3. Industry Analysis Competitive Intensity High Threat of New Entrants High Threat of Substitutes High Bargaining Power of Buyers Low to Medium Bargaining Power of Suppliers Low
5. Economic Conditions Consumer Confidence Consumer spending rates Employment Rates Economic recession created an all-time high average of 9.6% of population unemployed. Consumer sectors experiencing growth Creation of jobs
6. Political/Legal/Regulatory Political Issues 2010 Spielman Grid-Iron Games sponsorship Religious controversy Regulatory “Dram-shop” Statute liability Legal Nov. 5, 2008 BWW was sued under the “Dram-shop” statute. Held liable for death of young female
7. Changes in Technology Product Information Search 60% of restaurants maintain internet websites History, product offerings, online menus Consumers find restaurants by location search Comparison Shopping Applications Allow consumers information of calorie counts, ingredients for allergies, and prices
8. Changes in Technology Placing Order Decisions Consumers can place orders using online menus and smart phones Customer Relationship Management Electronic Paging Systems help manage party sizes. Improve customer service in peak times. Sales/Profits Tracking Determines which food products gain greatest revenue for restaurant and when to promote.
9. Sociocultural Trends Generation X The older the customer, the less likely they are to dine-out The younger segment of Baby Boomers has grown up to eating out often. This is creating change. Generation Y Individuals ages 18-24 eat/drink alcohol outside the home more than any other segment Prefer quick-service, casual restaurants that provide comfort and good value for their prices
10. Sociocultural Trends Demographic shifts impact BWW Product Rising popularity in finger foods Customers want to get in/out fast Pricing Consumer perceive price as indication of quality Distribution Wide distribution attracts customers and establishes loyalty Promotion Price sensitivity creates more promotional incentives
12. Who Demographics Males and Females 18-49 yrs old Middle class income level Geographic 652 restaurant locations 42 of 50 states in the U.S. Midwest and East Coast Psychographic Relaxed environment Social and bond with individuals over sports
13. Who Continued Purchasers Individuals who go into BWW locations and purchase the products Users Individuals who consume BWW products Influencers Family and friends Word-of-mouth Financially Responsible Party Head of the household Group of friends paying individually Group splitting the bill
14. What Purchase Choose products in store or through website Consumers Heavy Users: Purchase products for specific sporting events, signature sauces, and clothing/apparel Light Users: Purchase products when have specific craving for a type of cuisine Dispose To handle waste and reduce their carbon footprint, they need to start focusing on being more environmentally-friendly.
15. Where Restaurant Locations 652 Locations in 42 states Signature BWW sauces Signature cocktails and alcoholic beverages BWW gift cards Company Website B2C Order online Gift cards Hat/Apparel Drink glassware B2B Promotional Items
16. When Weekly Promotional Campaigns Wing Tuesdays Boneless Thursdays Yearly Promotional Campaigns TableGating Fantasy Blogger League Fall/Winter National, local, and regional sporting events broadcasted within BWW locations Customer Service BWW extended customer service house to increase customer convenience Special Amenities
17. Why (and How) Variety Wings to burgers to fresh salads 14 signature sauces Cuisine Popular dishes such as buffalo wings, buffalo chips and sandwich, “The Buffalio” Atmosphere Live sports games Traditional dart games, pinball machines
18. Why Not Cuisine Cleanliness BWW products designed to be eaten with hands rather than silverware Menu items are messy Wet napkins served with food Not suitable for special occasions (Ex: first date) Crowding Large crowds when popular sporting event is on The busier the restaurant, the louder the atmosphere , the longer customers have to wait Rowdy atmosphere with rivalry customers
20. Marketing Goals/Objectives “To WOW people everyday” Current Marketing Strategies Continuous growth & expansion Named one of top 10 fastest-growing restaurants and looking to expand globally Utilizing social media Provides customer with up-to-date special promotions when available Expands their marketing reach to new customers
21. Marketing Performance Sales/Profit In 2008, revenues rose 29% to $106.1 million Restaurant sales: 30% Franchise royalties & fees: 17% Healthy sales growth in past 2 years seen even with current recession. Initially only slight increases were seen Growth of Restaurants In 2008, over 500 restaurants were open They hope to expand to 1,000 in US territory alone
22. Current/Anticipated Organizational Resources Financial Conditions BWW has seen an increase in growth since recession 2008 $243,818 in current assets 2009 $309,073 in current assets THIS IS A $65,255 INCREASE Liabilities/stockholders’ equity has increased which is normal for recovering economy
23. Current/Anticipated Organizational Resources Pricing Strategies To continue to run operations, BWW needed to increase prices of their products Necessary to cover employee benefits, operational costs, and insurance coverage costs incurred Stock Availability BWW became a public company Nov. 20, 2003 Stock cannot be publically purchased. Only transferred using designated stock transfer agent: Continental Stock Transfer & Trust Company Cash dividends are not paid but reinvested back into company
24. Current/Anticipated Organizational Resources Organizational Layout Simple to cut costs and increase operational efficiency Food Operations Food operations simple to allow employees to prepare and cook food instead of a professional chef Reduces costs Mimic that of an assembly line to provide fast service to customers
25. Current/Anticipated Cultural & Structural Issues CEO: Sally Smith (1996) First served as CFO from 1994 to 1996 Oct. 8, 2010 she was rewarded the honor of being named Operator of the Year by Nation’s Restaurant News. Honor awarded to individuals with extensive leadership and achievement Business Model 40% company owned, 60% franchisee-owned Run business of established BWW brand name for exchange of 5% royalty fees
28. Strengths Variety of Buffalo Wing Sauce 14 different flavors allow variety Atmosphere Entertainment-based through flat screen TVs, bar area, games, and live sporting events shown Growth Named top 10 fastest-growing chains in the country. Over 600 establishments in 42 states. Brand Recognition Strong brand name gives advantage over smaller local restaurants. Provides brand familiarity.
29. Weaknesses Crowding High traffic during popular sporting events No Reservation System No guaranteed seating increases wait times on busy nights Absence of Healthy Choice Menu Healthy lifestyle trend is growing Inconsistent Customer Service Franchise owners only follow guidelines but can deviate slightly Busy nights increase wait times and decrease quality of customer service
30. Opportunities Include “Healthy Choice” Insert Provide menu choices under 500 calories and display fat content of each choice. Promotions can encourage customers to try new dishes. Online Reservation system Number of reservations can be tracked. Customer satisfaction surveys can track customer opinions. Expansion BWW offers restaurant locations in 42 states. They can expand to all 50 to increase visibility and market share.
31. Threats Economic Recession Economic recession has increased unemployment and created financial burdens to consumers and their families Consumers have reduced/eliminated spending at restaurant locations Competition There are many competitors and they are located close to one another to remain competitive Threat of new entrants in restaurant industry is high
32. Matching, Converting, Minimizing, Avoiding Strategies Opportunities Strengths Expanding BWW to all 50 states will introduce brand name to market segments and continue growth Adding “healthy choice” menu insert and expand their food variety to customers Weaknesses Opportunities/Strengths Provide detailed documents regarding specific operational performance expectations to streamline and create uniform customer service Create and implement their online reservation system
33. Matching, Converting, Minimizing, Avoiding Strategies Minimizing Threats BWW can increase efficiency of operations to maintain low prices of their products Continue to measure the effectiveness of their marketing efforts and promotional offerings Utilize customer opinion to create different promotional offerings
35. Marketing Goals/Objectives Marketing Goal A To increase market share Objectives Increase promotional marketing expenditures by 15% between 2010 and 2011. Market share will show an increase of 10% in 2012 at the end of fiscal year 2011.
36. Marketing Goals/Objectives Marketing Goal B To increase customer satisfaction Objectives The customer satisfaction ratings from customer satisfaction surveys will reach 85% by the end of fiscal year 2012.
37. Primary Target Market Demographics Consumers 16-55 years old 60% male, 40% female; all races Annual income: $30,000+ Psychographics Enjoys social gatherings, interested in sports, outgoing Geography Nationwide, resides in urban/suburban areas
38. Primary Target Market Purchase/Shopping Habits Wants meals of better quality than fast food but wants meal delivery to be faster than traditional table service Enjoys quality food at fair prices Will pay more for better food quality
39. Primary Target Market Consumption/Disposition Characteristics Heavy Users Attends restaurant frequently, watches sporting events frequently with friends and purchases BWW apparel Medium Users Purchases products few times/month and sometimes purchases BWW signature sauces Light Users Does not eat out of home often May dine at BWW out of convenience & food cravings
40. Primary Target Market Segmentation Criteria Identifiable & Measurable US Census has projected population of males and females ages 18-55 in 2010 has reached 158,347,000 people Growth Rate Projections of growth from 2010 to 2050 will steadily increase every 10 years Substantial Consumers will always dine out because of wants/needs Accessible Social media, commercials, direct-mail coupons, e-mails, website and internet information search. Responsive Social, fun and like to eat at casual dining restaurants
41. Targeting Strategy Company Marketing Mix Food products, BWW merchandise: apparel & drink glassware Market 16-55 yr old individuals of all races 60% male, 40% female
42. Positioning Strategy Price/Quality Menu items price average $10-$15/person Sit down restaurant Casual, fun, and relaxed atmosphere Product Attributes Food products and apparel offerings Promotional items are offered to franchise owners for marketing support Known for variety of BWW signature sauces
46. Product Action Plan Objective Introduce a BWW frozen food product line in grocery store chains Target Market Males and Females ages 16+ that want a meal fast with minimal effort Description of the Program The BWW frozen food line will come in three different sizes Product line will include popular appetizers and their buffalo wings Samples of sauces will be included
47. Product Action Plan Cont. Program Responsibilities MKT manager: contact local grocery store chains and notify them MKT associates: create 3 sizes of cardboard boxes with logo and pictures Factory workers: package and inspect products and overlook product production line Timing MKT project will begin contacting grocery stores by February 2011 Frozen food product line projected to be on shelves by May 2011
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49. Pricing Action Plan Objective To determine a fair price of BWW frozen food line. Price must be low enough to attract new customers to expand market share but high enough to be profitable. Target Market Males and females ages 16+ that want a meal fast with minimal effort. Description of the Program BWW frozen food product line will be priced significantly lower than prices within the restaurant Focus groups of 8-10 individuals will be conducted to determine fair prices Competitive offerings within grocery stores will be analyzed to determine competitive pricing strategies Sales will be monitored to measure effectiveness of price on consumers
50. Pricing Action Plan Cont. Program Responsibilities MKT associates will be responsible for setting up and conducting focus group sessions MKT sales associates will call grocery store chains for info on competitive offerings Sales will be tracked by grocery store chain owners using an inventory control system Timing Focus group results and competitive offering info will be done and collected by December 2010 Final price will be decided by January 2011
51. Pricing Action Plan Cont. Budget Focus group incentives: $500 Sorting/Analyzing data fees: $750 Total: $1,250 Control Price will be decided by January 2011
52. Promotion Action Plan Objective Offer taste tasting of the BWW frozen food product line Target Market All local grocery store consumers who are grocery shopping on specific days that a tasting is offered Description of the Program Testing will be conducted every other weekend for 6 months after product hits shelves Taste-testing stand will be set up near frozen food aisles of each local grocery store chain Coupons will be offered to customers who express an interest in purchasing from the product line
53. Promotion Action Plan Cont. Program Responsibilities HR associate: assign 2 employees to the taste-testing booth MKT associates: designed taste-testing booth and coupons Timing MKT associates will complete design of taste-testing booth by May 2011 Promotional efforts will begin once the frozen food product line this grocery store shelves in May 2011
54. Promotion Action Plan Cont. Budget Coupon design and redemption: $750 Printing costs: $750 Taste-testing employee wages @ $9hr/associate: $3,456 Total: $4,956 Control Taste testing in grocery stores will begin immediately once the BWW frozen food product line hits the shelves
55. Distribution Action Plan Objective To implement a delivery service to their customers. This will make their products more available to customers who cannot provide transportation to restaurant locations. Target Market All males and females who are unable to go to the restaurant due to no transportation or does not have the time to sit down and enjoy a meal in the restaurant Description of the Program Each BWW location will incorporate drivers to deliver food to customers GPS systems will be signed out from equipment log to drivers daily Drivers will be required to use their own vehicles to deliver food to customers
56. Distribution Action Plan Cont. Program Responsibilities HR: hire 5 delivery drivers for each BWW location Restaurant owners will contact Best Buy to purchase GPS systems Drivers are responsible for logging out GPS systems, returning them, and recording miles driven Timing Delivery drivers will be hired and GPS will be obtained by August 2011 Delivery service will begin September 2011
57. Distribution Action Plan Cont. Budget GPS costs: $500 Delivery driver wages $8/hr @ 5 employees: $1,600 Expected mileage and gas reimbursement: $8,500 Total fixed costs: $500 Total variable costs: $10,100 Control Delivery service will begin September 2011
65. Product Standards Taste between restaurant quality and frozen food quality will match. Smart phone application will need to increase sales by at least 5% one year from implementation. Corrective Actions Exact ingredients/spices In recipes will be changed Smart phone application will be removed
66. Distribution Standards Products will reach stores efficiently and on-time Corrective Actions Stock will be dependent on grocery store managers’ time of placing order If continual problems persist of running out of stock, IT will develop an automatic re-ordering system based on inventory counts
67. Price Standards Prices should increase market share by recommended change of 10% BWW will reevaluate and shutdown underperforming restaurant locations Focus/highlight a new competitive advantage to products in promotions to justify prices to customers Cut costs by increasing efficiency in operations
68. Promotion Standards Coupon redemption rates will increase Promotions will increase sales while still remaining profitable Corrective Actions Conduct surveys to pinpoint why customers are not taking advantage of promotional offers (Better promotions elsewhere, etc.) Create promotions based on customer feedback and measure success of each promotion to determine longevity.
