Slide 1

Wendys 3conomicsBy: Lana Maric

A little bit of historyWendys started in Columbus, OH in 1969 by Dave Thomas.

3rd largest hamburger fast food chain in the world.

Menu includes hamburgers, chicken sandwiches, fries, beverages, wraps, and salads

No signature sandwich, e.g. Big Mac at McDonalds; however, it differentiates itself by using square patties for its hamburgers.

Dave Thomas died in 2002 and since then Wendys has been trying to find an effective advertising campaign. Dave was the face of many ads in the past; he was the source of brand loyalty. In 2008, Wendys came up with new slogan: "It's waaaay better than fast food. It's Wendy's. In Canada, the same slogan is It's waaaaaaaaaay delicious. It's Wendy's.

(with McDonalds being the 1st and Burger King being the 2nd)2Wendys Mission:

According to Ken Calwell, its Chief Marketing Officer, Wendys mission is to build Wendys reputation as the quality leader in the hamburger quick-service restaurant category with enhanced customer service, breakthrough new products, improved core menu choices and leading edge-marketing.

Something you may not knowWendys was industrys first to create a super value menu with 99 cents items in 1989.Wendys strategy:

I. Commitment to its employees in order to exceed customer service satisfaction.

II. Commitment to food quality and freshness.

III. Commitment to giving backespecially helping children in need.

Current State of the Economy Brings on the New MindsetConsumers are price conscious; they are re-evaluating their spending habits and finding ways to cut cost and increase savings. The article All Consumers Cutting Spending indicates that 72% of respondents have made significant cuts because of the economy. The same article confirms that consumers are increasing their focus on need and value. Brand trust is still important. To respond to the new mindset, Wendys turned to its new 3conomics marketing campaign. The ad employs the tagline 3conomics to endorse its recession inspired $0.99 value menu featuring 3 sandwiches: Junior Bacon, Double Stack and Crispy Chicken Sandwich.

Some of you may remember Mr. Wendy from a few years back. Wendys presented Mr. Wendy as the official spokesperson for Wendys. He wore a red wig and looked kind of scary. That campaign proved to be unsuccessful. 5Wendys 3conomics Ad: Its waaay better than fast food. Its Wendys!

http://www.youtube.com/watch?v=tvfSe8nHttA

63conomics Sweepstakes-Wendys fans can win 3 consoles

Found on their Web site-promotes 3conomics and the 3 dollar sandwiches even further. Another way to engage with the customers and spread the word. Life is too short to eat round burgers, is what the little girl is saying. 7Evaluating Wendys Ad Effectiveness

What is the principal message I got from this ad? Wendys is a great place to get quality food at great value. I can maximize my value at Wendys. What does the ad want me to believe, know, or do?In these tough economic times, price matters, but it should not sacrifice quality. At Wendys, I can get better than fast food quality for only $1.00 per sandwich. In addition, I can choose from 3 different sandwich varieties. How likely is it that this ad will influence me to take action?I dont think it has immediate call for action, unless I am very hungry. However, I think the commercial is effective in its capacity to deliver the message that a consumer can carry on and remember when hunger calls.

Evaluating Wendys Ad Effectivenessv. What works well in the ad and what doesnt work?

Pros:The commercial is catchy and memorable due to its simplicity and humor. It connects well. It offers value plus variety. 3conomics is a catchy nameits implications fit with the current economy.

Cons: The slogan, Its waaay better than fast food. Its Wendys is not a good idea because even though Wendys may have better than average fast food quality, it does not compare to eating hamburgers at most sit-down restaurants. The slogan questions Wendys long term direction. It makes me wonder if Wendys has a clear brand strategy. The company identifies itself as part of the quick service restaurant category, yet in this ad it implies that it may not even fit in with the quick service industry. The slogan is sending conflicting messages to consumers.

vi. How does it make me feel? It relaxes me due to its humor. I identify with the characters because I understand the message. Its simple. It reminds me that we are in a recessionan economic downturn that can affect anyone and everyone. Wendys appears trustworthy because the ad exemplifies togetherness. Yet it doesnt rely on price as its only driver. It offers variety, quality, and value. I feel like I have more value choices compare to other fast food chains, which add worth. Empathy reinforces my emotional connection with Wendys food items.

I feel receptive. 9StrengthsWeaknessesThe ad explicitly recognizes the current economic climate, stays current to its mood, and effectively addresses it. Even the opening dollar at the beginning of the commercial is indicative of value maximization. The recession- conscientious consumers demand value and Wendys has responded to this demand. The ad successfully drives brand trust by delivering key practical value and by connecting and forming a bond with its consumers (building a relationship).

Wendys current slogan: If it isnt fast food, what exactly is Wendys?

Opportunities

Wendys should find a different slogan that emphasizes the quality of their food, freshness of their ingredients, and honesty in the way they do businessin alliance with Daves initial brand objectives. Wendys strengths include variety, quality, freshness, value, square patties, and customer service. Emphasizing customer service strengthens brand loyalty ; it reinforces the emotional connection. Their advertising campaign needs to utilize all of the key strengths. Threats

Wendys has been inconsistent in their advertising campaigns. In addition, the fast food industry represents an extremely competitive market filled with value deals. e.g., Burger King Junior Whopper is just one dollar;Mcdonads has a dollar menu; and Taco Bell features Why Pay More menu for items less than a dollar.

Is Wendys truly differentiating itself from its rivals? Emphasizing customer service strengthens brand loyalty ; it reinforces emotional connection. Wendys needs to be aware that consumer attitudes displayed during a recession may linger long after the recession is over. Recession may alter consumer demand long-term in terms of their buying behavior. 11Recently in the newsZagats 2009 Fast Food Survey:Over 6000 survey participants45 fast food chainsWendys rated #1 Mega Chain in 3 categories: food, facilities and top overall.

Maybe Wendys is Waaaaay better

Mega chain is defined as an establishment with more than 5000 locations. 12The EndQuestions? Comments?