Applebees Metro


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A marketing plan in order to increase sales and awareness to an Applebees location in Queen, NY.

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  • Applebees Metro

    1. 1. Sky View Center InCrowd Agency
    2. 2. Executive Summary As Applebee’s hopes to increase revenue at its Flushing, Queens location,it is imperative for the company to understand the unique challenges they face.Consumers overall are spending less of their income dining out, directly impactingthe industry’s overall sales. In addition, the Sky View Center has been experiencinglower than anticipated sales on its’ apartment units, delivering far below projectedsales for Applebee’s as well. Along with these challenges, the surroundingneighborhood consists of a largely Asian community. Through extensive research ithas become clear that this demographic responds positively to outdoor advertisingand are active participants on social media sites. These platforms are vitalcomponents to the new campaign to increase future foot traffic into the Sky Viewlocation. By both incorporating the current Applebee’s positioning strategy, as astaple in any neighborhood, as well as appealing to the target demographics’lifestyles, the “Any time’s a good time” campaign was developed. By allocating alarge percent of the budgets provided to increasing awareness within the Tri-Statearea, and incorporating community driven below the line tactics, the InCrowdAgency strongly feels that Applebee’s will finally achieve the return on investmentthey are expecting. 2
    3. 3. Table of Contents PageOverview………………………………………………………………… 4SWOT Analysis………………………………………………………… 14Internal & Industry Trends………………………………………. 17Competition…………………………………………………………….. 23Target Demographic………………………………………………… 39Current Marketing Strategies…………………………………… 57Integrated Marketing Communications Strategy……….. 66Media Plan………………………………………………………………. 82Sources…………………………………………………………………… 95
    4. 4. Overview InCrowd Agency
    5. 5. History 2008: 1980: ServSafe The 1st 2002: Alcohol 1992: Applebee’s Award, for Applebee’s A.I.I. opened celebrates its best Alcoholwas opened in its 250th 1,500th service Atlanta, Applebee’s restaurant program Georgia 2005-2007: 2010: 1989: 1998: Applebee’s Applebee’s A.I.I opened The 1,000th expands into launched its its 100th Applebee’s is Ecuador, “revitalization restaurant opened Brazil, Jordan ” concept and China 5
    6. 6. History of the Brand• Good Food. Good People.  Applebee’s started with the same philosophy used today : “focus on serving good food to good people”  Restaurants began spreading across North America and has now expanded to over 2,000 locations and counting.• The 1st Applebee’s opened its’ doors in 1980 in Atlanta, Georgia.  Just 3 years later the Palmer’s sell their concept to W.R. Grace and Company.  In 1985 Applebee’s officially became a franchise. 6
    7. 7. The Franchise Growing• In 1986 the first Applebees franchise restaurant was opened in Kansas City.  In continuing in its great success Applebee’s started offering public stock (NYSE: APPB), now listed under NYSE: DINE  Opened its 100th restaurant in 1989.• 1998 Applebee’s opens its 1,000th restaurant in Aurora, Colorado• In 2002 “The Heidi Fund” is established:  A program that provided finances for Team members at corporate stores who find themselves in catastrophic life events.• 2010:  Launches 5 new “Better-for-you” entrees.  Introduces the first cocktail with fewer than 100 calories. 7
    8. 8. New Year. New Look.• Continuing in success Applebee’s launches the “revitalization” concept.  Featuring warmer colors, contemporary design, and decor specific to its surrounding neighborhoods.  Additional focus on service improvements as well as food and drink improvement. 8
    9. 9. DineEquity, Inc.• DineEquity owns, operates, and franchises two restaurant chains in the casual dining and family dining categories:  Applebee’s Neighborhood Bar & Grill  International House of Pancakes (IHOP)• DineEquity owns and franchises about:  2,010 Applebee’s restaurants  1,535 IHOP units  Store sales at Applebee’s rose by 1 percent over the past quarter while falling by 1 percent at IHOP  DineEquity has the ability to increase the amount of the required combined contribution to the national advertising fund and the amount required to be spent on local marketing and promotional activities to a maximum of 5% of gross sales. 9
    10. 10. Apple-Metro, Inc. Mission: To guarantee each and every guest the ultimate in casual dining experience by providing extraordinary service, delicious food and drink in a fun-filled and friendly atmosphere. Industries in which Apple Metro compete:• Casual dining• Restaurants• Bar and food services Top Competitors:• Brinker International, Inc (Chili’s)• Carlson Restaurants Worldwide (TGI Fridays)• Darden Restaurants, Inc (Red Lobster & Olive Garden) Locations: All Five Boroughs, Westchester, and Rockland Counties• Their portfolio currently includes 34 Applebee’s restaurants.• This year they opened an additional 3 locations: one in Yonkers, NY and two in Queens (Jamaica and Flushing).• The first Applebee’s opened in Staten Island in October of 1994. Since then, 32 more Applebee’s were opened that include the three largest Applebee’s® in the world which are located at 50th Street (NYC), 42nd Street (NYC) and Rego Park (Queens). 10
    11. 11. Queens• Queens is the second most populous borough in New York City• Incredible density of 750,000 people living within three miles of Sky View Center• Built-in customer base of 3,000 incoming residents on-site at Sky View Park above• Queens is most known for is diversity in restaurants, shopping and entertainment• Flushing also famously houses Citi Field home to the New York Mets 11
    12. 12. Sky View Center• Sky View Center is the second largest mixed use of development under construction in New York City behind Ground Zero.• Within 3 miles of Sky View theres over 750,000 residents in the area.• Easily accessible via car, train, subway and bus.• With plenty of retail stores consumers have endless possibilities of where to shop as well as eat. 12
    13. 13. Sky View Center 13
    14. 14. SWOT Analysis InCrowd Agency
    15. 15. Applebee’s Corporate Favorable Unfavorable Strengths: Weaknesses: • Advertising Powerhouse – Applebee’s is • Promotions are unclear the lead player in the national media • Only source of revenue are local residents scene and dominates network television,Internal cable, and sports • Already has an established customer base • Leads the restaurant industry’s casual dining segment • Strong brand portfolio and reasonable prices with special deals such as “2 for $20” Opportunities: Threats: • Incorporate/Integrate local events and • Other restaurants in the casual dining segment places as part of the restaurant such as TGI Friday’s, Chili’s, Olive Garden • Sponsor local community and sporting • Competitor’s with better deals and specialsExternal events • Performance of each restaurant depends on the • Include local memorabilia from nearby surrounding environment schools and universities • Local residents are the source of revenue • Can create more local jobs for residents 15
    16. 16. Applebee’s: Flushing Favorable Unfavorable Strengths: Weaknesses: • Applebee’s is heavily advertised throughout • Mall space restaurant - customers have to go into the mall with apple stickers and signs the mall in order to gain access to Applebee’s pointing to location of restaurant in mall • Flushing has a heavy Asian population – no • Contains local school and college separate menu in Mandarin, Cantonese, etc.Internal memorabilia • Banner hanging outside instead of a real sign • Local residents are employed • Cannot see Applebee’s outside of the mall • Only casual dining restaurant in the Sky • Dragon – fake decoration, out of place with View Shopping Center Applebee’s image; failed attempt to integrate • Grand opening event with local YMCA into the Flushing community • No specific target Opportunities: Threats: • Incorporate more local places as part of the • Other restaurants in Flushing liked by local restaurant’s promotions residentsExternal • Sponsor local community and sporting • No entertainment anchor events • Condominiums above Sky View are at minimal • Improve interior décor occupancy • Mall only has 50% occupancy in retail • Outside of the main shopping district – not on Main Street 16
    17. 17. Internal &Industry Trends InCrowd Agency
    18. 18. Trends in Spending • The recent recession has resulted in a decrease in American household spending. 2008 2009 2010 Percent ChangeAverage Annual Expenditures $ 50,486 $ 49,067 $ 48,109 -2.8 -2.0Food $ 6,443 $ 6,372 $ 6,129 -1.1 -3.8 Home $ 3,744 $ 3,753 $ 3,624 0.2 -3.4 Away $ 2,698 $ 2,619 $ 2,505 -2.9 -4.4Housing $ 17,109 $ 16,895 $ 16,557 -1.3 -2.0Apparel and Services $ 1,801 $ 1,725 $ 1,700 -4.2 -1.4Transportation $ 8,604 $ 7,658 $ 7,677 -11.0 0.2Healthcare $ 2,967 $ 3,126 $ 3,157 5.0 1.0Entertainment $ 2,835 $ 2,693 $ 2,504 -5.0 -7.0Cash Contributions $ 1,737 $ 1,723 $ 1,633 -0.8 -5.2Personal Insurance $ 5,605 $ 5,471 $ 5,373 -2.4 -1.8Other $ 3,376 $ 3,404 $ 3,379 0.8 -0.7 18
    19. 19. Lifestyle Trends The 2008 US economic recession enhanced the consumerism of necessity overluxury products and services. The recession introduce an increase in competitionwith any at home food products. Consumers viewed dining out as a luxury thatcould be sacrificed. To combat the at home dining experience, the Applebee’srestaurants introduced more frequent discounts through promotions. The growing concern of obesity in America has also changed the food serviceindustry in a few ways. Restaurants, including Applebee’s, are now offeringheather options on their menus. Applebee’s has introduced a partnership withWeight Watchers that is incorporated in the menu. Brand perception became morecrucial as these restaurants repositioned to be seen as a healthy dining experiencefor consumers. New York States legislation passed a new labeling act that nowforces all foodservices places to list the nutritional information of the product. The economic and industry changes have increased rivalry among competitorsin the food service industry. Casual dining restaurants must increase and improvetheir advertising and promotional strategies to remain competitive in the market. 19
    20. 20. Trends in Sales Total Revenue (in millions)1,800.01,600.01,400.01,200.01,000.0 800.0 600.0 400.0 200.0 0.0 2006 2007 2008 2009 2010 2011 • Increase in revenue from 2007 to 2008 as a result of the acquisition of Applebee’s • Decrease in revenue from 2008 through 2011 since the acquisition by DineEquity 20
    21. 21. Seasonal Factors Sales Revenue (in millions)350300250200150100 50 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 • Consistent increase in sales revenue from Q4 to Q1 throughout 2007 to 2011 • Consistent decrease in sales revenue overall from 2007 through 2011 • Quarter One months include January, February and March of the fiscal year 21
    22. 22. Trends of Growth Number of Applebee’s Locations18001600140012001000 The Company 800 Franchise 600 400 200 0 2007 2008 2009 2010 2011• Since the introduction of DineEquity, Applebee’s has dramatically decreased the number of company owned locations from 513 to 177 since 2007• Applebee’s locations from franchisers has consistently increased to 1,694 locations22 nationwide
    23. 23. Competition InCrowd Agency
    24. 24. Competition 24
    25. 25. Competition: Olive Garden• Owned by Darden Restaurants• As of May 30 2010: 748 Olive Garden® in U.S.• 10 restaurants within 50 miles of Flushing, Queens Location• Specializes in Italian-American Cuisine• Slogan: "When youre here, youre Family" Similarly to Applebee’s approach, Olive Garden is focusing on the neighborhood, specifically the idea of family, to lure in its costumers. They are focusing their advertising messages to create the image of Olive Garden as a place where families come together. Current promotions are their unlimited soup, salad, breadstick lunch for $8.95 and their three course Italian dinner for $12.95. Both are very popular for their great value. 25
    26. 26. Olive Garden Social Media 26
    27. 27. Competition: Red Lobster• Owned by Darden Restaurants• As of May 30 2010: 670 Red Lobster® in U.S.• 24 restaurants within 50 miles of Flushing, Queens Location• Specializes in Seafood, Steak, Chicken, Pasta• Slogan: “Fresh Fish. Live Lobster.” Red Lobster considers itself a mid level casual dining restaurant with its marketing niche focusing on costal New England. The menu is filled with seafood options with some choices of steak and chicken. Popular promotions include its yearly endless shrimp dish and currently its Lobsterfest where customers can choose from 12 different lobster inspired entrees. 27
    28. 28. Red Lobster Social Media 28
    29. 29. Competition: Ruby Tuesday• As of May 31 2011: 750 Ruby Tuesday® in U.S.• 12 restaurants within 50 miles of Flushing, Queens Location• Specializes in American dishes with a variety of burgers, steaks, appetizers, ribs, etc.• Slogan: “Simple Fresh American Dining.” Since 2007 Ruby Tuesday has been rebranding itself away from a bar and grill persona to a casual family dining experience. To attract customers it offers RubyTueGo® curbside service and a delivered-meals catering program for businesses, organizations, and group events. It has focused its marketing messages to highlight its brand new look by remodeling the restaurants to a more sophisticated look. In terms of promotions, Ruby Tuesday focuses on their more flavorful menu options. 29
    30. 30. Ruby Tuesday Social Media 30
    31. 31. Competition: Cheesecake Factory• As of Feb 23 2011: 150 Cheesecake Factory® in U.S.• 13 restaurants within 50 miles of Flushing, Queens Location• Menu is fairly large offering pizza, seafood, burgers, chicken, pasta, sandwiches, and dessert. The Cheesecake Factory created its casual dining niche by combining its bakery services with an eclectic menu and signature cheesecakes. Its unique dining experience draws consumers in attracting families from all over. 31
    32. 32. Cheesecake Factory Social Media 32
    33. 33. Competition: Chuck E. Cheese• As of May 2009: 542 Locations• 17 restaurants within 30 miles of Flushing, Queens Location• Concept is a sit down pizza restaurant with arcade games for kids. Chuck E. Cheese’s is recognized as a leader in family dining and entertainment: a place where “A KID CAN BE A KID”. With over 500 locations they entertain over 40 million kids and celebrate over 2 million birthday parties a year. 33
    34. 34. Competition: Five Guys• As of April 2011: Over 1000 locations• 46 restaurants within 25 miles of Flushing, Queens Location• Menu focuses on Burgers, Fries, and Hot Dogs. Although it has a limited menu, its appeal is in the food quality, use of local ingredients for its fries, and having a trans-fat free menu. The restaurant is styled to classic malt shop. 34
    35. 35. Five Guys Social Media 35
    36. 36. Competition: Popeyes• As of 2009: 1,539 Locations• 50 restaurants within 10 miles of Flushing, Queens Location• Menu focuses on Louisiana style cooking with fried chicken, biscuits, mash potatoes, and Cajun seasoning.In 2009, Popeyes introduced"Annie the Chicken Queen", afeisty, fictitious Popeyes chef who"tells it like it is". The character ismeant to be"honest, vibrant, youthful andauthentic" according to DickLynch, Popeyes Chief MarketingOfficer. “Everyone has a relative ora good friend who will give it tothem straight, and that’s whatAnnie is all about.” 36
    37. 37. Popeyes Social Media 37
    38. 38. Competition: Local Spots• In addition to major franchise and causal dining chains, local family owned restaurants are a common sight through out the Flushing Area. Applebee’s is directly competing with these establishments. As research shows an older, asian based community is more likely to eat at establishments that serve menus geared towards their personal cuisine.• Restaurants and Bakeries include (but are not limited to) : New Century Sun Way Joe Shanghai 38
    39. 39. TargetDemographic InCrowd Agency
    40. 40. Product Consumer DemographicTarget Given: Target Researched:Race – Asian American Race – Asian AmericanGender – males & females Gender – males & femalesAge – 25 to 49 years old Age – 21 to 49 years oldLocation – New York City Area (Flushing) Location – New York City Area (Flushing) InCrowd has expanded the target market to include the 21 – 24 year oldconsumers that are also likely to visit their local Applebee’s. These young adults are socialand likely to patronage the Applebee’s bar. The researched target is likely to be employedfull-time, presently married and have children under the age of 18. They also earn an annualincome between $30,000 – $100,000+. Asians 21 – 49 Presently married Earn $100,000+ Employed full-time Children Under 18 Sample 280 227 236 201 Weighted(000) 4,293 3,261 4,023 2,861 Vertical % 3.4% 5.5% 3.5% 4.0% Horizontal % 68.3% 51.9% 64.0% 45.5% Index 121 194 122 140 Total % 1.9% 1.5% 1.8% 1.3%
    41. 41. Product Consumer Demographic Asians 21 – 29 Full-time Student Children Under 18 Sample 88 1,122 Weighted(000) 1,064 11,587 Vertical % 23.7% 16.0% Horizontal % 4.0% 44.0% Index 199 135 Total % 0.5% 5.2%The youngest segment of the target is less likely to be employed full-time and 99 times more likely to be a full-time student. The segmentis 35 times more likely to have children despite the younger agerange. 44% of Asians 21 through 29 years of age have childrenunder the age of 18 years of age. The segment is in the early stagesof their careers and families. 41
    42. 42. Product Consumer Demographic Asians 30 – 39 Employed Full-time Earn $100,000+ Children Under 18 Sample 1,304 754 1,471Weighted(000) 13,585 6,629 12,291 Vertical % 11.7% 11.2% 17.0% Horizontal % 66.8% 32.6% 60.4% Index 127 122 185 Total % 6.1% 3.0% 5.5%This target segment is 85 times more likely to have children under theage of 18 years. Over 60% of Asians 30 to 39 years old have childrenunder 18 years old. The target is becoming more stable in their careersand earning a higher annual income. Almost 67% of Asians 30 to 39years old are employed full-time. This segment is 22 times more likelyto earn $100,000 or more annually. 42
    43. 43. Product Consumer Demographic Asians 40 – 49The oldest segment of the target is more established and stable. Thesegment is more likely to be employed full-time. The target is moreestablished financially and earn the highest annual salary of$250,000+ with a more established career. The segment is more likelyto have children, but their children are older than the other segments. Employed Full-time Earn $250,000+ Have Children Sample 1,884 211 1,965Weighted(000) 16,879 1,287 15,598 Vertical % 14.5% 16.5% 12.8% Horizontal % 74.5% 5.7% 68.9% Index 142 162 126 Total % 7.6% 0.6% 7.0% 43
    44. 44. Target Demographic Population Queens, New York Population Table 1. Annual Estimates of the Resident Population for Counties of New York: April 1, 2010 to July 1, 2011 Population Estimates April 1, 2010 Geographic Area (as of July 1) Census Estimates Base 2010 2011Queens County 2,230,722 2,230,722 2,233,895 2,247,848 Local Flushing, Queens Population Geographic Area Population Percentage of Estimate Queens Pop. Flushing, Queens 750,000 33.4% 44
    45. 45. Target Psychographics General Lifestyle The target is very health conscious. They are 22 times more likely to agree that, “Nutritionalvalue is the most important factor in what foods I eat” and “Usually I am quick to try a new nutritionalproduct.” The target is more likely to be the first among their friends to try a new food product and arecurrently dieting. This target is both a leader and a follow. Simmons research shows that the target is 66times more likely to agree to the statement, “I am easily swayed by other people’s views.” The youngest segment, Asians 21 – 29 are 20 times more likely to agree to the samestatement. They are also 62 times more likely to agree that “My friends are more important to me thanmy family.” Therefore, a family oriented restaurant may only be found appealing by becoming a sociallocation to spend time with friends and co-workers. Asians’ lifestyle coincides with the target’s psychographics. Asians are 22 times more likelyto agree that, “Eating fattening foods makes me feel guilty.” Asians 21 – 49 Asians 21 – 29 Easily swayed First of friends Friends are by other to try new more important people’s views food products than my family Sample 105 95 291 Weighted(000) 1,827 1,605 3,548 Vertical % 4.7% 4.0% 19.3% Horizontal % 29.1% 25.5% 13.5% Index 166 143 162 45 Total % 0.8% 0.7% 1.6%
    46. 46. Target Psychographics Attitudes on Sports Males and 21 to 49 year olds are very likely to participate in fantasy sportsleagues alongside the target. Asians 21 to 49 are more likely to buy products fromcompanies that sponsor sports teams and sports events. The youngest segment is 20 times more likely to feel the same way. Theyare also 81 times more likely to participate in fantasy sports leagues. Asians 30 to39 years old are 71 times more likely to participate in fantasy sports leagues. Buy products More likely to from companies participate in fantasy that sponsor sports sports leagues Sample 75 397 134 135Weighted(000) 1,115 4,010 2,163 1,576 Vertical % 4.0% 14.2% 21.5% 15.7% Horizontal % 17.7% 15.2% 8.2% 7.7% Index 140 120 181 171 Total % 0.5% 1.8% 1.0% 0.7% Asians 21 - 49 Asians 21 - 29 Asians 30 - 39
    47. 47. Target Psychographics Attitudes on Dining The target is likely to attend a family restaurant, like Applebee’s, with othersincluding: children under 12 years old, friends and co-workers. Appearance matters to thetarget. They are 120 times more likely to prefer food that is presented as an art form. Theyare not likely to sit down to a meal together at home, so Applebee’s has an opportunity tobring the family together in public. Also, the target is 22 times more likely to try new drinks.New non-alcoholic and alcoholic beverages may be found appealing to the target. Asians 21 to 29 years old attend family restaurants with children under 12, friendsand co-workers. Asians 30 to 39 years old are 118 times more likely to attend a familyrestaurant with children under 12. This segment and Asians 40 to 49 are also likely toattend family restaurants with teens. Asians 21 – 49 Attend Attend Prefer Food Rarely Sit With More Likely Down to a With Friends/Co that is Meal Children to Try New -Workers Presented Together at Under 12 as Art Form Drinks Home Sample 106 79 120 134 85Weighted(000) 1,524 1,397 2,045 2,468 1,641 Vertical % 3.9% 3.5% 6.2% 3.5% 3.6% Horizontal % 24.2 22.2 32.5 39.3 26.1 Index % % % % % Total % 137 122 220 122 126 0.7% 0.6% 0.9% 1.1% 0.7%
    48. 48. Target Psychographics Attitudes Towards Applebee’s According to Simmons research Apple Metro’s New York City locations favorApplebee’s compared to the average competitor. New Yorkers are 26 times more likely tovisit Applebee’s than the average. New Yorkers are repeat customers throughout the year.They are 43 times more likely to visit Applebee’s 3 to 4 times in the last 12 months. Thepopulation within the New York Metro geographic area is 20 times more likely to visitApplebee’s. New York DMA Likely to Visit Applebee’s Visit Applebee’s 3-4 times Sample 471 63 Weighted(000) 3,593 372 Vertical % 23.2% 2.4% Horizontal % 8.8% 10.0% Index 126 143 Total % 1.6% 0.2% New York Metro Sample 373 Weighted(000) 2,748 Vertical % 22.1% Likely to Visit Applebee’s Horizontal % 6.8% Index 120 Total % 1.2% 48
    49. 49. Target Demographics Media Usage The target is most likely to be found on the internet. Asians 21 to 49 yearsold are 74 times more likely to visit Facebook and 48 times more likely to visitsports websites. This type of website may include:,,,,, and The 21 to 49 year oldpopulation is more likely to be found visiting Facebook,,, and sports websites. The youngest target segment is 112 times morelikely to visit Facebook. Asians 21 - 49 Visit Facebook Visit Sports Website Sample 62 65 Weighted(000) 1,190 1,320 Vertical % 4.9% 4.2% Horizontal % 18.9% 21.0% Index 174 148 Total % 0.5% 0.6% 49
    50. 50. Target Demographics Attitudes Towards Ads The target is receptive to outdoor advertising. Asians 21 to 49 years oldare likely to notice bus shelter/bench, bus stop, train, taxi, bus interior and exterioradvertisements. The target is not receptive to radio advertising as they only listento radio for quick updates. Also, Asians 21 to 29 are 30 times more likely andAsians 30 to 39 are 47 times more likely to notice subway train/platformadvertisements. Asians 21 – 49 Notice Notice Bus Notice Ads Notice Ads Notice Ads Bus Ads Stop Ads On Trains On Trains On Trains Sample 87 114 110 132 103Weighted(000) 1,688 2,129 2,004 2,385 1,905 Vertical % 4.7% 6.3% 7.9% 5.3% 7.4% Horizontal % 26.9% 33.9% 31.9% 37.9% 30.3% Index 166 222 280 187 259 Total % 0.8% 1.0% 0.9% 1.1% 0.9% 50
    51. 51. Target Consumer Profiles The Young Socials Ages 21 to 29 – The female target visits Applebee’s for: • Full meals & drinks with their friends • Lunch & dinners among friends and co-workers 51
    52. 52. Meet Alice Profile Highlights Name Alice Age 22 Location New York, NY Occupation Entry-Level Assistant Annual HHI $35,000 Marital Status Single Children None Alice is a Chinese American residing in Flushing, Queens. She is a recentcollege graduate working in her first full time job as an entry-level assistant inMidtown Manhattan. She enjoys a relaxing evening with her friends over a fewcocktails and dinner. While at Applebee’s, Alice takes advantage of the half offappetizers for an economical night out in her local neighborhood after a long day’swork. 52
    53. 53. Target Consumer Profiles The Families Ages 21 to 49 visit Applebee’s:• With children under 12 to teenager• For early for dinners and lunches• For shopping at the Sky View Center• For a family event, sit down & full meals 53
    54. 54. Meet Kim & Jeremy Kim and Jeremy enjoy each other and theirtwo young children. The couple works hardduring the week at their current jobs as theymove forward from the beginning of theircareers. Together, their annual income providesa comfortable living in New York City. Theyoung family enjoys a quite lunch at Applebee’stogether as they finish an afternoon ofshopping at the Sky View Center. Profile Highlights Name Kim Jeremy Age 27 31 Location New York, NY Occupation Coordinator Analyst Annual HHI $105,000 Marital Status Married 54 Children Two
    55. 55. Target Consumer Profiles The Sports Fanatics Ages 21 to 49 – The male target visits Applebee’s:• To enjoy the sports game at the bar• To consume alcohol and appetizers on the weekends and game nights 55
    56. 56. Meet Charles The sports fanatics are dominantly male. Charlesenjoys supporting the various New York sports teamsthroughout the year. In the fall, Charles cheers for theNew York Giants at the Applebee’s bar with hisbuddies who support the New York Jets. In the springtime, Charles roots for the New York Yankees, thenthe New York Knicks. Applebee’s is an outlet forCharles to enjoy all of his favorite local teams in asupportive and fun environment. Profile Highlights Name Charles Age 42 Location New York, NY Occupation Senior Vice President Annual HHI $200,000 Marital Status Married Children None 56
    57. 57. CurrentMarketingStrategies InCrowd Agency
    58. 58. Advertising Expenditures 0.3% Spending ($000) 0.1% 0.004% 1.5% Newspapers Natl Newspapers Outdoor Network TV 28.9% Spot TV Syndication 54.4% Cable TV9.8% National Spot Radio 5% Total: $140,087,400 58
    59. 59. Current Positioning There’s No Place Like The Neighborhood Respecting our Neighborhoods• Applebee’s has saved 831 trees• Applebee’s has conserved 18,569 gallons of oil• Applebee’s has conserved 342,055 gallons of water Supporting our Neighborhoods• A partnership with Alexs Lemonade Stand since 2005 to raise $1.2 million• A partnership with Make-A-Wish Foundation to raised $300,000 in 2008• A partnership with The V Foundation for Cancer Research in 2008 to raise more than $120,000 in donations 59
    60. 60. Current Menu PromotionsNeighborhood Favorites• 2 for $20• Weight Watchers®• Ultimate Trios• Sizzling Entrees• Under 550 Calories™• Pick N Pair ® Lunch 60
    61. 61. Free Parking• The five hours free parking offers theircustomers an incentive to come eat at theFlushing Apple Bee’s because then theywill be able to shop in the mall orsurrounding area and park for free.• It’s a great way to promote therestaurant by letting their customersknow they are giving them free parkingwhile they are eating as well as havingextra time to doing some shoppingafterwards. It shows the customer thatthey really care about their needs andwants. 61
    62. 62. Y Wednesdays• Is another great way to promote and get morecustomers in the door. It also shows howdedicated they are to their community. Byoffering to donate 5% of the proceeds to thelocal YMCA in flushing and the customer alsogets 5% off their check when they show theirYMCA card.• How it works is only on Wednesdays theApple Bee’s Restaurant in Flushing will donate5% of the proceeds to the YMCA to support thelocal community programs. Also the customerwill get 5% off their check as well when theyshow their card. It is a win win situation foreveryone the Restaurant, the YMCA, and thecustomer. 62
    63. 63. Facebook Overview• 76 people “Like” the page• 9 albums including “Chinese New Year Celebration” and “Grand Opening VIP”• Displays events and contact information as well as price range• Link to an email signup• Cover photo of Military Appreciation Month• Promotes specials for holidays 63
    64. 64. Current Online Promotions “Whos joining us on Cinco de Mayo?• Featuring a fun "fiesta menu" along with our regular menu! Come celebrate with your favorite neighbor!”• Updated their status for Cinco de Mayo on the weekend of May 5th• Highlighted their “Fiesta Menu” and told customers to add a Dos Equis beer with their meal 64
    65. 65. Current Online Promotions“Treat Mom – no reservations needed”• Status update for Mother’s day on May 13th• Promotion offering a certificate of a free appetizer or dessert for next visit“Come watch with us tonight.”• Hosting the UFC fights on their TV’s to get people to come watch it there 65
    66. 66. IMCIntegrated Marketing Communication Strategy InCrowd Agency
    67. 67. Marketing Objectives To To increase increase sales and patronage customer traffic to the for the Flushing, Applebee’s New Queens – Sky York Metropolitan View location locationsIncrease the Applebee’s Corporate goals of community outreach to the Flushing, Queen location 67
    68. 68. Advertising Objectives To advertise effectively toTo increase sales of the Apple receive a return on investmentMetro locations by $3,000,000 of 100% or more to cover the total $2,040,000 in advertising costs To increase awareness ofTo increase awareness of your discounts and promotions presence in the community offered at each location Engage the Flushing, Queens Place advertisements to directcommunity using below the line potential customers to the Sky advertising tactics View location 68
    69. 69. New CampaignAny time’s a good time IMC 69
    70. 70. Key InsightAdults 21 to 49 have decreased their spendingin dining out because of financial constraintsand the perception that dining out is a luxury.The population in the Flushing, Queens area is seeking more value and service for their patronage. 70
    71. 71. MessageChoose Applebee’s when you decide to dine out because Applebee’s providesdiscounts and promotions worth taking advantage of and has an increased presence and vested interest in the success of your community. 71
    72. 72. Umbrella Idea To show situations where the target is enjoying their experience at Applebee’safter taking advantage of the promotional deals and community outreach opportunities that the company has to offer. 72
    73. 73. Reason to Believe Applebee’s provides consistent daily valuethrough their promotions such as 1 appetizer and 2 entrees for $20, Pick ‘N Pair Lunches, and other promotional discounts. Applebee’s Flushing, Queens location provides yearly community outreach to the local YMCA. 73
    74. 74. Sample: Young Social• Appealing and reaching all females 21 to 49 years old• Your target is noticing this placement for effective media placement 74
    75. 75. Sample: Families• The billboard reaches all families 21 to 49 years old with children• The advertisement tugs at the heart strings of parents in the Applebee’s community 75
    76. 76. Sample: Sports Fanatic• This placement reaches the dominantly male target, Sports Fanatic• Through the use of humor appeal, this placement will generate recall 76
    77. 77. Subway & Billboard PlacementOutdoor Billboard Subway Interior 77
    78. 78. Bus Placement 78
    79. 79. Metro Card Giveaways Any time’s a good time to get a free ride.Distribute 2,000 one waysubway passesOn designated 7 Subway trainline stopsDistribute 500 passes at twosubway stations in April 2013and August 2013 79
    80. 80. It’s On Us Tonight. Objective: Increase sales in the Flushing Queens Location• Using Facebook and Twitter, customers are encouraged to send in their stories and photos about their upcoming celebrations. Each month one participant will be selected and have a evening of fun and memories on us.• The contest will be launched over a specific time frame during each month, targeting certain holidays including Mother’s Day, Father’s Day, Graduation season, Valentine’s Day, etc. 80
    81. 81. Making A Difference. Using Foursquare and YouTube, employees will taketurns being brand ambassadors. Each quarter they will teamup with a local school or organization to improve thecommunity they live in. Stories and videos will be posted onApplebee’s own YouTube Channel. Volunteers who check inusing foursquare can receive special promotions and offersthey can redeem at Applebee’s Sky View. 81
    82. 82. Applebee’s Foursquare Any time’s a good time to check into Foursquare. We’ve created an exclusive Flushing Foursquare badge• “Local Neighborhood VIP”• Check into 5 different locations to unlock• Receive 10% off your bill when unlocked The badge is flexible and adjustable• Check-in and get a free appetizer (1 per table)• Check-in 5 times and get a free desert (1 per table)• Check-in and sample our new signature drinksThe launch and facilitation of the new badge and special deals and promotions will increasetraffic and sales for the Flushing, Queens location. There is a potential and opportunity toimplement this social media tactic to the Apple Metro locations upon a successful 82introduction.
    83. 83. Sponsorships YMCA Any time’s a good time to get involved.• Located in Flushing Queens on 14480 Barclay Ave, Flushing, NY• Provide programs for families in the local area with sports and childday care services• Continue to contribute 5% of the YMCA member’s total bill 83
    84. 84. Sponsorships Bayside Little League Any time’s a good time to get involved.• A local little league baseball team in Flushing, Queens• Club house is located at 25-50 Francis Lewis Boulevard P.O. Box 610054 Bayside, NY 11361• There are 3 different age groups which are: 1. Ages 5,6,7 2. Ages 8 through 14 3. Ages 15+• The sponsorship will include financial assistance to pay the registration and fees for each team member• Applebee’s will also assist with equipment, travel and other expenses• Applebee’s can provide branded water bottles to support the team and promote the Flushing location 84
    85. 85. Sponsorships College Point Roller Hockey Any time’s a good time to get involved.• A local roller hockey league that is offered to girls and boys ages 5 to 17 years old• The sponsorship will include financial assistance to pay the registration and fees for each team member• The sponsorship will assist with equipment, travel and other purchases• Applebee’s can provide branded water bottles to support the team and promote the Flushing location 85
    86. 86. Media Plan InCrowd Agency
    87. 87. Media Objectives • To create regional • Increase customer awareness of the traffic to the Flushing & Apple Flushing location Metro locations through sponsorships within the New York with local sports Metro population teams and local throughout 2013. advertisements. Create Increase awareness traffic Promote Engage the deals• Promote the current • Promote the discounts and engagement of the promotional local offerings of the Flushing, Queens Apple Metro community locations. 87
    88. 88. Media Strategy Place outdoor advertisements around the New York Create Metropolitan area to promote the Apple Metro restaurant locations and Flushing, Queens location. The Awareness outdoor advertisements will provide the necessary impressions needed to provide leads to sales. The increased awareness will lead to more traffic to the Increase locations. The MTA giveaway will provide an incentive to travel to the location. The local sponsorships will Traffic encourage local attendance to support their local sports teams.Promote the The social media tactics will promote the current deals for consumers. The additional social media will deals promote new discounts to users of Foursquare. Create local partnerships with the local community through sponsoring little league baseball, hockey and Engage YMCA. The sponsorships will assist the local community and promote Applebee’s.
    89. 89. Apple Metro Budget Overview 2% Total Budget - $2,000,000 8% 19% Billboards Bus Exterior 26% 7% Bus Stops Subway Stations Subway Interior Taxi Tops 27% Unexpected Costs 11%• The entire Apple Metro budget is focused on outdoor advertising• The Apple Metro target from Long Island, New Jersey, New York State, and New 89 York City will be reached by the media placements
    90. 90. Flushing Budget Overview Total Budget - $40,000 Sponsorships 35% Below the Line 50% Social Media Promotions 15%• Sponsorships include the registration, fees, equipment and other expenses to sponsor 4 local sports teams for children• Below the Line includes the 2,000 one way MTA subway tickets and their printing costs• Social Media Promotions include the costs to participate with the media and the free promotions offered to consumers 90
    91. 91. Flowchart January February March April May June July August September October November December CostMedia Selection 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 # (000) Outdoor $2,000 Billboards 16 $384 Bus Exterior 5 $135 Bus Stops 10 $540 Subway Stations 20 $228 Subway Interior 4 $528 Taxi Tops 50 $150 Social Media $14 Foursquare 1 $3.5 YouTube 1 $3.5 Facebook 1 $3.5 Twitter 1Below the Line $6 MTA Giveaway 2 $6 Sponsorships $20 Bayside Little 3 $12 LeagueCollege Point Roller 1 $4 Hocker YMCA 1 $4
    92. 92. Decision Dates Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec.Mediums 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013Billboards 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 Bus 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 ExteriorBus Stops 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 Subway 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 Stations Subway 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 InteriorTaxi Tops 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12• All outdoor buys will be long term buys• These advanced buys will secure advertising placement in the New York DMA• The long term buys are also more efficient than short term buys 92
    93. 93. Billboard Selections & Rationale From January 2013 trough December 2013, we will place 4 billboards per monthfor 12 months along the Long Island Expressway (LIE), Brooklyn Queens Expressway (BQE),Cross Bronx Highway and Lincoln Tunnel. The 16 placements will cost $2,000 perplacement for a total of $32,000 per month. The year’s budget for billboards is $384,000. These four major highways were selected because of their vast reach within theApple Metro territory. The highways will reach commuters and travelers from New YorkCity, New York State, Long Island, and New Jersey. The consistency throughout the year oneach roadway will guarantee ample impressions and increase awareness of Applebee’spresence in this area. Billboard Average Daily Monthly Cost Per Monthly Frequency Impressions Placement of Placement Long Island 280,000 $2,000 4 Expressway Brooklyn Queens 280,000 $2,000 4 Expressway Cross Bronx 280,000 $2,000 4 Highway Lincoln Tunnel 280,000 $2,000 4 93 Total - $384,000
    94. 94. Bus Stops & Exterior Selections & RationaleBus ExteriorRecommendation bus lines include:• Q20a/b – Main Street/Union Street/20 Avenue• Q25 – 127th Street – Kissena Blvd – Parsons Blvd• Q34 – Willets Point Blvd – Kissena Blvd – Parsons Blvd• Q44 – Main Street/Cross Bronx Svc Rd/LimitedThese bus routes travel within close proximity of the Flushing Queens location. The target is likely tonotice these ads and will be in the local area of Flushing. Average Daily Cost Per Monthly Impressions Per Placement Frequency Total - $135,000 Placement $4,500 5 72,756Bus StopsRecommended bus stops include any stops made by the bus exterior selected routes Average Daily Cost Per Monthly Impressions Per Placement Frequency Total - $540,000 Placement $4,500 10 72,756 94
    95. 95. Subway Stations Selections & Rationale The recommended subway stations to include Applebee’s advertisinginclude: Penn Station-34th Street, Grand Central-42nd Street, Main Street-Flushingand Fulton Street. Other subway lines should be included: 2, 3, 4, 5, 7, A, C, Q and R.These examples will reach across the 5 boroughs and commuters from the NJTransit, Amtrak, LIRR and Metro-North train lines. Average Daily Cost Per Monthly Impressions Per Placement Frequency Placement $950 20 72,756 Total - $228,000 95
    96. 96. Subway Interior & Taxi Tops Selections & RationaleSubway InteriorRecommendation subway lines include: A/C, Q/R, 2/3, 4/5 and 7These subway lines will run for 3 months per line throughout 2013. Each line will alternate to providecoverage for the entire year. The various recommended lines will reach the 5 boroughs and commutersfrom New Jersey, New York State and Long Island. One entire train per line will be completely coveredwith Applebee’s advertisements for a cost of $44,000 per train. This includes the 10 cars per train. Average Daily Total Cost Per Monthly Impressions Placement Placement Frequency Per Total - $528,000 Per Line Placement $4,500 4 3 72,756Taxi TopsUtilizing taxi tops will reach the walking population and those who commute using taxis. We will select50 new taxis each month to place taxi top advertisements to maximize the reach to consumers of theNew York DMA. Average Daily Cost Per Monthly Impressions Per Placement Frequency Total - $150,000 Placement 96 $500 50 72,756
    97. 97. Below the Line Selections & Rationale Queensboro Plaza Mets-Willets Point 74 Street-Broadway Flushing-Main Street• In April 2013, we will distribute 500 one way Metro Cards at Queensboro Plaza and Mets-Willets Point subway stations in the northbound direction• In August 2013, we will distibute 500 one way Metro Cards at 74th Street-Broadway station in the northbound direction and Flushing-Main Street station 97
    98. 98. Results Return on Additional Additional Investment Sales Visits 224% $4,740,246 278,838• Increased traffic to Apple Metro locationsUsing the conservative average of 72,756 daily impressions per placement, a total of2,788,373,700 impressions are to be expected by the end of 2013. 72,756 daily impressions x 105 placements = 2,788,373,700 total impressions• Additional Applebee’s visitsUsing the percentage of leads for direct mail and click through rates, a conservative leadpercentage of 0.01% was determined. Therefore, 0.01% of the total impressions should leadto visits to Apple Metro Applebee’s restaurants 2,788,373,700 impressions x 0.0001 = 278,838 visits• Increase in SalesUsing the average bill per customer , $17.00, that was provided, we can configure theexpected increase in sales for 2013. 278,838 visits x $17.00 per visitor = $4,740,246• Return on Investment 98$4,470,246 sales / $2,000,000 cost of advertising = 2.235 or 224%
    99. 99. Sources InCrowd Agency
    100. 100. SourcesHistory, Trends, & Current Marketing Strategies••••••,_Inc._(DIN)/Marketing_Advertising• applebee%E2%80%99s/•• also-anentrepreneur.html?pagewanted=1&_r=1&ref=applebeesinternationalinc•• B/5?accountid=13044Target Analysis – Simmons Choices 3Media Rates, Impressions, ROI and Sales• Clear Channel Outdoor Rate Card – planning-guide/2010-11-eyeson-rates.pdf• Blue Line Media – 100
    101. 101. Thank you. InCrowd Agency