Wendy's Marketing Strategy Essay Example
1. Industry background data and history.
Industry Data
• • • • • Annual Growth of 3.7% a year in the next 5 years Australia is the 11th biggest-spending fast-food nation in the world experiencing exponential growth in the last decade Traffic to Australian fast-food outlets increased between 3 and 7% in 2010 We are now the 39th fattest nation on earth The industry employs 307,127 accounting for roughly 3% of the Australian Workforce
Australians are in love with franchising. The industry is going from strength to strength as the nation’s appetite for personal services and retail goods continues to grow and the business model attracts new industries. Facts The number of franchise chain has jumped by 21.4%, from 700 in 2002 to 850 in 2004, according to Franchising Australia and it is growing. 2010 - Reported double-digit increases in revenue and profits and expect the same this financial year
Industry Segmentation
0.20% 8.70%
QSR 31.80% Takeaways Leisure Locations Mobile & Street Vendors 59.20%
Wendy’s History
• • • • Start up: In 1979 opened the first shop in a shopping centre in South Australia; Business Model: Adopted a franchising model; Growth: 250 stores in Australia and New Zealand over 30 years. Position: Fast food industry within the treats segment.
Wendy’s with use of franchising model (lower risk capital and fast expansion into new locations) now has 250 stores. • Positioning in franchising industry: • Low cost entry • Low royalty and marketing fees • Easy and fun to run • No special skills required • Initial support & guidance for recently established franchisee
1. Strategic Challenges facing the business
Strategic Challenges
Industry Maturity: • The fast food industry is competitive and mature. With little room for growth and still more players coming into the industry and soaking up the available profits. The public awareness of negative health consequences of fast food • Increased focus on the quality of food served in
Industry Data
• • • • • Annual Growth of 3.7% a year in the next 5 years Australia is the 11th biggest-spending fast-food nation in the world experiencing exponential growth in the last decade Traffic to Australian fast-food outlets increased between 3 and 7% in 2010 We are now the 39th fattest nation on earth The industry employs 307,127 accounting for roughly 3% of the Australian Workforce
Australians are in love with franchising. The industry is going from strength to strength as the nation’s appetite for personal services and retail goods continues to grow and the business model attracts new industries. Facts The number of franchise chain has jumped by 21.4%, from 700 in 2002 to 850 in 2004, according to Franchising Australia and it is growing. 2010 - Reported double-digit increases in revenue and profits and expect the same this financial year
Industry Segmentation
0.20% 8.70%
QSR 31.80% Takeaways Leisure Locations Mobile & Street Vendors 59.20%
Wendy’s History
• • • • Start up: In 1979 opened the first shop in a shopping centre in South Australia; Business Model: Adopted a franchising model; Growth: 250 stores in Australia and New Zealand over 30 years. Position: Fast food industry within the treats segment.
Wendy’s with use of franchising model (lower risk capital and fast expansion into new locations) now has 250 stores. • Positioning in franchising industry: • Low cost entry • Low royalty and marketing fees • Easy and fun to run • No special skills required • Initial support & guidance for recently established franchisee
1. Strategic Challenges facing the business
Strategic Challenges
Industry Maturity: • The fast food industry is competitive and mature. With little room for growth and still more players coming into the industry and soaking up the available profits. The public awareness of negative health consequences of fast food • Increased focus on the quality of food served in