Qdoba media markets plansbook

Media markets plan book RACHELLE GARDNER, REBECCA ROEBuCK RACHEL SCHOOLEY.JOSHUA NEAL, EMALEE WILLIAMS

TABLE OF CONTENTS

A GUIDE THROUGH THE GUIDE

2

Executive summary

3

situational analys

8

Swot analysis

9

objective

Macro enviornmental considerations, brand/product, consumer analysis, competitor analysis

Marketing and advertising

10

budget

11

MEDIA OBJECTIVES AND STRATEGIES

12

MEDIA MIX

15

MEDIA TIMING

17

target audience coverage

19

media vehicles

20

media flowchart

21

year at a glance

Regionality and seasonality

Ostrow Model, reach and frequency

SITUATION ANALYSIS

MACRO ENVIORNMENTAL CONSIDERATIONS

In recent years, the American population has shifted toward valuing a health conscious diet. “Fast-casual” restaurants are now preferred over classic fast food with quality more important than efficiency. In the past, consumers have heavily focused on getting what they want when they want it. Consumers are still stuck in this mindset with daily tasks such as news and internet connection; however, people are now more appreciative of food that is healthy, GMO free and safe. A prime example of a “fast-food” restaurant would be McDonalds. Several McDonald’s locations have even gone so far as to create a policy stating “if you don’t get your food in 30 seconds, it’s free.” This has raised red flags to our consumers and has pushed an age of health conscious eaters.

Qdoba, on the other hand, is a “fast-casual” style restaurant that prides itself on ingredients, putting it ahead of competitors. By fast-casual, this means that you can expect to get your food relatively quicker than at a sit-down restaurant, but slower than a drive through like McDonals. At Qdoba, customers are able to see exactly how their food is being cooked and are watching it be served right in front of them. Other places that offer this “fast-casual” trend include Subway, Pie Five Pizza and our number one competitor, Chipotle.

Our target audience, the Millennial ages 18-24, are also extremely cost efficient. They want quality food at an affordable price with access to numerous discounts and promotions. Qdoba prides itself on it’s “Extra’s aren’t Extra” rule. The company will charge a flat rate for toppings that allows you to get all the additional toppings for one stable price. Qdoba also offers a rewards program that connects consumers to discounts, promotions and deals.

SITUATION SITUATIONANALYSIS ANALYSIS

company/BRAND analysis product/brand analysis

Originally, the chain opened as “Zuma Fresh Mexican Grill” – established in 1995 in Denver, CO by Anthony Miller and his business partner Robert Hauser. The chain quickly underwent multiple name changes and landed on Qdoba. In 2003, the chain was purchased by Jack in the Box, and is now a wholly owned subsidiary chain. In order to offer a healthy and tasty alternative to typical fast food Mexican places, Miller replaced animal fat with vegetable oil in the cooking process and used fresh herbs and veggies whenever possible. The Qdoba brand seeks to provide a high quality product with quick service.

Qdoba’s market share, which essentially represents the brand’s presence in the advertising realm of its competitors, is 26.07 percent. Out of the comparative data with Chipotle, Taco Bell, and On The Border, Qdoba ranks third in the product category.

Qdoba puts significant effort into promoting their unbeatable limited specials through internet advertising. An ad that has been circulating for the past several years is their Valentine’s Day promotion, “Queso for a Kiss.” The design of the ad is to buy one queso entrée on Valentine’s Day, kiss your special someone and get a second queso entrée for free.

This piece of advertising brings in a lot of public attention, generating activity and discussion both in face-to-face interactions and social media activity among the consumers. Qdoba utilizes many media channels and vehicles to communicate their advertising messages. These channels and vehicles include the Internet, which can be divided into social media, website interaction and ad banners, radio, television ads and outdoor advertising such as billboards. Although these ad campaigns accomplish their first and primary task of advertising, they also serve as a means of sales promotion – getting customers into the store to purchase FreshMex.

SITUATION ANALYSIS COMPETITIVE

Chipotle’s image runs parallel with the current trend of consumers, being health conscious and aware of all ingredients. In 2015, the company went as far as offering a vegan substitute, “Sofritas,” ensuring their devotion to a health conscious diet. The menu pricing is fair in respect to its quality, but unlike Qdoba, they charge extra for toppings, such as guacamole.

Chipotle also does not offer a breakfast menu, and the hours of operation are not as long as Qdoba. Chipotle’s total advertising dollars is $6735.10 with a total share of value of 35.62%

Taco Bell was founded in 1962, making it the oldest brand amongst Qdoba’s competitors. The brand made a name for itself as the affordable option with little interest in health. Taco Bell is open 24 hours and includes a breakfast, “fourth-meal� and dollar menu. Taco Bell is present in grocery stores with different flavors of sauce carried for in-store purchasing. Taco Bell showed the greatest media presence, and allocates $11,561 toward their total advertising dollars which in return gives them the largest SOV among its competitors with an overwhelming 61.14%.

On the Border offers more of an experience than a fast-casual restaurant. The menu includes appetizers, desserts, a kids menu and complimentary chips and salsa.

The atmosphere of the restaurant offers a more family oriented and intimate setting. Menu items are more expensive due to the in-store experience and portions. The brand took its iconic chips and salsa menu item to the shelves, which has now become the number one salsa choice for consumers. Their total advertising dollars reach $331.1 and their SOV among its competitors is 1.75%.

SITUATION ANALYSIS consumer analysis

After collecting data and concluding research, it is evident that the current target area of Qdoba Mexican Grill is Generation Y; also know by the name of the Millennials. Ages ranging from 18 to 34, Generation Y is composed of 60 percent non-Hispanic whites and 14 percent Hispanics. To further give vision to the target area, this generation is composed of 51 percent males and 49 percent females. It has been stated that this generation is more ethnically and racially diverse than older generations. Generation Y has been labeled “tech-savvy,” “family-centric,” “achievement oriented, “team oriented” and “attention craving.”

Generation Y lives a fast paced life in a fast paced world. They look for convenience, efficiency, and timeliness.

This generation is said to only have half of its members entered into the workforce, therefore, they are looking for food establishments that not only have quick service, but also are price conscious to accommodate a small budget.

Qdoba has created a rewards program, “Qdoba Rewards,” to show appreciation to their loyal guests. The program includes: free chips and salsa or regular drink for signing up, exclusive offers, information on new restaurants, products, and events via email, a free gift on your birthday, and a free entrée every time 1,000 points are earned with a purchase (most entrées equate to around 100 points). By designing such a program, the restaurant has developed an incentive structured strategy to motivate customers to be frequent purchasers.

Finally, it is important to analyze geographical factors when devising a media advertising plan. We must be aware of geographical trends in sales, marketing and customer loyal differences in different areas to better market our product. While studying the MRI data provided for Qdoba Mexican Grill, there does not appear to be any specific geographical trends. Larger cities like Denver, Detroit, Boston and the like, spent the largest total dollars within the marketing mix. While on the other hand, cities such as, Los Angeles, San Francisco, Oklahoma City, and Philadelphia all had some of the lowest dollar spending amounts within the marketing mix. As a result, it is necessary to further research the trends of these places to pinpoint the mission behind the campaigns for each city to develop successful media marketing plans.

SWOT ANALYSIS where we are at Convenience “Fast casual” style Rewards, special promotions, discounts Philanthropic Online ordering Hours of operation Catering

Higher price No delivery or drive-thru service Weak presence Select menu Lack of brand image

Opening new restaurants Delivery or drive thru service

Competition Economic decline Health trends

Frozen meals or in-store products

GMO debate

O

T

No extra for toppings

S

STRENGTHS

W

WEAKNESSES

OPPORTUNITIES

THREATS

objectives

media & advertising ADVERTISING OBJECTIVE Helping our audience understand the brand’s benefits, we also want to put more effort on one single audience (the millennial) rather than attempting to reach and accommodate all segments of the market. This would also increase brand loyalty and create and top-of-mind awareness amongst avid consumers. Having a clear brand image will not only lead to a more maintained brand loyalty, but will connect directly to a sales increase.

MEDIA OBJECTIVE REACH: 80% Substantial, but not the main focus FREQUENCY: 5.0 High media clutter for Millennials Raise brand loyalty Increase top of mind awareness

EXECUTIVE SUMMARY OUR THOUGHT PROCESS

In recent years, the American population shifted toward a health conscious diet. “Fast-casual” restaurants are now preferred over classic fast food with quality more important than efficiency. Qdoba is a “fast-casual” style restaurant that prides itself on ingredients, putting it ahead of competitors. However, in an attempt to market to everyone, Qdoba lost lacks a selective and primary audience.

After careful consideration, we determined that the target audience is the “attention-craving” and “tech-savvy” Millennial - people ages 18-34. Creating a distinguished brand image geared specifically at this crowd would not only lead to more stable brand loyalty, but will also have a positive correlation with sales.

By creating a SWOT analysis of Q’Doba, we developed a stronger grasp regarding how to successfully reach our advertising and objective goals. The SWOT analysis built the foundation of our plan and set the overall marketing budget. The media plan geographically targets larger cities, primarily in the western region of the United States as well as placing a heavy emphasis on cities with college campuses.

A budget was established for $500,000 to create a successful media plan. The budget is to be divided among four media vehicles: Internet, magazines, cable TV and outdoor. The primary focus will be through internet advertising which will help us solidify the brand identity within the Millennial generation.

The optimal reach, is substantial, but not the main focus. The frequency, conducted using the Ostrow Model, was 5.0 with the high clutter of the Millennial generation, low brand loyalty and need to increase top of mind awareness.

Conducting a Media Flight Plan allowed us to see the if we were in need of a higher or lower budget. The results of our Acid Test proved that a more expensive budget was vital. We fell significantly short toward the goals we wanted to reach in composing a successful media plan for Q’Doba. From here, we now know to learn from our mistakes and to allocate our budget in more effective ways to utilize the resources of our chosen media vehicles and ultimately, set our company up for successful media marketing planning.

BUDGET Currently Qdoba spends 322.6 thousand dollars on Internet advertising in comparison to the 283.6 thousand spent by the direct competitor Chipotle. In order to maintain a stronger effort to reach the target market, it is necessary to increase Qdoba’s budget for Internet advertising. The plan is to increase the overall Internet budget by 250 thousand dollars in order to more than double the competitor’s budget.

MEDIA MIX

WHat AND WHY INTERNET We will depend on the Internet for the largest percentage of our advertising. 23% of college-aged consumers are heavy Internet consumers. With an index of 123, college-aged consumers are more likely to be exposed to an advertisement on the Internet. This medium is the most consumed by college-aged consumers. Our finding can be understood and explained by the generational behaviors to which our target audience belongs. The amount of time our target audience spends on the Internet socializing, researching or working is the driving force behind this initiative. The daily usage of Internet allows a large majority of them to see advertising messages numerous times. In the same sense, Internet is a good choice for a national campaign because of its ability to be accessed nationwide at any time. In conclusion, as mentioned throughout the paragraph, it will be through the Internet that a large section of the target audience will be reached.

The main Internet platform would be social media. Using things like Twitter and Instagram will help the company seem much more relatable to those in the target audience age range. Through connecting with people on social media it also opens up a 2-way line of communication, this is beneficial because it will show that we as a company also care what the customer thinks. We plan to spend a good chunk of our budget on Internet and having social media as one of our main platforms. This will also allow for a high frequency reach.

Another great Internet platform we would like to advertise on are websites like Buzzfeed, which is a social news and entertainment company. Many 18-25 year olds interact with the site quite frequently, so things like banner ads on the site or even sidebar advertisements would be a great tool

media objectives and strategies

Our media objective is to help our audience understand the brand’s benefits. We also want to put more effort on one single audience (the Millennials) rather than attempting to reach and accommodate all segments of the market. This would also increase brand loyalty and create top-of-mind awareness amongst avid consumers.

Having a clear brand image will not only lead to a more maintained brand loyalty, but will connect directly to sales increase.

Our strategy is to have a substantial, but not the primary focus, reach of 80%. In the same topic, we project to have a frequency of 5.0. We believe there is high media clutter for Milennials and that by having a high frequency we can then raise brand loyalty, while also increasing top of mind awareness.

OUTDOOR The second choice of media advertising is outdoor advertising. 24% of college-aged consumers are heavy outdoor advertising users. With an index of 124, college-aged consumers are likely to be exposed to advertisements via outside sources more than average. Because of these findings, we will focus on outdoor advertising second in our campaign after the Internet. Our target audience is more likely to be receptive to outdoor advertising due to the fact that they are constantly on the move and looking for a “fast-casual� style restaurant. With the index of the target audience being 24% more likely to eat at a Qdoba restaurant, it is reasonable as to why we would choose outdoor advertising as a source of reach. As somewhat mentioned earlier, the audience we are intending to reach is living a rather fast paced lifestyle. Constantly being on the go traveling from school, to jobs, activities and the like, this medium is likely to capture the attention of our audience, allowing them to receive the whole message. This will also help us to accomplish our reach goals.

TELEVISION Cable Television is the fourth medium we selected for our media mix of college-aged consumers are heavy cable T.V. users. With an index of 60, college-aged consumers are 40% less likely to consume Qdoba as a result of television ads. Although, cable T.V. is the fourth highest rated medium, we decided to focus on this the outlet the least, based on our assumption that a strong percentage of our target audience does not own cable T.V., but we do believe it should still be taken in to account to help increase frequency

REGIONALITY

WHERE TO TARGET Qdoba restaurants are currently owned and operated across the country, with at least one location in almost each state. The company would benefit from running a campaign across the nation, rather than neglect certain areas.

However, we are primarily focused on establishing brand recognition and gaining loyalty from consumers in the Millennials. Millennials were born between 1982 and 2000, and now account for 83.1 million people and represent more than one quarter of the nation’s population.

Washington, D.C., has served as a magnet for Millennial, particularly over the past decade. A third of the District's residents fall into this age bracket -- more than any state. Just behind D.C. is Utah, the nation's youngest state in terms of median age, followed by Alaska, North Dakota and Texas. In general, data suggests western states tend to have higher concentrations of Millennials.

All 50 states rank from having anywhere between roughly 25-30 percent of their population from this age range specifically.

It would prove itself beneficial to implement the campaign across the nation, but specifically in areas with a large college campus community. 22 percent of Generation Y Americans have a college degree. Implementing tactics such as coupons, student discounts, drive-thru availability and the like, would mirror the fast-paced and efficient lifestyle of its consumers.

seasonality WHEn TO TARGET

Being that Qdoba is a fast food chain, seasonality with our ingredients should not change for the most part. We want to offer healthy options throughout the year so that the brand and product remains constant. All of the ingredients that are offered by Qdoba can reasonably be obtained during all seasons throughout the year.

As far as what sales we will offer at certain periods, there are a few things we took into consideration. At times in the year when the sales are low, we will counteract this with offering promotional offers to drive traffic to Qdoba and increase sales during these low times. Qdoba already offers year-round incentives such as free guacamole, but having seasonal sales like some of Qdoba’s competitors will help with brand consistency and originality. There are three seasonal promotions we would like to implement.

1.

Free chips and (queso or guac) with purchase of burrito/burrito bowl.

2.

Double protein (chicken, beef, etc.) for a dollar more.

3.

Buy one burrito/burrito bowl, get one free.

In addition to these strategic sales, we wanted to implement a way for individual stores to drive sales to their locations in low-producing periods. Giving each store bulk coupons to give to customers will increase their return. Upon a purchase of $10 or more, the customer will receive a $2 dollar off their next purchase coupon. The managers of these stores will give out these coupons during the year, as they see fit.

With these offers, Qdoba should be able to maintain constant sales through the fiscal year and over time, see a steady increase.

target audience coverage

reach and frequency, ostrow model OSTROw MODEL part 1 : Marketing factors that affect frequency Established Brands -0.1 High Market Share +0.2 Dominant Brand in Market +0.2 High Brand Loyalty +0.2 Long Purchase Cycle +0.2 Product Used Occasionally +0.1 Need to Beat Competition +0.2 Adv. to Older Consumers/Children +0.2 part 2: Copy factors that affect frequency Simple Copy Copy More Unique Continuing Campaign Product Sell Copy Single Message New Messages Large Ad Units

-0.2 +0.2 +0.2 +0.2 -0.1 +0.1 +0.2

part 3: Media factors that affect frequency Low Ad Clutter Compatible Editorial Envir.

High Attentiveness Continuous Scheduling Few Media Used in Media Mix Opportunities for Repetition

+0.2 +0.1 +0.2 -0.2 +0.2 -0.2

Reach: 80% As a part of the advertising objectives that include increasing top of mind awareness and brand loyalty, it is essential for a large percentage of the population to have been exposed to the message.

Thus, in the first 6 months of the new campaign the reach goal is 80.

However, reach is not top priority in this specific campaign. In light of the environmental situation Qdoba finds itself in, it is important to consider the marketing copy and media factors that will help set the frequency quota that will most effectively disperse the message of Qdoba’s campaign.

target audience coverage reach and frequency Frequency: 5.0 After calculating the results of the assessments made in the Ostrow Model and then adding three, the most effective frequency for Qdoba’s campaign is 5.0. In a market with aggressive competition and high ad clutter as well as a frequently used product with a short purchase cycle and a low market share, it is essential to repeat the message frequently. The end goal of high frequency is to change the placement of Qdoba in the consumer’s mind, where Qdoba is their first and preferred choice for quick and delicious Mexican inspired food. Although 5.0 is a relatively high frequency goal, it is necessary for the brand Qdoba to insistently remind their target audience that its brand and product is a better choice than Chipotle.

Top-of-mind awareness requires repeated messages, therefore it is important to maintain a high frequency level in the media intake of the target audience. With such immediate competition in Chipotle, it is important to move to center stage in the consumer’s mind. When the target audience thinks of “Fresh Mex” we want their first thought to be Qdoba.

For the most part, all of the market has probably at least heard of the brand, however it may not be their first choice. In a world of at times overwhelming information it can require great effort on the part of a brand to continually repeat their message to even be noticed in the market. High frequency is absolutely necessary for Qdoba to reach college-aged students in a college town, such as Stillwater, who are constantly bombarded with information in every area of their lives.

It is also essential for a brand like Qdoba, which is facing strong opposition in its competition, to increase brand loyalty.

Customers must choose Qdoba over their competitors in order for the brand to be successful. Again, a repeated message that reinforces that Qdoba is the best choice for the target audience will sway the audience to choose Qdoba as their fast food Mexican restaurant of choice.

MEDIA VEHICLES WHERE AND WHY INTERNET The main Internet platform would be social media. Using things like Twitter and Instagram will help the company approachable to those in the target audience age range. Engaging with people on social media opens up a 2-way line of communication, which beneficial because it shows that the company care what the customer thinks.

Another Internet platform we would like to advertise on are websites like Buzzfeed, which is a social news and entertainment company. 18-25 year olds interact with the site quite frequently, some even multiple times a day. Banner or sidebar advertisements would be advantageous.

Netflix and Spotify would be incredible online media vehicles. Netflix is what most college-aged people substitute for television. 18-25 year olds also listen to music primarily through online radio, and with the free versions, you ‘re forced to hear the advertisements.

MAGAZINE We would like to use multiple magazine media vehicles. The best ones for our target audience would be Sports Illustrated, People, Cosmopolitan and US Weekly. We have concluded to use these four vehicles because it reaches a wide variety of social groups within our target audience. These magazines are already very popular among our audience. Advertising in magazines will be useful during our campaign because unlike newspapers that use black and white copy, magazines provide clean and clear vivid imagery that will accentuate our product’s features. Magazines also have long lifecycles because of their pass-along readership. The main key to remember when using these magazine media vehicles is frequency; there will have to be a high frequency of advertising in order to see effective results.

MEDIA MIX TABLe The target audience of college-aged (18-25 year olds) consumers primarily receives advertisements through the Internet, magazines, outdoor and cable television according to MRI media quintile percentages. Based off of the MRI media quintile, our previous research and our knowledge of our target audience, we have decided to focus on the previous four media to maximize our reach and frequency goals for an effective media campaign.

With a frequency of 5, the media mix will result in a total of 500 gross rating points (GRPs). From this total and based off of the information discussed earlier, we decided to divide our media mix to fit the discovered needs.

Internet advertising, sharing the most weight, will consist of 50% percent of our national campaign. Outdoor, magazines and cable T.V. will consist of 15%, 25% and 10% respectively. After research of our calculations, we believe that the presented media mix is ideal for successfully obtaining our desired reach and frequency goals.

OUTDOOR For outdoor advertising, the different vehicles we have selected to use in our campaign are billboards, transit advertising and street furniture advertising. This will especially appeal to our target audience as they are traveling to and from work and school. We think outdoor advertising in college towns would be a great idea because college students are always on the move, whether that be walking or driving, college aged people spend a lot of time outside moving from point A to point B.

TELEVISION It would be in Qdoba’s best interest to utilize ABC, ESPN, MTV and NBC as television media vehicles.

Generally college aged-students will not have anything more than a cable subscription and these are the most popular channels to reach a wide variety of audiences. ABC and NBC are both great because of shows like Grey’s Anatomy, Scandal, The Voice, America’s Got Talent and others alike.

These shows all bring in a ton of viewers therefore would be great platforms for advertising. MTV and ESPN, while very different from ABC and NBC, they both target the 18-25 year old range and reach a variety of people that may not be interested in the shows on NBC and ABC. Overall, we feel as though these five vehicles would be the best for the greatest reach.

MEDIA FLOWCHART

YEAR AT A GLANCE