Apple bees pitch brief

NEW BUSINESS PITCH BRIEFAPPLEBEE’S

MEDIA PROJECT WORK

OVERVIEWApplebee's recently confirmed that it is parting ways with their advertising agency of three years, CP+B (a member of

publicly traded MDC Partners).

The restaurant chain is ending its relationship with the MDC Partners agency as "part of broad plans to transform the marketing and advertising direction of the brand," the company said in a statement. It wasn't immediately clear what that

would mean for its marketing, but a sizeable overhaul can be expected.

"CPB has been a valued creative partner during our three years together, but we're taking the Applebee's brand in a new direction and believe our plans would benefit from fresh thinking and new approaches," said Darin Dugan, the chain's senior

VP-marketing and culinary.

Applebee's does not appear to be releasing an RFP or launching a formal review. Instead, a spokesperson said that "the company will discuss the assignment of its account with a select few potential agency partners" when its contract with

Crispin ends in February 2016.

Applebee's spent $165.4 million in U.S. measured media last year, according to Kantar Media.

The question is: How can your agency get a slice of that Blue Ribbon Brownie?

BACKGROUND SUMMARYThe Applebee's concept focuses on casual dining, with mainstream American dishes such as chicken, steak, pasta, seafood,

and "riblets" (Applebee's signature dish). All Applebee's restaurants feature a bar area and serve alcoholic beverages (except where prohibited by law). Their signature offer is the “2 for $20” menu, first introduced in 2009.

Each Applebee's restaurant is designed as an all-American, retro-verging-on-nostalgic family-friendly establishment featuring high quality, moderately-priced food, alcoholic and non-alcoholic beverage items, table service and a comfortable

neighborhood atmosphere.

Applebee's main competition in the casual dining segment are national and multi-state restaurant chains such as Chili's, T.G.I. Friday's, Olive Garden, Red Lobster and Buffalo Wild Wings, as well as fast-casual restaurant chains. In addition, there are

many independent restaurants across the country in the casual dining segment.

Clearly, Applebee’s faces stiff competition with very few differentiators between the top contending restaurants. Julia Stewart, Chairman and CEO of DineEquity Inc. (which also owns IHOP along with Applebee’s), has said “We simply have to move faster, think bigger and differently. . . We’re going to change the story at Applebee’s.” Stewart sees their challenge as

setting themselves apart from the casual-dining crowd with bold, aggressive changes.

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SALES OF CASUAL DINING RESTAURANTS IN 2013

4.5%

3.8%

3.6%

2.3%

1.69%

1.62%

1.4%

1.2%

2.4%

SALES OF SELECTED CASUAL-DINING RESTAURANT CHAINS IN THE US IN 2013 (in billion U.S. dollars)

APPLEBEE’S

Chili’s Grill & Bar

Olive Garden

Outback Steakhouse

Red Lobster

The Cheesecake Factory

TGI Friday’s

Texas Roadhouse

Ruby Tuesday

Buffalo Wild Wings

0 1 2 3 4 5

1.1%

In 2013 Applebee’s was leading the market of casual dining restaurants with sales outperforming the 2nd ranked Chili’s Grill & Bar by 16%. More recently, DineEquity Inc. reported that Applebee’s same-store sales took a downward turn in the third

quarter of 2015, possibly prompting the reconsideration of marketing strategies.

Buzz Score Ranking in 2015

LEADING CASUAL DINING RESTAURANT CHAINS IN THE US IN 2015, RANKED BY BUZZ SCORE



Olive Garden

APPLEBEE’S

Red Lobster

0 2.5 7.5 12.5 17.5 22.5

17.6%

16.7%

15.8%

14.6%

13.7%

Not JUST for families ANYMORETraditionally, Applebee’s target segment has been families; but lately the brand is moving toward a younger crowd willing to

visit a different version of Applebee’s.In 2012, Applebee’s launched a new concept called “The Bee’s,” which reserved its family-friendly vibe for daytime hours, but

aimed to attract a younger crowd of bar-goers at night. Their most recent advertisements rebrand the restaurant as more of a Bar & Grill aimed at sports fans, young couples, singles, and co-workers looking for their Happy Hour.

It’s a considerable pivot compared with just a few years ago when Applebee’s expanded their kids’ menu and commercials featured multiple generations enjoying meals together.

Today’s Applebee’s has a new “Pub Diet” - a healthier version of pub-style favorites - and an expanded bar menu titled “Apps & Snacks” which features upscale and innovative appetizers like Brew Pub Pretzels & Beer Cheese Dip and Kobe-Style

Meatballs. It’s a calculated move to appeal to the “foodie” Millennial market.

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Bar-goers in the 25-34 age range are mostly married or in relationships, college educated males, without children, who make a middle-class income.

AUDIENCE ANALYSISTarget Audience: 25-34 bar goers

STATUSMarried (45%)

INCOME$40K - $70K (48%)

GENDERMale (58%)

FAMILYWithout Kids (66%)

AGE25-34 (100%)

EDUCATIONCollege (71%)

Top 10 PsychographicsThe top psychographic traits of this audience clearly indicate a party-oriented audience who appreciate aesthetics and arts, as

proven by the high relevance of Art Appreciators, Design Lovers and Readers.

Their hobbies, aside from bar attendance, are more outdoor oriented (travel, outdoor activities and playing sports, rank

highest). Food and Music, central elements in “bar & grill” places, are very popular with this target, as shown by the psychographics. The sub-segmentation of the Foodies trait indicates a target looking for a balance between nutritional values and enjoyment (Thoughtful eaters). While deep diving into musical behaviors we discovered that this group doesn’t just enjoy music - they play their own music and tend to be involved in live music scenes. This is a group of educated, creative, financially

solvent young men who want more from their dining experiences than basic bar food and lackluster pop music in the background.

They, like the larger Millennial market, value unique experiences.

PO

PU

LAR

ITY

10

11

42

51

72

17.97%

REACH

0.99% 9.15% 27.51% 37.81%

19

8

PARTY GOERS

FASHION LOVERS

BEAUTY & WELLNESSAWARE

DESIGN LOVERS

THE SHELDONSMUSIC LOVERS

ENTERTAINMENTJUNKIES

POLITICALLY AWARE

PUBLIC FIGURES FOLLOWERS

TECHIESPET LOVERS

BUSINESS PEOPLE

SPORTS LOVERS

OUTDOORENTHUSIASTS

ART APPRECIATORS

MOTOR LOVERS

FOODIES

READERS

HOME DECORATORSAND DIYs

TRAVELERS

# NAME REACH POPULARITY RELEVANCE

2

3

4

5

6

7

8

9

10

1 Party Goers

Art Appreciators

Outdoor Enthusiasts

Travelers

Motor Lovers

Sports Enthusiasts

Foodies

Music Lovers

Readers

Design Lovers

37.81%

6.46%

2.75%

5.43%

11.13%

22.90%

23.74%

28.34%

20.29%

8.28%

198.89

166.19

154.55

146.73

133.45

121.09

118.67

102.56

106.72

109.96

184.87

144.4

130.19

130.01

127.47

126.84

125.65

117.02

115.89

109.07

Top 10 Psychographicssports


2

3

4

5

6

1 Athletes

Team Sports Fans

Adrenaline Junkies

Addicted to Sport

Fans of Fighting

Individual Sports Fans

3.56%

8.60%

1.90%

5.36%

2.68%

1.43%

105.68

87.08

87.4

72.85

78.03

64.34

99.41

94.16

83.03

80.64

79

65.94

music


2

3

4

5

6

1 Musicians

Radio Listeners

Top 40

Dancers

Metalheads

Background Beats

Signature Soundtrack

Old Stylers

2.13%

5.87%

8.80%

1.68%

0.93%

4.31%

7.14%

1.63%

168.39

153.16

91.26

61.14

60.63

33.48

32.79

31.75

137.73

134.92

97.15

64.75

61.15

52.69

56.32

44.97

7

8foodies


2

3

4

5

6

1 Alcohol Connoisseurs

Thoughtful Eaters

Home-Chefs

Fast Food Fans

Self-Conscious Snackers

Food-To-Go

44.53%

0.46%

0.75%

6.79%

0.59%

0.44%

190.73

127.88

91.32

38.81

36.8

21.08

181.61

102.63

80.47

59.91

43.01

31.24

INSIGHTThe media usage and the advertising strategy spectrum indicate printed media is the most relevant way to grab this audience’s attention. The most popular Magazines are those that revolve around this group’s hobbies (craft beers,

outdoor sports/activities, tattoos), while they use online publications as news sources for local events and activities.

Digging further into their media usage, we come to see how printed media like Magazines and Newspapers, supporting the reader psychographic trait, are most relevant. Radio resonates with the music savvy

characteristic of this target, and comes in 3rd, while wide-reaching media like TV and Websites are slightly less relevant for this segment.

The most relevant activities this group engages in online are related to travel, motors, news/search engine (where they find websites regarding local activities and events).

MEDIA USAGE

TOP MEDIA


2

3

4

5

6

1 Magazines

Newspaper

Radio

Website

TV

Apps

40.05%

8.50%

30.47%

83.91%

39.04%

32.19%

141.51

153.70

129.20

106.25

107.25

41.60

147.37

138.46

135.66

134.64

124.20

77.95

REACH relevance

1005002.50%2%1.25%0.50%<0.01% 130 160

DRAFT Magazine

All About Beer Magazine

Craft Beer and Brewing

Outside Magazine

Rat Rod Magazine

Powder

Inked Magazine

Field & Stream

Inked Girls Magazine

Street Chopper

FAVORITE HOBBY MAGAZINES

MEDIA USAGE

TOP ADV STRATEGY


2

3

4

5

1 Print Ads

Outdoor Ads

Tv Ads

Online Ads

Unconventional Ads

2.91%

1.27%

3.68%

7.96%

2.49%

74.05

54.05

34.33

25.61

12.12

76.9

58.4

52.09

52.48

34.57

FAVORITE WEBSITE


2

3

4

5

6

7

8

9

10

1 Travel

Motor

News and Search engines

Technology

Music , Entertainment

Food

Green

Sport

Education and Culture

Business

16.44%

6.36%

26.56%

8.35%

51.03%

21.47%

4.34%

17.39%

23.63%

4.20%

139.77

143.87

117.52

135.67

100.88

117.12

137.39

114.96

109.26

132.59

135.63

129.4

126.28

126.21

123.6

123.46

122.02

119.7

119.32

118.57

MEDIA USAGE

INSIGHTGiven the “musician” proclivities of the audience, music has the potential to be a powerful draw. Featuring local

bands on the playlist as well as hosting live music events would be especially advantageous.

Applebee’s could also experiment with handing over the mic to its talented target audience once in awhile. Along with classic karaoke nights, it could be interesting to give the attendees the opportunity karaoke with a live band, for a more immersive experience. Another way to stimulate them could be play their own produced songs in the bar, selecting the songs through

online contests able to generate buzz.

Applebee’s target audience places a lot of importance on music, which means knowing their tastes is vital to ensure a positive, memorable experience. Indie and alternative music is on top for both relevance and reach, while other rock branches follow

with lower reach and relevance index scores.

Other than the rock styles, this target show also interest toward more danceable genres like dance and electronic which gathers 23% of the audience.

In addition to playing the right tunes, good beverage selection is obviously important to them. As we saw, craft beers are a sure attraction for the audience and having some of the most popular brands would become a certain plus.

Note:Craft beer magazines make up 3 of the top 10 favorite magazines for this group, indicating that Applebee's would do well to

partner with some of the favorite craft brands of this demographic, like Stone Brewing Co. and Dogfish Head, along with each restaurant partnering with its local craft brewers.

In terms of food preferences, this group of young men is unusually health-conscious, with am emphasis on organic and natural foods, as well as a passion for ethnic foods. Applebee’s is right on target with its Sriracha shrimp and wonton tacos.

BUSINESS OPPORTUNITies

TOP MUSIC GENRES


2

3

4

5

6

7

8

9

10

1 Indie and Alternative Music

Folk and Traditional Music

Punk

Country Music

Metal

Classic Rock and Oldies

Dance and Electronic Music

Hard Rock and Progressive

Jazz and Blues

Reggae and Caribbean Mu...

44.00%

22.79%

20.36%

27.05%

18.32%

38.58%

23.67%

20.93%

15.55%

7.43%

142.24

144.95

142.85

129.4

126.95

112.32

119.29

112.97

106.92

110.96

149.13

142.69

140.02

134.35

128.25

127.42

126.03

120.4

113.14

108.78

REACH popularity

1005007%5.50%4%2.50%<0.01% 150 200

Founders Brewing Co.

Left Hand Brewing Company

Odell Brewing Co

Lagunitas Brewing Co

Anchor Brewing Company

Stone Brewing Co.

Dogfish Head Beer

Sierra Nevada

Goose Island Beer Co.

Magic Hat Brewing Company

TOP 10 BEERS



OTHER KIND OF FOOD


2

3

4

5

6

7

8

9

10

1 Cholula Hot Sauce

Sriracha Rooster Sauce

Frank's RedHot

Huy Fong Foods, Inc.

Tabasco

Tapatío Hot Sauce

OLD BAY® Seasoning

Thai food

Mexican food

Texas Pete Hot Sauce

0.29%

0.28%

0.85%

1.02%

0.62%

0.25%

0.45%

0.11%

0.09%

0.13%

189.28

188.59

170.16

163.16

162.46

162.02

156.38

164.22

160.58

155.99

141.69

141.05

133.7

129.94

126.98

122.91

121.52

121.48

118.6

116.67

INSIGHTPrinted ads with eye-catching artwork in newspapers and magazines could leverage the artistic leanings

indicated by the art and design ranking interests of this audience. We drilled down into their art preferences to pin down some ideas about which kind of visual content attracts

them most.

On top by relevance we find “Mondo,” an art gallery frequently featuring art inspired by film, television and comics. Other frequently-followed art sites reveal a preference for photographers whose style is more

unconventional, like street-art and lomography to mention a couple. Many of these artists have collaborated or are currently collaborating with music artists.

CREATIVE INSIGHTS

CREATIVE INSIGHTS

top visual art & design


2

3

4

5

6

7

8

9

10

1 Mondo

Offerman Woodshop

Pop Chart Lab

Jeremy Fish

Neil Krug

Fucked Up

Moshik Nadav Typography

Spoke Art

This Wild Idea

BuzzFeed DIY

0.17%

0.14%

0.06%

0.18%

0.07%

0.10%

0.06%

0.23%

0.13%

0.29%

194.14

190.37

193.49

186.02

190.41

187.82

187.03

179.67

181.57

175.69

142.86

139.7

139.27

137.68

137.59

137.01

135.19

134.33

133.67

132.62

PO

PU

LAR

ITY

18

41

89

17

51

80

0.17%

REACH

0.06% 0.12% 0.23% 0.29%

19

4

THIS WILD IDEA

SPOKE ART

BUZZ FEED DIY

MOSHIK NADAVTYPOGRAPHY

OFFERMANWOODSHOP

POP CHARTLAB

FUCKED UP

JEREMY FISH

MONDO

NEILKRUG

If you needmore insightson this target andits competitors

click HERE

or drop us a [email protected]

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Apple bees pitch brief

Data & Analytics

Transcript of Apple bees pitch brief