QSR Category

March 13, 2013

GMG: A Better Media Partner

QSR Media Strategy

ROI Focused

Transactionally Dependent

Immediate Results

QSR Media Strategy

• Media Tactics– Newspaper– Shared Mail– Direct Mail– Alternative Distribution– Broadcast– Out of Home

Integrate Digital, Mobile, Social whenever possible

Media Planning Strategies & Challenges

Consumers & Content: (Choices)3

Media Planning Strategies & Challenges

“When airplanes were invented, trains didn’t go away. When TV was invented, radio didn’t go away. Various media work together and reach consumers at different times.”

Charlie BrownNCH Vice President of Marketing

Media Planning Strategies & Challenges

• Insight for you… and a thought to consider– Point of Sale holds the category back, but over time

this will change• POS Tracking keeps media channel performance insight at

surface level for most mature brands– As tracking improves, your ability to have

“performance skin in the game” is going to be vital• Data commoditizes media pricing• “Don’t step over a dollar to protect a quarter of margin”

The Newspaper Role

• Opportunities & Challenges (glass is half full)

I. You deliver two different targets – bundle them more effectively

II. Your TMC program should be sold with every in-paper media tactic

III. The category’s core is not your sweet spot – this is good for offer-specific messaging programs

I. They don’t want to trade-down core audience transactions/you deliver strong secondary targets

IV. Price it like you want it – it is a procurement driven world due to the recession and it is not going to change

The Newspaper Role

• Opportunities & Challenges (glass is half full)I. Two Targets: Offline and online selling process integration… getting

better, keep focusing on itI. Different agencies require different strategies

II. TMC Content: It is king, always look to improve itI. Readership reverses commoditization and improves results (remember the

“skin in the game” point)

III. Each brand has multiple targets – connect the dots deeper than “brand usage”

I. Core offering, health initiatives, kids programs, new product innovation

IV. This might be one of the most important categories to have in your publication – remember the 3 R’s!

I. Readership = Response = Revenue

Some Category Insights

1/3 of All US Adults Are Obese

• Regulation – initiatives target QSR• First Lady focus; South LA ordinance;

NYC/Bloomberg

What Are QSRs Doing?

• The category spend is driven by TV and the health initiative is fueling the growth

2012 QSR Total Spend > +3.5% TV = 84% of the spending …

while audience is eroding (sound familiar?)

SOURCE: Kantar Media

Sub-Category Conflict

• Know your categories and where the battles exist before speaking with a client– The battle for share crosses over Casual Dining,

Fast Casual and QSR with the trend being “trading down”• 85% of adults eat at Fast Casual 1X+ per month

– 36% are making “lower calorie” selections• 82% of adults eat at Casual Dining 1X+ per month

– Driven by culinary innovation and choices

SOURCE: 2/13 Technomic, Inc. “Future of Casual Dining Trend Report”

Economic Challenges = Opportunities• Frugal Consumers = Media Opportunities

• “Regular” use of coupons = 4 of 5 adults (79.7%)– Pre-recession = 63.6%

SOURCE: NCH 2012 Coupon Fact Report

Economic Challenges = Opportunities

We Are Holding Our Own

x

The Triggers Indicate An Uptick

Consumers Want QSR Coupons

Con

Consumers 50+ are growing in annual visits and are showing the strongest growth in visits with an

associated coupon, but how does this impact share of visits? QSR, traditionally

dominated by 18-34… however, from 2007-12, QSR Share among consumers 50+ has grown from 24% to 31%, while consumers 18-34 have declined from 28% to 24%.

The Senior Phenomenon

The 50+ Phenomenon

Only Time Will Tell

“This recession will be compared to the Great Depression and the impact it had on two generations. Consumers have been taught to use technology and resources to make purchasing decisions. Everyone knows someone one-to-two degrees of separation who faced hardship.”

John CayneCoupon Media Connoisseur

Thank You