Marketing Plan and
Feasibility Study for
Wing Zone
Team Wingin’ It
Greg Finke – wfinke@radford.edu
Lindsey Johnson – ljohnson3@radford.edu
Elizabeth Squibb – esquibb@radford.edu
Brandon Turner – bturner2@radford.edu
Whitney Vargas – wvargas@radford.edu
Table of Contents
Executive Summary............................................................................................................ 1
Franchisor Background Information .................................................................................. 2
Product/Service Description ............................................................................................... 3
Situation Analysis ............................................................................................................... 3
SWOT Analysis .................................................................................................................. 5
Target Market ..................................................................................................................... 5
Site Location ....................................................................................................................... 7
Marketing Strategy ............................................................................................................. 8
Recommendation ................................................................................................................ 12
Appendix ............................................................................................................................ 14
References .......................................................................................................................... 17
Executive Summary
In just fifteen years, Wing Zone has gone from a restaurant in a fraternity kitchen to a
huge, multi-state operation with nearly one hundred locations. Growth has been tremendous,
and it appears to be no end in sight for expansion. This take-out restaurant is catered mostly
to the college crowd, and offers a number of items such as chicken wings, hamburgers, and
salads. Wing Zone offers a unique blend of up-scale menu items with the convenience of a
take-out eatery.
There are a number of factors that must be determined in order to decide whether or
not a Wing Zone would be profitable in the New River Valley. The biggest determinate is the
target market, and the company states that it likes its restaurants to be located near large
colleges in order to target the students. Also, it must be determined that competition, such as
Pizza Hut and Buffalo Wild Wings, will not run Wing Zone out of business. Another major
factor is finding a central location in which to locate this restaurant, and this can be
accomplished by studying the demographics and lifestyles of the people in the region.
In order to make the restaurant a success a number of strategies must be put in place.
The menu must not be too cheap, or too expensive, for the area. Both sides of that spectrum
could ruin the establishment. Also, the promotion and advertising of the restaurant must be
handled in a responsible manner in order to reach the maximum number of people.
Advertisements in newspapers, on radio, and by means of special displays are all ways in
which Wing Zone could reach its customers. The establishment must also pay close attention
to the weaknesses and threats that this region will offer, and capitalize on the strengths and
opportunities that it also offers. Wing Zone would be a big success in this region thanks to its
unique menu items and its take-out dining style.
Franchisor Background Information
Wing Zone began as a unique alternative to late night pizza delivery in 1991. Two
fraternity brothers started the business out of their Florida fraternity house kitchen; starting a
business that has sprawled into 22 states. The concept of quick delivery of traditional Buffalo
wings, chicken sandwiches, burgers, and chicken strips complete with a variety of 25 sauces
has exploded around college campuses throughout the United States. Wing Zone has become
one of the fastest growing franchises, and with good reason; the product is unique,
convenient, and in high demand.
With an estimate between $60,000 and $75,000 in liquid capital available it is a
relatively low-cost franchise venture. The company urges franchisees to open businesses
around college campuses, military bases, hospitals, and other areas in which delivery options
are needed. Additionally, because this business is solely take-out and delivery only a small
retail space is needed in which to operate. This allows for already developed areas to embrace
the concept because there is no need to build an excessively large structure. Wing Zone
makes it very easy for potential franchisees to join in the experience by providing training,
lease negotiations, signage, structural specifications, and insurance. Additionally, throughout
the length of ownership, the company provides the franchisee with constant support, an
intranet for communication, as well as the advantage of corporate advertising. All in all,
Wing Zone calculates the complete start up costs including insurance, leasing, computer
systems, etc. anywhere between $179,500 and $229,500.
Wing Zone provides prospective franchisees with all the support and assistance one
could possibly imagine. The company has earned its spot as one of the most sought after
franchisors through the exceptional level of support, as well as the opportunity for significant
financial compensation. With 87 stores either already in business or nearing completion,
there is a strong base within the franchise, but also numerous untapped markets with the
potential to become very successful locations for this establishment.
Product/Service Description
The fast food industry appears is growing each year, currently accounting for nearly
$126 billion in sales. In the next five years those sales are expected to increase to nearly $200
billion, which is a massive increase. The low carbohydrate diet which hurt the fast food
industry several years ago is a dying trend, thus representing the upswing in sales over the
next five years.
Sports continues to increase as a form of recreation for millions of people. Also, there
has been a revival of card games in recent months thanks in part to the poker championships
that are popular on television. Chicken wings have always been the popular snack food for
both of these activities.
A typical consumer for Wing Zone will without hesitation be a fan of chicken.
“Chicken consumption in the U.S. increased by almost 25% in 2004,” making poultry a
favorite among Americans. (Restaurant Business) Chicken is seen to be one the “most costeffective and least expensive” item on most menus; which will in turn allow customers to
purchase more or visit more frequently. Even though the low carbohydrate diet is going out
of style, people are paying much more attention to their diets. Chicken has increased in
popularity because of the low carbohydrates and fat when compared to other types of meat.
Situation Analysis
The greatest threat for competition in the New River Valley would definitely be dinein chicken/wings restaurants that also have a bar. Their major competitive advantage is that
they offer a sit down dinning area that is very attractive to the city or town where they decide
to build. Also, this potential competition offers alcohol, which is a major draw to college
students. While only being a take-out establishment is a disadvantage, it is also an advantage
for Wing Zone because take-out restaurants are very popular. With people living busier lives
now than ever before not everyone has enough time to go to a restaurant and sit down waiting
to be served, such as at Buffalo Wild Wings. After pulling a long day at work many people
simply want to pick up a meal and take it home to their family. Because of this type of
atmosphere Wing Zone would be able to place orders much faster than most dine-in
restaurants because of the lack of a “sit down” crowd to cater to.
The majority of the college students and locals that live in the New River Valley like
to sit down with their friends and family, eat, have a few drinks, and enjoy the social
atmosphere. Also, Buffalo Wild Wings allows the customers to purchase their assorted sauce
flavors that go on the chicken, which is in contradiction to Wing Zone.
Wing Zone’s more indirect competitors would be eating establishments such as
Outback, Texas Roadhouse, Applebee’s, Hooters, and TGI Fridays. These restaurants are
considered to be upscale, and they all serve chicken wings. This could conflict with Wing
Zone’s attempt to establish itself as an upscale wing establishment. The advantage is that
while those establishments sell wings they also sell a number of other items, thus not allowing
those competitors to focus mostly on wings. The toughest competition the New River Valley
region would be take-out establishments such as Dominos, Papa Johns, Pizza Hut, and other
pizza delivery places. These would be stiff competitors because they offer a delivery service
that is very appealing to the college market, and they have all entered the chicken wing
market also.
One major draw back with Wing Zone is that you unable to place your carry-out or
delivery order online. The larger pizza restaurants have the technology necessary to offer
online ordering and have it delivered without talking to a person. This has proven very
successful with pizza establishments because college students are very computer savvy, and
most find it easier and more convenient to place orders over the Internet.
SWOT Analysis
Strengths:
-
One of only a few chicken/wings-exclusive restaurants that delivers nation wide
Targets only college and university towns
Award winning sauces for taste
Not just a chicken restaurant; offers other items such as burgers and salads
Weaknesses:
-
Not a sit down restaurant, only carry-out and delivery
Targets only college and university towns
Opportunities:
-
Establish an agreement with local and college sporting events to set up food stands
Take away market share from other delivery establishments such as pizza restaurants
Threats:
-
Dine-in chicken/wings restaurants
Local pizza delivery services (Papa Johns, Dominos, Pizza Hut, etc.)
Target Market
The target market profile will enable Wing Zone to zero in and reach out to those
potential customers that best fit the establishment. The main market segment that would best
fit Wing Zone would be college students (Wing Zone, 03). However, Wing Zone would fit
well in a location that serves urban and/or suburban geographic locations, such as downtown
districts, universities, military bases and/or hospitals. The high population that these locations
will provide would be a perfect match for the company and would be easy to market. The
New River Valley has a wide variety people who are of different ages and income levels.
However Wing Zone targets a smaller segment within those demographics. The primary ages
are between 20-50 years old with an average income of $30,000 (BW3’s). The highest
concentration of students and/or population that fit Wing Zone’s criteria in the New River
Valley is Blacksburg. The surrounding areas in the region are not an optimal fit because of
decreased education levels and older populations (See Table 3 in Appendix). Choosing
Blacksburg would enable Wing Zone to max the potential benefits of the target market
because Blacksburg has one of the highest concentrations of high-income households in the
region. This makes the town an ideal location for high and low end establishments (See Table
4 in Appendix). Wing Zone can fit into high or low-end centers, and matches the surrounding
population of Blacksburg better than those in other area of the New River Valley. The
proximity of Virginia Tech provides business opportunities with an array of conference
visitors, as well as visitors to athletic and special events, to enhance business. Blacksburg has
a beautiful natural setting to attract new residents and tourists, and well-established events and
festivals all of which is in the target market profile of Wing Zone. The area will attract old
and new visitors that will help keep local businesses alive. The area of Blacksburg is growth
oriented in business and population, and this is beneficial to anyone planning to open a
business in the town. Nearly 50% of the population in Blacksburg is between the ages of 2050 years old and ¼ of the student population of the New River Valley is in this area (See
Table 3 in Appendix), which are highly desirable demographics for Wing Zone.
Site Location
The area in which Wing Zone locates needs to have a minimum of 25,000 people
within a five-mile radius of the establishment. Within that five-mile radius, 80 percent of the
people or greater should be 20-50 years old. The target area also should have a minimum
daytime/lunch population of 5,000 people within a one-mile radius of the location. The
required average income is approximately $30,000 per year with households of single and
family status preferable. About 20 percent or greater of the trade area should be college
educated (Wing Zone). Because Wing Zone is a “carryout or delivery” establishment the
customers are only willing to travel a short distance. Blacksburg has a "captive" commercial
audience with students at the university as well as local residents patronizing the local
establishments. This population has a disposable income that matches the local required
salary as stated by Wing Zone.
The preferred location for Wing Zone in the Blacksburg area is 109 College Avenue.
This site is located in the beautiful downtown area, and is within walking distance of Virginia
Tech, as well as a number of local dwellings. There are a number of established shops and
businesses in the area, and there is an ATM close by. Main Street is perpendicular to College
Avenue, which is intersected by a traffic light, making business on College Avenue visible to
heavy traffic. This area around the site is populated year round and is located in a heavy
business district. This particular location offers 1125 square feet of space, which would be
ideal for a restaurant that focuses strictly on carryout. The lease payments per month would
be approximately $2300 with a low overhead. Also, this location has the option to include a
small waiting area where chairs and tables could be added. Wing Zone would benefit from the
high density population this location has to offer. However, parking in the downtown
Blacksburg area is not abundant, or free in most cases. Also, Wing Zone’s competition is
higher due to the surrounding food establishments.
An alternative site chosen is 860 University City Blvd NW in Blacksburg. This
location is 1300 square feet and would provide room for a small waiting are where chairs and
tables could be added in order to offer a very limited sit down establishment. The lease
payments per month would be approximately $1840 with low. This site is within walking
distance of many apartment complexes and the food emporium of Virginia Tech. This spot
will give the residents a refreshing change and alternative to their existing options. Parking is
not a problem for this site, and the area is populated all year round. Traffic is not as busy as
downtown so additional advertising would be necessary.
Marketing Strategy
Wing Zone is a national chain of restaurants that has had great success in the cities in
which it has opened. Wing Zone should definitely conduct detailed marketing research in this
region to see if its success can be continued. Research should be conducted on a variety of
issues, one of which is whether or not the restaurant will be well received by those outside of
the target market. For example, while our target market is college students, the company
needs to find out how successful the restaurant would be during the summer when the student
population drops off considerably. Also, research needs to be undertaken to see if the demand
in the area is high enough from college students to justify building the franchise. The study
needs to show how often and where college students eat wings, how much money they spend
on an average visit, and what the students like about Wing Zone’s competition.
Research also needs to be conducted to see how much people are willing to pay for the
menu items that the restaurant will offer. While Wing Zone is trying to portray itself as a
more upscale fast food establishment, there is a limit to which people will pay to purchase the
items we are offering. If the restaurant prices items too high people will not visit, also if
prices are too low people may feel the quality of the food is compromised and may not
patronize the establishment.
Place is another very important consideration when undertaking marketing research.
It should be determined whether people would visit the establishment more if it were located
downtown or in a more residential area of the city. It should also be determined how much
patrons would be willing to pay to park to pick up food, or if they would pay at all, and how
far of a drive they would be willing to consider to patronize the establishment.
Wing Zone is going to be a very different experience for the residents in the
Blacksburg area. While there are a number of sports bars and “wing” restaurants in the area,
Wing Zone will establish itself uniquely as a more upscale, fast, and high quality take-out
restaurant. This will be accomplished through the restaurant’s advertising and sales
promotions. Also, in order to bring patrons into the restaurant to place orders, the building
should have bright colors on the outside, with a number of lights and a large sign in order to
draw attention to the facility. The restaurant should also put a great deal of focus on customer
service in order to stand out from the competition. This can also be accomplished through
media and demonstrations, as well as mouth-to-mouth advertising. For example, Wing Zone
could have servers stand out on the sidewalk in front of the building from time to time and
hand out free samples of items from the menu. This should be undertaken when there are
large crowds anticipated in the area, such as during rush hour, sporting events, etc. As the
employees converse the passerby’s will notice the friendly staff and good food and will want
to give the restaurant a try. With the restaurant serving a broad selection of food and friendly
staff, this passerby will become a regular patron of the facility.
The main target market for Wing Zone is definitely going to be the college crowd, and
this is where the focus of the advertising and promotion should go. One of the best ways to
reach this crowd is by advertising on the campus of Virginia Tech. This can be accomplished
in several ways, all of which would reach thousands of students. While the cost may be high
this more direct method of marketing would reach more students. One way that direct
marketing could be undertaken would be to simply set up a small display on the campus,
preferably somewhere near the Drill Field or other high volume foot-traffic areas. This could
coincide with holding special events on campus that bring out large numbers of students, such
as club fairs. Setting up a display could be very simple, such as a banner from the restaurant,
a table, a number of wings, and maybe a stack of menus and/or coupons to show what else the
restaurant has to offer. The largest expense in this example would actually be the cost of the
wings, which would run in the hundreds of dollars depending on the bulk cost of cartons of
wings. The cost of the banners would be high also, running into the hundreds of dollars, but
the table, banner and other decorations could cost as little or as much as a person were willing
to spend. Despite the cost, if giving away 1,000 wings would result in just 200 people
becoming loyal customers then the display would pay off.
Wing Zone could also go around to the apartments and place brochures on the door
knobs of the individual units, and also hand out fliers on campus during busy times of the day.
Brochures could be created by the company, and could be printed at Staples for $.99 per color
copy, or $.10 for a black and white page (Lucas). Hundreds of fliers would have to be printed
which would result in a large expense; however these fliers would be viewed by thousands of
students. By placing coupons on these fliers it would entice students to visit the restaurant.
This method of advertising could be used to promote specials in the restaurant, as well as
special occasions. It would be expensive and time consuming to undertake this task and that
is why it should not be undertaken very often. The fliers and displays should be set up at a
number of strategic times during the year, such as move-in day at Tech, just before football
games, and during exam weeks.
Another potentially valuable marketing tool in the New River Valley would be to
advertise on the radio. The two most popular radio stations in the region for college students
are 94.9, which plays country music, and K92, which plays modern music, according to Kathy
Rilee who is the Director for Research and Marketing for most radio stations in this region
(Rilee). While these stations do reach a vast geographic area they have a huge number of
devoted listeners in the New River Valley. The best time to advertise on these stations would
be during the evening drive time – which runs from around 3:00-7:00 in the evening, when
more students listen to these stations – and avoid morning advertising due to most students
being either in bed or in class. The prices are a little high, yet the reach would be huge. For
example, drive time rates for K92 are around $110, and for 94.9 the are $200. Also, the
average reach for both stations in the New River Valley area is nearly 1000 people every
hour, with more people listening during drive time (See Table 1 in the Appendix). However,
due to the high prices, radio advertisements should be limited to times when high feedback
would be received, such as when Virginia Tech hosts a home football game or other major
sporting event. While the main focus of our promotion would be on the Blacksburg area,
advertising on the radio could possibly draw people from Christiansburg and Radford as well.
If people from outlying areas are in Blacksburg for business or pleasure and they hear the
advertisement on the radio then they may want to patronize Wing Zone. Also, because there
is no other Wing Zone in Virginia outside of Arlington, the curiosity factor could bring people
to the restaurant from outside of the Blacksburg area. However, it should be realized that
because this is a take-out establishment it would be exceptionally difficult to get people to
visit from too far outside of Blacksburg. Unless there is a big game at Virginia Tech and
people from outside the region visit Wing Zone to pick up a meal, visitation to the restaurant
will be local, and advertising should take that into consideration.
Another possible medium in which to market would be The Collegiate Times, which
is the newspaper for Virginia Tech. There is tremendous potential to reach a vast number of
students through taking out an ad in this paper. According to Nathan Jones, the BusinessManager for the paper, the daily circulation for Tuesday through Sunday is nearly 14,000
papers (Jones). The price for ads is relative inexpensive considering the number of students
reached, with an ad taking up one-eighth of a page costing $96.25 and ads taking up onefourth of a page costing $201.60. Special discounts could be given if Wing Zone decided to
advertise on a regular basis, which would further reduce costs. The company should
definitely advertise in The Collegiate Times when the restaurant opens, and should also
advertise before any major sporting events. It would be advised to offer coupons and special
offers in the ad in order to increase the flow of customers into Wing Zone. Because rates
would add up, it is advisable not to advertise in the paper no more than twice a month, and
only use the larger advertisements when large events are being held in the Blacksburg area.
Recommendation
Wing Zone has the potential to be very successful in the New River Valley. The
restaurant will establish itself as a very unique dining experience, offering consumers the
ability the convenience of great chicken wings from a take-out establishment. The restaurant
would best serve the area by being located in downtown Blacksburg. Wing Zone should try
to convince the town to dedicate some parking near the area to “10-minute” spaces that would
allow customers to run in the restaurant and pick up food and not have to worry about paying
for parking.
There seems to be a high demand for this type of establishment in the Blacksburg area,
thanks in part to its healthy economy and high quality of living. These factors are
contributing to the growth of the town’s population, which will help increase demand for
Wing Zone’s product in the future. Other contributions to demand will also come from
Virginia Tech, which is constantly expanding its overall student population. Also, as Tech
becomes an even more popular destination for sporting events, there will be great growth in
the demand for enough establishments to feed the people when they file into town. The
football team at Tech alone could be the source for much of the revenue of the store, as
thousands enter town for each game, and tailgating continues to grow as a popular activity
before the games.
Wing Zone should definitely plan to establish a franchise in the New River Valley.
The demand already exists, and will continue to grow in the coming years. Careful marketing
and advertising campaigns must be undertaken at strategic times of the year in order to make
the restaurant a huge, well known success.
Appendix
Table 1 – Advertising on Local Radio
Radio Station
Cost (Mon-Fri)
Cost (Weekend)
94.9 Star Country
$200 = 6:00AM – 7:00PM
$200 = 10:00AM – 3:00PM (Sat)
$60 = Rest of weekend
Listeners per
900
hour (Average)
Courtesy of: Kathy Rilee
K92 FM
$110 = 6:00AM – 7:00PM
$110 = 10:00AM – 3:00PM (Sat)
$55 = Rest of weekend
1,100
TABLE 2
CURRENT POPULATION AND PROJECTIONS
2000-2040
JURISDICTION
2000
2010
2020
2030
2040
Floyd County
13,874
14,609
15,826
17,043
18,260
Giles County
16,657
17,098
17,405
17,712
18,019
Montgomery County
83,629
83,397
87,997
92,597
97,197
Pulaski County
35,127
35,501
35,999
36,497
39,995
City of Radford
15,859
17,305
17,809
18,313
18,817
New River Valley
165,146 167,910 175,036 182,162 189,288
Virginia
7,078,515 7,737,597 8,483,149 9,228,701 9,974,25
3
Sources: U.S. Census Bureau, 2000.
Virginia Employment Commission, 2010-2040.
Courtesy of: http://www.nrvalliance.org/demographics/data04.php#pop1
TABLE 3
POPULATION BY AGE
JURISDICTION 2000 CENSUS 18 AND
%
(PERCENTAGE)
POPULATION UNDER
18-64
YEARS
%
(PERCENTAGE)
65
%
(PERCENTAGE)
AND
OVER
Floyd County
13,874
3,080
22.2
8,588
61.9
2,206
15.9
Giles County
16,657
3,665
22.0
10,210
61.3
2,782
16.7
Montgomery
County
83,629
14,301
17.1
62,136
74.3
7,192
8.6
Pulaski County
35,127
7,236
20.6
22,552
64.2
5,339
15.2
City of Radford
15,859
2,046
12.9
12,354
77.9
1,459
9.2
165,146
30,328
18.4
115,840
70.1
18,978
11.5
64.2 792,794
11.2
New River
Valley
Virginia
7,078,515 1,741,315
24.6 4,544,406
Source: U.S. Bureau of the Census, 2000
Courtesy of: http://www.nrvalliance.org/demographics/data04.php#pop1
TABLE 4
KEY ECONOMIC INDICATORS
JURISDICTION PROJECTED
2000
MEDIAN
FAMILY
INCOME
1995
MEDIAN
HOUSEHOLD
INCOME
1997
DEC. 1999
1999
1997/98
PER UNEMPLOY.
BANK
FISCAL
CAPITA
INCOME
RATE
DEPOSITS STRESS
(thousands)
Floyd County
$37,800
$28,519 $15,575
3.60%
$159,438
86
Giles County
43,300
30,059
18,383
5.00%
171,871
69
Montgomery
County
45,500
30,421 17,676*
1.80%
794,439
63
Pulaski County
38,500
28,885
18,036
6.20%
232,580
58
City of Radford
N/A
28,092 17,676*
2.30%
244,934
27
New River
N/A
N/A
N/A
3.40% 1,603,262
N/A
Valley
Virginia
$56,900
$36,367 $26,109
2.60% ########
N/A
Sources: Virginia Statistical Abstract, 1996-97 Edition: Weldon Cooper Center for Public
Service, University of Virginia, Charlottesville, VA, 1996.
U.S. Department of Housing and Urban Development.
Estimated Labor Force Components, December 1999: Virginia Employment Commission.
Taxable Sales Annual Report, 1999: Virginia Department of Taxation.
First National Bank (Christiansburg)
Report on the Comparative Revenue Capacity, Revenue Effort, and Fiscal Stress of
Virginia's Counties and Cities 1997-98. Commission on Local Government,
Commonwealth of Virginia, 2000.
U.S. Department of Commerce: 1999 Bureau of Economic Analysis, Regional Accounts
Data
* Montgomery County and the City of Radford are combined.
Courtesy of: http://www.nrvalliance.org/demographics/data05.php#inc1
References
“Business Center”. VDOT – Virginia Department of Transportation. 2005. 5 April 2005.
Online: http://www.virginiadot.org/business/default.asp
Cole, Patricia. “High” Restaurant Business. 15 April 2005.
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http://www.wingzone.com/corporate/franchise/index_f.html
“Franchise Info.” Buffalo Wild Wings. 2005. 5 April 2005.
http://www.buffalowildwings.com/franchise_info/index.asp
Jones, Nathan. “Questions about Advertising Rates.” E-mail to Brandon Turner. 20 April
2005.
Lynn Lucas, interviewed by Brandon Turner, Radford, Virginia, 20 April 2005.
“New River Valley Economic Development Authority.” Online: 2 April 2005.
http://www.nrvalliance.org/demographics/data05.php#inc1.
Rilee, Kathy. “Radio Station Information.” E-mail to Brandon Turner. 13 April 2005.
“Wing Zone Soars with Winning Combination of Best Products, Best Practices”. 24 April
2005. Online: http://www.worldfranchising.com/articles/wingzone.htm.
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http://www.wingzone.com/corporate/franchise/franchise02.html Franchise info.
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http://www.worldfranchising.com/profiles/WingZone.htm Top 100.