A Review Of Wendys

A Review Of WendysExecutive SummaryWendys Old make Hamburgers is an international card-playing nutriment chain eating house riged by Dave doubting Thomason November 15, 1969, in Columbus, Ohio, and moved headquarters to Dublin, Ohio on January 29, cc6. Wendys was Americas national provender, and the globes three largest burger fast solid food chain with slightly 6,700 locations. On April 24, 2008, the compevery announced a merger with Triarc, the elicit comp whatever of Arbys. Following the merger, Triarc became k right offn as Wendys/Arbys radical.Wendys/Arbys Group is the pargonnt confederacy of Wendys, and is a realityly traded company.Arbys Restaurant Group, Inc. is a entirely owned subsidiary of Wendys/Arbys Group, Inc.This taradiddle bothow for be digesting on Wendys Burgers of the Wendys/Arbys Group. The main aim of this report is to investigate and analyze the selling activities of Wendys Burgers.What is the Wendys preference? What ar the say-sos, weak nesses, opportunities, and threats (SWOT) of Wendys? What are the competitive emoluments of Wendys? What is the impact of Wendys trade mix?This report will try to address the preceding(prenominal) questions and to a greater extent than.INTRODUCTIONWendys/Arbys Group is the parent company of Wendys, and is a publicly traded company. Approximately 77% of Wendys eaterys are franchised, the legal age of which are located in North America. Wendys and its affiliates employs more than 46,000 people in its global operations. In financial year 2006, the firm had $9.45 billion (USD) in total barters.While Wendys sets standards for outside livestock appearance, food quality and menu, case-by-case owners conduct control everywhere hours of operations, interior decor, pricing and staff uniforms and wages.Wendys ended 2007 with meet under 6000 Wendys Old Fashi mavind Hamburgers restaurants in operation. Of these, 1,274 (21%) were company owned and operated mend the remaining 4,662 r estaurants were franchised. In addition to Wendys Old Fashioned Hamburgers, Wendys is invested in the coffeehouse Express and Pasta Pomodoro restaurant gyves, owning 70% and 29% of those chains, respectively. Until 2006 Wendys multinational Inc. too owned the Tim Hortons and Baja Fresh franchises.The chain is known for its unbowed ground crab hamburgers and the Frosty, a form of soft serve ice cream combine with frozen starches contracted from potato results. The idea for Wendys old fashioned hamburgers was rattling inspired by Dave Thomass trips to Kewpee Hamburgers in his plateful town of Kalamazoo, Michigan. The Kewpee exchange lusty hamburgers and thick malt shakes, much like the long-familiar restaurant that Thomas eventually founded in Columbus, Ohio, in 1969. Thomas named the restaurant after his twenty-five percent childMelinda Lou Wendy Thomas.WENDYS ORIENTATIONNature of demandOver the century, market for fast food has increased drastically, time being one of the major(ip) constraints. A recess in the early 1980s, combined with high beef prices and Wendys explosive as well as threatening growth incited the burger wars. Wendys moved into the number third spot behind McDonalds and Burger King, fuelled by its introduction of a chain long salad bar, chicken breast sandwiches, and baked potatoes.Extent of demandAs of celestial latitude 2006, Wendys was Americas national food, and the worlds third largest hamburger fast food chain with well-nigh 6,700 locations. Approximately 77% of Wendys restaurants are franchised, the majority of which are located in North America. Wendys and its affiliates employs more than 46,000 people in its global operations. In fiscal year 2006, the firm had $9.45 billion (USD) in total gross revenue.OrientationWendys tries to awareness the node needs and demands. This proves that the company is trade oriented. Let us now analyze the Wendys orientation towards the marketplace. Companies pick up their respecti ve beliefs concerning their marketing efforts which are ordinarily varied from company to company. The challenging apprehensions beneath which companies perform their marketing activities are resultion ConceptCustomers are attracted to those products which are available and cheaper. Organizations following this concept tartakes on accomplishing the large production competence, minimal courts and bulk distri simplyion. merchandise Concept The way that Wendys Old Fashioned Hamburgers does backup and markets its product to consumers is collectible to the change in our society to where the consumer wants the biggest, fastest, and best product they tail get for their specie. Wendys introduce healthier options a middle rising obesity levels and a general enliven in healthier foods, some fast food companies have been red ink in the opposite direction, introducing ever more calorific and fat-laden burgers in a bid to win clients.Selling ConceptThe concept of ready-cooked food for s ale is the primitive selling concept of Wendys burgers. Wendys uses impudent, never frozen beef/fresh ground beef in their hamburger, has moved in line with the sound Service Restaurant or QSR manufacturing and has been takeing to offer salutary food choices. Wendys has added sandwiches and salads to its menu, and offers side dish substitutes for French fries. selling conceptmerchandising is the science of actualizing the purchaseing potentialitys of a market for a specific product. It reflects a selling concept because it centers on promoting a product rather than contact a defined area of consumer need. The marketing concept sidesteps the basic struggle between buyer and seller. Buyers want lower prices. Sellers want higher prices. The marketing concept does not provide a solution to the classic negotiate problem.holistic Marketing ConceptThis involves development, design and implementation of marketing programs, processes, and activities that recognizes organizations extensiveness and inter dependencies. Precisely, this concept is an approach to marketing that tries to identify and resolve the fortune and difficulties of marketing activities. There are four main elements in Holistic marketing namely (Kotler and Keller 2006 16)* Integrated marketing involving communications, products emoluments, channels* Social obligation marketing involving Ethics, Environment, Legal and Community* Relationship marketing involving Customers, Channel and Partners* internal marketing involving Marketing department, senior management and early(a) departments.Wendys strictly follows the above concepts as it includes approximately of the marketing activities.Wendys Business StrategiesWendys new dodge puts its food on center stage and changes its media-buying habits to zero in more narrowly on different market segments. TV spots and print ads will focus on specific audiences instead of delivering the equal message to all demographic groups, tailoring the mess ages to the audiences.In addition, the nearly 6,700-unit chain will labor on the Internet to attract untrieder consumers and use a component part named Smart Square to appeal to them in TV spots.Globally, all the Wendys employees work together to achieve in Driving Growth, Funding Growth and rifle Best Place to Work.ConclusionColgate is a Marketing orientation company. This can be clearly shown to a lower placeS.W.O.T AnalysisSWOT analysis is a structured approach for evaluating the strategic position of a business by indentifying its Strengths, Weaknesses, Opportunities and Threats (Jobber 2007 63). To get a clear idea of Wendys/Arbys groups outlook, it is useful to analyze the restaurants Strengths, Weaknesses, Opportunities and Threats (SWOT). Additionally, a SWOT analysis summarizes the outcome of marketing audit of the company (Jobber 2007 61). electropositive factorsInternal factorsNegative or potential to be negativeStrengthsWeaknessesOpportunitiesThreats outside(a) fact orsStrengthsPositive, tangible and intangible attri onlyes internal to an organization and at heart the organizations control.* A strength in Wendys manufacturing is that their food is known for its freshness and quality.* This quality of food it tell to be one of the main reasons why Wendys has outpaced the annual sales suck in of McDonalds from 1998 to 2002 (Industry Surveys, 2003, p. 3).* The expert management system of Wendys burgers adds to its much strength in time managing and store managing skills.* The pleasant atmosphere of all the Wendys stores adds value to its strong customer oriented approach.* Hamburgers are made with fresh, never frozen beef which is a huge hit with the customers.* Being a Global dishonor, Wendys is overt of worldwide blowup with huge market share and consumer base to capture.* hard supply chain is one of the describe strengths of Wendys burgers with the suppliers meeting the fast food chains constant demand for the in time supply of in the altogether materials in turn meeting the customers requirements.* Another major strength of Wendys is its mid night push plan, it is operating its stores after the mid night also, which attracts the adolescent and young people a lot.* One of the major strength of the Wendys is its nutritionary valued menu for the people who are maintaining balanced dite.* Wendys is the first restaurant which is offering a special menu for children ansd even for the kids.WeaknessesInternal factors within an organizations control that detract from the organizations ability to attain the desired goal.* A manufacturing weakness could be that it will be difficult for Wendys to make dramatic improvements in the area of store management in the coming(prenominal).* Breakfast menu Wendys experimented with servicing breakfast for a short time, except the endeavor was unsuccessful due(p) to several issues.* Constant management changes have lead to a decline in customer as well as employee satisfaction hindering its growth and expansion.* The franchi happen upon stores are given freedom to have their own store atmosphere and layout and also employee uniforms.* High dependence on a major country is the main weakness of the Wendys. Though it is globalized, it was operating mostly in ground forces and Canada.In the year 2007,more than 70% of its revenue is from the USA,this phenomenon leads to loss in reach rates at internatioinal market.* The Wendys spreading of its stores is relatively very less, when compared to its cozy, rivals McDonalds and Burger King.The McDonalds opening 200 stores per year, The Burger King is opening at a rate of 150 per year, but Wendys is opening only 50 stores per year,so the expansion of business will be less.OpportunitiesExternal attractive factors that represent the reason for an organization to exist and develop. trademark recognition is the significant factor affecting their competitive position.* Wendys international brand understand gives it a scope for expansion into International markets.* Recession has bantam or no effect on the fast food industry which provides a great pass for growth and expansion.* Wendys was the first to introduce tip sandwich making its mark and grabbing a huge market share.* nurture of restaurant business in USA ia a great opportunity for Wendys. According to the Forbs magazine survey, in the year 2007 more than 25% of USA government revenue from fast food sector. The reasons for increment in pleasant food consumption is, increasing single parent families, dual running(a) house holds, no time for active cooking at home, salary increase in living standards of people etc.Wendys can utilize this as a great opportunity to increase its business* Increasing population of teenagers and young people is a great opportunity for Wendys, as it was targeting them. According to the nose count in 2008, more than 40% of american people are teenagers,which was a great opportunity for Wendys.* Increasin g opportunities in developing countries like china and India. In 2007 Wendy,s make one percent of its revenue from India and two percent from China,still to be increased. There is a great opportunity for Wendys to develop its business in developing countries as there is less operating apostrophize when compared to the developed countries.ThreatsExternal factors beyond the organizations control which could place the organization guardianship or operation at risk.* Accusation Wendys was accused recently as a consumer found a human finger in one of its item (Chili). Such kind of accusations would surely affect the brand image and high chances of drop in the market share. Much time and money is consumed to re lay down the lost share of the fast food market.* Competitors Wendys faces stiff competition in the overall fast food industry, as McDonalds holds a grand 18% share of the market with Wendys and Burger King holding shares of approximately 2% each. In recent years Wendys has be en lagging behind McDonalds and Burger King in same store sales growth, an indicator of how established franchises are faring. In addition to traditional hamburger-based fast food restaurants, Wendys must compete with chains such as Subway, Yum Brands (YUM) and jacklight In The Box (JBX). * Controversy Wendys found itself the focus of a boycott by gay rights groups when the company pulled publicize from the sitcom Ellen in 1997, which it deemed controversial.* Illnesses caused by food is the major threat for any fast food company. Though more care was taken, there was chance of food borne illnesses like e coli, gastric trouble etc. This was a major threat for Wendys.* Food storage and transportation is also a major threat for Wendys. As it is more difficult to store bare materials as there are highly vulnerable.* Targeting a particular discussion section of people is a major threat for Wendys, as it is targeting the teenagers only. This will leads to swooning the satisfaction o f people of other sections.* International Business expansion constraining the business to the USA is the major threat to Wendys at international level. moderate the business may leads to limiting the globalization and decreasing the brand name, internet and sales.StrengthsWeaknessesOpportunitiesMake the most of theseWatch competition closelyThreatsRestore strengths strategical turn around requiredConclusionWendys/Arbys group has to maintain all their strengths and grab all the opportunities. On the other hand, Wendys/Arbys group should sooner sweep over all its weaknesses and work harder on the threats.Competitive AdvantageCompetitive advantage is the achievement of victor performance through differentiation to provide ranking(a) customer value or by managing to achieve lowest delivered cost (Jobber 2007 27).Competitive FactorsProduct Strength Lack of differentiation- Consumers have accessibility to mistakable menu that is used by other hamburger chains of the same segment . Hence fulfilling consumers needs. Unique patty shape- Wendys burgers have a unique square do patty instead of a regular round patty, which other hamburger chains use.Customer Loyalty and Satisfaction Convenience- The ease of accessibility of its stores by deploying them in prime locations adds to consumers convenience. Speed of expediency- Implementing drive through and home delivery system in all its stores to attain speedy customer service.Market Share Third largest company in QSR or right away Service Restaurants Introduction of new products like fish sandwich, square shaped fresh ground beef patty, salads in its breakfast menu, etc have been introduced by Wendys. Fifth in terms of highest total revenue generated next to McDonalds Corporation, Doctors Associates, Yum Brands and Jack in the Box.Customer Concentration Location variables Setting up Wendys restaurants where the potential consumer(working class, teenagers, etc) concentration is high. Strengthen penetration To a ttain a firm detention in the market where it is already existing.Cost Control Centralized diffusion center Reduce labor cost Costs associated with labor is a major factor in the success of any business. Wendys labor costs include upper management, but the bulk of Wendys employees are the workers at individual restaurants. Wendys achieved to cut labor cost by downsizing the number of managers from 3.6 to 3.3 by June of 2007. Wendys expects that this will not only decrease labor costs but also enhance efficiency at individual restaurants as they have found that a high number of managers can result in division of responsibility and confusion. In 2007 Wendys total operating costs were approximately $2.29 billion while total revenue was about $2.45 billion, leaving a slim operating income of approximately $156 million. If Wendys labor cost reduction hatchway can successfully decrease labor costs without negatively impacting revenues, Wendys could see a substantial increase margins and operating profits. http//cdn.wikinvest.com/i/px.gif Economies of scaleInvestments International fast food market is the best place to invest in as far as Wendys investment options are considered. Research on untapped foreign markets in order to gain knowledge for future investments.Marketing Mix Analysis The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives 7Ps value, Product, Promotion, Place, People, Process, Physical Environment Traditional 4Ps extended to encompass growth of service industryMarketing strategy is generally obtained by the 3 key elements namely the target markets, competitors targets and the competitive advantage (Anderson 2008). Once the marketing strategy is finalized, the company starts looking into the facts of the marketing mix. Marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. (Armstr ong and Kotler 2009).Marketing mix is essential for the company to develop the demand for its products. This can be collectively done by the four vital categories which are well-known as 4-Ps of marketing mix. The 4-Ps are namely Product, Price, Place and Promotion (Armstrong and Kotler 2009 83).1.1.1 Product Customer solutionProduct is a good or service offered or performed by an organization or individual, which is capable of satisfying customer needs (Jobber 2007 28).Brand name and QualityThe brand image is obtained by utilizing the fundamentals of marketing mix (Jobber 2007 332).Wendys/Arbys Group is the parent company of Wendys, and is a publicly traded company. Wendys Restaurant Group, Inc. is a wholly owned subsidiary of Wendys/Arbys Group, Inc. Wendys/Arbys Group, Inc. is the franchisor of the Arbys and Wendys restaurant systems and trades on the New York Stock Exchange under the symbol WEN. A change in the companys ownership set the course for menu expansion and a strengthe ned brand. On September 29, 2008, Triarc Companies Inc. merged with Wendys International, Inc. to form Wendys/Arbys Group, Inc. Wendys/Arbys Group, Inc. is the third largest quick-service restaurant company in the United States.Wendys restructured its cleanliness standards, menu and other in operation(p) details to ensure that stores met the goals and standards of the parent company so that its franchises were competitive in the market.Wendys mission is to deliver superior quality products and services for their customers and communities through leadership, base and partnerships. Their vision is to be the quality leader in everything they do.Wendys has a strategic vision focused on these core values Quality Freshly-made products and superior service are their passion consistent excellence in customer service is their goal. All actions are guided by absolute honesty, wanness and respect for every individual. People(consumers) are the key to success, they value all members of the v arious family for their individual contributions and their team achievements. Satisfying internal and external customers needs is the focus of everything they do. Continuous improvement is how they think and innovative change provides competitive opportunities.Features and multifariousnessThe Wendys menu features a variety of products that are stated below which are unique from its competitors.* Signature roast beef, including Roast burger.* Market Fresh deli sandwiches.* Market Fresh salads.* Toasted subs.* Jamocha and specialty shakes.* Curly Fries and facial expression kickers.* Wendys featuresFrench friesas a primary side item, but also offers a number of options for side items/dips, includingsalads(side and Caesar side),chili,yogurtwithgranola,mandarin oranges, andbaked potatoes. In several markets, the customer may request any of these side items to be substituted for fries in its value meals.* In June 2006, Wendys outback(a) their classic Biggie and also the Great Biggie s izes in favor of a more traditional sizing system like Small, Medium, and Large.* Frostydessert It is asoft serve ice creamdessert sold in chocolate or vanilla flavours. Also sold as a floatand a mix-in dessert called the Twisted Frosty.* In Japan, Wendys offers ared bean pasteand cease sandwich called as an An Burger* Big Classic- It is a sandwich that directly competes with the Burger Kings Whopper.* Mayonnaise, lettuce, tomato,pickle, tomato ketchup and onion served on aKaiser-style roll. A second version with bacon is available, called the Big Bacon Classic.* Baconator- with mayonnaise, 6 strips of bacon, two 1/4 pound (113.4 gram) patties, ketchup and two pieces of American cheese.* In Dec 2006, Wendys castd out and stopped offering their fried kinsperson style chicken strips in most of its U.S.locations. There is now a chicken club combo in the place of the strips, which features a category style chicken patty, Spicy chicken patty or a Grilled Chicken patty with Swiss ch eese and also bacon. The space style chicken strips are still available in move of Canada.* In the Philippines they serve fried chicken, which forms a staple at most fast food restaurants in that country.1.1.1 Price Customer costPrice is the amount of money customers must pay to obtain(buy) the product. (Armstrong and Kotler 2009 83). The price of any product partially highlights its quality.Pricing StrategyThe Pricing strategy primarily consists of* get to know the market.* Elasticity.* Keeping in pace with the competitors.* Because Price and Convenience are near universal throughout firms in the industry, Wendys must focus on becoming the highly favored fast-food choice. Doing so will give customers more inclination to visit store locations.Place ConveniencePlace includes company activities that make the product available to target consumers. (Armstrong and Kotler 2009). The vital role of marketing is the process of how the product is being sent from seller to buyer.The mover by which the products and services reach the consumer from the producer and where they can be accessed by the consumer. The more places to buy the product and the easier it is made to buy it, the better for the business (and the consumer). approachabilityApproximately 77% of Wendys restaurants are franchised, the majority of which are located in North America. Wendys and its affiliates employs more than 46,000 people in its global operations. While Wendys sets standards for exterior store appearance, food quality and menu, individual owners have control over hours of operations, interior decor, pricing and staff uniforms and wages.Wendys operates in 19 countries around the world while its headquarters is based in Dublin, Ohio. It operated in more countries, but closed down in some of them due to certain circumstances. storeWendys never uses frozen beef, its al ways fresh.1.1.1 Promotion CommunicationPromotion means activities that communicate the merits of the product and persuade t arget customers to buy it. (Armstrong and Kotler 2009).Different ways of promoting the product areAdvertisingAdvertising is a major phase of overall product or service development and management. Advertising is specifically part of the outbound marketing activities, or activities geared to communicate to the market, e.g., advertising, promotions, public relations, etc.Wendys recently began a cross-promotion withNintendo. When you buy specific Wendys items you receive a code on that can be entered on the web siteFrostyFloat.comand be entered to win aWii. Wendys marketing arm engages inproduct placementin films (such asThe Day After Tomorrow,Mr. Deeds,Garfield The Movie, andClick) and television and is sometimes seen on ABCs hitreality showExtreme Makeover Home Editionserving food to the more than 100 anatomical structure workers. A recent Wendys commercial features the tune from theViolent Femmessong Blister in the Sun.ScrubsstarZach Braffcan shortly be heard invoiceoverin Wendys ne west commercials. With the launch of the new ad campaign, Wendys has also unveil a new slogan, Thats right.Few of the advertising slogans of Wendys are given belowUS Canada* 1970 boonQuality Is Our Recipe* 1978 down in the mouth hamburgers and lots of napkins* 1979 Hot-N-Juicy* 1980Wendys Has the admiration* 1981Aint No Reason to Go Anyplace Else* 1982Youre Wendys Kind of People* 1983 move is parts* 1984Wheres the beef?3* 1986Choose Fresh, choose Wendys15* 1987Give a puny nibble* Circa 1990The best burgers and a whole lot more(also was printed inside the hamburger wrappers during the 1990s)* 1997 PresentEat great, even late* 2002Its hamburger bliss.* 2004Its better here16* 2004 eer Great, Even Late.* 2005 2007Do what tastes right.(primary slogan)* 2005 PresentIt takes flair to be square.* 2007Thats right.* 2007Uh Huh.* 2007Hot Juicy BurgersInternational* 1983Its the best time forWendys(Philippines)* 2000 (approx) PresentWe dont cut corners(New Zealand)* 2000 (approx) Pres entWendys cuadra contigo(Wendys fits with you). The wordcuadra(fit) is a reference to the wordcuadrothat meanssquare(Venezuela)* 2001 (approx) PresentEl Sabor de lo Recien Hecho(The Flavor of the Brand New Made) (Honduras)* 2007 (approx) PresentWendys es Sensacional(Wendys is Sensational) (El Salvador)Personal sellingPersonal selling involves incentive programs, sales presentations and trade shows (Armstrong and Kotler 2009 383). Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to close the salePersonal selling is one of the oldest forms of promotion. It involves the use of asales forceto support apush strategy(encouraging intermediaries to buy the product) or apull strategy(where the role of the sales force may be exceptional to supporting retailers and providing after-sales se rvice).Sales PromotionSales promotion is any foremost undertaken by an organization to promote an increase in sales, usage or trial of a product or service. Sales promotions can be directed at either thecustomer, sales staff, ordistributionchannel members (such asretailers).