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Adnan Dhiyan Darren Alphonse Yougui Qu (Josh) Vidur Bhatia Hanyu Lee (April) Brand Approach -Team B

Wendy’s Final 2

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Page 1: Wendy’s Final 2

• Adnan Dhiyan• Darren Alphonse• Yougui Qu (Josh)• Vidur Bhatia• Hanyu Lee (April)

Brand Approach -Team B

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Agenda

Help bridge the gap between prospective consumers & Wendy’s to eventually increase market share for the brand

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In this Presentation• Our target audience• Wendy’s current approach• Where the problem lies• Our solution• Suggested calendar• KPI’s• Budget allocation

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One Line Brief“Declining sales especially

among Millennials”

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Who are Millennials

'Millenials‘ 18-35 year old "Business Minded" "Tech Savvy" "Young" adults

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The Millennial Consumer41% have no landline at home & rely on their Mobile phones

31% earn enough to support “their” lifestyle

14% of Millenials use twitter

56% think Technology helps people use their time more efficiently

27% are self employed

80% have their phones with them even while sleeping

Will make up 50% of the workforce in a few years

Send an average of 20 texts a day

Have an estimated purchasing power of $170bn a year

79mn Millenials in US vs 48mn GenXers

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What keeps them occupied

Source: The new Multiscreen World published by Google, August 2012

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What are these interactions?Avg Time spent by Millenials interacting with Media

Source: Statista,IPSOS, Crowdtap data. 18-36 Yr Old Adults in US, 2014

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Mobile UsageShare of time spent on Mobile Apps

Source: comScore Media Metrix MP and Mobile Metrix, U.S, June 2015

Consumers facing customer facing tech in restaurantsConsumers not facing customer facing tech in restaurants

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Social MediaSocial Media usage among Millenials

Source: comScore Mobile Metrix Report June 2015

Snapchat is becoming popular among our TG but the question is, does every platform have to speak the same story?

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Current Approach

TVC’s since the beginning have been product centric.

Ad spends on Frosty(54%, Hamburgers23% and the Value Menu 30%Minimal spends on display ads on websites

Facebook, Twitter and Instagram are all treated more or less the same. Content is more or less replicated. It doesn’t leave the consumer with a reason to be with Wendy’s on every platform

482,000 Mobile website visits and no online sales!

Online ordering only via My Wendy’s App

Source: comScore Media Metrix and Ad Metrix report 2012

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Task in Hand

Attract consumers of other brands to become Wendy’s

consumers

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Our SolutionService.Care.Quality

Convenience through TechnologySpeak 'their language' at their 'convenience'

#TrendyWendy

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Mobile

18 to 34 35 to 44 45 to 54 55 to 64 65+0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%

30% 29% 31%

18% 19%

Age

Shar

e of

resp

onde

nts

% of respondents who use mobile apps at least once a month to order food Our App

No Online ordering on our app! App + ordering = Sales!

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Mobile The Problem A mobile app upgrade that does it all!

QR Code technology at drive thrus

Push Notifications for Coupons

Immediate complaint forum

Mobile Wallet/tap to pay

Love it? Share It!

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Web

Google trends show the magnitude of searches for competitive brands

Opportunity via targeting!

Source: Google Trends

Google trends reflecting trendline of searches for the three brands in USA

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Web StrategyVia the restaurant website from a computer

Via the restaurant website from your smartphone

Via an app from a computer (desktop/laptop/tablet)

Via an app from your smartphone

Via a third-party website (such as GrubHub, Foodler, SeamlessWeb, etc.)

Via fax

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

58%

17%

14%

14%

7%

6%

Answered yes

Ecommerce + SEM=Sales

SEMCompetitionGenericBrand

Source: American Express data on Statista. Sample size includes 500 people

Share of people who ordered food (by pick-up or delivery) using any of the following tools?*

Google DisplayProgrammatic Buying

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Social MediaTwitter InteractionFacebook Interaction

Instagram Interaction

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Social Media #TrendyWendy

Launch approach: Promote Wendy’s new features on Social Media.

Sustenance/Long Run Approach

Twitter becomes a consumer conversation medium rather than just an awareness media. We identify influencers and build loyalists. These in the long run will become our brand ambassadors

Custom audience reach on FB, sponsored posts and paid instagram push to maximize reach via mass media

Geo Targeted Specific Posts to people not just around Wendy’s stores but also around competition

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TV and Print

EntertainmentFashion

Health

Sports

News

Target Base Total '000 Index

Cable Services: MTV2 15,083 242

Cable Services: Adult Swim 16,603 237

Cable Services: TeenNick 6,749 223

Magazines: Game Informer 10,560 230

Magazines: Fit Pregnancy 1,853 225

Magazines: Teen Vogue 3,578 223

TV Show Types: Game Shows-Primetime 4,998 120

TV Show Types: Soccer 10,086 118

TV Show Types: Situation Comedies - Primetime 8,715 117

Genres to be targeted

Top Media

Source: MRI Data

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• Purchase Driven Tactics – January thru April & September

• Awareness Based Communication – May thru August

Sales trends in Limited Service Eating Places over a 5 Year Period

Source: Census.gov

January February March April May June July August September October November December15,000

16,000

17,000

18,000

19,000

20,000

21,000

22,000

23,000

24,000

2014 2013 2012 2011 2010

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Calendar and Budget

Activity February March April May June July Aug Sep Oct Nov Dec Jan % ShareSocial MediaTV PrintDisplay Media Programmatic BuyingSEMSocial Media AdsMobile Ads

30%

60%

10%

Our Budget allocations & calendar are based on competition targeting and seasonality.

High BurnMedium BurnLow Burn

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KPI’sFacebook 2% increase month on month in follower base and 1% increase in the interactions

Twitter2% increase in the followers base month on month. At least 3 tweets a day depending on the audience interaction.

Instagram 5% increase in the interaction and 3% increase in the fan baseSnapchat build platform and convert snaps to sales 6 months after going live

Website/E-com build platform and monitor sales via website. Projection to be made based on quarterly data

SEM Keyword list to be refreshed fortnightly. Maintain conversion rate at 5% for SEM activities.

Media Buy Display Media Buy display and programmatic buy plans to be based on reach and Frequency

Mobile App Increase in number of downloads and time spent on the app. Conversions/Sales via appTV Reach of media used

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Result

Advertising spending of Wendy's in the United States from 2010 to 2013 (in million U.S. dollars) The Wendy's Sales Spend 10 Million

more, sales will be

Year advertising sales2010 281 1,980.6 1,678.612011 273 2,050.1 1,748.732012 279.6 2,129.3 1,818.842013 290.3 2,102.9 1,888.962014 284 1,608.5 1,959.07

Average 282 1,974.28Budget 10 70.11435471

Wendy's market share in 2014 13.90%Total market 11571.942

Market share at the end of next fifth year 16.93%Market Share increase 3.03%

Trendy + Wendy= Sales!

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Conclusion• Problem- Declining sales among millennials

• Solution- Convenience through technology

• Results- Greater than 3% increase in sales in five years!

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Thank You