Integrated Marketing Communications for McWendys Restaurant - Case Study Example

Marketing Communication Table of Contents Introduction 3 IMC Strategy 3 IMC Activities Leading Up Launch of Product 3 IMC Used of Launch 5 Advertising 5 Sales Promotion 6 Direct Marketing 7 Personal Selling 7 Public Relations 8 Follow Up Program After the Product Launch 9 Conclusion 10 References 11 Bibliography 15 Introduction Integrated Marketing Communications (IMC) is a concept that deals with marketing communication with the use of a holistic approach. It focuses on ensuring complimentary uses of media and uniformity of message to be delivered to the targeted group of customers or audiences. IMC includes involvement of both online and offline marketing channels of communication. Any e-marketing program or campaign, such as ‘pay per click’ schemes, e-mails, affiliates, channels for webinar, Search Engine Optimization articles, Facebook marketing, podcasts, RSSs and other traditional media like TV and radio are part of online marketing channels. Channels evolving offline marketing will include the use of billboards, public relation tactics, radio & television media, mail orders and use of traditional print channels, such as newspapers and magazines. With the use of all the elements of marketing mix (i.e. product, price, place, promotion & packaging), a company is able to develop the IMC (Kotler, 2000). In this paper, the intention is to suggest IMC strategies for McWendy’s, a local restaurant serving fast food to the community, to launch its products successfully. IMC Strategy IMC Activities Leading Up Launch of Product In fast food retail chain businesses, where markets are growing to maturity and opposition is becoming increasingly fierce, one might perceive of limited opportunities. However, with lower entry and exit barriers, it is possible to do well with a new product launch, capturing the immense scope of innovation and competitive advantages. It has been a noteworthy concern in this context that innovation helps in providing an outline for systematizing the improvement procedure (OECD, 2014). McWendy’s might look into indifferently at the poor indulgence value proposition. Furthermore, the chain’s differentiated capabilities in developing a variety of products and managing its superior quality rudiments could put this segment under McWendy’s reach. Consumers of pure extravagance may represent a usual new objective, a group that McWendy’s can reach with a bit more enthusiasm in its innovativeness, which is again replicated through the launch of the new product. To succeed, McWendy’s might have to rethink about enhancing the store experience and fulfilling the need of its consumers, obtainable through superior taste, service quality maintenance and proper concern to sustainability issues (Antonsson & et. al., 2011). The interest in healthy foodstuffs has increased significantly in the past few decades, which has created a new opportunity for McWendy’s. McWendy’s ‘fast and fit menu’ will help in the use of a positioning strategy that will aim at focussing on products and its attributes. The ‘fast & fit menu’ will offer eatables, such as hot & cold sandwiches, salads as well as soups, which will be having meat-free options, and thus, shall be beneficial for the customers who are conscious about their health. This will prove to be the differentiation point between the company’s ‘fast & fit menu’ and usual fast food chains within the community (Cuellar & et. al., 2012). In addition, the ‘fast and fit menu’ will offer convenient, healthy and low-cost alternatives for dining out, such that busy and health conscious customers can have plenty of options for their choice of food and eventually, the new product is expected to improve the value of life (Sanders, 2014). In this context, McWendy’s strengths will include its large-scale area of operations, value for money and a range of diversified products. In addition, McWendy’s has a substantial amount of market saturation in the US food industry due to which, it was recently purchased by Arby Group. To be noted, acquisition can result in collection of more resources and functional efficiency, wherein McWendy’s also enjoys slightly better perceived quality in the minds of its customers Opportunities involve wider growing scope of the company in international markets, creating differentiation in new product lines along with changes in improved products and services quality. Hence, introduction of radically differentiated product line can be of good use to McWendy’s (Witt, 1998). For future growth, McWendy’s must maintain its competitive advantages on quality and price, as well as investments in brand promotion can be encouraged (Ries & Trout, 1981). Lack of efficiency in operations, unidentified international diversifications, deficit of brand awareness and product differentiation are also the major weaknesses faced by McWendy’s. As of threats, factors such as economic recession and increased product and price centered competition in the local & global markets, are the hindrances in the path of McWendy’s launching a new product (Wendys/Arbys Group, Inc., 2012). IMC Used of Launch Advertising The advertising strategies suggestible for McWendy’s in launching the new product will be covering a 12 months period. The objectives of media will include increasing trial use, awareness and repetition in buyer’s purchase of ‘fast & fit menu’, especially those falling within the age group of 25 years to 55 years with an income of $40,000 to $1,50,000 per annum, and those who are deemed to be presently diet-conscious. The geographic span of the media will be focused on the national sphere initially, but will be mainly concentrated on the urban areas. Media strategies will focus on reaching 80% of the targeted market, 3-5 times over the average 4 weeks period, during the 12 months media plan in consistency with the organizational objectives of achieving 80% responsiveness. McWendy’s will also monitor pulsing level in the continuity of media strategies when launching the new product. In the first 8 weeks, higher levels of media and promotions will be encouraged for the trial-use and ads will be continued in the later level of the plan as proposed, involving full colour magazine ads, banners and Facebook ads as well (Richardson & Harris, 2011). In proper functioning of the overall IMC plan, McWendy’s official corporate website will be functioning as a support medium in the background. Decisions taken on fast foods have limited involvement and thus, do not require substantial amount of support for websites (Wendys International, LLC., 2014) The website will be essentially in use for mounting the awareness level, promotion of new menu, information on nutritional foodstuffs, and enabling the customers to obtain information and resolve their queries. A business website is very important in today’s market as it acts mainly in the form of an additional support feature and will support media enquiries along with providing information about the product (Gehrke & Turban, 1999). Sales Promotion Getting the customers to try the new range is essential for repeated purchases in the future. For overcoming the barriers of trial use, such as being unsure if the product will taste good or not and cost, use of free samples is essential. Increasing the awareness and trial use by including the expo event and trial at involved cities in the ‘Rock n Roll Marathon Series’ and offering free samples and goody bags to customers can also have a major impact in favour of McWendy’s (SlideShare, 2012). This event shall draw thousands of people’s interest in healthy lifestyle. This entices the people to sample the product in a risk-free manner, by increasing the likelihood of the trial usage next to end of event (Competitor Group, Inc., 2014). In addition, McWendy’s existing drive through signage will be used for promotion of the ‘fast & fit menu’ for trial purchase and creating awareness. Banners are also to be hung outside McWendy’s individual restaurants to attract potential customers, which will depend on the number of drive-bys and the customers who are visiting the restaurant. Direct target marketing through TV shows and publications, along with use of banners for attracting on-the-move customers can be of great use. McWendy’s can also entice people to try something new on the ‘fast & fit menu’, somewhat persuading their buying behaviour (MHeducation.com, n.d.). Direct Marketing McWendy’s ‘fast & fit menu’ alternatives will enable the consumers marketing plan. No involvement of trade marketing in McWendy’s will be sponsored, due to its nature of business operations. However, use of online mail can be a great alternative for direct marketing, which shall allow reducing costs and doing business effectively enabling McWendy’s to target the customers prevailing in the target market (SlideShare, 2009). Hence, it will lead to positive ‘word of mouth communication’ and enthusiasm for McWendy’s. In addition, with use of coupons, it will enable McWendy’s to physically track its efficiency and trail as well as repeat purchasing of the product (Trusov & et. al., 2009). Personal Selling McWendy’s fast food chains offering ‘fast & fit menu’ will act as a healthy alteration for those trying to get rid of ordinary fast food chains. The present fast food industry is focussing on being fast and inexpensive, which means that good eating options are in limited numbers (Hertzenberg, 2013). McWendy’s ‘fast & fit menu’ will help in resolving this issue by offering healthy alternatives that are fast, beneficial, affordable, simple and drive-through along with providing customized needs and taste choices to its customers. The meals will include choice of vegetarian and non-vegetarian options involving sandwiches, wraps, salads, soups, including tomatoes, spinaches, peppers, sprouts and light meats, such as chicken and fish for on-the go professionals and diet conscious customers. Wendy, on an average, prices its products between $4 and $6. As a result, the company will be using competitive pricing strategy based on the other food chains pricing structure. As a result, it will achieve the target value perceived by customers without being underpriced and yet inexpensive in contrast to other fast food options available (Leschewski & Weatherspoon, 2014). The personal selling system in McWendy’s, when concerning the launch of a new product, will take place in nationwide, involving urban cities such as Seattle, Southern States, Los Angeles, Alaska and large metros. After initiation of a thriving launch, global locations for distribution will be considered through effective personal selling initiatives (Christian & Gereffi, 2010). Public Relations Acquiring the help of consumer public relations to increase awareness with help of press release for free media coverage of new menu will be efficient to build upon television and print advertisement, which would further help to create a sense of urgency to try the new range for free. Use of Viral Strategies, like use of YouTube videos by creating a contest with the help of students older than 18 years of age to create awareness by viewership and media sharing with friends can also reward a wider and a global reach to the customers. Additionally, organising contexts and enabling the people to vote for their winner will help in encouraging excitement and ensuring that the video of McWendy’s goes popular. Another potential of such campaigning is that T.V. series may notice such campaigns and want to run a story on the winner, which will bring added potential publicity for McWendy’s (Barker, 2008). Follow Up Program After the Product Launch On accomplishing the objectives of increase in awareness, all components of IMC are measured. This allows a complete understanding of how the fundamentals work together and identification of specific areas that gained success or require improvement. Evaluation of media advertising also helps in determining, whether targets had been met with regard to awareness, trial uses and repeat purchases. For McWendy’s, pre-tests will be conducted for in-house developing processes of IMC plan. Internet related elements will also be evaluated with the use of Google analytics. Point of Purchase, event sponsorship, direct marketing and sales promotion effectiveness will also be evaluated using numbers of samples distributed, coupons redeemed and increase in sales. For Point of purchase displays, evaluation can be done by using exit polls and tracking the sales. Tracking the total press clippings, coverage appearance, negative media coverage and accuracy of information will accordingly be helpful for evaluating efficiency of press releases. Finally, event sponsorship can be tracked down by considering the redemption rate of coupon in goodie bags and exit survey following expo. McWendy’s would next have to figure out, which of the existing capabilities can be used to create what customers can think of as an enjoyable and refreshing dining experience (Crawford & Benedetto, 2011). Conclusion Earlier, McWendy’s had adopted an approach of active redesigning of its consumer value proposition keeping an eye over indulgence and a rotating menu of tasty dishes. The new advertising campaign of McWendy’s will likewise focus on indulgent themes. The company is also promoting use of natural ingredients for taste and satisfaction of its customers. The subsequent IMC plan makes use of the healthy and prompt menu through the application of various media and non-media options. Online and print marketing along with synchronized television use will also create awareness, which is the first step towards trial use and eventually, its repeated purchase. Non-media strategies will involve creation of a free sample event, its sponsorship, use of up to date signage & banners, all in coordination with advertising to further strengthen the product’s awareness and use. To attract repeated customers, press coverage has been considered with further use of coordinated themes, colours, which will help McWendy’s to create a relation between them and the ‘Fast & Fit menu’. References Antonsson, H. & et. al., 2011. Innovation in Fast Food Restaurants – The Role of the Local Restaurant Management. Jonkoping University. Barker, J., 2008. SVP Corporate Affairs & Investor Relations. Wendy’s International, Inc. [Online] Available at: http://media.corporate-ir.net/media_files/priv/W148178/2008JOHN_CINCY_June9.pdf [Accessed December 04, 2014]. Christian, M. & Gereffi, G., 2010. Introduction. The Marketing and Distribution of Fast Food, pp. 439-450. Crawford, C. M. & Benedetto, C. A. D., 2011. New Products Management: Ninth Edition. 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