place prize will be a choice of a $25,000 scholarship or a
brand new 2011 Ford Mustang car.
~ 35 ~
37. Cost: Costs for introducing the competition will be negligible. Emails will be sent announcing
the competition to all major universities colleges and their marketing departments. Reminder
emails will be sent out one month later. Since students will be producing the videos at their
own expense, there will be no production costs to Wend’y. The only major costs will be
incurred in the grand prize and second place prize awards.
Total costs: $100,000
Other details: The winner will be chosen by way of popular vote from those that visit the site
from January 16 through January 30, 2011. Prior to that time, the videos will be narrowed down
to the top 10, based on an algorithm that weights total viewership and ratings, along with the
date submitted. From these final 10, viewers can place up to 14 votes a piece (limit of one vote
per video per day for each voter) for the best video. Then, based on total votes received, the
first and second place winners will be determined.
Integration with IMC: YouTube is most popular among young adults, so it will most likely be
affective for the lower half of the targeted age demographic. The nature of any competition is
to encourage as many participants as possible. Bringing the attention of the Fast & Fit menu to
college students will greatly strengthen word-of-mouth PR and viral communication. With a
large number of video submissions and more than two months to produce the video, the
number of good videos to choose from should be large, ensuring that the winning video will be
one that will have great entertainment value.
With college-aged students producing the videos, there will be a high likelihood that this will
excite media sharing and viewership among younger audiences. College-aged young adults are
also a great demographic source for creativity and humor, which will be essential for a
successful viral campaign.
Having people vote for the winner will enhance excitement and ensure that the video is the
most popular. People are happier when they have the power to choose, and they will be more
likely to tell their friends. Giving people the power of one vote per day creates better
enthusiasm and return frequency to the site. The people who care the most will want an impact
on the outcome so they will keep coming back, while encouraging others to participate.
Another potential result of the viral campaign is the possibility that network TV news shows
might pick up on the campaign and want to run a story featuring the winner and bring added
potential publicity to the viral video and Wendy’s Fast & Fit Menu. Overall, the program should
generate lots of excitement and media sharing among peers. This will greatly strengthen
product awareness and should achieve a positive emotional response for most viewers and
participants. Total reach is unknown. Although a number of views to each video will be known.
~ 36 ~
38. Sample Press Release
Wendy’s launches Fast & Fit menu with free samples Nov. 25-30
Anywhere, U.S.A. – Eat well when you’re on-the-go with Wendy’s new Fast & Fit menu.
Soups, salads, wraps, and hot and cold sandwiches offer healthier options for people who need
to eat fast, but want to eat well. New menu items feature vegetables such as tomatoes,
spinach, peppers, and sprouts and lean meats such as turkey and chicken. Condiments include
low-fat herb spreads and dressings, salsa, and gourmet mustard.
Customers can receive one free sample November 25-30 at all Wendy’s locations nationwide;
no purchase necessary.
“We all enjoy a double-bacon cheeseburger and french fries,” said Wendy’s International, Inc.
President J. David Karam. “The Fast & Fit menu doesn’t take away from that. We’re offering
healthier options that fit into the American lifestyle. Our menu recognizes that people
everywhere are paying more attention to their diet and want the option to make good food
choices, especially when they need something fast and convenient.”
The launch of Wendy's Fast & Fit menu continues the brand's history of fresh-tasting,
innovative firsts. For example, Wendy's was first in the industry to offer ComboChoices –
allowing customers to substitute a small chili, baked potato or one of two side salads, instead of
fries, in the combo meals at no extra charge (2004).
Wendy's International Overview
Wendy's International is one of the world's most successful restaurant operating and
franchising companies with more than 6,600 restaurants worldwide. Wendy's is a member of
Wendy's/Arby's Group Inc. (NYSE: WEN). More information is available at www.wendys.com, or
www.wendysarbys.com.
Contacts:
Kitty Munger
Wendy's International
(614) 764-3241
Kitty.Munger@Wendys.com
~ 37 ~
39. Event Sponsorship
Event Sponsorship and Sales Promotion (samples, coupon)
Objective: Increase awareness and trial use at Rock n Roll Marathon series (14 major cities
nationwide), which includes the race and an expo event at each city. (Appendix) Wendy’s
would be identified as a corporate sponsor and included on all promotions. Booth at the expo
event would offer free samples. Goody bags for racers would include a $1 off coupon.
Frequency: 14 races between November 2010 and January 2011.
Reach (annual): 312,000 participants, 1 million spectators, 707,000 at 2-day Health and Fitness
Expo
Sponsorship Cost: $500,000 (Assumption)
Booth at Expo: $75,000 ($5000 fee per city x 14, plus $5000 for booth decor)(Assumption)
Cost of samples: 75% (Assumption) x 707,000 attendees x $1 each = $530,250 (Appendix)
Cost of $1 off coupon in goody bags for participants: $1 x 312,000 participants x 10% usage rate
= $31,200 (Assumption)
Coupon print cost: $1080/100,000 x 3.5 = $3,780 (Appendix)
Integration with IMC: The Rock N Roll Marathon series is a large event that draws thousands of
people specifically interested in a healthy lifestyle through physical activity. This is a prime
venue to entice people to sample the product risk-free and will increase the likelihood of trial
use after the event (coupon). The demographics lean slightly more female with above average
incomes, which falls in line with demographic data for our target market of adults who
presently control their diet. Presence at an event that promotes a healthy lifestyle supports the
message we are using in our other advertising and promotions to “Eat Better. Live Right.”.
Branded Entertainment (Product Placement)
Wendy’s will not use product placement due to budgetary constraints. Also, it would be difficult
to see distinguishable difference in the Wendy’s Fast & Fit Menu versus other parts of the
menu based on product placement alone. More demonstration of the product differences and
benefits is required.
~ 38 ~
40. Evaluation of Promotional Plan
All components in the IMC will be measured for effectiveness on reaching the objective of
increasing awareness. This will allow for a comprehensive understanding of how the elements
work together while also identifying specific areas that demonstrate success or may need
improvement.
Advertisements will be pre and post-tested using Gallop & Robinson’s Impact System
(Appendix). The InTeleTest component is used for television ads; the Magazine Impact
Research Service (MIRS) is used for magazine ads. The Impact System compiles information on
day-after-recall (DAR), idea communication, persuasion, brand rating, and ad liking.
Media Advertising
Media advertising evaluation is to determine how well objectives have been met in regards to
increasing awareness, and thus encouraging trial use and repeat purchases.
• Television
Pre-test and post-test DAR and other measures using Gallup and Robinson Impact System:
InTeleTest
Total Cost to test television ad effectiveness for 2 TV ads: $20,000 (Assumption)
• Magazines
Pre-test and post-test DAR and other measures using Gallup and Robinson Impact System: MIRS
Total Cost to Test Magazine Effectiveness for four different sized ads: $40,000 (Assumption)
Other Promotional Elements
A range of different metrics will be used to assess how effective each promotional element
achieves the objective of increasing awareness. Assume pre-testing was done as part of the inhouse development process of the overall IMC plan, and that all elements were deemed
appropriate based on pre-testing results.
Internet-related elements will be evaluated using Google Analytics, a powerful tool for
analyzing onlne advertising and web site traffic. Direct marketing, sales promotions, point-ofpurchase, public relations, and event sponsorship effectiveness will be evaluated using
straightforward measurements such as increases in sales, number of samples distributed, and
number of coupons redeemed, among others. Effectiveness can be difficult to evaluate because
of the qualitative nature of the promotional elements and the long-term effect on awareness,
but the data gathered can be utilized to develop a useful picture of trends over time that will
~ 39 ~
41. ultimately provide a valid, reliable, and meaningful understanding of effectiveness to the
overall marketing communications plan.
Internet Advertising
Posttest using click-through rate (available through Google Analytics)
No added cost
Website
Posttest using Google Analytics data on hits, pages viewed, unique visitors, etc.
No added cost
Direct Marketing: Email coupon
Posttest using number of emails sent through Facebook, number registered through YouTube
link, and by tracking number of coupons redeemed
No added cost
Consumer Sales Promotion: Free samples and coupons
Posttest by tracking number of free sample tried during promotion and coupons redeemed
No added cost
POP
In-Store Display (menu boards) and exterior banners
Posttest using exit poll and tracking sales in restaurants
No added cost
Public Relations: Press Release
Posttest by tracking total number of press clippings, where did the coverage appear, positive vs.
negative media coverage, and accuracy of information
No added cost
Event Sponsorship: Rock N Roll Marathon Series and Expo
Posttest by tracking redemption rate of coupon in goodie bag and exit survey following expo
No added cost
~ 40 ~
42. IMC Budget
Budgeting Method:
• Objective and task method
• Percent of sales
o 4% floor
• $208,352,000 x 4% = $8,334,080
o 20% ceiling
• $208,352,000 sales x 20% = $41,670,400
Costs:
Advertising Costs
• Television: $12,474,847
• Print: $19,890,480
• Production: $3,236,532 (10% TV/Print Costs)
• Internet: $1,108,000
• Total: $36,710,659
Website Costs
• No further web development is needed, since Wendy’s current website is
sufficient
• Total: $0
Direct Marketing Costs
• Consumer: $3,000,000
• Trade: $0
• Total: $3,000,000
Sales Promotion Costs
• Consumer Sampling: $620,000
• Trade: $0
• Total: $620,000
Point-of-Purchase Costs
• Displays: $0 (normal corporate budget expense)
• Banners: $260,400
• Total: $260,400
~ 41 ~
43. Public Relations Costs
• Consumer PR: ~ $0 (Press Release – cost is negligible)
• Viral Strategies: $100,000
• Total: $100,000
Event Sponsorship Costs
• Event Sponsorship and Sales Promotion: $1,140,230
• Branded Entertainment (Product Placement): $0
• Total: $1,140,230
Promotional Plan Evaluation Costs
• TV Testing: $20,000
• Print Testing: $40,000
• Total: $60,000
Total IMC Budget = $41,891,289
Forecasted Sales: $208,352,000
Total IMC Budget as a Percentage of Forecasted Sales = 20.1%
• 41,891,289 IMC Budget/$208,352,000 Total Projected Sales = 20.1%
Industry advertising to sales ratios:
• McDonald’s: 4.0%
• Burger King: 4.3%
• Subway: 4.5%
• Yum! Brands: 5.2%
• Industry average: 4.4%
Comparison of Wendy’s IMC budget to sales and the industry average
~ 42 ~
50. Appendix: TV Ad #1
Scene 1:
Businessmen at the airport waiting for their
flight discuss what food options there are.
One man says to the other, “Man, I just wish
there was something better to eat. I’m starving, but I
can’t stand the junk that they serve at these places.”
The other man responds, “Yeah, I know what
you mean.”
Scene 2:
Third businessman approaches
carrying delicious healthy Wendy’s food.
Scene 3:
Camera focuses in on food
~ 49 ~
51. Scene 4
Other businessmen look at food in bewilderment.
It is obvious that they are jealous of what third
businessman has.
Scene 5:
Third businessman boasts, “What? It’s
Wendy’s new Fast & Fit Menu! . . . So, are you
guys ready to go?”
Scene 6:
Previous two businessmen
are shown running away from
terminal to get food.
~ 50 ~
52. Scene 7:
Voice over (male voice with enthusiasm): “Introducing the new Fast & Fit menu, only at
Wendy’s! Great meals that won’t break the budget, or your diet.”
Fast food . . . without the guilt!
Scene 8:
Voice over continued: “Eat better. Live Right . . .
Eat better. Live right.
~ 51 ~
www.wendys.com
53. Appendix: TV Ad #2
Scene 1:
Jogger shown running.
Scene 2”
Businessman in a hurry decides to get some food
before the meeting. Standing outside Wendy’s, he appears
uncertain if he has time or wants to go in.
~ 52 ~
54. Scene 3:
Jogger sees Wendy’s and decides to stop in.
Scene 4:
Businessman recognizes jogger.
Businessman to person on phone: “Hey, hang on a sec.”
Businessman to jogger: “I didn’t expect to see you here!?”
Jogger responds: “It’s the new Fast & Fit menu at Wendy’s."
Businessman to person on phone: “Listen, I gotta run!”
Businessman hangs up phone.
Businessman now appears convinced of eating at Wendy’s and
now appears to have more time.
Both enter Wendy’s together, flirtatiously smiling
Scene 5:
Voice over (male voice
with enthusiasm): “Introducing
the new Fast & Fit menu, only at
Wendy’s! Great meals that won’t
break the budget, or
your diet.”
Fast food . . . without the guilt!
~ 53 ~
55. Scene 6:
Voice over continued: “Eat better. Live Right . . .
Eat better. Live right.
www.wendys.com
Radio Ad Script
Wendy’s has elected not to do radio ads for this campaign because of the difficulty in
contract negotiations with radio stations. They will leave it up to individual franchises to decide
whether they want to advertise on the radio in their local areas. Wendy’s instead will focus on
TV and magazine advertising.
~ 54 ~
63. Appendix: Wendy’s Online Banner
Embedded link to www.wendys.com, which will link to nutritional information, etc.
Appendix: Wendy’s Current Homepage
~ 62 ~