Chilis Final Project


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Final Marketing/ Brand Development Project on Chili\'s

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Chilis Final Project

  1. 1. Chili’s Bar & Grill Advertising Plan Professor Clark CM317 Group 11: Amanda Ritondo Bradley Weiss Michelle Silver Steven Kleekpo *this is a test advertising campaign designed to introduce a new position for Chili’s Bar & Grill. 2
  2. 2. Table of Contents Section Page Number I. Situation Analysis……………………………………….……………………………...4 A) Product/Service category definition…………………………………………...4 B) Trends………………………………………………………………………….5 C) Competitive Analysis…………………………………………………………..6 D) Brand Assessment……………………………………………………….......…9 II. Target Audience Definition…………………………...………………………………10 A) Secondary Research……………………………………………...…………..10 B) Primary Research…………………………………………………………….11 III. The Problem to be Solved and the Key Insight………………………………...……12 IV. Positioning Statement……………………………………………..…………………13 V. Advertising Objective………………………………………………………………...13 VI. The Creative Strategy………………………………………...……………………...14 VII. The Media Plan.……...………………………………………………………...…...15 Bibliography……………………………………………………………………………..19 Appendix…………………………………………………………………………………20 The Creative Execution…………………………………………………………………..27 3
  3. 3. I. Situation Analysis A. Product/ Service category definition Founded in Dallas, Texas by Brinker International in 1975, Chili’s Bar and Grill falls into the Family Restaurant/Casual Dining category. 1 This category provides consumers with full service dining in a comfortable, leisurely setting. These restaurants are located in numerous locations across the globe, ensuring a consistent experience for consumers in whichever location they decide to dine. • Total market sales of leading fast casual chains in the U.S. reached over $100 million system-wide from 2001-2006. 2 • Between 2001 and 2005, the market for family/mid-scale and casual chain restaurants grew at a 6.4% CAGR (Compound Annual Growth Rate). This growth was driven by an increase in disposable income, as consumers had more money to spend on dining-out. 3 • Restaurants like Chili’s, which can be more narrowly broken down into the bar/grill segment, seem to be the most sensitive to economic gain or strain. Ex: In 2006, traffic levels declined due to higher gas prices and growing interest rates. 4 People have less disposable income; therefore, they have less money to spend on service restaurants. 5 • It is predicted that total systemwide sales for family/mid-scale and casual chain restaurants will increase. 6 • Chili’s is comparable to its primary competitors because they all have drink specials, a broad menu, and a friendly staff in a casual setting. (Ex: Applebee’s, TGI Fridays, Ruby Tuesday) • Our secondary competitors can be broken down into two groups. The distinct qualities that these competitors possess have affected the overall trends in the family restaurant/ mid-scale dining category, as you will read later on. 7 -Our lower scale competitors offer fast, casual dining; quality food at a quick service speed. (Ex: Panera Bread) -Some of our more pricy competitors provide a more specialized menu in a more elegant setting. (Ex: The Cheesecake Factory and Outback Steakhouse) 1 “Dining Out Review: Family/Midscale and Casual Dining – US: Supply Structure.” Mintel Reports (October 2006). (accessed March15, 2007). 2 “Dining Out Review: Family/Midscale and Casual Dining – US: Overview. Mintel Reports (October 2006). (accessed March15, 2007). 3 Ibid. 4 Ibid. 5 Ibid. 6 Ibid. 7 Ibid. 4
  4. 4. B. Trends In response to the overall increase in quality of quick service chains, casual dining restaurants have introduced and experimented with new trends such as curbside pick-up, smaller portions, and using more exotic flavors in an effort to widen their customer base. The main objective behind these new trends is to compete with quick service chains by convincing consumers that the quality of food increases when more time is put into its preparation. Also, the ever-changing conditions in the economy have motivated casual dining restaurants to introduce and rotate new trends as well. For Example, rising gas prices and increasing interest rates have left consumers with less disposable income causing restaurant traffic to decrease. 8 • Since 2002, takeout sales at casual dining restaurants have grown approximately 10% annually. 9 To maintain a strong position in the casual dining market and to compete with quick service chains, Chili's introduced its curbside pick-up window. This feature is a trend that targets consumers who enjoy higher quality food but want the option of eating it in the comfort and privacy of their own home. 10 • Another growing trend is the option to order smaller portions in casual dining restaurants. This trend caters to the needs of budget-conscious consumers because these smaller entrée portions are less expensive than the regular sized portion. "Research shows that the expense of eating out causes two thirds of respondents to limit their restaurant usage, and pick less expensive restaurants for the same reason." 11 In addition to attracting a budget-conscious customer base, reduced portions satisfies the demands of diet-conscious customers, who enjoy smaller portions of quality food in casual dining restaurants. Unfortunately, although Chili’s has a section in their menu called the “Guiltless Grill,” which caters to health conscious consumers, it does not offer smaller portions on their menu. • An additional trend in casual dining is the introduction of more exotic flavors and a diverse ethnic menu. These items help the restaurant break away from the common, boring menu items and bring more variety to the table. 12 This trend gives an option to people who enjoy ethnic food and don’t want to search for a specialized restaurant. Chili’s is able to maintain a strong position in this trend because its menu offers a variety of grilled classics with a spicy, Mexican-style twist. 8 Ibid. 9 “Dining Out Review: Family/Mid-scale and Casual Dining – US: Market Size and Trends.” Mintel Reports (October 2006). (accessed March15, 2007). 10 Ibid. 11 Ibid. 12 Ibid. 5
  5. 5. • Some restaurants are also featuring their products in local supermarkets. TGI Fridays, for example, features a line of potato chips, frozen appetizers, and drink mixers. California Pizza Kitchen features select frozen pizzas in the frozen foods aisle of supermarkets. C. Competitive Situation Analysis By viewing and analyzing our competitors’ print, Internet, and television ads, we were able to identify their advertising strategies and current market position. While some restaurants’ ads were more recurring on one medium over another, the ads stayed true to their brand image and often showed specialty items, which the restaurant wanted to promote. In addition to just traditional advertising, some restaurants have used product placement in television shows and movies to give their brand an image in pop culture and to repeat slogans or logos to stick in the viewers’ heads. When evaluating each of our competitors, we visited each website and watched advertisements they had in their archive. Our opinionated statements under strengths and weaknesses came from primary research. Primary Competitors Applebee’s: • Advertisements released in February of 2006 emphasized a new trend in the casual dining category: curbside pick-up. These ads showed the ease and convenience with calling ahead to get your meal brought to your car window. 13 • More recent ads show how Applebee’s provides a child-friendly and family- oriented environment by displaying cheerful staff and good service to dining families. 14 Applebee’s aims to give a homey feel by claiming that diners are “Eating Good in the Neighborhood.” • Pop-up ads on Internet sites show pictures of quality meals for a reasonable price. • Applebee’s uses pull marketing; its advertising relies on the need of young mothers to feed their children in a friendly environment. 15 • Strengths include: curbside pick-up, meal combos, half off appetizers after a certain hour. • Weaknesses include: people find it low quality. TGI Fridays: • Friday’s advertisements show more down to earth and comedic performances in comparison to Applebee’s. 16 13 “Dining Out Review: Family/Mid-scale and Casual Dining – US: Advertising and Promotion.” Mintel Reports (October 2006). (accessed March 15, 2007). 14 Ibid. 15 Ibid. 16 Ibid. 6
  6. 6. • TGI Fridays has ads that usually include dialogue between dining couples or groups of young individuals. • During certain promotions such as the three-course, price fixed meal, Fridays emphasizes on the variety of choices for an affordable price. • The fun nature of the advertisements and the affordability targets a young audience. • Strengths include: you can gain Fridays points which can result in free products, benefits with a Fridays credit card, available party size platters, uses Jack Daniels as a regular flavor and sell products in supermarkets. • Weaknesses include: People say that the restaurant tends to be loud. Ruby Tuesday: • Ruby Tuesday’s most recent television advertisements emphasize quality and freshness. • To portray this freshness Chili’s shows close-ups of its100% prime meat, freshly washed vegetables, and other entrees. • These advertisements don’t show diners in the restaurant, like the ads for Applebee’s and Friday’s. • Instead, they include a chef spokesperson to describe the quality of the steaks and ingredients. Having a chef talk on the commercials emphasizes their expertise and prestige in the food industry. • Aims ads to the real meat lover. • Strengths include: They keep consumers informed with special events and promotions via email 17 , offers curbside pick-up. • Weaknesses include: The restaurant has no real personality; not known for beverages; people are unaware of what Ruby Tuesday really is. Secondary Competitors The Cheesecake Factory: • While the Cheesecake Factory does not rely on mass advertising, advertisers pay to get their businesses’ print ads published in their menus. • The Cheesecake Factory has a strong brand name and reputation. It relies on word of mouth and guerilla marketing to increase frequent diners. • By featuring important businesses in their menus, The Cheesecake Factory shows that they take themselves seriously and that they have no stereotypical customer. • Strengths include: smaller portion option for lunch portion, wide variety in every type of course; including multiple cheesecakes. • Weaknesses include: can’t reserve tables, long waits to be seated. Outback Steakhouse: • Outback focuses their ads on the quality of their meat instead of concentrating on the dining experience; however, they emulate an Australian feeling. 17 Ruby Tuesday. (accessed April 5, 2007) 7
  7. 7. • In 2006, Outback started a new campaign to focus on other menu items other than steak. 18 • The ads used humor to advertise Outback’s products, which resulted in lowered sales. • Their most recent advertisements use Australian music, and animations to give a fun and friendly feeling. They also show clips of quality beef and entrees. • Strengths include: holds contests and sponsored sports events, curbside take-out, online ordering. 19 • Weaknesses include: Found to have the highest average check among competitors. 20 Panera Bread: • Just like The Cheesecake Factory, Panera doesn’t rely on mass advertising to establish itself. It relies on word of mouth to bring in more customers. • Strengths include: quick service, no need to tip wait staff, wireless Internet. • Weaknesses include: limited dining area, no table service. Local Supermarkets: • Although supermarkets do not offer the same services that most of our competitors offer, supermarkets have been featuring full dinners ready to buy and easy to cook at home. • This is another alternative for mothers who want a cheap and easy meal. • Strengths include: cheaply priced dinners, easy to prepare, no waiting to order or to receive food • Weaknesses include: not as fresh as restaurant food, not as much selection, have to search a supermarket to find the pre-made section. Chili’s Bar & Grill: • Chili’s focuses its advertisements on a young/21+ age group. The most recent ad shows a friendly waitress delivering beer to a group of friends who are casually dining and discussing Chili’s’ grill works. Chili’s says to “leave the grilling to us,” expecting diners to sit back, relax, and enjoy. • In the past year, Chili’s has taken a young-minded/ alternative rock music approach to its ads. In 2006, they introduced a build your own burger commercial called “Big Mouth” burgers. It was advertised with rock music in the background and animated dancing burger condiments. 21 18 “Dining Out Review: Family/Mid-scale and Casual Dining – US: Advertising and Promotion.” Mintel Reports (October 2006). (accessed March 15, 2007). 19 Outback Steakhouse. (accessed April 5, 2007). 20 “Dining Out Review: Family/Mid-scale and Casual Dining – US.” Mintel Reports (October 2006). (accessed March 15, 2007). 21 Ibid. 8
  8. 8. • Chili’s newest slogan, “Spicealicious,” emphasizes how Chili’s provides a little kick in their products. This aims to bring in a crowd who are interested in more exotic flavors. • The new animated chili pepper has more staying power than ever, as it is a remake of the recognizable and attractive two-dimensional logo. • Chili’s used product placement in the series The Office in 2005, which Adweek says “gives Chili’s an opportunity to target younger viewers.” 22 • The “Baby Back Rib” jingle became a popular tune in a widely used Chili’s campaign and was even used by Mike Myers in the Austin Powers sequel. This provided appropriate product placement. D. Brand Assessment Marketing Mix: • Product- Chili’s restaurant provides a Casual, friendly atmosphere. It is open to all ages, yet really attracts a young, outgoing crowd. Chili’s keeps a fun outlook on dining while being consistent with quality and service. Through its consistency, Chili’s will attract regular customers and hopefully excite other potential diners to come. • Place- Chili’s tends to your needs by strategically placing each of their worldwide restaurants in convenient locations near shopping malls, and highly populated areas. Since Chili’s are found near other restaurants and attractions, it is able to better compete with other businesses. It is always located in areas where people can be selective with their dining experience. • Price- According to Mintel, the average Chili’s check including alcohol is $12.18 (as of June 2006). For a few more dollars than a local fast food chain restaurant, diners can get a full service, better quality meal. • Promotion- Chili’s uses print, web and commercial advertising to create brand awareness and recognition to motivate people to come to the restaurant. Chili’s entices consumers looking for the best in quick, causal dining solutions. This pull strategy uses promotion to draw in customers by publicizing alcohol sales, sports raffles and a friendly environment. SWOT Analysis: • Strengths- Exotic flavoring in food, conveniently located near shopping centers, movie theaters and other popular attractions, friendly and fun atmosphere, fair pricing, full alcohol bar, variety in menu (so everyone can find something they want), great for families, big portions, kid’s menu, curbside pick-up, interactive website, create your own chili pepper campaign that sponsors St. Jude’s Childrens Hospital, can accommodate large groups of people, has party platters, offers gift cards. 22 Ibid. 9
  9. 9. • Weaknesses- Too similar to other restaurants in the same category, consumers have trouble distinguishing from competitors and do not promote their special offers well enough. • Opportunities- trend in exotic foods to reach more diverse customers, people looking for a quick and cheap bite after a trip to the movies or the mall, curbside pickup, internet interaction, low-carb and dietary options. • Threats- rise in gas prices and rising interest rates make people question the value of their dollar, TGI Fridays’ and other restaurants’ frozen food line and retail products sold in local supermarkets. II. Target Audience Definition Chili’s Bar and Grill has a large consumer base and welcomes families of all ages to affordable dining in a laid-back atmosphere. The target audience wants higher quality food than they would receive from a fast food chain, but at a more affordable price than fine dining in a high scale restaurant. By analyzing the demographics and psychographics of Chili’s target audience, we can form a personality profile of the average Chili’s consumer and learn what they are looking to get out of our product and how we can best relate to and provide for them. A. Secondary Research *All demographic and lifestyle research was taken from MRI Plus. • The main target audience age bracket is 25-34, with ages 18-24 as a close second. • The younger bracket is large enough to be considered in the main target audience, making Chili’s collective target audience ages 18-34. • There are more women consumers than men. • They are more educated people most of whom have undergraduate and graduate degrees with higher paying jobs. There are more white-collar than blue-collar workers. • Their main household income is in the range of $75,000 to $149,000, but the higher bracket of $150,000 plus is a close second. Due to their higher incomes, they also have higher than average house value of $200,000 to $499,000. • Chili’s goers are primarily white Americans living in the South and the West. A look into their lifestyles: • They are heavy internet users, browsing sites like, and • Chili’s consumers enjoy outdoors activities and sports like basketball and football. • They are moderate television, newspaper and radio users. • They have multiple cable channels and watch channels like Comedy Central, Discovery, Fuse, Golf, IFC, MTV, and Style. • They read magazines such as American Baby, Car Craft, Child, Cigar Aficionado, Elle, Endless, Vacation, FHM, Men’s Journal, Nick Jr., Road and Track, Shape, and Texas Monthly 10
  10. 10. A look into the lifestyles and tendencies of High Income Families ($100,000 plus), which is the category that Chili’s consumers fall into. *All this information was obtained using Mintel Reports. • These high income families consisting largely of highly educated white people have more discretionary spending than the average income households. • They tend to shop at chains instead of spending their money at local and private retailers. • Although they have more money to spend than the average person, they are “price-conscious” and spend much time evaluating and comparing brands when making a big purchase. Still, they are more likely than the average consumer to say that price isn’t the most important factor and they don’t always wait around for sales. • Since high income families usually live in more suburban areas, and have more money to spend than the average, they shop more often and at a wide variety of retailers. • They are strong internet users and most say that the internet has changed the way they get information about products and services. They are also more likely to have used the internet to buy things such as books, music, apparel and accessories. B. Primary Research In order to learn more about our consumers we needed to do our own qualitative research. In conducting a survey (see Appendix 2) and questioning people, we were able to find out how often our consumer eats out, where they like to dine and how they feel about Chili’s Restaurant. *Our primary research was obtained through a survey to both loyal and non- loyal customers and talking to staff. Users: • They go out to eat 4-6 times a month. • They dine at Chili’s 0-1 time a month. • They are usually motivated to go to Chili’s because of its convenient location. • They like Chili’s because the menu has wide selection. • They enjoy the laid-back, casual atmosphere in Chili’s. • They love that Chili’s serves spicy, Mexican-style food. • In a sitting they usually order entrees and appetizers, sometimes a margarita or something off the desert menu. • They come to Chili’s because the deals (bottomless chips) and/or to satisfy a craving for one of Chili’s signature dishes (baby-back ribs, molten chocolate cake). • They would go to Chili’s if they were on vacation/away from home if they were aware of its location. • They all seem to agree that the staff is friendly and that there always quick service. 11
  11. 11. Non-Users: • They do like not like to dine at Fast/Casual Chain Restaurants. • They claim the food is not the best quality. • They eat out more that 7 times a month. • They usually order from fast food/take out restaurants (like Panera Bread). • They probably wouldn’t decide to go to Chili’s if they were aware of its location while on vacation/away from home. • They are unaware of the special deals that Chili’s offers. Staff: • They enjoy their job • They say that Chili’s usually caters to families. • They say that from Thursdays to Sundays Chili’s gets the busiest during dinnertime (6p.m. to 7p.m). • They promote a comfortable atmosphere by designating special sections for families so they don’t have to worry about their kids being too loud. • They say that Chili’s caters to children by offering them a kid’s menu with crayons. • They say that men between the age of 35 and 50 usually occupy the bar. • They say that Chili’s offers special deals for its consumers. For example, they have raffles during football season and the winner gets a free catered tailgate party. Also, they usually have beer promotions. A personality profile of Chili’s consumers: Chili’s goers are fun, outgoing people who are open to try new things. They love the outdoors and being spontaneous. They commonly dine with a group of people (friends or family) so they desire a place that can accommodate different tastes. Parents find comfort in the fact that they can go to Chili’s with their kids and everyone can find something that they like to eat, all without hurting their wallet. Chili’s users are looking for good quality food for a cheaper price than at a high-end restaurant. They want more than just your average food: something with more edge and spice. Although they are in a higher income bracket than the average person, they are still price-conscious and don’t want to spend a fortune to eat a good meal. They like change and variety both in their meals and in their lives. Since they have a higher amount of discretionary spending than the average person, they eat and shop at a wider variety of retailers. Chili’s consumers spend a considerable amount of time in commercial and shopping areas, which is generally where Chili’s restaurants are located. Atmosphere, good service and convenience are all important to them when choosing a place to eat. III. The Problem to be Solved and the Key Insight • The problem is that consumers are unable to separate Chili’s from its competitors. As a result, they would not be persuaded to choose Chili’s over its competition if placed in a situation where they had the option to choose. 12
  12. 12. Also, some users and most non-users are unaware of the special offers at Chili’s (bottomless chips, raffles). • The key insight we uncovered is that Chili’s has Mexican-style, spicy food that people enjoy. Also, users and non-users said that they would be interested in partaking in Chili’s special offers had they been better informed. IV. Positioning Statement Building upon Chili’s brand reputation is the main goal for this advertising campaign. Our advertising needs to remind people that Chili’s restaurants are conveniently located in several commercial areas and that it is consistent in providing consumers with a fun, energetic atmosphere. Unlike its competition, Chili’s offers a menu that includes a variety of grilled American favorites as well as spicy, Mexican-style flavors. Chili’s Brand Positioning: To fun, outgoing people that are looking for variety. Chili’s is a unique casual/fast-food chain restaurant that consistently offers a fresh, spicy twist to the American grilled classics. V. Advertising Objective Our advertising objective is to change people’s attitudes about Chili’s by building Chili’s brand identity. We need to emphasize the unique qualities about Chili’s that separates it from its competitors. To do this, we need to make an impression on people. We need to show them that Chili’s is indeed different from its competitors and that Chili’s stands above the rest. Our message will remind consumers that although Chili’s serve a wide variety of American favorites, unlike other casual fast-food chain restaurants, it offers quality, spicy, Mexican-style food. Our message must also inform people of the special deals and signature dishes that Chili’s offers. Many people mentioned (on the survey) specific menu items that are them in, such as the margaritas, Molten Chocolate Cakes and the Bottomless Chips baskets. These offers are not available at other fast-food chain restaurants. By making these specials well known, we will ultimately spark interest and attract new customers. People that know about the special deals will be drawn to dine at Chili’s if they see a Chili’s near-by or be more inclined to consider it when deciding where to eat. If executed effectively, our advertisements will fundamentally create awareness. We want to stimulate a desire to indulge in Chili’s spicier flavors. By delivering information in a persuasive manner, our advertising campaign will allow people to remember and recall the distinctive qualities of Chili’s. We hope that by doing this, we will reach consumers who normally do not dine at fast-food restaurants as well as more consumers who do. Our message will increase store traffic, as more people will want to dine at Chili’s. Specifically, we want to increase sales both in consumers ages 25-34 and 18-24, with more emphasis on the later since they less commonly go to Chili’s than the older age bracket (we want to increase sales in the younger ages without losing our older consumers). 13
  13. 13. VI. The Creative Research *Who is the advertising talking to? Young (ages 18-34), outgoing and energetic people who are looking for variety in spices and flavor. People who want good quality food and service, but not at a high price. People looking for a convenient restaurant that will make everyone happy. *What single benefit should the advertising promise? The advertising will separate Chili’s from its competitors by focusing on its distinct qualities: an extensive menu with a wide variety of foods, especially dishes with more exotic flavors and spices. *Why should the consumer believe you? We will use a soft-sell approach to appeal to consumer’s tastes and to trigger hunger. We want to stimulate a desire to go out and eat the exact food they see in the ad because it looks so irresistible. Chili’s restaurants do not only has American classics like steaks and burgers, but they also serve foods with Mexican spices. They also offer “Guiltless” menu items including nutritional information for those who are more health conscious. You can go to Chili’s with the confidence that everyone you’re with will find something that they want to eat. The portions are large; making Chili’s a great value (especially when considering their low prices). Chili’s are conveniently located in popular areas, making it perfect for a last-minute decision or easy to get to if previously decided on. *What does the consumer think now? The general consumer doesn’t see much difference in Chili’s from any other casual dining chain. They think food is food, and aren’t prone to go to Chili’s unless it’s convenient. They will also go to Chili’s if they’re with a group that has planned to go there, but otherwise Chili’s isn’t the first place to pop into their mind. Some consumers, the common Chili’s users, will go to Chili’s because they have had enjoyable past experiences. They just need to be reminded of the good value and service they received in the past. *What do you want the consumer to think after seeing the advertising? We want the consumer to either be informed of or reminded of the wide variety and good quality food Chili’s has. We want consumers to recognize their point of difference (variety of spices) from every other restaurant that they are usually associated with. For those who’ve already had a pleasant encounter with Chili’s, we want to evoke that memory of their satisfying experience, especially in remembering particular dishes that they really enjoyed. We want to initiate hunger and spark an interest in trying something a little different from the everyday: indulging in a variety of foods and spices at Chili’s. We also want to inform people of Chili’s unique deals and signature items. By informing people of these deals our ads will attract more people to dine at Chili’s. *Brand personality 14
  14. 14. Chili’s is fun and lively in both its food and its personality. Chili’s takes a regular menu comprised of classic American grilled dishes and jazz it up with tangy spices and exotic flavors. Chili’s is sociable and adapts to the style and tastes of a wide variety of people. Chili’s has options for everyone from the Mexican-food lover, to the picky child, to the health-conscious individual. Chili’s prides themselves in good quality and quick service. They don’t take life too seriously and are there to have a good time. Whether you’re watching a sports game, enjoying a margarita at the bar, or coloring in the children’s menu with your kids, these are a few examples of how Chili’s wants its customers to be able to relax and take a step away from life. The tone of the creative executions will appeal to people’s emotions. It will be light- hearted and fun, welcoming people of many different ages and backgrounds. The television commercial will use humor appealing to a slightly younger crowd to emphasize Chili’s vibrancy and how they spice up the mundane and ordinary. The print advertisements will use mouth-watering images to induce hunger and will focus on the variety of foods that cater to all kinds of taste. They will talk about signature items that keep people coming back for more, along with telling of deals and promotions. Our ads will be focused on the food and variety of flavors Chili’s offers. It will emulate the zest and pizzazz of the food through bright colors and amusing animations. It will draw people in by sparking hunger through mouth-watering images of different specialty food items, especially in the print advertisements. The style will be very similar to the current Chili’s advertisements: much of the content will center on the variety of food and stimulating environment. It will appeal to your desire for change by showing you how you can “spice up” your life with an evening full of good people and good food. The copy is designed to be enticing and welcoming, with a light and friendly touch. It won’t be demanding, but instead rely on your cravings to draw you in. The commercial will be silly and fun, with a ridiculous scenario intended to make you laugh. It will lead back to the main idea theme that by transforming your meal to something “Spicealicious” you can stray from the normal and boring; your meal is an experience, not just something to fill your stomach and hold you over until later. The magazine insert is a game; something that you can play around with but still receive a cool prize at the end. VII. The Media Plan After gathering research from both primary and secondary resources, it is now time to use this information to hypothesize the best way to reach our target audience. A prediction must be made on when the ads will be circulated or broadcasted, which media will be used, and how much effort should go into each medium. When will these advertisements run? • Our ads will run year round because Chili’s receives customers for different reasons each season (sports seasons attract people at the bar, warm weather attracts frosted drinks, rainy or snowy weather attracts people who want to go out for dinner and a movie). 15
  15. 15. • According to an article from Nation’s Restaurant News, casual dining restaurants see a decrease in sales during the wintertime because of poor weather conditions; therefore, our advertisements will circulate more in the summer to maintain steady traffic and hope to draw in more customers. • Since the summer is when there are more people dining out, in follow-up ads we will feature Chili’s frozen margaritas and other cool summer drinks (which should be advertised more as opposed to hot items). Media Choice: • According to MRI+, frequent Chili’s customers respond heavily to outdoor sources and are heavy users of magazines. • From our research we found that print ads and outdoor ads would be the most useful form of advertising to reach our target audience. • Although most of our target audience does not watch television 23 , Chilis’ past and current television ads have been memorable and humorous; whereas, it would benefit us to continue airing television ads that appeal to people’s emotions. • By observing the types of television stations and magazines our consumer views, we can infer the types of magazines and channels our advertisements would be the most beneficial. • Some trends in television stations include: ESPN channels (college and professional sports), Comedy Central (young, college humor), E! (celebrity entertainment), MTV, VH-1 and Fuse (current music channel, college fan base). 24 • Some trends in magazines include: Allure, Cosmopolitan and Elle (young celebrity fashion and make-up), Blender (current music and musician news), Bridal Guide and Brides (young newlyweds), Electronic Gaming Monthly (young video games enthusiasts), FHM (young college men base), Lucky (women’s fashion), In Touch (celebrity news), The Sporting News. 25 • By noticing the trends in the television and magazine choices of our consumers, we can infer that our advertisements should appear in magazines where fashion, sports, music, and a college appeal are the main areas of interest. • By putting print ads in fashion magazines and sports magazines, we can reach young men and women who love to go out, shop, and view live sports. This target audience will be exposed to Chili’s when they go to shopping malls and sporting events, so seeing Chili’s ads in their favorite magazines will remind them that good dining is nearby. • Television ads will air on channels that feature fashion, music, pop-culture news, sports, and college humor. • Rotating Chili’s print ads (electronic banners that alternate different ads) located in the middle of malls will encourage shoppers to dine at a local Chili’s after a day of shopping. 23 “Family Restaurants & Steak Houses: Bought At Last 6 Months Chili's Grill & Bar.” MRI Plus Reporter (Fall 2006). (accessed March 13, 2007). 24 Ibid. 25 Ibid. 16
  16. 16. • People generally associate places with well-known landmarks. In Boston, everyone is familiar with the Citgo sign in Kenmore Square. A big neon chili pepper sign in highly populated areas and cities nationwide will help bring about brand recognition in communities. Since most of our consumers are aware of outdoor advertising, this will get their attention and keep them involved with Chili’s. • According to MRI+, most of our consumers attend Chili’s in the south and west regions of the United States. We will spend an equal amount of funding across the US to encourage people in other regions who wouldn’t normally attend a Chili’s and to keep our customers in the south and west coming for more. • Chili’s current slogan, “Spicealicious,” has been effective in delivering a simple, yet fun and zesty brand image. We feel that “Spicealicious” is fitting to the Chili’s creative concept, and it is too soon to change Chili’s slogan again. Specific Media: • By observing the types of magazines that our viewers read, we can infer that these publications will be the most effective considering our target reach: FHM (For Him Magazine), Elle, Cosmopolitan, Blender, Sports Illustrated, and Sports and Entertainment section of daily newspapers. • Similar trends in the types of magazines our consumers read are seen in the types of television channels being watched. Some channels that would reach our target audience include: MTV, VH-1, Comedy Central, Spike TV, FX, ESPN, E!, TBS, TNT, USA and Bravo. These channels target young teens, college students, young men and women who are interested in fashion, music, entertainment, and sports. • In our magazine ads, we will feature a print ad along with an ad that features our “Build Our Own Burger” sticker promotion. It will be an opportunity for dedicated Chili’s customers who read magazines that feature our ad to complete a promotional advertisement on top of the regular paper ad and receive a reward: a free burger with the purchase of another entrée. The sticker insert will be a little thicker than regular magazine pages, so that way it’ll stand out more and draw attention to that page every time the magazine is opened. • To make sure this “Build your own burger” sticker promotion starts a buzz, we want to also feature an ad in local newspapers. This special ad will be printed in black and white and will give participants the opportunity to gain a piece of the burger by printing one of the buns colored. This will work as a substitute to the sticker needed to participate in the promotion. • To gain more recognition, we will place a Chili’s neon sign in highly populated and lit up areas. These signs won’t necessarily be right near a Chili’s restaurant, but they will be noticeable and recognizable on the streets. Some examples of areas where a Chili’s sign would be advantageous would be along highways leading into major cities and busy squares in cities (Times Square, Kenmore Square). • The order in which our ad projects will receive priority funding will be: the commercial, the mall marquee ad, the magazine print, and the neon sign. The commercial is important because it brings humor to viewers by showing a cute scenario and brings the most movement in our product. Television ads are 17
  17. 17. memorable by hitting more of the viewers’ senses. The banner marquee is important because it’s located in a place where people are out of their homes and potentially want to dine out. According to primary research, location is an important factor of people’s decision; therefore, the mall ad is important because it is in the center of malls and is hard to miss. The magazine print shows that Chili’s is interactive and wants customers to get involved with promotional benefits. The neon sign can become a landmark for people within a community which makes Chili’s a more common word and reference. It will allow for brand recognition and identification. 18
  18. 18. Bibliography “Dining Out Review: Family/Midscale and Casual Dining – US.” Mintel Reports (October 2006). (accessed March 15, 2007). “Family Restaurants & Steak Houses: Bought At Last 6 Months Chili's Grill & Bar.” MRI Plus Reporter (Fall 2006). (accessed March 13, 2007). Knapp, Malcolm M. “Winter weather suppresses dinnerhouses’ sales, traffic in Jan.” Nation’s Restaurant News. (accessed April 3, 2007). Outback Steakhouse. (accessed April 5, 2007). Ruby Tuesday. (accessed April 5, 2007). The Cheesecake Factory. (accessed April 5, 2007). 19
  19. 19. Appendix 1: Chili’s Bar & Grill Survey Questions Age: ___<18 ___18-24 ___25-34 ___35-44 ___45-54 ___55-64 ___65+ Sex: ___Male ___Female Current Location (Region): How often do you dine out in a month? ___0-1 ___2-4 ___4-6 ___7+ How many times per month do you dine at Chili’s Bar & Grill? ___0-1 ___2-4 ___4-6 ___7+ What motivated you to go to Chili’s? (Check all that apply) ___Recommendation ___Advertisement ___Location ___Price ___Quality ___Other: When deciding on where to eat out, what did you consider? ___ Fast food ___Ethnic ___Take-out/Order-in ___More classy setting ___Other: What do you order when you come to Chili’s? Check all that apply ___Appetizer ___Entrée ___Dessert ___Alcoholic beverages Do you usually consume alcohol when you dine out? ___Yes, every time ___Sometimes, if I’m in the mood ___No, never What makes Chili’s different from other casual restaurants you dine at? Do you ever go to Chili’s just for the bar?_______ -If so, why? Do you dine at Chili’s when you’re on vacation?_______ -If yes, were the experiences consistent? Was it a good value for the quality of service and food? Why or why not? 20
  20. 20. Appendix 2a: U.S. systemwide sales of family/midscale and casual chain restaurants, segmented by cuisine type, 2004 and 2006. 26 2004 2006 Change (est.) 2004- 06 $million % $million % % All casual 35,042 69 39,925 71 13.9 Bar/Grill 17,536 34.3 20,266 35.8 15.6 Steak 7,009 13.7 7,744 13.7 10.5 Italian 4,447 8.7 5,189 9.2 16.7 Seafood 3,799 7.4 4,268 7.5 12.3 Ethnic 2,251 4.4 2,458 4.3 9.2 Midscale 16,121 31.5 16,744 29.5 3.9 Total 51,162 100.0 56,670 100.0 10.8 26 “Dining Out Review: Family/Midscale and Casual Dining – US.” Mintel Reports (October 2006). (accessed March 15, 2007). 21
  21. 21. Appendix 2b: U.S. systemwide sales of selected family/midscale and casual chains, 2003 and 2005. 27 Chain 2003 2005 Change % 2003- point 05 change $million % $million % % 2003- 05 Applebee’s 3,410 7.2 4,232 7.8 24.1 0.6 Neighborhood Grill & Bar Chili's Grill & 2,325 4.9 3,030 5.6 30.3 0.7 Bar Outback 2,433 5.1 2,599 4.8 6.8 -0.3 Steakhouse Red Lobster 2,429 5.1 2,440 4.5 0.4 -0.6 Olive Garden, 2,023 4.2 2,427 4.5 20.0 0.2 The Denny's 2,162 4.5 2,224 4.1 2.9 -0.4 T.G.I. 1,857 3.9 1,995 3.7 7.4 -0.2 Friday's 27 “Dining Out Review: Family/Midscale and Casual Dining – US: Supply Structure.” Mintel Reports (October 2006). (accessed March 15, 2007). 22
  22. 22. IHOP 1,676 3.5 1,971 3.6 17.6 0.1 Golden Corral 1,216 2.5 1,385 2.5 13.9 0.0 P.F. Chang's 465 1.0 675 1.2 45.3 0.3 China Bistro On the Border 376 0.8 420 0.8 11.7 0.0 All other 27,297 57.3 30,991 57.0 13.5 -0.3 Total 47,669 100.0 54,388 100.0 14.1 - 23
  23. 23. Appendix 2c: Average check size, per units sales, and number of units, selected leading family/midscale and casual chains, 2005. 28 Chain Number Number Checks Average Revenue of units of per check per unit checks unit size per year (est.) # million 000 $ $000 Applebee’s 1,804 393.7 218.2 10.75 2,346 Neighborhood Grill & Bar Denny's 1,503 296.5 197.3 7.5 1,480 IHOP 1,230 N/A N/A N/A N/A Chili's Grill & 1,022 248.8 243.4 12.18 2,965 Bar Outback 775 136.8 176.5 19 3,354 Steakhouse Red Lobster 647 139.4 215.5 17.5 3,771 Olive Garden, 562 167.4 297.8 14.5 4,319 The 28 Ibid. 24
  24. 24. T.G.I. 549 N/A N/A N/A N/A Friday's Golden Corral 476 N/A N/A N/A N/A On the Border 141 31.5 223.3 13.34 2,979 P.F. Chang's 135 36.5 270.3 18.5 5,000 China Bistro 25
  25. 25. Appendix 2d: Unit growth of selected family/midscale and casual restaurant chains, 2004-05. 29 Company 2004-05 2004 2005 2004-05 2004-05 Sales Units Units Unit Non-unit Growth Growth growth* % # # % % Chili’s Grill & Bar 11.1 927 1,022 10.2 0.9 T.G.I. Friday’s 10.2 530 549 3.6 6.6 Applebee’s 8.8 1,613 1,732 7.4 1.5 Neighborhood Grill & Bar Olive Garden, The 7.5 541 562 3.9 3.6 IHOP 5.6 1,186 1,230 3.7 1.9 Outback 2.4 756 775 2.5 -0.2 Steakhouse Denny’s 2.2 1,527 1,503 -1.6 3.7 Red Lobster 1.7 647 648 0.2 1.5 29 “Dining Out Review: Family/Midscale and Casual Dining – US.” Mintel Reports (October 2006). (accessed March 15, 2007). 26