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Chili's IMC

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Jonathan Brantley

on 4 January 2013

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Transcript of Chili's IMC

Marketing Objectives Communication Objectives Chili's Integrated Marketing Campaign Measurement by:
Coupon redemption from newspapers and Four Square
Foursquare/Facebook check-ins and likes
Google Analytics or social media metrics: talking about, trending now, likes and views.
Sales data from designated DMA’s (the Midwest and the South)
Television reach, and frequency impressions
Sales analysis from previous years
Competitive analysis
Traffic impressions to sales in DMA’s
Market share position Executive Overview Efforts will be in effect 6 months before and 6 months after the campaign Competition New Branding Approach Metrics Realisation Sketches Background Marketing Mix Current Issues Product History Current Messaging • Product- Chili’s restaurant provides a casual, friendly atmosphere. It is open to all ages, yet really attracts a young, outgoing crowd. Chili’s keeps a fun outlook on dining while being consistent with quality and service. Through its consistency, Chili’s will attract regular customers and hopefully excite other potential diners to come.

• Place- Chili’s tends to their customers needs by strategically placing each of their worldwide restaurants in convenient locations near shopping malls, and highly populated areas. Since Chili’s are found near other restaurants and attractions, it is able to better compete with other businesses. It is always located in areas where people can be selective with their dining experience.

• Price- According to Mintel, the average Chili’s check including alcohol is $12.18 (as of June 2006). For a few more dollars than a local fast food chain restaurant, diners can get a full service, better quality meal.

• Promotion- Chili’s uses print, web and commercial advertising to create brand awareness and recognition to motivate people to come to the restaurant. Chili’s entices consumers looking for the best in quick, casual dining solutions. This pull strategy uses promotion to draw in customers by publicizing alcohol sales, sports raffles and a friendly environment. Chili’s current campaign for “Ditch the brown bag and head to Chili’s for lunch” has not proven to be affective in reaching the target audience.
Chili’s has utilized social media, YouTube, and internet presence to support its campaign, however, results are dismal.
The target which frequents Chili’s the most are males and females 25-34 and 45-54, not 18-24 year olds. Wrong target, wrong message, and wrong approach. Ditch the Brown Bag Lunch To coax people out of their offices and into its restaurants for its Lunch Combos, Chili’s is running a series of humorous short videos where people are most likely to see them: on their computers at work. Available at the microsite ditchthebrownbad.com and promoted on Twitter via the hash tag #ditchthebrownbag, the video series stars a talking brown bag who implores the viewer to get out of the cubicle and into Chili’s. Whether he is telling workers to flee lunchtime meetings or the strange smells from the break room refrigerator, the brown bag has no qualms about being left behind. Chili's Internal Analysis Target Who They Are? The main target audience age bracket is 25-34
The older bracket is large enough to be considered in the main target audience, making Chili’s collective target audience ages 25-54
There are more women consumers than men
They are more educated people most of whom have undergraduate and graduate degrees with higher paying jobs
There are more white-collar than blue-collar workers
Their main household income is in the range of $75,000 to $81,000. Chili’s goers are primarily white Americans living in the South and the Midwest. Demographics Psychographics They are heavy internet users, browsing sites like weather.com, expedia.com and yahoo.com.
They are moderate television, newspaper and radio users.
They have multiple cable channels and primarily watch channels like CNN, TBS, Weather Channel, ESPN, Discovery, and History
They read local newspapers, and magazines. Males And Females


Age: 25-34
45-54


Moderate Income:
81k or less
College Educated
Caucasian
Married with children


Kids Age: 12-17


Number of Kids: under 6 Audience Target Profiles Chili’s goers are outgoing, open to new things, fun, and outgoing people Typically, they dine with a group of people (friends or family) so they choose a restaurant based on variety Parents find relief in the fact that they can go to Chili’s with their kids and everyone can enjoy a meal, even on a budget Chili’s users are looking for great tasting, quality food for an inexpensive price than at a high-end restaurant They seek new flavors, and more than the average sandwich, food with edge and spice Even though their average salaries are a higher income bracket than the average person, they are still budget conscious and don’t want to spend tons of money on a good meal They like change and variety both in their meals and in their lives Since they have a higher amount of discretionary spending than the average person, they eat and shop at a wider variety of retailers Chili’s consumers spend a considerable amount of time in commercial and shopping areas, which is generally where Chili’s restaurants are located Atmosphere, good service and convenience are all important to them when choosing a place to eat •Jennifer Reed ,54, Indiana
Meet Jen: She is married and a mother of 2 girls ages 16 and 17. She loves spending time with her family and going out to have fun. She loves to find good deals and is always online checking her emails and looking for deals. •Jesse Smith, 25, Atlanta
Meet Jesse: He is single and a college student. He likes to go out to eat with his family at affordable prices. He is into sports and is very active. •Ashley Dawson, 25, Kentucky
Meet Ashley: She is a newlywed. Whenever she has free time she loves to go out to eat and connect with her family and friends. She loves anything that is convenient and affordable. She is outgoing and loves being outdoors. •Bruce Williams, 54, Ohio
Meet Bruce: He is married and a father of 2 boys ages 15 and 17. He loves to watch sports and play sports with his sons every Sunday. He loves to relax at home and read the local newspaper and watch CNN. He loves to go out for drinks and a bite to eat with friends every Thursday night Big Picture Competition Similar Competition • Currently Chili’s focuses its advertisements on a young/21+ age group. The most recent ad shows a friendly waitress delivering beer to a group of friends who are casually getting lunch, and the slogan “Ditch the Brown Bag”In 2006, Chili’s has taken a young-minded/ alternative rock music approach to its ads, they introduced a build your own burger commercial called “Big Mouth” burgers. It was advertised with rock music in the background and animated dancing burger condiments.
• The new animated chili pepper has more staying power than ever, as it is a remake of the recognizable and attractive two-dimensional logo.
• Chili’s used product placement in the series The Office in 2005, which Adweek says “gives Chili’s an opportunity to target younger viewers.”
• The “Baby Back Rib” jingle became a popular tune in a widely used Chili’s campaign and was even used by Mike Myers in the Austin Powers sequel. This provided appropriate product placement. Chili's Bar and Grill • Friday’s advertisements show more down to earth and comedic performances in comparison to Applebee’s. TGI Fridays has ads that usually include dialogue between dining couples or groups of young individuals.
• During certain promotions such as the three-course, price fixed meal, Fridays emphasizes on the variety of choices for an affordable price.
• The fun nature of the advertisements and the affordability targets a young audience.
• Strengths include: you can gain Fridays points which can result in free products, benefits with a Fridays credit card, available party size platters, uses Jack Daniels as a regular flavor and sell products in supermarkets.
• Weaknesses include: People say that the restaurant tends to be loud. TGIF Fridays Our main challenge will be to differentiate Chili’s from their competition and produce new promotions, food specials and customer benefits.
Looking at chart with our competitors key information, Chili’s need to create new ways to give back to our customers and offer them the best rewards and benefits to show them the paybacks for selecting to go to Chili’s over Burger King, Pizza Hut and TGI Friday’s.
We need to analyze our competitors weaknesses and turn them into strengths and benefits for Chili’s and our current and prospective customers. Differentiation/Brand Loyalty
Chili’s needs to make their products and brand unique and different from everything else on the market. We need to advertise our product in a way so that our consumers develop a personal attachment and grow into having a relationship with our brand.
What makes your experience at Chili’s different from competitors?
What makes Chili’s food different from competitors?
What makes the Chili brand different from their competitors?
We will convince our current and prospective consumers that they will receive greater satisfaction and greater benefits overall with Chili’s. Today, tomorrow and always.
Capital Requirements
Capital will be required and essential for integrating Chili’s new marketing plan, and carrying out new promotions, exclusive deals for customers and advertising. Investment in new resources will be required.
Customer Loyalty
Existing competition may have some advantages over new entrant in the industry having already formed a strong place in the market and developing a personal connection with specific brands.
Therefore, Chili’s new marketing plan will integrate new and different ways to increase their customer segment and keep existing customers satisfied and loyal to brand. Executive Overview Situational Analysis SWOT Chili’s can be broken down into the bar/grill segment, which appear to be extremely sensitive to economic gain or stress.
Total system wide sales for family/mid-scale and casual dining establishments will increase substantially.
Chili’s is comparable to its competitors (Applebee’s, TGI Fridays, Ruby Tuesday’s)
Chili’s secondary competitors can be divided into two categories. The distinguishable qualities that these competitors exhibit have affected the overall trends in the family restaurant/mid-scale dining category.
Fast Food (Burger King)-offers fast, casual dining, and low quality food at a quick speedy service.
Delivery (Pizza Hut)-offers many locations, easy ordering capabilities, phone and apps, convenience and no effort really necessary. •Strengths:
o Fair Pricing x Good Food x Quality Food
o Conveniently located near shopping centers, movie theaters, and other popular attractions
o Family friendly as well as night friendly
o Full alcohol bars and variety in menu
•Weaknesses:
o Weak current campaign
o Very similar and almost indistinguishable from other restaurants in same category
o Brand awareness – No loyalty
o No competitive advantage in eyes of target
•Opportunities:
o Trend in exotic foods to reach more diverse consumer
o Brand Development
o Retention Program
•Threats:
o Competitors frozen food line and retail products being sold in local supermarkets
o Coming out of recession, prices may be too cheap Communication Vehicles Media Calendar Budget We will ensure our efforts are efficient and effective by using $98 million. We will target our audience on multi-level platforms and vehicles.
The tone, voice and look of the “Friends. Family. Fun.” Campaign will be identical across all platforms; television, internet, print, out of home, and event marketing.
We are going to leave $2 million for errors or pertinent events during the year to ensure our campaign efforts are realized and maximized.
We have allocated the largest portion of our budget to promotions (50%) due to 66% of our target market prefers word of mouth and events marketing.
Our budget is dedicated to Television advertising (30%) due to 53.3% of our target market preferring television advertising.
Print Advertising (10%) was rated as the third most influential advertising with 25% of males and females 18-24, 35-54 preferring print ads. Print advertising consist of newspapers, flyers and direct mail marketing.
Internet advertising (10%). 29% of 34-45 year olds responded that they were influenced by various forms of Internet advertising. $100 Million, We want to create a fun and catchy slogan that will appeal to our target audience effectively. The majority of our consumers are family oriented so our messaging will contain the feeling of connectivity. Our slogan is “Friends. Family. Fun. Chili’s” Positioning Statement We want Chili’s to feel like a place where you can come have dinner with your family, celebrate a child’s birthday party, have a celebratory dinner with your friends on a Thursday night, or just come in and have some fun on a budget. Our advertising needs to remind people that Chili’s restaurants are conveniently located in several commercial areas and that it is consistent in providing consumers with a fun, energetic atmosphere. Unlike its competition, Chili’s offers a menu that includes a variety of grilled American favorites as well as spicy, Mexican-style flavors. Chili’s Brand Positioning: To fun, outgoing people that are looking for variety. Chili’s is a unique casual/fast-food chain restaurant that consistently offers a fresh, spicy twist to the American grilled classics. Increase restaurant patronage
Increase market share to 10% by the end of year
Create an unaided recall in the minds of consumer with the new campaign.
Increase sales by 5% in designated markets
Gain 2000 likes over the course of one year
Have buzz, and talking about this at least 200 times in one year
Make 40 million impressions throughout all media vehicles
Corporate Responsibility goal: donate $20 million to charities at end of year galas
Obtain a 15% ROI on marketing efforts Make 75% of the target audience aware of this campaign
Increase social media presence in correlation to the new campaign
Implement product placement in various mediums
We want to increase our target market’s visits to Chili’s by 5 more visits per year by the end of year 1 Promotion is the key element to our marketing plan with 50% of our budget

Research shows 109 respondents of 122 selected the form of word of mouth (friends, family, etc.) and event/ promotion

Therefore our plan will focus the majority of our efforts on the promotion and events

This will increase the overall awareness of the program and, through experiential marketing will allow buyers to have an emotional experience with the brand Television Newspaper Social Media Email Campaign Online Advertisement In Store Promotions Basketball and Baseball Park Sponsorships End of Year Charity Event St. Jude Children’s Research Hospital (Hospital) Greenpeace (Environment) After-School All-Stars (Education)
On the Chili’s website they advertised their most popular promotions like the $20 dinner for two.

Free chips & salsa at lunch coupon (printable from website) offer that was valid only through February 10,2012

In the official Chili’s website under the Gift cards tab, a Chili’s side advertisement advertised free chips and queso when customers join their email club Chili’s first opened in 1975 in Dallas, Texas due to Larry Levine’s idea of a restaurant that served good food at affordable prices in a casual setting
Levine opened the first Chili’s restaurant that was an old postal station located on Greenville Ave
The first Chili’s became a hit so Levine decided to open up 22 more locations in the next few years all over the region
•Strengths:
o Fair Pricing x Good Food x Quality Food
o Conveniently located near shopping centers, movie theaters, and other popular attractions
o Family friendly as well as night friendly
o Full alcohol bars and variety in menu
•Weaknesses:
o Weak current campaign
o Very similar and almost indistinguishable from other restaurants in same category
o Brand awareness – No loyalty
o No competitive advantage in eyes of target
•Opportunities:
o Trend in exotic foods to reach more diverse consumer
o Brand Development
o Retention Program
•Threats:
o Competitors frozen food line and retail products being sold in local supermarkets
o Coming out of recession, prices may be too cheap SWOT Situational Analysis Chili’s can be broken down into the bar/grill segment, which appear to be extremely sensitive to economic gain or stress.
Total system wide sales for family/mid-scale and casual dining establishments will increase substantially.
Chili’s is comparable to its competitors (Applebee’s, TGI Fridays, Ruby Tuesday’s)
Chili’s secondary competitors can be divided into two categories. The distinguishable qualities that these competitors exhibit have affected the overall trends in the family restaurant/mid-scale dining category.
Fast Food (Burger King)-offers fast, casual dining, and low quality food at a quick speedy service.
Delivery (Pizza Hut)-offers many locations, easy ordering capabilities, phone and apps, convenience and no effort really necessary. Major Message Through research and analysis, we have outlined the best way to reach our target audience.

Friend, Family, Fun

This will be through engagement, impressions, and advertisements on specific mediums $30 Million Budget National and local spots
CNN, Discover, ESPN, The History Channel, Weather Channel, TBS, and local syndicates in the Mid-West and Southern states
Television advertisements will be continuous from January to November, with a heavy up from June to November Focused on Mid-West and South States
Papers such as Dallas Morning News, Chicago Tribune, Indiana’s Bloomington Herald
Incorporation of Coupons
January through July $5 Million Budget Our campaign is focused on our customers and how they have fun
The campaign is called "Show us how you have fun"
Two winners every week and each winner will win $75
For instagram people will be able to upload pictures showing us how they have fun and having the following attached to their pictures:
#showusyourfun
#howdoyouhavefun
#fun
#chilis
#familyfriendsfun
The same idea applies for twitter. People will be able to tweet us and tell Chili’s how they have fun! The above mentioned attachments will be used for twitter, too, except followed by an @ $7Million At chili’s with basketball game for kids and a wheel to spin before you sit to win prizes
Prizes include shakers, stuffed chili peppers and gift cards
At Wal-Mart, target, Kmart and local grocery stores and gas stations
We’ll be handing out scratch off coupons for special discounts on appetizers, beverages, etc. Through research and analysis, we have outlined the best way to reach our target audience. Sponsorship of small market teams within mid West and Southern Regions
Advertising within stadiums
Special game promotions
Free, branded merchandise
Game related contest
Co-branding could create positive associations with consumers $5 Million $1 Million $20 Million April-September: MLB
Midwest
Cubs, White Sox, Tigers, Indians, Reds
South
Marlins, Rays, Braves, Nationals, Astros
Advertising:
Chili’s logo in each stadium
$10 Chili’s gift card if home team scores 10 or more runs
Total Allocation: $10 Million Below The Line: Sports Sponsorship January-April, November-December: NBA
Midwest
Bulls, Pacers, Pistons, Timberwolves
South
Heat, Magic, Hawks, Wizards, Grizzlies, Thunder
Advertising:
Chili’s logo in each arena
$10 Chili’s gift card if home team scores 120 or more points
Total Allocation: $10 Million Below The Line: Sports Sponsorship $10 Million Out of Home $10 Million Find The Chili $5 Million Actors dressed as the Chili’s logo in malls and public places in C + D markets throughout the Mid-West and Southern regions
First person in community to find Chile win a free meal for 2, as well as the chance to win a free vacation to Universal Studios for their families
Campaign will be revealed and communicated through Chile’s social media outlets
Total Budget Allocation: $5 Million: Twice a month, every month Questions ? Current Messaging SWOT •Strengths:
o Fair Pricing x Good Food x Quality Food
o Conveniently located near shopping centers, movie theaters, and other popular attractions
o Family friendly
o Full alcohol bars and variety in menu
•Weaknesses:
o Weak current campaign
o Very similar and almost indistinguishable from other restaurants in same category
o Brand awareness – No loyalty
o No competitive advantage in eyes of target
•Opportunities:
o Trend in exotic foods to reach more diverse consumer
o Brand Development
o Retention Program
•Threats:
o Competitors frozen food line and retail products being sold in local supermarkets
o Coming out of recession, prices may be too cheap "Ditch the brown bag and head to Chili's for lunch" Purchase database of competitors to boost awareness
Free appetizers, birthday club, customer feedback survey. targeting C & D markets in the Midwest and South, we will be placing ads on billboards in both directions in densely populated areas that have a Chili’s within a 15 mile radius
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