Transcript WENDYS CUSTOMERS

WENDY’S CUSTOMERS
WENDY’S CUSTOMERS
Robin
Crawfor
d
LyShandr
a Holmes
Adam
Steele
Dr.
James
Coleman
Marketin
g
Strategy
Bret
Kemple
r
Adedoyin
Okunrinboy
e
Jenny
Nino
POSITIONING STATEMENT FOR
WENDY’S
Wendy’s provides innovative and quality upscale
food in a quick-service setting at close-to fast food
prices for the adult consumer.
WENDY’S TARGET SEGMENTS
Baby Boomers
Generation X (Ages 25 to 40)
Generation M (Ages 11 to 24)
Generation Z (Under Age 10)
Total US population
286,196,812
*data from 2000 census, Gen Z numbers obviously larger now
GENERATION
BIRTH DATES
NUMBER OF
PEOPLE
% OF
POPULATION
Baby Boomers
1946-1964
82,826,479
29.4
Gen X
1965-1980
58,855,725
20.9
Gen M
1981-1995
61,297,467
21.8
Gen Z*
after 1995
19,175,798*
6.8*
Baby Boomers
Between the Ages of 41 and 59
HOW THEY ARE TARGETED
Baby Boomers are more interested in customizing
their orders
The other means may be in the name, Wendy’s Old
Fashion Hamburgers, which suggests that their style
is more like how things used to be done, in terms of
freshness and quality.
Generation X
Includes Young Families
Between Ages 25 and 40
HOW THEY ARE TARGETED
Increase in healthy-menu options for both the
young adults and their children.
Extending location hours to serve the needs of
adults working late.
Generation M
Mostly between the ages of 10 and 24
Includes College Students
Late Nighters
HOW THEY ARE TARGETED
People in college and in their 20s are the most frequent consumers of fast food.
 To better leverage her media dollars amid the media consolidation, Wendy’s in 2002
aggressively pursued cross-platform deals, including the massively successful
Garden Sensations entree salad launch with AOL Time Warner, and the innovative
"Road to Bristol" sports promotion with ESPN
 Wendy’s has opened locations in colleges and universities.
 Wendy's has arrived at the University of Denver.
 Wendy's launched its new eatery on South University Boulevard and Harvard
Avenue on, Dec. 31, 2004.
 The location is also only two blocks from fraternity and sorority row. The pick-up
window , will remain open until 2 a.m, according to Goins.
Generation Z
Ages 12 and Under
Also referred to as “Generation D”, where “D” stands for Digital
HOW THEY ARE TARGETED
Meals that can be designed to satisfy kids and to align with parent’s dietary options
 Main course
 4-piece kids’ meal nuggets
 Cheeseburger
 Hamburger
 Side dish
 Mandarin oranges
 Kids’ meal French fries
 Beverage
 2% reduced fat milk
 1% low-fat chocolate milk
 Soft drinks
 Jr. Frosty
WENDY’S MARKET SEGMENTATION AND
PRODUCT OFFERING
Wendy’s has developed food choices to target three
main market segments:
 Non-Restriction Diet: Customers who do not have any
restriction in their diet
 Special Dietary Needs: Customers who “want to look and
feel fit” or who “have dietary restrictions for medical
reasons” or who are controlling their weight
 Kids choice: Customer group derived from Non-Restriction
Diet customers and Special Dietary Needs customers
DETERMINATION OF
SEGMENTS
Price
Service
Quality
Location
Type of Food
Price
Wendy’s is known as the innovator of providing
new ideas and products like the 99cent value
menu, salads and high quality chicken sandwiches.
Provides upscale foods at close to fast-food prices
Recently introduced new value-menu items at 1.29
to boost profit margins.
Service
High customer satisfaction and people focus
 Wendy’s has a “Build A Meal” section on its website to help customers
make informed meal choices by combining any menu items and reviewing
their complete nutritional make-up
Wendy’s International Inc. first introduced its late-night program in
1996
A major benefit of operating late, typically from 9 p.m. to midnight or
beyond, is that it's fairly cheap, analysts said. Most chains limit access
during late-night hours to their drive-through windows and can run
with a skeleton crew of as few as three employees, with one taking
orders and the others working in the kitchen
Wendy’s was 2nd place after Yum Brands in 2003, with 11 percent of
the late-night business
Quality
They are the pioneers of fresh food fast.
Wendy’s goal towards quality provides its customers with
the option of customizing their burgers.
Wendy’s strives to offer efficient service without affecting
quality.
Older people who would rather sit down and have a quality
meal would most likely prefer to go to Wendy’s than to
McDonald’s.
Wendy’s still beats the Golden Arches in food quality and
speed of service scores.
Location
In addition to the U.S. and Canada, Wendy's operates
about 7% of its restaurants in some 25 other countries and
territories.
 During the late 1990's the company exited the U.K. and Argentina
markets to concentrate on more profitable markets in Latin America
and the Caribbean, the Far East and Europe. The contribution of
Wendy's international operations to systemwide sales in 2000 was
about 2%.
 Wendy’s does not have a particular pattern of determining
store locations but it tends to use the following criteria:

High people-concentrated areas such as malls, airports,
colleges and universities.
 Areas close to primary competition such as McDonalds and
Burger King.
Type of Food
Diverse variety of food choices.
Wendy’s caters to those in a hurry and the “healthconscious”.
According to the General Guide to Calories (per serving):
 Low: less than 40
 Moderate: between 100 and 400
 High: more than 400
 The total fat intake should be between 20% to
35% of calories
 For a diet based on 2,000 calories , the total fat intake should be no
more than 65 grams
Healthy Food Options
Meals with less than 510 calories and containing less
than 15 grams of fat or less:
 Grilled chicken sandwich with a side salad and fat free
dressing or cup of fruit
 Junior hamburger with side salad and fat free dressing or
cup of fruit
 Large chili with side salad and fat free dressing or cup of
fruit
 Plain baked potato and small chili
 Mandarin Chicken Salad with half serving of dressing
 Fresh Fruit Bowl with small chili or 5-piece nuggets
Medical Restriction Diets
Wendy’s diabetic exchange list:
 In order to serve a wide variety of customers, Wendy’s
provides a diabetic exchange list of its products to help
customers select items for their medical needs
Wendy’s gluten-free list:
 Wendy’s provides a list of all its gluten-free items in order
to help gluten intolerant customers identify safe options in
its menu
Wendy’s ingredient list:
 A list of the specific ingredients used in Wendy’s is
available for customers inquiring about specific food
allergies or sensitivities
MAJOR CUSTOMER TRENDS
New health-conscious diets
 Obesity Impact
 Two-thirds of U.S. adults are officially overweight
 One-third of U.S. children and teens eat fast food on a typical day
 This problem increased the awareness of society to the obesity issue.
 Started by Wendy’s in 1999
 Built a reputation of having a healthier option and diverse menu
options to attract grownups and teens.
 Implementation of the “Build-A-Meal” section on Wendy’s website
 Mandarin chicken salad is the healthiest option on Wendy’s garden
salad menu
MAJOR CUSTOMER TRENDS (Contd.)
New health-conscious diets (Contd.)
 Development of carcinogen acryl amide in potatoes
 Chemical that tends to form during the cooking process
of potatoes
 The actual danger level of carcinogen acryl amide is
not yet determined, therefore not yet a major concern
for customer
 Companies, for instance McDonald’s, are already reacting to the
possibility of a negative effect of this problem
 Highlighting salad offerings
 Displaying the benefits of walking in commercials and
incentives such as the step-o-meter provided with the purchase of
selected meals.
MAJOR CUSTOMER TRENDS (Contd.)
Demographic Impact
 People in college and in their 20s are the most
frequent consumers of fast food. They have also
contributed to the growth of Wendy’s late-night
business .
 Family Size
 In recent times, family sizes have shrunk to an average
of 3 members per households, which increases the
likelihood of such families to frequently indulge in
eating outside the home.
MAJOR CUSTOMER TRENDS (Contd.)
Most families eat main meals at home
Seventy-seven percent at dinnertime
Has increased competition among fast food versus
fast casual or fine dining versus casual dining
 Led to KFC’s campaign for home meal replacement to
induce families to consume fast food rather than homecooked meals.
MAJOR CUSTOMER TRENDS (Contd.)
Perhaps the most important influence on future revenue
growth for Wendy's (and all other firms in the fast-food
business) is the continuing trend to purchasing meals and
casual food rather than preparing them - at all times of the day
and night.
 This trend is evident among all age and geographic segments of the
market.
 The roots of this phenomenon are generally traced to a new life style
where people are too busy to prepare food for themselves and
increasingly less inclined to do so.
 This situation is in turn attributed to the emergence of the two-career
family which limits the availability of time to prepare meals while
providing the money to purchase them.
MAJOR CUSTOMER TRENDS (Contd.)
Shift toward an urban outlook generation
 McDonald’s “I’m lovin’ it” campaign
 McDonald’s new initiative towards fashion by soliciting Sean John and Tommy
Hilfiger to create uniforms for employees.
 Wendy's launched its new "Do What Tastes Right" advertising campaign,
featuring a variety of ads that target distinct demographics.
 Wendy’s is attempting to reach the “MTV generation” with it’s new marketing
campaign featuring twentysomethings on the move—racing for a train, riding a
skateboard, cavorting in a Laundromat—with a Wendy’s product in hand.
 "Eat Great, Even Late!" campaign with national advertising.
 Wendy’s has also just launched a new advertising campaign that combines
some youth-oriented national commercials with targeted radio, print and
Internet ads.
MAJOR PRODUCT TRENDS
New Products and Innovation
 Wendy’s was the first to introduce their fruit salad
in February of 2005.
 They will be introducing new Frescata cold
sandwiches, featuring high-quality meat and
focaccia bread.
 Wendy’s will experiment with breakfast again
after twenty years, using baked goods from Tim
Horton’s. These items will appear, at the earliest,
in 2007.
MAJOR PRODUCT TRENDS (Contd.)
Increase in Technology
 Use of a satellite data network for fast processing of credit
and debit cards, data handling and other functions by
Burger King.
 The adding of wireless Internet service in fast-food
restaurants by McDonald’s and Krystal.
 Hardee's restaurants have been testing a new technology
where workers in a call center process fast-food orders.
They then shuttle the information.
 "The advantage of it is it frees the person who would normally punch
that stuff up to assemble food faster," Hardee's spokesman Jeff
Mochal said. "They can still listen on the headset and hear what's
being ordered."
MAJOR PRODUCT TRENDS (Contd.)
 Use of a quick-cooking technology, which will cut the time it takes to
cook a four-ounce beef patty to 85 seconds from about five minutes.
 Use of swipe-free payment cards to induce efficiency in
fast-food delivery
 Proponents of the technology also say the cards are quickly becoming
fashionable among younger consumers and have additional appeal for
security reasons.
 Credit and debit cards bearing radio frequency
identification, or RFID, chips.
 McDonald’s, KFC and Taco Bell among those that have already adopted
the use of RFID chips.
 It is predicted that this would cut up to 20 seconds from a typical
transaction at a fast-food restaurant's drive-through window
TYPE OF CONTACTLESS
CARD WITH RFID CHIPS
COMPANIES ACCEPTING
THEM
Mastercard’s PayPass
McDonald’s
Subway
JPMorgan Chase’s Blink
Arby’s
KFC
American Express’
ExpressPay
Carl’s Jr.
Should Wendy’s make Changes to its Current Target
Markets or Product Line Offerings?
Wendy’s should not make changes to their existing target market segments.
As the presentation data explains, Wendy’s is already covering
approximately 90% of existing consumer targets: young adults, children,
young families and baby boomers.
Consumer market research says that there is one group Wendy’s has not
targeted, women. Harry Blazer of NPD Group says, “Where is the burger
directed toward women?” Wendy’s should be very careful about marketing
aimed specifically at women. After all, hamburgers, not salads, are the
most popular entrée ordered by both men and women.
There is no immediate need for Wendy’s to change it’s product offering.
They are innovators of new products, and have a couple of new sandwiches
being researched now. The company is also looking to re-introduce
breakfast, which is the only product area they are lacking in.
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