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SONIC DRIVE-IN MEDIA PLAN By: Danielle Sprowl

2012

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Situational Analysis: SWOT

STRENGHS (INTERNAL) WEAKNESSES

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• Largest chain of drive-in restaurants in the United States with 3, 572 locations

• A unique culture dedicated to creating the customer’s experience unforgettable: carhops on roller skates and the drive-in ordering system

• Strong customer loyalty in the food industry

• Strong and large franchise program

that expanded its territories!

• The drive-in can discourage consumers to come in cold climate

• Advertising fees of up to 5.9% of gross sales

• Decrease in revenue over the last five

years!

• Expansion of the multiple Company- owned Sonic Drive-Ins as well as single store franchises!!

• Penetrate new markets in regions of the U.S. with few Sonic Drive-In locations!

• Become restaurant leader because of

their unique competitive advantage !!

• Broaden their food options!

• Large number of competitors in the “Quick Service Restaurant Industry” gives customers many food service options.!

• They face fierce competition from the pizza industry !

• Penetrate new markets in regions of the U.S. with few Sonic Drive-In locations. !

!• Sales are lower in the winter season

(December, January, February) because of lower temperatures in northern region!

!• Disruption in the financial market causing

consumers not to spend as much!!!

OPPORTUNITIES (EXTERNAL) THREATS

Situational Analysis: Marketing Mix Sonic Drive-In restaurant, founded in 1953, is a chain and franchise food service known for their unique carhops and ordering system.

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PLACE PROMOTIONS

PRODUCT PRICE!

• Burgers • Chili Cheese Coneys & Hot Dogs • Chicken • Fries/ Tots • Kids’ Meals • Breakfast Options • Limeades, Shakes, & Slushies • Frozen Desserts

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Prices vary $3.00 to $10.00 !!

Restaurants locations are located across the U.S., mainly in the southern region. There is an opportunity to capitalize in the northwestern and mid-northern region, and become a leading restaurant operator. 30 new locations will open. !

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Sonic emphasizes on high food- quality, and their one-of-a-kind personalized service featuring carhops on skates and drive-in service.

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Competitive Analysis: . The “Quick Serve Restaurant industry” is a highly competitive market withh hundreds of competitors who fight to offer the greatest prices, services, convenient locations, and food quality. McDonald’s holds the title of market leader as top fast food hamburger chains in the U.S. Sonic also face competition from burger alternatives such as pizza services. Sonic Drive-In’s unique quality service, such as the carhops and drive-in experience gives them a unique selling point.

Source: Technomic 2011, Media Flight Plan, Mcdonalds.com, Burgerking.com; Wendys.com; Dairyqueen.com

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Remains industry leader with 49.5% of the market share. Spent $1 billion on advertising in 2011. !Has the title of the world’s most recognizable the Golden Arches logo, and their Big Mac. !

!!!!!!! Holds 13.3% of the market share. !!!!Spent $304 million on advertising in 2011. Widely recognized because of their slogan “Have it your way”, and their whopper sandwich.

!!!!!!! Holds 12.8% of the market share. Spent $287 million on advertising in 2011. !

!!!!!!!!Spent $88 million on advertising in 2011. !

Competitive Spending Analysis and SOV “Top 5 Based on Number of Locations”

***Looking at the top 5 Fast food restaurants with high number of store locations including ad dollars spent on sponsorships***

• $3971804 (000) advertising dollars were spent 2011 in the Quick Serve and Pizza Competitive Market • Sonic ($167million) accounted for 4.2% of the advertising dollars spent. • In comparison, McDonalds (including sponsorship) accounted for 23 % of the ad dollars spent in this industry*** • Burger King accounted for roughly 8% ad dollars spent • Dairy Queen (including sponsorship) accounted for 2.2% ad dollars • Pizza Hut is an alternative to the burger option and its share is 6% of the ad dollars. • Wendy’s and Arby’s accounted for 10% of the market share in advertising.

Source: Kantar Media 2011, Quick Serve and Pizza Competitive

Brand NET TV SPOT SLN CABLE SYND MAG LCL MAG

B2B NTL NEWS

NEWS NET RAD

LCL RAD

INT OUT

McDonalds 31.5 17.7 10.3 13.1 5.0 3.5 0.0 .02 0.0 .20 .13 6.6 2.9 8.5

Burger King 36.0 5.2 8.6 34.6 5.8 .14 0.0 .03 0.0 .07 .5 2.7 1.5 2.7

Wendy’s/ Arby’s

27.4 22.8 2.8 23.9 5.9 2.0 0.0 0.0 .04 .06 .19 5.4 5.5 2.3

Dairy Queen 16.6 32.8 0.0 39.2 9.5 0.0 0.0 0.0 0.0 .08 0.0 .28 .08 1.4

Pizza Hut 37.7 21.8 2.0 33.7 1.5 0.0 0.0 .01 .20 2.0 0.0 .32 2.0 .20-

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“Quick Service Restaurant Media Mix”

Target Audience: African America, women ages 18-34

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The Black woman is a target market that Sonic has overlooked its potential to capitalize; there is a great opportunity here.

Target Audience: African America, women ages 18-34

Rationale: o After analyzing MRI data, Men are the heavier consumers of drive-in restaurants: men

(index 103) and women (97), but working-women have an index of 108. This means they are 8 % more likely to heavily consume fast food from a drive-in restaurant.

o Overall working- women, with a steady income, would have the means to consume more

fast food than a women unemployed (index of 84). o Working- women were 15% more likely to consume Sonic Drive-In. This is great for the

Sonic Drive-In. but they lack in customer support from African Americans with an index of 87. What’s interesting is Blacks are the heaviest consumers of fast food with an index of 114 compared to Whites (98), Asians (96), and Hispanics (101).I think this could be potential to penetrate a market of heavy fast food consumers that they didn’t have the opportunity to do in the past.

o Within the category of age 18- 24 were 21% more likely to consume fast food and 7%

more likely to consume any burger restaurant. Following behind were the 25 to 34 year olds with a positive index of 117. The more Sonic Drive-in can target, the better. The target age will be 18-34 year olds.

o What is unique about this age group is that it includes a college and graduate level of

potential targets. The college student market has an index of 109 of heavy fast food consumption and 116 index of Sonic Drive-In.

o Keep in mind, we want to attract a broad target market, but with specific needs. So lets

focus on the graduates of college who are out in corporate America with full time employment. Heavier consumers of fast food are 11% more likely to be employed.

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Source: MRI !

Target Audience: African American, women ages 18-34

Rationale:

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Why focus on Black Women?

• 85% of all consumers’ purchases are made by women.

• The percentage of African-Americans attending college or earning a degree has

increased to 44% for men and 53% for women.

• The number of African-American households earning $75,000 or higher grew by almost 64%, a rate close to 12% greater than the change in the overall population’s earning between 2000 and 2009.

• According to Nielsen, By 2015 the African American buying power is projected at 1.1 trillion which means more money to spend due to growth in education and income.

This can be summed up as Black working- women have the money to spend, and they are truly spending it.

Sources: Trend Sightings; Nielsen 2011 !

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Target Audience: African American, women ages 18 to 34

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Meet Sharon Richard: A new graduate of law school at the Chicago University and currently employed at one of the top corporate law firms in Detroit, Michigan that she relocated to about five years ago. Dana life is moving at a fast pace, and forever changing as she moves ahead in her career and personal life. She is a newly wed and plans to start a family later down the road; Dana has a load on her plate trying to manage a career and family. But, somehow she is successful. Dana is a smart phone user and uses the Internet to stay update with political news and engage in social media such as Facebook and Twitter daily. What would life be without her mobile device and the Internet? Online Shopping for clothes, shoes, and accessories is Dana’s escape, and way to relieve stress created by long hours at the firm. Dana enjoys listening hip- hop and R&B during her drive to work. In her leisure time, Dana likes to sit back and enjoy her monthly subscription of her favorite magazine to ease her mind off of a long day at the firm, and have a couple of drinks and spa dates with the girls.

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Tier 1 Detroit, Michigan Duluth- Superior, Minnesota- Wisconsin Flint-Saginaw et al, Michigan Grand Rapids et al, Michigan Green-Bay- Appleton, Wisconsin La Crosse-Eau Claire, Wisconsin Lansing, Michigan Madison, Wisconsin Mankato, Minnesota Marquette, Michigan Milwaukee, Wisconsin Minneapolis-St. Paul, Minnesota Traverse City et al, Michigan Wausau- Rhinelander, Wisconsin

Tier 2 Alpena, Michigan Bilings, Montana Butte-Bozeman, Montana Bend, Oregon Eugene, Oregon Fargo-Valley City, North Dakota Glendive, Montana Great Falls, Montana Helena, Montana Medford et al, Oregon Minot et al, North Dakota Missoula, Montana Portland, Oregon Rapid City, South Dakota Seattle-Tacoma, Washington Yakima et al, Washington !

Geographic Strategy This media plan is 100% spot campaign for 8 northwestern and mid-northern states of the U.S. There are 58

current Sonic locations, and there will be 30 new stores opening in the next year in this region. This media plan is broken down into two tier markets that were evaluated based on their location, the population of each market, and the current number of Sonic locations in the market. Both tiers had roughly the same averages of indexes in

each life style categories (like to try new drinks- 91, prefer fast food to home cooking-93, eat food I like regardless of calories-99, and Like to try out new food products-94) below the average. Tiers 1 are cities with

high populations and currently have Sonic locations within their markets, so it is a greater chance of success in campaigning to these markets. This will help stretch the budgeting dollars, and put more money in the tier that

will in return have the most potential of meeting the objectives for Sonic.

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Marketing Objective Increase Sonic market share in the U.S. by 5%, though penetrating

the northwestern and mid-northern regional markets.

Advertising Objective Get African American women ages 18- 34 to switch over to Sonic as their first choice for fast food restaurants.

Media Objective/ Strategies Increase the consumption of Sonic in the 30 new locations of the northern region by 20%.

Who:

African American women ages 18-34, with an emphasis on working women with full time employment

When: 12-month campaign beginning in the month of March, with heavier push from May through October, and ends in

February the following year.

Where: Regional media campaign, Northwestern and mid-northern 32 spot markets and 8 key states: Michigan, Minnesota, Montana, North Dakota, Oregon, South Dakota, Washington, and Wisconsin. Specifically in high African American

populated markets in this region.

What: Heavy push of social media/ owned media, local television, traditional and non-traditional radio, and niche magazine

How:

$28 million budget. Use high- reach media to increase awareness and gain 80% reach with the help of traditional and non-traditional media. Geo- targeting will be very important for this campaign

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Tactic 1: Owned Media: African Americans are overlooked as potential targets for advertising, yet they are American’s heaviest consumers. Create a channel: website, Facebook, twitter, and blog all dedicated to empowering the African American women. Create a sense of community, an open forum, for Black women to come to discuss the issues, concerns, celebration, and life of black women. The website would inform on local news and events going on in the black community in the region, and encourage consumers to generate conversation, post videos, share photos and music This campaign message is Sonic is the American drive-in opens it’s arms out to all the communities of America, and how communities have diverse characteristics. Sonic wants to learn, embrace, and become apart of these communities. This campaign can be accessed via computer, mobile, and tablet device. Target African American women via Facebook and email.

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Rationale: African-American adults spend much more time consuming media from the Internet than any other adult group. They are emailing, social networking, using YouTube, black websites, and music websites. African Americans prefer to buy brands that are respectful of their culture and give back to the Black community. This campaign brings high targetability and consumer attention to attract the African American woman. Heavy fast food consumers are heavy users of the Internet. They are 10% more likely to consume the Internet. With the integration of this campaign through Internet, mobile, and table devices, the target is able to interact with the brand anywhere and on the go. In result we hope to create a buzz that will cause this campaign to spread through WOM. The campaign through WOM becomes alive and transparent, reliable, and accepted among African American women !

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Tactic 2: Local Television Create an: 30 second advertisement surrounding the same message as the owned media campaign around Sonic embracing and engaging with the Black Community and the women among the community. This ad will appear on local ABC, CBS, CW, and NBC affiliates in the northwestern and mid-northern region. During primetime airings and black programs. For an example: in Detroit a local station is CW50-WKBD Detroit. !!!!!!!!!!!!!!!!!!!!!!!!

Rationale:!!Television consumption is moderate with heavy fast food consumers, but local television gives a great advantage in high reach and geo targetability. African Americans used their TVs an average of 7 hours, 12 minutes each day rather than the U.S. average 5 hours and 11. Among all Black households, 81% watch Black TV channels weekly. Among all Black households, 81% watch Black TV channels weekly Source: Radio One 2011

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Tactic 3: Radio Create a: 30 spot for local radio station in the northwestern and mid-northern region hip- hop, R&B, and gospel stations that cater to the African American audience. The ad should talk about the benefits that Sonic has to offer including happy hour specials, and integrate the message of Sonic becoming apart of the Black community. The radio spot should appear in morning and evening dayparts. This is the time in which the women will be on their way to work traveling by car and back at home. Radio spots should also appear on the radio stations’ online radio, because African Americans are heavy Internet consumers via computer, mobile, and tablet devices. Examples: Minneapolis-St. Paul, Minnesota – 101.3 KDWB, 100.3 KJZI, 97.1 KTCZ Milwaukee, Wisconsin: V100.7, 88Nine Detroit, Michigan- Hot 107.5

Rationale: Heavy consumers of fast food and Sonic respond heavily to radio ad. Radio provides high reach depending on the target and the time in which they are trying to be reached. !!!!!!!!!!!!!!!!!!!!!!!

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Tactic 4: Magazine

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Place full page advertisements in local magazine in the region dedicated to an African American audience such as Detroit’s B.L.A.C., Minneapolis’s Black Twin Cities, Milwaukee’s Black Women. The ad will go along with the theme of the campaign and will provide details of specials going on for Sonic. !!!!!!!!!!!!!!!!!!

Rationale: Nearly 9 in 10 spend more than an hour reading magazines every week, and this is also an opportunity through out the month for the target to receive repeated exposure. These magazines are specifically for the African American women. African American/Blacks have higher recall scores compared to all readers +9% on average and take action +15%.

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Flowcharts/ Budget

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Flowcharts/ Budget

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* The remaining balance of $10 million can go towards sponsoring Black events around the region and creating the Sonic channel

dedicated to the Black woman. *

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Measurements

By the end of this campaign there should be an increase in the overall African American consumption in the region. This campaign is all about gaining the trust and acceptance of the target in order for them to become aware of what Sonic stands for. When overall sales revenue increases in this region, we will know this campaign was successful. Also through comments and feedback Sonic receives from Black women. When the target is engaging and interacting with Sonic, then we know that the campaign was successful in reaching the Black working- woman.