The lesson for Wendys: Don’t spend your money foolishly
Tom Dougherty, CEO – Stealing Share
18 June 2013
An increased media spend is not the answer
The earnings results for Wendys had a big dark spot on its announcement recently, saying its Right Price Right Size menu has been losing market share to competitors such as McDonalds in attracting the value-conscious customer.
Wendys is planning to up its media spend to compete, saying it’s a must “to address the price-value consumer.”
“If all of the fast food restaurants, including McDonalds, says they have friendly service, hot food and cheap prices, where do you think consumers will go? To the one with the most locations and is the safest choice (because it’s the most known).”
It’s true that, in the fast food industry, you have to address that audience. Especially when you are one of the largest chains in the nation. Because, after all, fast food means you get it quickly and cheaply.
But simply pouring money into the process won’t by itself fix the problem. Right now, Wendys seems to believe that McDonalds’ key is the size of its media budget.
That helps, of course, but McDonalds is the preferred choice because, as the market leader, it becomes the default choice in the face of similar messaging among its competition.
Think of it this way. If all of the fast food restaurants, including McDonalds, says they have friendly service, hot food and cheap prices, where do you think consumers will go? To the one with the most locations and is the safest choice (because it’s the most known).
Upping the media spend isn’t a share-stealing strategy unless it has a more meaningful message than Wendys primary brand promise of “quality.” The people who go to McDonalds already think they are getting quality, otherwise they wouldn’t be going there. It’s not a reason to choose. You only switch for things you don’t believe you already have.
Be different and better, Wendys, then your marketing dollars will be better spent.
Marketing during COVID-19 Tom Dougherty, CEO - Stealing Share 6 April 2020 Marketing during COVID-19: A Primer So much is uncertain these days. And uncertainty often gives way to fear. That’s what many brands are feeling right now and why marketing...
COVID-19 education impact Tom Dougherty, CEO - Stealing Share 31 March 2020 Putting up their dukes: The COVID-19 education impact The following post on the COVID-19 education impact is written by freelance brand strategist Mark Dougherty, who serves as a...
NFL free agency Tom Dougherty, CEO - Stealing Share 18 March 2020 NFL free agency at least provides a distraction Things are certainly in a strange place. People continue to be holed up and will be for the foreseeable future. All the while, a crazy NFL...