Transcript Sonic Media Plan BAMM Agency
EXECUTIVE SUMMARY
Marketing and Advertising Objectives Sonic Drive-In would like to expand franchises into the upper Mid West and North West regions of the United States. The Sonic franchise is well known in the American South East and we feel there is an opportunity to expand to these states. We plan on having Sonic capture at least 20% of the market in these regions and raise between 15 – 40% brand awareness with the target market. Target Audience Men between the ages of 18 – 50 that are up late at night looking for a quick meal or a snack are an ideal target for Sonic’s menu and drive-in style.
EXECUTIVE SUMMARY
Scheduling Strategy and Media Mix We want to begin priming with increased advertising in the spring season which will eventually lead to peak advertising in the summer months (June, July, August). The advertising will be a mixture of Television, Outdoor (Billboard), Online (Social Media), and Radio
SITUATION ANALYSIS
Background Information - Sonic Corp. operates and franchises the largest chain of drive-in restaurants (“Sonic Drive-Ins”) in the United States. The Sonic Drive-In restaurant chain was begun in the early 1950’s. Sonic Corp. was incorporated in the State of Delaware in 1990 in connection with its 1991 public offering of common stock.
SONIC BRAND
At a standard Sonic Drive-In restaurant, a customer drives into one of 20 to 36 covered drive-in spaces, orders through an intercom speaker system, and has the food delivered by a carhop. Many Sonic Drive-Ins also include a drive-thru lane and patio seating.
Sonic Drive-Ins feature Sonic signature items, such as specialty drinks including cherry limeades, slushes, frozen desserts, made-to-order sandwiches, hamburgers, extra -long cheese coneys, hand-battered onion rings, tater tots, salads, and wraps. Sonic Drive-Ins also offer breakfast items and Drive-Ins serve the full menu all day.
COMPETITIVE ENVIRONMENT
Sonic competes in the restaurant “quick serve” industry, a highly competitive industry in terms of price, service, location, and food quality. The restaurant industry is often affected by changes in consumer trends, economic conditions, demographics, traffic patterns, and concerns about the nutritional content of quick service foods. Sonic competes on the basis of speed and quality of service, method of food preparation (made -to-order), food quality and variety, signature food items, and monthly promotions. The quality of service, featuring Sonic carhops, constitutes one of our primary marketable points of difference from the competition. There are many well -established competitors with substantially greater financial and other resources. These competitors include a large number of national, regional, and local food services, including quick -service restaurants and casual dining restaurants.
TOP 10 FAST FOOD CHAINS IN US
Competitive Store Counts 1. McDonalds 14,000 2. Burger King 7,760 3. Wendy’s 6,576 4. Dairy Queen 5,050 5. Sonic 3,572 6. Jack in the Box 2,100 7. Hardees 1,687 8. Carl’s Jr. 1,104 9. Checkers 800 10. Five Guys 735 http://eaters.com/authors/raphael -byron
ADVERTISING AND MEDIA ANALYSIS
Qualitative: - Sonics' current market plan includes promotions throughout the Sonic chain, through T V, radio, and interactive media promotions, generally center on new limited time products and signature items.
Competitors McDonalds- image and slogans (I’m Lovin It), products, dollar menu Burger King- Image, mascot, slogan (Have it Your Way), product
SOV
S o nic tot al spending i n 2 01 1 - $ 1 3 6 ,58 4 ,8 00 Net wo rk T V - $ 14 ,016,100 , S OV= 1 .3 % S pot T V - $ 6 3 ,6 39,30 0, S OV= 5 .9 % S LN T V - $ 1 3 ,2 69,200, S OV= 6 .1 % C abl e T V - $ 3 4 ,1 80 ,70 0, S OV = 3 .7 % New spaper - $ 3 8 ,100 , S OV= 0 .4 % Lo c al Radi o - $ 4 ,0 2 3,900, S OV= 2 .0 % Out door - $ 3 ,8 21 ,8 00, S OV= 2 .3% Kantar Media Copyright 2011
KEY CONSUMERS
D em ographics - A g e 1 8 -5 4 - Worki ng m en and wom en -c o llege educ ated Li festyles -H H I $ 4 5 ,0 00 or m ore -1 -4 c hi ldren i n fam ily -ho m eowner s M edi a U sag e -l i ghter T V v i ewer s -heav y m ag az ine r eader s -l i ght new spaper r eader s -heav y i nter net user s
SEASONAL FACTORS
Seasonal- Results show during Sonics' second fiscal quarter (the months of December, January and February) sales generally are lower than other quarters because of the lower temperatures in the locations of a number of Partner Drive -Ins and Franchise Drive-Ins, which tends to reduce customer visits to our drive-ins.
GEOGRAPHIC FACTORS
Geography In terms of geographical factors, Sonic’s growth appeared to be determined by the economy, and due to recent troubles with the economy Sonic’s growth has started to slow. Choosing the right place would first have to be looking at the overall income of the area. It is shown that Sonic has higher index numbers in places where people are making at least $45,000 dollars a year, so when picking a place there should be a focus on areas with an income near or higher than that. It also seems that index numbers for Sonic are higher in areas with families with anywhere to 1 -4 children, after that the numbers start to drop. By focusing more on areas with families who have at least 1 -4 children and are living in the middle class or higher would be more beneficial when deciding where to spend advertising dollars and place new stores in the North.
STORE LOCATIONS
SWOT ANALYSIS
Strengths Sonic Corporation operates and franchises the largest chain of drive -in restaurants in the United States. One of the only drive-ins to feature “car hops” which generally deliver food to cars on roller skates. Large and wide ranging menu, anything from burgers to breakfast and desser ts. The full menu is available all day long.
Customer loyalty is among the strongest in the food industr y.
One of the fastest growing and most successful franchises in the nation.
Operations running from coast to coast, totaling in 3,572 locations. Franchisees are a vital part of the continued growth of the company.
Quality of Ser vice separates Sonic from the competition.
Sonic is number 5 in the total of competitive store counts in the United States.
SWOT ANALYSIS
Weaknesses Sonic experiences difficulty with sales in the winter months, especially in Northern locations. Other fast food locations that do not have drive-in style service generally experience a better turn out for obvious reasons relating to the weather. Sonic is a “burger and dog” restaurant which puts them against traditionally stronger competitors such as McDonald’s, Burger King, and Wendy’s. Sonic does not boast nearly as many store locations as the above mentioned fast food giants and must drive its profits by playing up their distinct method of drive -in service. Sonic faces competition against other fast -food establishments that provide more diverse menu choices, such as pizza and health food options.
SWOT ANALYSIS
Opportunities Health food menu options are something that Sonic has yet to fully exploit and it may help raise brand awareness.
Due to low sales during the winter months, Sonic can attempt to position itself with more winter friendly products such as hot beverages.
The South is already a strong region for Sonic, we can continue to build on this.
Many Northern regions are not familiar with the Sonic franchise but there are many opportunities to expand and promote drive-in style fast food.
SWOT ANALYSIS
Threats Lack of brand awareness compared to competition such as Wendy’s, McDonalds, Burger King.
People looking for healthier food options may not want to purchase from Sonic.
Seasonal factors affect the point of having a drive -in style restaurant.
Low entry barriers.
MARKETING OBJECTIVE
Capture 20% market share in new regions of North -Northwest.
States include; Washington, Oregon, Northern Idaho, Wisconsin, North and South Dakota, Minnesota, Michigan.
ADVERTISING OBJECTIVE
Distinguish Sonic from competition, primarily drive in, fast food chains and to increase brand awareness from 15% to 40% among adults 18-52.
TARGET AUDIENCE
Target audience is fast food eaters looking for a change of pace from the traditional drive-thru. The Sonic Drive-in experience is for consumers who want a more comfortable pace and a diverse menu ranging from snacks to meals to desserts.
TARGET AUDIENCE
Target audience will be in the age range from 18 -52 Focusing on audience with income range of $40,000 and higher (2011 Gfk MRI Doublebase)
MRI BY AGE
Heavy Fast Food/ Drive-In Rest (000) Vert% Horz% Index Any Burger Rest (000) Vert% Horz% Index Sonic Drive-in (000) Vert% Horz% Index AGE 18-24 AGE 25-34 AGE 35-44 13858 18925 18462 15.3
20.9
20.4
48.0
46.4
44.5
121 117 112 24169 33701 34068 13.6
18.9
19.1
83.6
82.7
82.0
107 106 105 4339 5898 5491 15.9
21.7
20.2
15.0
14.5
13.2
126 121 111
MRI BY INCOME
HHI $40000-$49999 HHI $50000-$74999 Heavy Fast Food/ Drive-In Rest (000) Vert% Horz% Index Any Burger Rest (000) Vert% Horz% Index Sonic Drive-in (000) 7950 18284 8.8
20.2
39.5
41.8
99 105 16041 34986 9.0
19.7
79.6
80.0
102 102 2309 5781 HHI $75000-$99999 13892 HHI $100000+ 24578 15.3
44.2
111 27.1
42.7
107 25667 45368 14.4
81.7
105 25.5
78.9
101 4574 7313 Vert% Horz% Index 8.5
11.5
96 21.2
13.2
111 16.8
14.6
122 26.9
12.7
107
CREATIVE POSITIONING
Sonic Drive-In wants to give it’s customers a convenient, personalized experience that has the feel of a classic American drive-in while offering a diverse menu of snacks and other delicious treats. Sonic is, “ America ’ s Drive-In ”
POSITION STATEMENT
Sonic Drive-In provides a one of a kind fast food experience to the consumer. We are the largest chain of drive -in restaurants in the United States and we take pride in providing a unique menu with intimate car-hop service.
CONNECTION OPPORTUNITY
Style of service Restaurant treatment for fast food prices Convenience
MEDIA OBJECTIVES
Achieve 40% reach of target audience of adults 18 -52 and frequency of 4.2.
OSTROW MODEL PART 1:MARKETING FACTORS
• • • • • • • • • Established brand? Yes +.1
High Market Share? +.1
Dominant Brand? -.1
High Brand Loyalty? +.1
Long Purchase Cycle? -.1
Product Used Occasionally? +.1
Need To Beat Competition? +.2
Advertising To Older Consumers/Children? +.2
Total= .6
OSTROW MODEL PART 2: COPY FACTORS
• • • • • • • • Simple Copy? -.1
Copy More Unique? +.1
New Campaign? +.2
Product Sell Copy? +.1
Single Message? -.1
New Or Old Messages? +.1
Larger Ad Units? -.1
Total=.2
OSTROW MODEL PART 3:MEDIA FACTORS
Low Ad Clutter? +.2
Compatible Editorial? +.1
Attentiveness? +.1
Continuous Advertising? -.1
Few Media Used? +.2
Opportunities For Media Repetition? -.1
Total=+.4
GEOGRAPHIC COVERAGE
Spot advertising (regional) Washington, Oregon, Northern Idaho, Wisconsin, North and South Dakota, Minnesota, Michigan.
REGIONS
Map shows locations of individual markets involved and to increase brand awareness in these states Seattle Tacoma, WA Missoula, MT Spokane, WA Helena, MT Glendive, MT Great Falls, MT Minot et. al, ND Fargo Valley CIty, ND Marquette, MI Green Bay, Appleton Marquette, MI Traverse City, MI Billings, MT Great Falls, MN Portland, OR Eugene, OR Medford Klamath Falls Butte Bozeman, MT Bend, OR Yakima, et al, WA Mankato, MN La Crosse, Eau Claire, WI Wausau Rhinelander Milwaukee, WI Madison, WI Lansing, MI Grand Rapids, et. al, MI Alpena, MI Flint, et. al, MI Detroit, MI
GEOGRAPHIC COVERAGE
Table shows number of stores in market area.
Current Market Alpena, MI Bend, OR Billings, MT Detroit, MI Duluth-Supierior, MN-WI Eugene, OR Madison, WI Milwaukee, WI Minot et al, ND Rapid City, SD Spokane, WA 0 1 2 0 2 0 8 0 2 1 3 New 1 4 3 1 0 5 0 4 0 1 0 (Sonic.com)
SCHEDULING
Ad Spending in 2008 and 2009 by Market Leaders.
SONIC’S AD CONTENT VS. COMPETITION
Food was featured most prominently (i.e. appearing on screen for more than 50% of the time) in approximately one quarter of general audience ads, including 35% of Sonic Ads and almost one-third of Pizza Hut, Dunkin Donuts, KFC, Dairy Queen, and Taco Bell ads. Food was shown being consumed in nearly half of ads.
Data from Nielsen Co.
CURRENT AD CONTENT
The Majority of Sonic ads (54%) showed customers eating in their cars. Wendys (28%) and Pizza Hut (24%) showed eating at the table more than any other restaurants. Taco Bell (28%) Sonic (11%) and Burger King (9%) promoted late night menus and eating late at night in their ads.
RATIONALE FOR TARGETING TEEN TO ADULT MALES.
SCHEDULING RATIONALE- CATEGORY & COMPETITOR SPENDING
Primary competition is McDonalds, the Market leader.
McDonald's Delivers A Januar y Comparable Sales Increase Of 6.7% in Februar y 2012, McDonalds does well in winter months, we plan to heavy up our advertising expenditures during summer months Sonic cannot afford to try to compete with McDonalds, Subway and Burger King in focusing advertising to children.
MEDIA MIX
1.
2.
3.
4.
We have chosen four media classes.
T V-Regional Spot ads Radio Internet-Social Media Outdoor-Billboards
TV-SPOT ADS
Strengths T V is the most impor tant medium to adver tiser s and consumers.
2008, watching T V ranked third among all of life’s activities, Average per son=2.6 hour s a day.
T V ranks second in consumer perception of influence on purchase decisions.
Buying time spots for individual programs or cable channels will best reach the target audience. Selective Reach- targeting possible with correct program selection, for Sonic, Spor ts and News networks will most likely reach target.
Flexibility - Spots available from :10 to :90+ that allow us to remind quickly or per suade easily. Disadvantages Hig h C ost - to ac h ieve e f fe ct iv e r e ac h , r e quir e s lar g e amount s of out of poc ket inve st me nt . I nt r usive n e s s “ Z apping ” - DV R s h ave made it possible to skip r ig h t past comme rcial s.
RADIO
Strengths Radio is excellent for local businesses 80% of total radio spending is local businesses Targeting- certain demographics and lifestyles, from teens to older adults, more precisely than most other media.
Cost Efficient, less than 50% of T Vs CPP.
Tighter Geographic Targeting Affordable Creative Impact Disadvantages Ad Exposure- has a lot of clutter, audience may not be paying full attention Non Visual Older Medium
RADIO SELECTION
We have Chosen 2 Radio Stations to advertise on: KCLK- 1430AM- ESPN Sports Radio Our target listens to spor ts radio, this is a regional station. KAVZ-LP- 102.5 FM Community Radio Lo c al Radi o S t ation, di r ectly t ar g eting c o nsumer s w i t hin ar eas, t hat have a so nic r est aurant.
SOCIAL MEDIA
Strengths
Engagement: Customer Engagement Direct Consumer Communication: Quick information about consumer and customer preferences and issues in real time and regularly.
Low Cost: It can almost be free, except for it is labor intensive. Brand Building: Engaging consumers and building long term relationships contributes to brand equity and brand loyalty.
Disadvantages
Out of Pocket expenses are minimal, but time spent managing social media campaigns can be extensive. It is hard to assess value received side of social media marketing.
SOCIAL MEDIA
SOCIAL MEDIA
BILLBOARD
Strengths : Large format gives them tremendous impact in outdoor marketplace.
Locating on major highways and expressways, placed in areas of high density vehicle traffic. Excellent visibility, they allow for creative customizing via extensions and embellishments.
Directional: along the highway that tell passerby where to exit for Sonic. Can include Digital components, to be managed from a central location.
NON-TRADITIONAL ADVERTISING
Social Media
Promotions Foster customer interaction via Facebook and Twitter Garner attention in North West region through updates and customer interaction “Late Night Adventures with Sonic” where consumers post and/or tweet experiences
Billboard
“Drive-In Sonic” Billboard advertisement with rotary visuals Over the road to create the effect of “driving-in” Will be eye-catching and exciting This is a bold medium that cannot be missed on the highway
MEDIA MIX ANALYSIS
T V
: Index of 105. Sonic= 5,756,000/18,908,000 (fast food customers in region) x 100= 30.4% of target views spot T V advertisements.
Radio
: Index 105. Sonic=5,697,000/19,544,000(fast food customers in region, using radio) x 100= 29.1% of target.
Outdoor-Billboard:
31 .7% Index 122. Sonic=6,637,000/20,878,000(100)=
Internet-Social Media
: Index 111. Sonic=6,062,000/19,993,000(100)=30.3%