• Wendy’s
International®, Inc. began in 1969 under the laws of the state of Ohio by Dave
Thomas
• First store opened on
November 15, 1969 in
Columbus, Ohio
• Wendy’s International, Inc. operates and franchises companies with $6.5 billion in system-wide sales and 7,000 restaurants in thirty-two countries and territories
• Wendy’s is the third largest quick-service hamburger restaurant chain with 4,767 units in the United States, 267 in Canada and 390 in other International Markets
• The mission and vision of Wendy’s
International, Inc. is to provide high quality desserts and other great foods at strategically planned prices which satisfy customers in the ever growing fast-food business
• For the upcoming five years Wendy’s International,
Inc. seeks to achieve the following goals:
• Non Financial Goals
– To retain its image of the highest-quality choices of food in the fast-food business.
– To find other dessert options other than chocolate frosty’s and chocolate chip cookies to introduce at all Wendy’s across the world.
– To sustain the great customer service that Wendy’s is known for.
• Financial Goals
– To introduce other dessert options that will be profitable for
Wendy’s.
– To maintain or increase the total yearly sales of the past few years.
• In terms of core competency, Wendy’s
International, Inc. seeks to achieve two key goals.
(1) To achieve the highest quality of customer service by greeting customers, taking orders then giving them their change if necessary while thanking them.
(2) To come up with several new dessert choices which will seem appealing to all the customers that visit the Wendy’s around the world
Internal Factors
Management
Personnel
Finance
Manufacturing
External Factors
Consumer/Social
Competitive
Strengths Weaknesses
Experienced Managers
Large Workforce, also a lot of turnover
Excellent growth in sales
Sole supplier always ensures high quality
Small management teams
Big problem if key employee's leave
Limited desserts could cause loss of customers
Lack multiple suppliers could cause shortages
Opportunities Threats
Upscale market, very stable
Company name on all serving items
Cheap prices, low profit returns
Not patented, competitors can copy ideas
Strengths (S)
1. Experienced Managers
2. Large Workforce, Also A lot of Staff
Turnover
3. Excellent Growth in Sales
4. Sole Supplier always Ensures High
Quality
Weaknesses (W)
1. Small Management Teams
2. Big Problem if Key Employee's Leave
3. Limited Desserts Could Cause Loss of
Customers
4. Lack of Multiple Suppliers Could
Cause Shortages
Opportunities (O)
1. Upscale Market, Very Stable
2. Company Name on all Serving Items
SO Strategies
1. Hire Experienced Workers
(S1,S2, O1)
2.Come up With New Marketing
Ideas/Techniques (S3,S4,O1,O2)
WO Strategies
1. Offer Better Benefits Packages to Full
Time Employees (W1,W2,O1)
2. Switch to Multiple Suppliers (W4,O2)
3. Acquire A New Dessert Line (W3,O1)
Threats (T)
1. Cheap Prices, Low Profit Returns
2. Not Patented, Competitors Can Copy
Ideas
ST Strategies
1. Come Up With an Upscale Menu
(S3,S4,T1)
2. Patent Products (S3,S4,T2)
WT Strategies
1. Raise Prices During Shortages
(W4,T1)
2. Research New Dessert Lines
(W3,T1)
• Wendy’s International needs to look at other fast-food restaurants and their options for desserts in order to narrow down their ideas for available dessert choices which they can implement.
• Wendy’s International needs more dessert choices to go along with their chocolate chip cookies and their chocolate frosty’s. Frosty’s are similar to a shake, but are thicker and have to be eaten with a spoon.
• Wendy’s International needs to come up with ideas for desserts such as pies, ice cream, shakes, and maybe even sundaes.
• When looking at the competitors in the fast-food market they have many dessert choices on their menus compared to Wendy’s two dessert options.
• The competitors have many dessert choices like, shakes, ice cream, pies, and even ice cream sundaes compared to Wendy’s frosty’s and chocolate chip cookies.
• The types of desserts which the competitors have can easily be implemented into Wendy’s business style and be a huge success for Wendy’s.
• Customers who will be targeted for these new desserts that will be implemented at Wendy’s restaurants will be teenagers and young adults.
These groups will be targeted because they are the most likely to purchase the desserts at the
Wendy’s restaurants.
• These two classes will be targeted by television commercials, radio advertisements, and also printed advertisements.
• Desserts are a favorite among these two classes because teenagers love to eat dessert and would rather eat dessert than a full meal. This is because most teenagers do not want to eat a healthy meal and would rather eat something sweet like a dessert for a meal instead.
• Young adults would be another great target class because most young adults will order a meal and then want a dessert to go with the meal.
• Wendy’s International, Inc. intent is to take advantage of its different types of food products while building a base from which other revenue sources can be made by adding more dessert options
• The current markets of operation will expand by adding new desserts to the menus at all the Wendy’s around the world. In turn increase sales, and then increase profits for the company
• By the end of this five year marketing plan all Wendy’s restaurants will expand their dessert menus by adding several new dessert items like: pies, ice cream, shakes, and ice cream sundaes
• The food service sales will increase by the end of the five year marketing plan term.
But food costs will also go up slightly due to the costs incurred by adding the new desserts to the menu. More profit will be made, in turn offsetting the slight increase in food costs
• New Products will be added to the dessert section of the menu and this will increase the customers which will eat at the
Wendy’s restaurants.
• The customers will be curious at first when the new desserts are added and will want to try them. If they are good, the customers will keep coming back for more
• The primary target markets for the new desserts to be added will be teenagers and young adults.
• These two classes will probably make up most of the sales for the new desserts that will be added during this five year marketing plan.
• The “Points of difference,” or different characteristics that make Wendy’s desserts unique and better than the competitors-will be for these reasons:
-Better tasting desserts .
Will be quickly and easily served to the customers compared to other fastfood restaurants desserts.
-Attractive packaging . Will entice customers to buy the desserts due to the attractive packaging that will be used to help market the new desserts.
• In the past, Wendy’s desserts have been limited to chocolate chip cookies and chocolate frosty’s
• Now with the new addition of the desserts this will put Wendy’s a step ahead of the competition.
• It might even take a percentage of sales away from their competitors.
• Four Marketing Mix Elements:
1.
Product Strategy
2.
Price Strategy
3.
Promotion Strategy
4.
Place (Distribution) Strategy
• All desserts will cost $1.50 and will be available at all Wendy’s
Restaurants around the world. New Desserts Available will be:
1. Shakes will be available in chocolate, strawberry, and also vanilla.
2.
Pie, only Hershey’s chocolate pie will be available.
3. Ice cream, will be only available in chocolate, vanilla, and twist flavors.
4. Sundaes, hot fudge, butterscotch, and caramel, sundaes will be available with nuts and/or whip cream.
• Packaging.
Packaging will be that of colors which will entice consumers to buy a lot of the new desserts that will be available at
Wendy’s.
• The prices of these new desserts will be a $1.50
• These prices are comparable to those of
Wendy’s competitors in the fast-food industry.
• Furthermore, these prices will make consumers come back for the new desserts-not just for the great taste they have, but also the great price of all the new desserts
• In-Store Demonstrations (Taste Testing)
• Random Drawings for Free Desserts
• Cheaper Prices for a Limited Time
• Distributed by sole supplier of Wendy’s
-Sole supplier purchases the products needed
-Warehouses these products
-Delivers the products when necessary
• Introducing the new dessert lines at all the
Wendy’s restaurants will take some time and effort however; it will be well worth it
• After all the promotional sales, taste testing, and the free giveaways, the increase in sales will be well worth the strength and effort used in implementing the new dessert line
• The desserts will be monitored after a few weeks of being implemented to see if any of them need a minor adjustment.
• Sales of all desserts will be monitored for amount of sales, if one dessert is not selling as well as the others than there will be another promotional pitch for that dessert.
• Promotional items that will be done are television commercials, radio advertisements, and also maybe reduced prices if deemed necessary to bring up sales for the dessert that is lacking.
• Monthly checks will also be done to check on the taste and quality of the new dessert lines to see if minor adjustments need to be done. If Problems arise they will be taken care of immediately
• This monthly check is to control quality and make sure that the new dessert line lives up to
Wendy’s promise of quality.
• Management’s job as well as the whole employee base at each restaurant is to make sure to check the quality of each dessert has been maintained before serving it to the customers.
• This is done to make sure that each customer receives a quality product and to control customer’s view of Wendy’s International, Inc.