Chick fil-A Regional Media Buy

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Fall 2017

Regional Media Buy Runs October 1, 2017 – December 3, 2017

Melany Rumman Professor Carey ADVC 1011 Media Strategy October 11, 2017


Fall 2017 I.

Background

Chick-Fil-A is a restaurant headquartered in the heart of Atlanta, Georgia. Chick fil-A prides itself on being much more than just a restaurant that wants to sell chicken, it wants to be part of its customer’s lives and the communities which they serve. The restaurant was founded in 1946 by Truett Cathy in Hapeville, Georgia where he opened his first restaurant. Since 1946, Chick-fil-A closes on Sundays because having worked seven days a week in restaurants open 24 hours a day, Cathy saw the importance of closing on Sundays so that he and his employees could set aside one day of rest and worship if they preferred. Nowadays, Chick-fil-A encourages its customers and employees to use that time wisely and spend it with family and friends.

Chick fil-A’s motto is: “It’s not about being closed, but about how you use that time.” Chick-fil-A’s organizational culture is very family- people-centric and religious, particularly Christian. Chick-fil-A encourages its customers and employees to spend time with their family and friends on Sundays through their “Sunday story” in which they deliver recipes, activities and inspiration with the hopes of bringing families a little closer together.

Chick-fil-A’s slogan: “Eat Mor Chikin” In 1995, Chick-fil-A made history changing the burger-eating landscape when a renegade cow with paintbrush in mouth, painted the three words “EAT MOR CHIKIN on a Texas billboard. Since then, this message has reached millions through television, radio and online engagement of the cows in social media. Chick-fil-A has a “Cow Calendar”


Fall 2017 which shows “you key to inspired eating featuring chicken food offers that run every moth throughout the year.

II.

Key Competition under same or similar category:

1. Kentucky Fried Chicken (KFC) The KFC Corporation is based in Louisville, Kentucky. It started 70 years ago when the cook Colonel Harland Sanders used a list of secret herbs and spices to create the popular chicken restaurant chain. Today, it’s one of the world’s most popular chicken restaurant chain specializing in that same original recipe along with extra crispy chicken, home-style sides and buttermilk biscuits. They serve complete family meals at affordable prices.

2. Popeyes Louisiana Kitchen Popeyes was born 45 years ago in New Orleans, Louisiana. It began as a small restaurant with one big idea. In 1972 Alvin C. Copeland opened “Chicken on the Run” in New Orleans suburb of Arabi, serving traditional Southern-fried chicken. After several months of lackluster performance, the restaurant reopened as “Popeyes” a name given after Popeye Doyle of the French Connection. Today, Popeyes sells spicy, New Orleans-style chicken

3. Wendy’s: American international fast food restaurant founded by Dave Thomas Columbus, Ohio in 1969. The restaurant sells hamburgers, chicken sandwiches, chicken salads, chicken nuggets, French fries s and their signature frosty—a form of soft ice cream.


Fall 2017 4. McDonald’s: Founded in 1955 by Ray Roc in San Bernardino, California. The restaurant primarily sells hamburgers, cheeseburgers, chicken products, wraps, salads and ice cream.

III.

Media Plan Objectives: •

Increase awareness to baby boomers into Chick-fil-A in relatively new, non-established market through an enticing promotion run on Sunday papers in the major New England cities that have the highest baby boomer population.

Increase traffic from baby boomers in the Mid-Atlantic cities that have the highest by attracting them with enticing promotion based on their psychographics, interests and behaviors.

Drive traffic and increase revenue from sales.


Fall 2017 IV.

Target

1. Demographics: •

According to RKMA Consumer Behavior report 2017-2018, the oldest of the Baby Boomers who were born in 1946 are 71, and are 2.8 million in number, and the youngest Boomers were born in 1964 and are 53. Census 2010 counted 76.94 million Americans born between 1946 and 1964, representing 24.9% of the population. 2. Psychographics

Health conscious, they prefer fast-casual restaurants because they have more variety and healthier choices.

Exercise daily and invest part of their money on supplements.

Family-centric and religious.

Charitable, like to give back to the communities in which they live in.

Like to travel and typically spend big parts of their money in it.

Are not planning on retiring soon.

3. Facts: •

Thirty-seven percent (37%) of Baby Boomers have a child age 18 or younger living in the household.

Over five million Baby Boomer parents have recently had an adult child move back into the home, partially due to the rise of “adultolescents” who’ve boomeranged back into the parental household.


Fall 2017 • Four million Baby Boomers have a parent living with them.

Behaviors:

Eighty-two percent (82%) of Boomers use the Internet, engaging in activities such 
as instant messaging, downloading music or movies, financial transactions, and 
online gaming.

According to the National Restaurant Association Boomers spend an average $2,600 a year eating out, compared with an average $2,100 for all households, according to the National Restaurant Association

According to Forbes magazine, Baby Boomers indicated that interior design was a critical difference between fast food and fast-casual dining. Baby Boomers reported an 18% decrease in fast food restaurant visitation.

According to Forbes, not only are Boomers the largest group numerically, with 51 million individuals comprising 34% of the donor base, they are also the largest contributors, giving an estimated total of $61.9 billion per year (43% of all the dollars donated).

Sixty-two percent of all fast-food and drive-in restaurant visits over the next 10 years will come from people 50 or older, according to MRI research from spring 2016. That will mean an additional 1.4 billion visits by 50-plus consumers compared with an increase of just 875 million among those ages 18 to 49.

A December 2014 study conducted by New York-based brand and customer loyalty and engagement consultancy, Brand Keys (brandkeys.com) has shown that when it comes to fast food, baby boomers want better service, healthier choices—and they’re willing to pay for it.


Fall 2017 • According to Nielsen, Baby Boomers watch the most video among demographic groups: 9:34 hours a day. •

According to the Pew Internet & American Life Project, 81% of young Baby Boomers and 76% of older Baby Boomers use the internet and some of their top activities include: Email, 91% and 93%, search engines 86% and 87%, news 85% (both young and older), book travel 70% and 67%, watch videos 62% and 55%, and social networks 50% and 43%.

32% of younger boomers (45-54) use Facebook!

V.

Strategies: Media vehicles were chosen from DMAs with major boomer population, and based on target audience, Sunday circulation and BDI/CDI.

1. For New England, major cities to increase awareness: a. Providence, R - Providence Journal Rhode Island has 14.4% of Baby Boomers in its population. Since it’s a new market, the strategy would be to attract the boomer population to visit Chick fil-A by awareness driven promotions. The Providence Journal’s average audience is 52, has a Sunday circulation of 111,404 and it has a high BDI (119) and high CDI (143). The frequency chosen is 2 because it has a good circulation and a high BDI and CDI, lead in its category.

b. Hartford, CT - Hartford Courant According to AARP, Connecticut has a 33.7% of Baby Boomers of the total adult population. The Hartford Courant’s target audience is 55-65+, it has a


Fall 2017 Sunday circulation of 222,940 and an average BDI (100) and high CDI (116). This promotion will have a frequency of 2 because it has a good circulation.

c. Manchester, NH- New Hampshire Union Leader According to AARP, New Hampshire has a 36.4% of Boomers of the total adult population. Even though the Sunday circulation is low (68,499), it has a good BDI (108) and high CDI (113), and there are a lot of boomers in NH. Since the CPI is relatively low ($7,030), the promotion can have a frequency of 4 (run up to 4 times).

d. Portland, ME - Portland Press Herald According to AARP Maine has 36.8% of boomers of the total adult population, this makes Maine the biggest home state for baby boomers in region and the US. Even though the Portland Press Herald has a low BDI (90) and CDI (98), it has a good average Sunday circulation (100,454) and since it has a low CPI ($15,693), the promotion can have a frequency of , plus it dominates the boomer population.

2. For Mid-Atlantic, major cities to increase traffic: a. New York, NY – The New York Times The New York Times has the biggest Sunday circulation (1,233,174) out of all of the newspapers and is a paper that circulates outside the state which guarantees great reach. Within your budget, I made the strategic decision to have the promotion run twice (frequency of 2) to generate over 2 million impressions! Since, it has a great reach, running it twice is enough


Fall 2017 to accomplish awareness and to drive traffic. The New York Times has a high CDI (167) and high BDI (138). The media age of readers is 53-54 men and women.

b. Pittsburg, PA – Pittsburg Post-Gazette Pennsylvania has 15.4% of boomers in its population. Pennsylvania state has over 20 Chick fil-A’s and the majority are strategically located near colleges and universities which makes the brand well-known among the younger population which influences baby boomer parents. The Pittsburg Post-Gazette has a great Sunday circulation (319,987), a high BDI (142) and an average CDI (101). The promotion will have a frequency of 4 times because of its great circulation, its high BDI which makes it a preferred brand among its readers and its boomer concentration. c. Burlington, VT - Burlington Free Press According to AARP, Vermont has 35% of boomers of the total adult population. Even though the Sunday circulation is low (31,904), it has an average BDI (101) and high CDI (130). The frequency of 4 was chosen because it’s a new market and it has a lot of baby boomers. d. Baltimore, MD – The Baltimore Sun Well- established market with over 20 Chick-fil-A locations. Predominant audience is 55-64 and 65+, even though it has a low BDI (88), it has an average CDI (104) and a good Sunday circulation (309,060). The frequency of 2 was chosen because it’s an established market.


Fall 2017 VI.

Traffic Driving Promotion According to consumer report, about 37% of baby boomers currently have an 18-year-old living with them and over 5 million baby boomer parents have a young adult return to the house. Today, the younger generation living at home greatly influence shopping habits and many of them make decisions on where to go to eat or on vacation. Baby Boomers are family-centric and love to eat out, especially when it comes to eating in fast casual restaurants because they have more options to eat and choose healthy. Chick-fil-A is a fast casual with strong family and Christian values. In addition, the baby boomer generation is the generation that likes to give back to the community and donates more.

So, having that data and insights in mind, my idea of a traffic driving promotion is to welcome families to celebrate victories they have, whether it’s a college football win, graduation, a good grade on a test or, even a birthday, they can come in and share their time together celebrating together in a family-centric restaurant while they contribute for college scholarships for students in need. Since this promotion entices families to come together and celebrate, it will run as “Come celebrate your victory with us,� the table gets a small tray of free grilled nuggets which they can all share and 5% of their purchase goes directly to the scholarship foundation.


Fall 2017 This promotion is going to drive both traffic and awareness because in established markets, boomers will take advantage of this opportunity to engage and spend time in family while giving back to the community which is one of the values they share in common with Chick-fil-A. And, in new markets, it will entice families to try and visit Chick-fil-A and celebrate together.


Fall 2017 VII.

Conclusion/ Opportunities/ Recommendations This plan focuses on attracting young and older baby boomers to be aware and visit the nearest Chick fil-A in their cities by enticing promotions built based on their psychographics, interests and behaviors and strategically placing them on leading media vehicles within the major baby boomer cities in the New England and Mid-Atlantic regions. You gave me a budget of $1,000,000 and I strategically spent $995,815 on vehicles that had the most boomer audience, as well, high Sunday circulation, BDI, CDI and within the highest boomer populated cities. With this plan, I generated over 5 million impressions from the target market with a remaining budget of $4,184.20 by getting them to celebrate and to spend time with their family while they “ate mor chikin.” The strategy to have more frequencies on less costly media vehicles and have less frequency in high costly ones caused a remaining budget. Most importantly, frequencies were chosen because:

1. Providence, R - Providence Journal: The frequency chosen is 2 because it has a good circulation and a high BDI and CDI, which makes it a leader within its category.

2. Hartford, CT - Hartford Courant This promotion will have a frequency of 2 because the circulation is good and it will reach baby boomers since it’s a state that’s predominated by the baby boomer demographic.


Fall 2017 3. Manchester, NH- New Hampshire Union Leader Since the CPI is relatively low ($7,030), the promotion can have a frequency of 4 (run up to 4 times). 4. Portland, ME - Portland Press Herald Even though the Portland Press Herald has a low BDI (90) and CDI (98), it has a good average Sunday circulation (100,454) and since it has a low CPI ($15,693), the promotion can have a frequency of, plus it dominates the boomer population. 5. New York, NY – The New York Times Within your budget, I made the strategic decision to have the promotion run twice (frequency of 2) to generate over 2 million impressions! Since, it has a great reach, running it twice is enough to accomplish awareness and to drive traffic.

6. Pittsburg, PA – Pittsburg Post-Gazette The promotion will have a frequency of 4 times because of its great circulation, its high BDI which makes it a preferred brand among its readers and its boomer concentration.

7. Burlington, VT - Burlington Free Press The frequency of 4 was chosen because it’s a new market and it has a lot of baby boomers. 8. Baltimore, MD – The Baltimore Sun


Fall 2017 The frequency of 2 was chosen because it’s an established market, therefore it doesn’t need that much frequency.

Reference

https://www.chick-fil-a.com/About/Who-We-Are Miller, K. Richard, Washington, Kelly, “Baby Boomer Consumers,” Consumer Behavior 2017-2018, 12th Edition RKMA Market Research Handbook Series http://mediakit.gatehousemedia.com/Providence_RI/ https://www.55places.com/blog/where-do-baby-boomers-live http://www.aarp.org/politics-society/history/info-2014/map-whereboomers-live.html#/ https://www.forbes.com/sites/deborahljacobs/2013/08/08/charitablegiving-baby-boomers-donate-more-study-shows/#7e3cea4a31c8 https://www.gfkmrismartsystem.com/UniversityReporter/Report.aspx http://next.srds.com.jwupvdz.idm.oclc.org/nmp/


Fall 2017


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