WENDY’S :

BRAND IMAGE REJUVENATION

Yu Han Judy Huang

AD 856 Spring I-2015

Professor Costin

Facilitator: Sean Paul Curry

WENDY’S FAST FOOD RESTAURANT

• An international fast food chain

Wendy’s fast food restaurant

• Top three fast food restaurant in

U.S.

• Founded by Dave Thomas in 1969

• In Columbus, Ohio, United States

Popular Products:

• Hamburgers

• Chicken sandwiches

• French fries

• Salads

• Frosty

CHALLENGE• Stagnant market share

• Undefined target groups

• Product and Price

competition from other fast

food competitors

• Growing threat from

increasingly growth of fast

casual restaurants

• Weak presentation in brand

image

GOAL• Improve sales and market

share

• Identified target

demographics and market

accordingly

• Differentiate Wendy’s brand

from other fast food

restaurant

• Position and reposition

Wendy’s marketing strategy

in order to stay connected to

consumers

• Rebuild brand image &

loyalty program

THE ELEPHANT IN THE MEETING ROOM

What have we missed ?

• Born between 1977 and 1998

• Age groups 18 – 37

• Cohort size: In the U.S. only, aprx. 70 million to 80 million

• 22 percent to 25 percent of the U.S. population

• Consist $1.3 trillion spending power in U.S. market

• 61 % white, 19 % Hispanic

• 13 % black, 4 % Asian

• 2 % mixed race or other

Source: PEW Research Center

WHY MARKETING TO MILLENNIALS

Source: Oracle, ERMA (2010). Retrieved: BRAVO Feb, 28, 2015

CHARACTERS OF MILLENNIAL GROUP

Relational

&

Hyper

Connected

68% of Millennials won’t make major

decision without first running by their

network

Top sources of influence on advices are:

82 % Family/Friends

76% Online reviews

Community

Oriented

&

Socially /

Environmentally

Aware

65 % receive email or newsletter

subscription from 1 – 5 nonprofits

67 % interacted with a nonprofit for charity

purpose on Facebook

74 % are more likely to pay attention to a

company’s messages if the company has a

deep commitment to a good causeSource: Cone Millennial Case Study & AD 856 Research

HOW TO REACH THE MILLENNIALS

• Social Media

Networking

• Online

Communication

• Mobile Apps

• Text Messaging

77 % own a smart

phone

&

88% use Social

Media

--- understand their habits

Source: The Wall Street Journal

I . Meet them online

II. Be attentive and

responsive to their

conversation

III. Focus increasing

positive online reviews

95% see opinions from people they

relate with as main source of product

information

91% consider purchasing a product if a

friend recommended it

80% purchased a product after an online

interaction

70% of repeated purchase rate for

brands they love -- Millennials have

strong brand loyalties Source : Huang, 2015

HOW TO KEEP THEM CONNECTED-- understand their belief

1. Save them money

2. Save them time

3. Recognize their social

awareness

4. Give them freedom to be

an influencer• 60% visit fast food restaurant at

least once a week

• Best choice of food: offers

“convenience”, “easy-access”,

and “economical value”

• Support brand when it connects

to their personality and lifestyle

According to this research,

“Millennials still prefer cheaper

food,

and want it to be convenient.”

HOW TO HELP THEM STAY LOYAL--- understand their behaviors

Incorporate product features /

promotions meet – Millennials

desire to be:

1. Team Oriented / Non-

competitive

2. Mindful

3. Social Justice Advocator

66 % will recommend products / services

if the company is socially responsible

69 % consider a company’s social and

environmental commitment when

deciding where to shop

Source: Cone Millennial Case Study

83 % will trust a company more if it is

socially and environmentally responsible

89% very likely to switch from one brand

to another if the second brand is

associated with a good cause

RECOMMENDATION SUMMARY

• Avoid generalization, Millennials see

themselves unique and demand personal

brand experience

• Identify their habits, communicate their

language

• Understand their belief, market through their

use of keywords

• Align brand image with contents of their

behavior. Develop ways to invite them in a

partnership of bringing good cause to their

society

Questions