Wendy’s Old Fashioned Hamburgers

History

• 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

History Continued

• 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

Mission Statement

• 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

Goals

• 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.

Core Competency and Sustainable Customer Advantage

• 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

SWOT Analysis

Internal Factors Strengths Weaknesses

Management Experienced Managers Small management teams

Personnel Large Workforce, also a lot of turnover

Big problem if key employee's leave

Finance Excellent growth in sales Limited desserts could cause loss of customers

Manufacturing Sole supplier always ensures high quality

Lack multiple suppliers could cause shortages

External Factors Opportunities Threats

Consumer/Social Upscale market, very stable

Cheap prices, low profit returns

Competitive Company name on all serving items

Not patented, competitors can copy ideas

SWOT MatrixStrengths (S)

1. Experienced Managers2. Large Workforce, Also A lot of Staff

Turnover3. Excellent Growth in Sales4. Sole Supplier always Ensures High

Quality

Weaknesses (W)1. Small Management Teams2. Big Problem if Key Employee's Leave3. Limited Desserts Could Cause Loss of

Customers4. Lack of Multiple Suppliers Could

Cause Shortages

Opportunities (O)1. Upscale Market, Very Stable

2. Company Name on all Serving Items

SO Strategies1. Hire Experienced Workers (S1,S2, O1)2.Come up With New Marketing

Ideas/Techniques (S3,S4,O1,O2)

WO Strategies1. 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 Strategies1. Come Up With an Upscale Menu

(S3,S4,T1)

2. Patent Products (S3,S4,T2)

WT Strategies1. Raise Prices During Shortages(W4,T1)

2. Research New Dessert Lines(W3,T1)

Industry Analysis: Available Dessert Choices

• 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.

Competitors in the Fast Food Dessert Market

• 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.

Customer Analysis

• 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.

Why Target Teenagers and Young Adults?

• 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.

Marketing and Product Objectives

• 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

Current Markets

• 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

New Markets

• 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

Food Service

• 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

• 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

Target Markets

• 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.

Points of Difference

• 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 dessertsBetter tasting desserts. Will be quickly and easily served to the customers compared to other fast-food restaurants desserts.

-Attractive packagingAttractive packaging. Will entice customers to buy the desserts due to the attractive packaging that will be used to help market the new desserts.

Positioning

• 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.

Marketing Program

• Four Marketing Mix Elements:

1.1. Product StrategyProduct Strategy

2.2. Price StrategyPrice Strategy

3.3. Promotion StrategyPromotion Strategy

4.4. Place (Distribution) StrategyPlace (Distribution) Strategy

Product 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.

Price Strategy

• 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

Promotion Strategy

• In-Store Demonstrations (Taste Testing)

• Random Drawings for Free Desserts

• Cheaper Prices for a Limited Time

Place (Distribution) Strategy

• Distributed by sole supplier of Wendy’s

-Sole supplier purchases the products needed

-Warehouses these products

-Delivers the products when necessary

Implementation Plan

• 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.

Evaluation and Control

• 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

Evaluation and Control Continued

• 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.

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