Presentation on theme: "BAMM AGENCY PRAD 379 Brett Mittal, Andrew Boyle, Vito Marino, Mike Andrejko."— Presentation transcript:
1 BAMM AGENCY PRAD 379Brett Mittal, Andrew Boyle, Vito Marino, Mike Andrejko
2 Executive summary Marketing and Advertising Objectives Target Audience 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 AudienceMen 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.
3 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
4 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.
5 Sonic BrandAt 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.
6 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.
7 Top 10 Fast Food Chains in US Competitive Store Counts1. McDonalds 14,0002. Burger King 7,7603. Wendy’s 6,5764. Dairy Queen 5,0505. Sonic 3,5726. Jack in the Box 2,1007. Hardees 1,6878. Carl’s Jr. 1,1049. Checkers 80010. Five Guys 735
8 Advertising and Media Analysis Qualitative:- Sonics' current market plan includes promotions throughout the Sonic chain, through TV, radio, and interactive media promotions, generally center on new limited time products and signature items.CompetitorsMcDonalds- image and slogans (I’m Lovin It), products, dollar menuBurger King- Image, mascot, slogan (Have it Your Way), product
9 SOV Kantar Media Copyright 2011 Sonic total spending in $ 136,584,800-Network TV- $14,016,100, SOV= 1.3%Spot TV- $63,639,300, SOV= 5.9%SLN TV- $13,269,200, SOV= 6.1%Cable TV- $34,180,700, SOV = 3.7%Newspaper- $38,100, SOV= 0.4%Local Radio- $4,023,900, SOV= 2.0%Outdoor- $3,821,800, SOV=2.3%Kantar Media Copyright 2011
10 Key Consumers Demographics -Age 18-54 -Working men and women -college educatedLifestyles-HHI $45,000 or more-1-4 children in family-homeownersMedia Usage-lighter TV viewers-heavy magazine readers-light newspaper readers-heavy internet users
11 Seasonal FactorsSeasonal- 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.
12 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.
14 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 desserts.The full menu is available all day long.Customer loyalty is among the strongest in the food industry.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 Service separates Sonic from the competition.Sonic is number 5 in the total of competitive store counts in the United States.
15 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.
16 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.
17 SWOT AnalysisThreatsLack 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.
18 Marketing ObjectiveCapture 20% market share in new regions of North-Northwest.States include; Washington, Oregon, Northern Idaho, Wisconsin, North and South Dakota, Minnesota, Michigan.
19 Advertising Objective Distinguish Sonic from competition, primarily drive in, fast food chains and to increase brand awareness from 15% to 40% among adults
20 Target AudienceTarget 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.
21 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)
22 MRI by Age Heavy Fast Food/ Drive-In Rest Any Burger Rest Any Burger RestSonic Drive-in(000) Vert%Horz%IndexAGE 18-241385815.348.01212416913.683.6107433915.915.0126AGE 25-341892520.946.41173370118.982.7106589821.714.5AGE 35-441846220.444.51123406819.182.0105549120.213.2111
23 MRI by Income Heavy Fast Food/ Drive-In Rest Any Burger Rest Any Burger RestSonic Drive-in(000) Vert%Horz%IndexHHI $40000-$4999979508.839.599160419.079.610223098.511.596HHI $50000-$749991828420.241.81053498619.780.0578121.213.2111HHI $75000-$999991389215.344.22566714.481.7457416.814.6122HHI $2457827.142.71074536825.578.9101731326.912.7
24 Creative PositioningSonic 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”
25 Position StatementSonic 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.
26 Connection Opportunity Style of serviceRestaurant treatment for fast food pricesConvenience
27 Media ObjectivesAchieve 40% reach of target audience of adults and frequency of 4.2.
28 Ostrow Model Part 1:Marketing Factors Established brand? Yes +.1High Market Share? +.1Dominant Brand? -.1High Brand Loyalty? +.1Long Purchase Cycle? -.1Product Used Occasionally? +.1Need To Beat Competition? +.2Advertising To Older Consumers/Children? +.2Total= .6
29 Ostrow Model Part 2: Copy Factors Simple Copy? -.1Copy More Unique? +.1New Campaign? +.2Product Sell Copy? +.1Single Message? -.1New Or Old Messages? +.1Larger Ad Units? -.1Total=.2
30 Ostrow Model Part 3:Media Factors Low Ad Clutter? +.2Compatible Editorial? +.1Attentiveness? +.1Continuous Advertising? -.1Few Media Used? +.2Opportunities For Media Repetition? -.1Total=+.4
31 Geographic Coverage Spot advertising (regional) Washington, Oregon, Northern Idaho, Wisconsin, North and South Dakota, Minnesota, Michigan.
32 RegionsMap shows locations of individual markets involved and to increase brand awareness in these statesSeattle-Tacoma, WABend, ORPortland, ORMedford-Klamath FallsEugene, ORGreat Falls, MTSpokane, WAYakima,et al, WAMissoula, MTHelena, MTBillings, MTButte-Bozeman, MTGlendive, MTRapid CIty, SDMinot et. al, NDSioux Falls, SDFargo-Valley CIty, NDGreat Falls, MNLa Crosse,Eau Claire, WIMarquette, MITraverse City, MIMankato, MNFlint, et. al, MIAlpena, MIDetroit, MIGrandRapids,et. al, MILansing, MIGreen Bay, AppletonWausau-RhinelanderMadison, WIMilwaukee, WI
33 Geographic Coverage Table shows number of stores in market area. CurrentNewAlpena, MI1Bend, OR2Billings, MT5Detroit, MI8Duluth-Supierior, MN-WI4Eugene, ORMadison, WIMilwaukee, WI3Minot et al, NDRapid City, SDSpokane, WA(Sonic.com)
35 Ad Spending in 2008 and 2009 by Market Leaders.
36 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.
37 Current Ad ContentThe 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.
39 SCHEDULING RATIONALE- CATEGORY & COMPETITOR SPENDING Primary competition is McDonalds, the Market leader.McDonald's Delivers A January Comparable Sales Increase Of 6.7% in February 2012, McDonalds does well in winter months, we plan to heavy up our advertising expenditures during summer monthsSonic cannot afford to try to compete with McDonalds, Subway and Burger King in focusing advertising to children.
40 Media Mix We have chosen four media classes. TV-Regional Spot ads RadioInternet-Social MediaOutdoor-Billboards
41 TV-Spot Ads Strengths Disadvantages TV is the most important medium to advertisers and consumers.2008, watching TV ranked third among all of life’s activities, Average person=2.6 hours a day.TV 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, Sports and News networks will most likely reach target.Flexibility- Spots available from :10 to :90+ that allow us to remind quickly or persuade easily.High Cost- to achieve effective reach, requires large amounts of out of pocket investment.Intrusiveness“Zapping”-DVRs have made it possible to skip right past commercials.
42 Radio Strengths Radio is excellent for local businesses 80% of total radio spending is local businessesTargeting- certain demographics and lifestyles, from teens to older adults, more precisely than most other media.Cost Efficient, less than 50% of TVs CPP.Tighter Geographic TargetingAffordableCreative ImpactDisadvantagesAd Exposure- has a lot of clutter, audience may not be paying full attentionNon VisualOlder Medium
43 Radio Selection We have Chosen 2 Radio Stations to advertise on: KCLK- 1430AM- ESPN Sports RadioOur target listens to sports radio, this is a regional station.KAVZ-LP FM Community RadioLocal Radio Station, directly targeting consumers within areas, that have a sonic restaurant.
44 Social Media Disadvantages Strengths Engagement: Customer EngagementDirect 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.DisadvantagesOut 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.
47 BillboardStrengths: 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.
48 Non-Traditional Advertising Social MediaPromotionsFoster customer interaction via Facebook and TwitterGarner attention in North West region through updates and customer interaction“Late Night Adventures with Sonic” where consumers post and/or tweet experiencesBillboard“Drive-In Sonic”Billboard advertisement with rotary visualsOver the road to create the effect of “driving-in”Will be eye-catching and excitingThis is a bold medium that cannot be missed on the highway
49 Media Mix AnalysisTV: Index of 105. Sonic= 5,756,000/18,908,000 (fast food customers in region) x 100= 30.4% of target views spot TV 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: Index 122. Sonic=6,637,000/20,878,000(100)= 31.7%Internet-Social Media: Index 111. Sonic=6,062,000/19,993,000(100)=30.3%