Mktg483 imc plan-anderson_sanders_final

Eat Better. Live right.

FAST & FIT MENU

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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

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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

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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 $______________.

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Assumptions

1. Assume there is demand for healthier fast food options

2. Market for healthier fast food is growing

3. Assume there are adequate funds available to promote this plan.

4. Wendy’s enjoys slightly better perceived quality

5. 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.

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Segmentation Strategy

Segmentation Variables

Main Dimension Segmentation

Variable

Typical Breakdowns Other Info

CUSTOMER

CHARACTERISTICS

Geographic Region All Wendy’s locations Easier to roll out to

the whole company

than try to pick and

choose the best

places

City Size Any size with Wendy’s

Density All

Demographic Age 24-54 44,234,000 Ate at

Wendy’s in past 6m

Sex Mostly female, specific

male groups

Family Size Any

Stage of family cycle Mostly young married;

also singles, divorced

Ages of children Child age 6-17

Children under 18 Any

Income $40,000-$149,999 Annual

Household Income

42,649,000 Wendy’s

Customers in past

6m

Occupation Businessmen, Managers,

Salesmen, Professional

and Technical, business

owners, Employed

persons frequently away

and on-the-go

Education Some college to masters

Race Any Whites make up

78.9% of current

customer base,

blacks account for

12.2%

Home Ownership Own Home 70.8% of customer

base

Dwelling House or Condo

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Psychographic Personality Ambitious, goal-driven,

well-informed, compulsive

Life-style Health-conscious, active,

busy, traveling, on-the-go,

prefer healthy living,

athletic, frequents gym,

vegetarian, semi-

vegetarian

BUYING SITUATION

Benefits Product features Premium ingredients,

wraps, soups, salads,

sandwiches

Advantages Economical, fast, on-the-

go, low calorie

Benefits Heart-healthy, smart/right

choice, animal friendly,

compliments active

lifestyle

Needs Healthier choices in fast

food, more options for

people on-the-go with

dietary wants/needs

Usage Rate of use Medium to heavy user

User states Regular user, potential

user, converted customer

Awareness and Intentions Readiness to buy Desirous buyers, ready to

buy healthy options,

dissatisfied with

competitor offerings

Brand familiarity Familiar, recognize brand,

familiar with competitor

offerings

Buying Condition Type of buying activity Minimum effort

Kind of store Wendy’s restaurants

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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)

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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 health-

conscious 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, health-

conscious adults can feel good about their food choices and ultimately improve their quality of

life.

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Competitive Analysis Grid: The Four P’s

Competitors:

By Market Share

Products Price Place Promotion

(Advertising

Spending/%

of revenue)

(Millions)

Total

Revenue

(2008)

(Millions)

Other Information

1. McDonalds

12.7%

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

$1-$10 32,500

international

locations

$1201/4.0 $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.

2. YUM! Brands:

KFC, Pizza Hut,

Taco Bell, A&W,

Long John Silver

9.7%

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

$1-$20 36,000

international

locations

U.S. KFC:

5,253

U.S. TacoBell:

5,588

U.S. PizzaHut:

7,564

$961/5.2 $18,500 Increase in “co-

located” 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.

3. Wendy’s/Arby’s

Group

Hamburgers

Chicken sandwiches

$1-$10 6,333 mainly

US locations

$453/4.0 $11,335

(Wendy’s =

Wendy’s was recently

purchased by Arby’s,

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6.6%

Chicken nuggets

Chili

Baked/French fried

potatoes

Freshly prepared

salads

Soft drinks/Milk

Frosty dessert

Floats

Kids’ meals

Sandwiches

Shakes

~$3,740M,

or 33% of

total)

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.

4. Burger King

5.1%

Sandwiches

Hamburgers

Cheeseburgers

Salads

Kid’s meals

Breakfast items

Hash browns

Coffee/Juice

Cookies/Pies

Soft drinks/Shakes

Fries

Onion rings

$1-$10 11,565

international

(7,207 in U.S.)

$388/4.3 $9,125 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.

5. Subway

(Doctor’s

Associates, Inc.)

5.0%

Sandwiches

Salads

Pizzas

Breakfast

sandwiches

Soda

Cookies

Chips

Coffee

$3-$10 31,ooo

international

locations

432/4.5% $9,600 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

Wendy's.[14]

6. Jack in the Box

4.7%

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 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.

~ 11 ~

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, sit-

down restaurants, pre-prepared foods in grocery stores, delis, and cooking at home.

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SWOT Analysis

Strengths Weaknesses

Large scale operation

Diversified products

Value menu

Operational efficiency

Not diversified internationally

Brand awareness

Lack of differentiation

Opportunities Threats

Can grow in international markets

Can differentiate with new product lines

Can differentiate with improved

service/quality

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.

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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.

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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.

~ 15 ~

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

~ 16 ~

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.

~ 17 ~

Advertising

Communication Objectives

1. Increase awareness and demand for the menu and the brand as a whole

2. Encourage brand switching while maintaining brand loyalty with current users

3. Increase trial use and convert one-time users to repeat purchasers

4. Curb market perceptions towards Wendy’s being a healthy alternative in fast food

5. Use of a competitive positioning strategy

6. 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

~ 18 ~

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-of-

mouth, returning customers, and converted customers.

~ 19 ~

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.

~ 20 ~

Top online ad campaigns by fast food chains Fact recorded on: July 17, 2008. Categories: Advertising, Internet usage, WWW, Web traffic.

Advertiser Ad views,

000

Share of

ads

Unique ad viewers,

000

Frequency

McDonald’s 295,884 33.6% 51,897 5.7

Quiznos.com 98,041 11.1% 16,390 6.0

KFC.com 84,974 9.6% 12,620 6.7

PapaJohns.com 82,298 9.3% 17,115 4.8

Subway 8,150 8.9% 15,478 5.0

Dunkin’ Brands 71,713 8.1% 23,240 3.1

PizzaHut.com 60,327 6.8% 15,366 3.9

SonicDriveIn.com 45,064 5.1% 7,070 6.4

Wendy’s 43,344 4.9% 11,280 3.8

Burger King 21,493 2.4% 3,494 6.2

Source: comScore

http://www.itfacts.biz/top-online-ad-campaigns-by-fast-food-chains/10841

Copy Platform

A. Target Market (Appendix)

Demographic Dimensions

o Age: 25-54

o Sex: Female/Male

o Income: $40,000-$149,000

o Occupation: Businessmen, Managers, Salesmen, Professional and Technical,

business owners, Employed persons frequently away and on-the-go

o Education: Some college; college graduates

o Stage of Family Cycle: Young married, singles, divorced

Geographic Dimensions (first 12 months)

o USA

o Urban

o Suburban

Psychographic Dimensions

o Personality

o Ambitious

o Goal-driven

~ 21 ~

o Well-informed

o Compulsive

o Technical

o 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

Target Market Benefits Sought:

o Low-fat alternatives

o Fast and healthy food

o Low-calorie options

o Meatless options

o Low cost meals that are healthy

o Meals that meet a fit lifestyle

o Meals that fit a busy lifestyle

o Meals that won't break to diet that a both fast and inexpensive

o Healthy variety

o 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.

~ 22 ~

• 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)

~ 23 ~

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 four-

week 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

~ 24 ~

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)



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)



o = 7.1% of TM

• CPM: $133,774/3.5 million x 1000

o = $38.22

• Total Cost: $3,611,898

~ 25 ~

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)



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)

~ 26 ~

• 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)


• 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


• 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)


• 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


• CPM: $101,150 (average)/2.175 million x 1000 = $46.51

• Total cost = $2,225,300

C. Internet choices

~ 27 ~

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



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


• Msnbc.com


• 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 $3000 x 16 weeks x 7 days/week = $336,000 o $2000 x 28 weeks x 7 days/week = $392,000

~ 28 ~

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.

~ 29 ~

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.

~ 30 ~

Media

~ 31 ~

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.

~ 32 ~

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.

~ 33 ~

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.

~ 34 ~

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.

~ 35 ~

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.

~ 36 ~

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.

~ 37 ~

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

[email protected]

~ 38 ~

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.

~ 39 ~

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 in-

house 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-of-

purchase, 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

~ 40 ~

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

~ 41 ~

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

~ 42 ~

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

~ 43 ~

Appendix

~ 44 ~

~ 45 ~

Appendix 1: Adults that bought Wendy’s in the past 6 months

Fall 2008 Product: Leisure/Sports

Fast Food & Drive-In Restaurants

Bought At Last 6 Months Wendy's

Adults

Total

'000

Proj

'000

Pct

Across

Pct

Down

Index

Total

223672 71458 31.9 100 100

Educ: graduated college plus

58543 19581 33.4 27.4 105

Educ: attended college

60791 21275 35 29.8 110

Educ: graduated high school

70385 22000 31.3 30.8 98

Educ: did not graduate HS

33953 8601 25.3 12 79

Educ: post graduate

19136 5947 31.1 8.3 97

Educ: no college

104338 30602 29.3 42.8 92

Adults 25-54 126601 44234 34.9 61.9 109

Occupation: : Professional and Related Occupation: s 30625 10770 35.2 15.1 110

Occupation: Management, Business and Financial Operations 21586 7601 35.2 10.6 110

Occupation: Sales and Office Occupation: s

35653 12951 36.3 18.1 114

Occupation: Natural Resources, Construction and Maintenance

Occupation: s 15303 5087 33.2 7.1 104

Occupation: Other Employed

41255 14394 34.9 20.1 109

HHI150,000+

22601 7240 32 10.1 100

HHI$75,000-$149,999 60271 20934 34.7 29.3 109

HHI$60,000-$74,999 24590 8562 34.8 12 109

HHI$50,000-$59,999 19110 6334 33.1 8.9 104

HHI$40,000-$49,999 20909 6819 32.6 9.5 102

HHI$30,000-$39,999

22797 6811 29.9 9.5 94

HHI$20,000-$29,999

22199 6435 29 9 91

HHI<$20,000

31197 8323 26.7 11.6 84

Marital Status: Never Married 56390 19485 34.6 27.3 108

Marital Status: Now Married 125359 41137 32.8 57.6 103

Marital Status: Engaged 10911 3766 34.5 5.3 108

Marital Status: Widowed/Divorced/Legally Separated 41922 10836 25.8 15.2 81

Child age: <12 months

10440 3830 36.7 5.4 115

Child age: 12-23 months

8780 3341 38.1 4.7 119

Child age: <2 years

18764 6918 36.9 9.7 115

Child age: <6 years

44047 16069 36.5 22.5 114

Child age: 2-5 years

33622 12170 36.2 17 113


41841 14760 35.3 20.7 110


44714 15163 33.9 21.2 106

Home: Owned 156971 50579 32.2 70.8 101

Race: White

171775 56378 32.8 78.9 103

Race: Black/African American

25755 8714 33.8 12.2 106

~ 46 ~

Appendix 2: Adults that presently control diet

Fall 2008 Product: Health & Beauty Aids

Diet Control/Eating Habits

Presently I control my diet

Adults

Total

'000

Proj

'000

Pct

Across

Pct

Down

Index

Total 223672 92925 41.5 100 100

Educ: graduated college plus 58543 28171 48.1 30.3 116

Educ: attended college 60791 26209 43.1 28.2 104

Educ: graduated high school 70385 26909 38.2 29 92

Educ: did not graduate HS 33953 11636 34.3 12.5 82

Educ: post graduate 19136 9699 50.7 10.4 122

Educ: no college 104338 38545 36.9 41.5 89

Adults 25-54 126601 49024 38.7 52.8 93



Occupation: Sales and Office Occupation: s 35653 14896 41.8 16 101

Occupation: Natural Resources, Construction and Maintenance Occupation: s 15303 3678 24 4 58

Occupation: Other Employed 41255 14054 34.1 15.1 82

HHI150,000+ 22601 10689 47.3 11.5 114

HHI$75,000-$149,999 60271 26026 43.2 28 104

HHI$60,000-$74,999 24590 9461 38.5 10.2 93

HHI$50,000-$59,999 19110 8006 41.9 8.6 101

HHI$40,000-$49,999 20909 8469 40.5 9.1 97

HHI$30,000-$39,999 22797 8837 38.8 9.5 93

HHI$20,000-$29,999 22199 8888 40 9.6 96

HHI<$20,000 31197 12550 40.2 13.5 97





Child age: <12 months 10440 3110 29.8 3.3 72

Child age: 12-23 months 8780 2843 32.4 3.1 78

Child age: <2 years 18764 5864 31.3 6.3 75

Child age: <6 years 44047 15159 34.4 16.3 83

Child age: 2-5 years 33622 11857 35.3 12.8 85

Child age: 6-11 years 41841 15581 37.2 16.8 90

Child age: 12-17 years 44714 17369 38.8 18.7 94

Home: Owned 156971 69398 44.2 74.7 106

Race: White 171775 74322 43.3 80 104

Race: Black/African American 25755 9570 37.2 10.3 89

Race: American Indian or Alaska Native 2039 625 30.7 0.7 74

~ 47 ~

Appendix 2: Adults that presently control diet

Fall 2008 Product: Health & Beauty Aids

Diet Control/Eating Habits

Presently I control my diet

Adults

Total

'000

Proj

'000

Pct

Across

Pct

Down

Index

Total 223672 92925 41.5 100 100

Educ: graduated college plus 58543 28171 48.1 30.3 116

Educ: attended college 60791 26209 43.1 28.2 104

Educ: graduated high school 70385 26909 38.2 29 92

Educ: did not graduate HS 33953 11636 34.3 12.5 82

Educ: post graduate 19136 9699 50.7 10.4 122

Educ: no college 104338 38545 36.9 41.5 89

Adults 25-54 126601 49024 38.7 52.8 93



Occupation: Sales and Office Occupation: s 35653 14896 41.8 16 101

Occupation: Natural Resources, Construction and Maintenance Occupation: s 15303 3678 24 4 58

Occupation: Other Employed 41255 14054 34.1 15.1 82

HHI150,000+ 22601 10689 47.3 11.5 114

HHI$75,000-$149,999 60271 26026 43.2 28 104

HHI$60,000-$74,999 24590 9461 38.5 10.2 93

HHI$50,000-$59,999 19110 8006 41.9 8.6 101

HHI$40,000-$49,999 20909 8469 40.5 9.1 97

HHI$30,000-$39,999 22797 8837 38.8 9.5 93

HHI$20,000-$29,999 22199 8888 40 9.6 96

HHI<$20,000 31197 12550 40.2 13.5 97





Child age: <12 months 10440 3110 29.8 3.3 72

Child age: 12-23 months 8780 2843 32.4 3.1 78

Child age: <2 years 18764 5864 31.3 6.3 75

Child age: <6 years 44047 15159 34.4 16.3 83

Child age: 2-5 years 33622 11857 35.3 12.8 85

Child age: 6-11 years 41841 15581 37.2 16.8 90

Child age: 12-17 years 44714 17369 38.8 18.7 94

Home: Owned 156971 69398 44.2 74.7 106

Race: White 171775 74322 43.3 80 104

Race: Black/African American 25755 9570 37.2 10.3 89

Race: American Indian or Alaska Native 2039 625 30.7 0.7 74

~ 48 ~

Appendix: Average Production Costs

~ 49 ~

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

~ 50 ~

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.

~ 51 ~

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!

Eat better. Live right.

Scene 8:

� Voice over continued: “Eat better. Live Right . . .

www.wendys.com

~ 52 ~

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.

~ 53 ~

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!

~ 54 ~

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.

Eat better. Live right.

Scene 6:

� Voice over continued: “Eat better. Live Right . . .

www.wendys.com

~ 55 ~

Appendix: Print Ad Layout

~ 56 ~

Appendix: Gross Impression (12 Months)

# of

Runs

(per 12

months)

Viewership

(millions)

Gross

Impressions

(millions)

TV:

The Biggest Loser 24 8.4 202.1

Grey's Anatomy 12 10.9 130.8

Dr. Oz 27 3.5 94.5

Extreme Makover 11 9.7 106.7

Print Media:

Business Week 22 2.2 47.9

USA Weekend 22 22.6 496.6

Time 22 9.2 201.5

US Airways Mag 12 1.4 16.6

Delta Sky Mag 12 1.7 20.5

Weight Watchers 6 6.1 36.5

Internet:

Facebook ads 52 2.1 109.2

Online banner

ads 52 46.4 46.4

Total Gross Impressions

1509.304

~ 57 ~

Appendix: Dr. Oz TV Show Ratings

~ 58 ~

Appendix: TV Ad Costs (Extreme Makeover: Home Edition, The Biggest Loser, Grey’s Anatomy)

~ 59 ~

Appendix: TV Ad Spot Average on ABC

~ 60 ~

Appendix: Wendy’s Menu Images (point of Purchase display)

~ 61 ~

Appendix: 3’x8’ Banner

Appendix: Wendy’s Coupon

~ 62 ~

Appendix: Wendy’s Online Banner

Embedded link to www.wendys.com, which will link to nutritional information, etc.

Appendix: Wendy’s Current Homepage

Mktg483 imc plan-anderson_sanders_final

Marketing

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