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PROPOSED MEDIA PLAN FOR SONIC, Q1 2013
Angelique Abramowicz, Kevin Crittenden, Austin Krivanec, Taylor Hyslop, & Faryn Wooten-el FIVECOM
Agenda
• Executive Summary • Situation Analysis • Marketing and Advertising Objectives • Creative Strategy • Media Objectives • Media Strategy • Appendix
Executive Summary The fast food industry is one of the largest and most competitive industries in the United States. While dominated by select few giant corporations, each chain offers its own personality and brand to consumers. Sonic’s quirky brand image and unique drive-in dining experience has proved to be a successful franchise in the United States.
While Sonic’s current slogan is “America’s Drive-In”, the Sonic chains have yet to successfully expand into the northern U.S., despite thriving in the south. With recent financial growth, Sonic is looking to expand northwards. This plan has laid out the strategies and paths that it would take to successfully expand into the northern market.
Sonic is strong because it is a recognizable brand by its roller-skating waitresses and its colorful drive ins. It offers a unique menu full of customizable foods and memorable treats. One strength that Sonic has is its menu and that is specific to its brand. While many other large fast-food chains offer fries and chicken nuggets, few offer iced slushies, cheese curds, or carefully crafted milkshakes. Its weaknesses are that it is mostly known in the southern U.S., leading to low national brand recognition. There are opportunities for Sonic in entering into this new market but this could be threatened by the established brands of fast-goof that have been around for many years.
Sonic’s individual brand will help us break into a new market and achieve our marketing objective of increasing Sonic's overall sales in the northern United States. Increase Sonic's overall sales in the northern United States. Our advertising objective of increasing awareness among our target audience of young mothers and college students in the northern United States will be achieved by carefully choosing media that these audiences use regularly. Our media objective is to achieve minimum 85% reach and 3.1 frequency among young mothers and college students in the specified northern United States region during the first four months of the campaign, from March 2013 through July 2013 (peak season).
Below you will find FIVECOM’s media plan of how Sonic will infiltrate the northern U.S. and our target markets of young mothers and college students.
Situation Analysis
1. Client Overview 2. Competitive Environment 3. Advertising and Media Analysis 4. Key Consumers 5. Seasonal and Geographic Factors 6. SWOT Analysis
Client Overview
Sonic falls into the very competitive Quick Serve Restaurant Industry. The restaurant can be classified as a “burger and dog” type of place, but one special aspect separates Sonic from the rest. Since its start in the 1950’s, Sonic has maintained a high level of customer service thanks to its drive-in style dining and roller-skate-wearing carhops. Sonic is the largest chain of drive-ins in the US and its business has steadily grown since its start more than fifty years ago. Sonic began in the southern US and
only recently has begun to spread out to other geographic areas, specifically the northern states from Washington to
Wisconsin. Other characteristics that separate Sonic from its competition, aside from the drive-in experience, include unique
menu items and made to order food preparation.
Situation Analysis 1
Competitive Environment Situation Analysis 2
Category
Trends
Competitors
Competitive Environment
Category: Quick-service Hamburger Chain
The U.S. foodservice industry is a highly competitive business in terms of price, service, location and food quality. Last year, the top 15 fast food chains in the nation raked in a combined $115 billion in sales and quick-service hamburger chains reached 174 billion. Yet, the industry remains under constant pressure in the current economic downturn, which has negatively affected consumer’s disposable income. Operators are reporting declining traffic as consumers dine out less or eat at home, which leaves competition fierce with respect to price, service, location and concept in order to drive traffic while gaining profit.
Situation Analysis 2
Competitive Environment Situation Analysis 2
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2011 Sales (in billions)
McDonald's
Wendy's
Burger King
Sonic
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1.) McDonald’s • Opened in 1948 • 5% sales increase • Opened up 71 new locations and appointed new CEO
2.) Wendy’s • Opened in 1969 • 2% sales increase • Recent marketing overhaul boosted Wendy’s to the #2 spot
3.) Burger King • Opened in 1950 • 4% sales decrease • Burger King was surpassed by Wendy’s and now ranks third
4.) Sonic • Opened in 1954 • % SALES INCREASE/DECREASE? • Saw an increase in sales despite closing a number of
locations
Advertising & Media Analysis Situation Analysis 3
• Highly recognizable “I’m lovin’ it” slogan
• Caters towards families and young adults cross culturally
• Recent trend toward healthier menu options like salads and apple slices
• Recent emphasis on healthy, fresh ingredients
• No longer using “The King” as mascot
• Target more towards young men than competitors
• Unique drive-in experience
• Strong customer loyalty
• Customizable menu options
• Push towards healthy, real food
• “Burgers made from fresh, never frozen beef”
• Highlight healthy menu options, like salads McDonald’s Wendy’s
Burger King
Sonic
Qualitative Media Analysis
Advertising & Media Analysis Situation Analysis 3
Quantitative Media Analysis
• Overall Share of Voice: Sonic is ranked 9th among their top 15 competitors at 4.0% - They are 1.0% behind Domino’s and 0.7% ahead of Papa Johns.
• Network TV: Sonic is fourth to last with SOV of just 1.4%, even though they are spending 10.3% of their advertising dollars in this category.
• Spot TV: Sonic has the fourth highest SOV of 8.1%, just behind Jack-in-the-Box, which has an SOV of 8.8%.
- This high ranking comes at a price, however, as 46.6% of their ad dollars are spent on this category.
• *They are tied with Dairy Queen for 9th highest SOV with 4.2% • *They only have 0.5% advantage on Papa John’s, yet the next highest competitor is 3.4% ahead
of them (KFC, 7.6%) • *25% of their ad dollars are being used to focus on this category, and quite the increase
would need to take place in order for them to overtake KFC for the 8th highest SOV in this category.
*Kevin never informed me which category this was for
Secondary Audience: Female College Students
Primary Audience: Young Mothers
Key Consumers Situation Analysis 4
Key Consumers Situation Analysis 4
Primary Audience: Young Mothers
Secondary Audience: Female College Students
• The key consumer of Sonic restaurants is a
mother in her twenties or thirties with young children. She lives in a southern state in a relatively urban area like Atlanta or Houston. She is well educated and has a relatively high income between $75,000 and $150,000 a year. She reads a lot of magazines but does not pay a lot of attention to newspaper. Her radio consumption is comparatively high, which goes hand in hand with her frequent exposure to outdoor ads. Her internet use varies, but she is not afraid of the web.
o This data may suggest that this is a
mother on the go. She may be a stay at home mom or she might be juggling motherhood and her career. Either way she spends a lot of time in the car and trusts Sonic to feed her family when they are short on time.
• The secondary consumer of Sonic is a young woman in college. She lives in a somewhat urban city but most likely somewhere car-friendly. She likely comes from an upper middle class background and enjoys the convenience and quality that Sonic offers. She has a lot of the same media exposure (magazine, radio, and outdoor) as the primary target, which further suggests that she is a busy college student. She probably consumes less tv than the primary target and has a higher level of internet usage.
o It is probable that the target consumer is first hooked by Sonic in college and then continues to dine there with her family as she gets older and matures in her life and career.
Seasonal & Geographic Factors
¨ Seasonal Factors ¤ Sales lowest in Dec., Jan. and Feb.
n Colder weather reduces customer visits
¤ Sonic Spending by month n Jan. $10,237.50
n Feb. $ 9,853.10
n March $ 15,710.90
n April $ 10,715.50
n May $ 10,949.00
n June $ 13,190.20
n July $ 12,636.70
n Aug. $11,180.30
n Sept. $ 12,707.70
n Oct. $ 9,340.40
n Nov. $ 11,056.20
n Dec. $ 9,007.40
Situation Analysis 5
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Sonic spends the most in the month of March. This is when our campaign will begin. The least amount of money is spent during colder months, when people are less likely to want to leave home.
Seasonal & Geographic Factors
¨ Geographic Factors ¤ Only opened stores in the north within past 5 years
n 32 new spot markets in 8 northern states
¤ Focus on southern hospitality n Dallas-Ft. Worth, TX and Houston, TX both have high BDI and CDI,
which tells us that people in those areas are inclined to eating both fast food and Sonic.
¤ Room for Improvement n Areas of Iowa, Oregon and Montana produce the lowest revenue for
Sonic, nationwide. All of Sonic's lowest markets represent less than 1% of there total sales.
n These regions represent an opportunity for growth, both in terms of the advertising objective and marketing objective, and are areas of interest within Sonic’s planned expansion into the Northern US.
SWOT Analysis Situation Analysis 6
Strengths • Unique culture, strong customer
loyalty • Seen as an experience • Enjoyed steady economic growth
over the past years up through 2008
Weaknesses • Mostly known in the southern
USA • Revenue has fallen • Lower temperatures in the year
bring lower revenue
Opportunities • Management wants to
capitalize on this growth by opening 30 new stores in northwestern and mid-northern states
Threats • Larger franchises threaten
Sonic's success • Effected by changes in
consumer trends, economic conditions, demographics, traffic pattern, and concerns about the nutritional content of quick-service food.
SWOT Analysis
¨ Strengths • The Sonic Corporation operates and franchises the largest
chain of drive-in restaurants in the United States.
• Sonic features signature items such as specialty drinks, frozen desserts, and made to order food.
• Sonic offers breakfast
• The culture is unique and the customer loyalty is among the strongest in the food industry.
• Created a food experience, a truly original product mix, and a solid brand with unique intellectual properties all supported with an impressive marketing program.
• Enjoyed steady economic growth over the past years up through 2008
• Quality service, featuring Sonic carhops, constitutes one of their primary marketable points of difference from the competition
• Sonic has developed and implemented a marketing strategy designed to build the brand and to maintain key elements of strategy that are:
o A unique drive-in concept
o A commitment to customer service
o Sonic’s expansion
o A commitment to strong franchise relationship
Situation Analysis 6
¨ Weaknesses • The economic state of the USA has impacted negatively
upon consumer spending patterns.
• Mostly known in the southern USA
• Total advertising revenues generated by contributions from franchises are estimated at $176 million but were only $167 million last year.
• Financial statement data says that in 2010, revenue had been down in 2010 to $550,926, as compared to other years
• Income from other operations in 2010 had been down compared to other years at $70881
• Net income fell to 25,839, the lowest in 5 years
• The net income attributable to sonic corp. was at its lowest level in 5 years at $21,209
• Lower temperatures in the year bring lower revenue
SWOT Analysis
¨ Opportunities • Existing as well as newly opened markets offer significant
growth opportunities
• The CEO projects the coming year will yield a modest improvement in overall economic growth
• Management wants to capitalize on this growth by opening 30 new stores in northwestern and mid-northern states where they’ve just begun to build a footprint in the last 5 years.
• Sonic’s new target states are Washington, Oregon, parts of northern Idaho, Wisconsin, North and South Dakota, Minnesota, and Michigan.
Situation Analysis 6
¨ Threats • A large number of successful multi-unit franchise groups
have developed during the Sonic system’s 57 years of operation
• The “Quick Serve Restaurant Industry” is a highly competitive business in terms of price, service, location, and food quality.
• The “Quick Serve Restaurant Industry” is often affected by changes in consumer trends, economic conditions, demographics, traffic pattern, and concerns about the nutritional content of quick-service food.
• Sonic faces a fierce competition from other alternatives, primarily pizza.
• Sonic is fifth in the top 16 fast food hamburger chains in the USA based on number of locations
Brand Objectives
• Increase Sonic's overall sales in the northern United States
Marketing Objective
• Increase Sonic's brand awareness among mothers and college students in the northwestern United States
Advertising Objective:
Primary Media: Digital
and OOH
Comes from an upper-middle class family
Busy college student
Primary transport:
Car
Lives in a lively
college town in
the northern
US
Young and
married with
young children
Lives in a small
urban city in the
northern US
Primary Media:
Magazine, Radio, TV ,and
OOH
HHI: $75,000-$150,000
Well educated
Creative Strategy
The Busy Student
The Young Mother
Creative Strategy The Young Mother
To busy mothers on the go, Sonic Drive-In Restaurants are the quick dining option of choice because Sonic sits at the intersection of fun and convenience due to its unique drive-in format and kid-friendly menu options.
• The creative for the primary target will be inspired by the fact that she is a busy mom on the go. When her family is too busy to sit down and eat together, she turns to Sonic, who still lets her family enjoy dinner together in a fast and fun way, from the comfort of their own car. She likes the nostalgia of taking her family to a drive in restaurant, and enjoys the unique menu options that entice her kids to eat more than just french fries. Another benefit of Sonic that is unique to the northwestern US is that moms can avoid the hassle of unloading her kids in and out of the car in frigid temperatures. Although Sonic is not a staple of her family’s diet, it is this mom’s restaurant of choice while on the go.
Brand Positioning
• Mothers will be most susceptible to this message when they are tired and maybe a little overwhelmed after a long day. This may be in the form of a radio spot heard while picking up children from school, a billboard ad seen on the drive home from work, or a carefully placed TV spot aired during the kids’ favorite after school show. This is the critical time when mothers are figuring out what to do for dinner. After a long and hectic day, Sonic provides them with the quality, service, and convenience they are looking for.
Connection Opportunity
Creative Strategy The Busy Student
To busy college kids looking for a good time, Sonic Drive-In Restaurants are the quick dining option of choice because Sonic sits at the intersection of fun and convenience due to its unique drive-in format, fun menu options, and late night hours.
• The creative for the secondary target will tap into the crazy life of a college student. Students are busy and looking to save money, but at the same time crave social interaction. Sonic gives them both. Sonic presents to them the opportunity to not only eat, but to socialize as well, all while on a budget. Sonic’s late hours will also be appealing to students who've spent countless late nights studying, and Sonic may be positioned as a type of reward at the end of the day. It is important to steer away from any positioning associated with going out or consuming alcohol, due to the drive-in nature of the restaurant chain. Instead, Sonic may be viewed as the kickoff to a good night, or perhaps even the event itself.
Brand Positioning
• College students will be most susceptible to this message when they are tired and maybe a little overwhelmed after a long day. This may be in the form of an online radio spot heard while working on homework, or perhaps an OOH ad seen on the walk home from the library. It is also important that students are exposed to the ad message when they are looking for something to do, perhaps in the campus newspaper or via social media. It is important for Sonic to tap into the fun and social nature of their brand as well.
Connection Opportunity
Drive up to a good time
Creative Strategy
Tagline:
“Drive up to a good time”
Media Objectives
Achieve minimum 85% reach and 3.1 frequency among young mothers and college
students in the specified northern United States region* during the first four months of the campaign, from March 2013 through July
2013 (peak season).
*Campaign will be focused on the newly introduced northern United States, specifically: Wahington, Oregon, northern Idaho, Wisconsin, North and South Dakota, Minnesota, and Michigan.
Media Strategy
Geographic Coverage
Scheduling
Media Mix
Media Strategy
The CEO projects that in the coming year, Sonic will improve modestly in overall economic growth. Sonic would like to
capitalize on this growth by opening 30 new stores in the northwestern and mid-northern states where they've just begun to build a footprint in the last 5 years.
Sonic's new focus will target the states of WA, OR, parts of northern ID, WI, ND, SD, MN, and MI. The importance of achieving
success in this area is underscored by management's reference to it as 'the
northern front'.
Geographic Coverage 1
Target Colleges: • Michigan State University (East Lansing, MI) • University of Oregon (Eugene, OR) • University of Montana (Missoula MT) • University of North Dakota (Grand Forks, ND) • University of South Dakota (Vermillion, SD) • University of Idaho (Moscow, ID)
City Population % age: 18-34 Est. Sonic Sales
Detroit, MI 4.9 mil 21.5% $59 mil
Seattle, WA 4.8 mil 23.6% $60.7 mil
Minneapolis, MN 4.6 mil 23.0% $61.2 mil
Portland, OR 3.2 mil 21.7% $37.4 mil
Milwaukee, WI 2.3 mil 22.5% $28.9 mil
Spokane, WA 1.1 mil 23.4% $13.8 mil
Sioux Falls, SD 0.7 mil 22.7% $8.5 mil
Boise, ID 0.7 mil 23.7% $8.9 mil
Idaho Falls, ID 0.4 mil 26.2% $4.1 mil
Media Strategy Scheduling 2
Explanation for Scheduling Strategy:
The decision was made to begin the campaign in March 2013 because March marks a peak month in sales for Sonic and the beginning of their busy spring and summer season. Due to the drive-in format of Sonic Restaurants, a visit will be more enticing to the target
audience in warmer months when there is no concern about driving conditions.
TV Radio Print OOH Digital
Pulse TV for first 4-6 months of campaign
(beginning March 2013)
Pulse radio spots for first 6 months of
campaign (beginning March 2013)
Placements will begin in weekly and
monthly magazines in March 2013
Strategic OOH placements will begin
in March 2013 and remain for the
summer months
Digital placements will begin in March
2013 and run continuously
throughout the year
With Sonic being new to the region, a
strong push in TV spots will help promote brand
awareness in time for the peak summer
season
In addition to TV spots, radio presence
will help promote brand awareness to our target(s). It is
also a relevant medium due to the drive in nature of Sonic restaurants
Young mothers show a high readership of niche magazines and the seasonality of the issues will pair well with Sonic’s initial introduction to the
market
OOH placements are relevant to both
targets, due to their lifestyle and the
drive-in nature of the Sonic brand.
Digital placements are a cost effective way of reaching the college target, which is made up of digital
natives.
Media Strategy Media Mix 3
Secondary Target
Digital
OOH
Primary Target
TV
Print Radio
OOH
Media Strategy Media Mix 3
Spot Television
• The Disney Channel • Pct. Down: 39.9%, Index 199
• Food Network • Pct. Down: 29.%, Index 98
• TLC • Pct. Down: 27.4%, Index 115
• Nickelodeon • Pct. Down: 34.0%, Index 224
• ABC Family • Pct. Down: 31.0%, Index 117
• HGTV • Pct. Down: 20.9%, Index 114
Recommended Vehicles
Television indexes high for both mothers and their children, ensuring that regardless of who is home, the TV is probably on. Television spots provide advertising creatives the opportunity for a fully immersive exposure to the Sonic brand. TV has impressive reach within the target. This, coupled with key vehicle selections targeted at both children and their mothers will ensure that the Sonic message is received, encouraging mothers to make it their next go-to dinner spot while on the move.
Pros Cons
Credible source Circulation
Down
High reach & potential
exposure to ads
Difficult to target specific
audience 0
100
200
300
400
500
600
700
800
TV Spending
Mil
lion
s McDonald's
Wendy's
Burger King
Sonic
Media Strategy Media Mix 3
Print The primary target has a creative mind and her home is very important to her. She loves to watch TLC and HGTV for interior design inspiration. Her home isn't 100% what she wishes it to be but she knows she can get there. She doesn’t want help from a professional- she wants to do it on her own. This is why we choose magazines that had a creative edge. She is a self accomplished, creative woman, yet always on the go. She may flip through a magazines for ten minutes a day but she will keep them forever - always going back to them. Even outside of the home, she could be grocery shopping and flip through a magazine for a few minutes while waiting in line.
Pros Cons
Credible source Circulation
Down
High reach & potential
exposure to ads
Difficult to target specific
audience
• The Costco Connection • Pct. Down: 17.1%, Index 193
• Garden Design • Pct. Down: 3.3%, Index 179
• Wine Spectator • Pct. Down: 2.9%, Index 218
• Better Homes & Gardens • Pct. Down: 19.3%, Index 116
• People • Pct. Down: 22.3%, Index 120
• Everyday with Rachel Ray • Pct. Down: 3.6%, Index 114
Recommended Vehicles
0
50
100
150
200
250
300
350
400
Print Spending
x 100000 McDonald's
Wendy's
Burger King
Sonic
Media Strategy Media Mix 3
Radio
• Boise, ID • 104.3 Kawo Country
• Sioux Falls, SD • KELO 92.5, Classic Rock
• Detroit, MI • 94.7 WCSX, Classic Rock
• Minneapolis, MN • 92.5 KQRS, Classic Rock
• Seattle, WA • 107.7 The End, Alternative
• Portland, OR • 92.3 KGON, Classic Rock
Recommended Vehicles
When mothers were asked, 'what is the first thing you use in the morning?' the rankings were: TV 33%, newspapers 5%, internet 28% and radio 33%. Radio ties at the number one spot with the internet. A2: Even 45% of moms who work, listen to the radio. She may even use her cell phone to listen to radio shows. For a stay at home mother, she runs her to do list and is extremely active while her children are in school. She spends hours in the car a day- which is the perfect place to have advertisements. A mother on the go wants an accessible, fast and good meal.
Pros Cons
Long amount of time spent listening
No visuals
Listener Loyalty Can get lost in
the clutter 0
10
20
30
40
50
60
70
Radio Spending
Mil
lion
s
McDonald's
Wendsy's
Burger King
Sonic
Media Strategy Media Mix 3
Out-of-Home (OOH)
Pros Cons
Cost efficient May be
mistaken for spam
Dynamic Targeting
Not a trusted source of
information
• Roadside billboards • Bus Shelters
Recommended Vehicles
Both the primary and secondary targets, young mothers and college students, are very mobile and on the go. A car is the primary mode of transportation for both targets and they spend a lot of time on the road. When taking this characteristic and the drive-in format of Sonic restaurants into consideration, it makes sense to reach both targets through various OOH vehicles while they are on the road.
0 10 20 30 40 50 60 70 80 90
OOH Spending
Mil
lion
s
McDonald's
Wendy's
Burger King
Sonic
Media Strategy Media Mix 3
Alternative Media: Bus Shelter Wraps
• Great visibility in areas with high foot traffic
• Precise geographic targeting Benefits
• Catches the eye of a mother running errands
• Applicable to a student waiting for the bus to class or work
Target: Students &
Mothers
• Relates back to the whole “Sonic experience”
• They are engaging and tell a story about the brand
Relation to Brand
• Small metropolitan areas in the region (ex. Portland, OR)
• College campuses within Northern region Placement
Media Strategy Media Mix 3
Digital
Pros Cons
Cost efficient May be
mistaken for spam
Dynamic Targeting
Not a trusted source of
information
• MTV/MTVu • Macworld/PC World • Wired • Movie Phone • Career Builder • Yahoo Answers • NBA.com • About.com • Gmail
Recommended Vehicles
While we focused our energies on young mothers, our secondary target audience was college students ages 18-24. Because consumers 18-24 are digital natives and their lives are largely dictated by digital technology, we decided to target them through digital means. Consumers 18-24 are constantly participating in conversations on social media and surfing the web both on their computers and on mobile devices. This consumer behavior helped us to choose our vehicles. Consumers 18-24 have now turned most of their usual habits into digital ones- such as shopping, listening to music, and watching television. These newly digital habits have also influenced our vehicle choices for consumers 18-24 such as purchasing Hulu commercial space, or web banners on regularly-visited websites such as MTV.com or ESPN.com.
Digital Budget
Allocation 10%
90%
Wendy's 2008 Digital
Budget Allocation
10%
90%
McDonald’s 2009 Digital
Budget Allocation
18%
82%
Burger King 2010
Media Strategy Media Mix 3
Alternative Media: Interactive Pre-Roll
• Much higher interaction rate than standard pre-roll ads
• Targets users that have a higher interest in the ad and overall brand
Benefits
• College students are digital natives that do not shy away from new technology
• An interactive pre-roll ad will catch their eye as something new and engaging
Target: Students
• Similar to the bus shelters, interactive pre-rolls allow Sonic to give the user a more immersive brand experience, complete with Sonic quirkiness
Relation to Brand
• Interactive pre-rolls would accompany existing pre-roll ads placed on a variety of sites, such as mtv.com and moviephone.com
Placement
1. Video ad begins to play
2. Button appears in corner
3. Scroll over button expand
Projected Budget
40%
20%
10%
22%
8%
Sonic Budgeting Spot TV
Digital
Radio
OOH
28 MILLION DOLLARS 40%=11,200,000
20%= 5,600,000
20%= 5,600,000
13%= 3,640,000
7%= 1,960,000
This is a projected budget based on estimated costs of overall media buys, does not include specific GRP or impression measurements.
Media Schedules Schedule Option 1
Media Schedules Schedule Option 2
Media Schedules Schedule Option 3
