Final Marketing Plan 4a2611

Miranda Doing Danielle Hoopes

Final Marketing Plan

IN-N-OUT BURGER ORGANIZATION, MISSION, GOALS, AND OBJECTIVES IN-N-OUT’s MISSION STATEMENT- “Give customers the freshest, highest quality foods you can buy and provide them with friendly service in a sparkling clean environment.”

GOALS AND OBJECTIVES- Satisfy our customer needs by providing them their meal in a timely manner. By listening to the customer, we will make sure that they will receive the correct order.

COMPANY SLOGAN- “Quality you can taste”

SERVICES PROVIDED- Quality food such as hamburgers, cheeseburgers, shakes, fries, and drinks, merchandise such as T-shirts, stickers, hats, and cups.

SITUATION ASSESSMENT CLIMATE POLITICAL AND LEGAL- Business permits, food regulations, health inspection grading, business licenses.

ECONOMIC- The status of the economy, whether will people pay for burgers and food offered based on their financial situations. As of now, people in general will purchase fast food because in some cases, it is cheaper and more convenient than buying groceries and cooking at home.

SOCIAL AND CULTURAL- People save time by not cooking and going out to eat, we use fresh ingredients to provide “healthier fast food” which has become a trend. “Customer's interest in healthier food seems to be growing. Some 78% of restaurants in the "quick-service" category, which includes fast food, are seeing more orders for entrée salads, according to the National Restaurant Association (NRA), an industry group” (Webmd.com). In-N-Out is considered a trendy place to go eat fast food/burgers, faddism, family oriented place to eat, and a place to socialize with friends.

TECHNOLOGICAL- These items are used for sales and prepping the food for customer’s satisfaction. With advanced technology, being able to regulate food temperature has helped maintain its freshness. -

Cash Potato slicer Milk shake dispenser Security alarm system Fryers Drive-thru (intercom/screen that shows order)

NEEDS ASSESSMENT TYPES OF NEEDS ASSESSMENTS AND WHY? The type of need assessment that we will be conducting is Entrepreneurial. We will be focusing on the entrepreneurial side of the business; how eating as a part of recreation is a commodity to be purchased. We will do this by assessing the demands, wants, and desires of our customers. While we aim to provide quality service for our customers, we need to maintain our sales to stay in business.

QUESTIONS THAT WILL BE ASKED

We would survey youth (ages 12-25) in Southern California EXAMPLES OF QUESTIONS/SURVEY: -What type of food do you prefer? (Circle) Pizza

Mexican

Burgers

Other

-How many times a week do you eat out?

-On average how much money do you spend on fast food per week?

-What time of day do you normally eat out? (Circle) Breakfast

Lunch

Dinner

HOW WILL WE COLLECT DATA AND OVERCOME BARRIERS -Surveys: We will go to many school campuses around the area (high school and university) and have students take surveys. One barrier to this would be that they might not have the time or desire to stop and take a survey. One way to overcome this would be by providing an incentive or reward for taking the survey such as a coupon for a free shake or a dollar off of a hamburger. This would get students to take the survey as well as promote business. -Design a Facebook or other website with links to online surveys for customers to fill out. -Comment cards at restaurant locations would be another way to get quick from customers who are already purchasing meals and food. - along cards that can be ed out on the street or at different locations. Cards will provide information that takes you to a website to fill out a survey. Coupons or other rewards could also be used as incentives for taking the survey. -Interviews at restaurant locations.

DATA FINDINGS

From the data collected from surveys and interviews findings showed that lunch and dinner were the most popular time of day for young adults to eat out. During interviews, teenagers stated they were provided a weekly allowance to buy food. The average cost of money spent on fast food during the week was between 20-28 dollars. On average, youth between the ages of 12-25 ate out 2-4 times a week. The types of food preferred were pizza and hamburgers.

COMPETITION INDIRECT- Movies, shopping, malls, gym, video games, red box, outdoor activities-skating, skiing, climbing, swimming, tanning. These competitors offer a variety of services that may take the customers interest away from purchasing In-N-Out. Overall red box is open 24/7 and is only one dollar per day you rent the movie. Another service that takes customers away from In-N-Out would be gyms, because it is a trend to be fit and healthy. Many people don’t eat fast food and would choose these services over In-N-Out. DIRECT- Home cooked meals, grocery stores, McDonalds, Taco bell, Pizza hut, Carls jr., Wendy’s, Little Caesars, Subway, Five Guys, Jack in the box, Rodrigo’s, Albertos, Panera, Zupas, Island Burger, Chili’s, Red Robin In-N-Out

McDonalds

Home cooked meals

Hours Sunday - Thursday 10:30 a.m.-1:00 a.m. Friday 10:30 a.m. - 1:30 a.m. Saturday 10:30 a.m. 1:30 a.m. Drive thru 24/7 (limited locations) MondaySunday 5am-11pm 24/7

Average Price $1.85-$3.15

Distance 5 mile radius

$1.29-$3.99

5 mile radius

$15.00 for all ingredients (large amount)

0 miles

SITUATION ASSESSMENT MARKETING AUDIT HISTORY -

In-N-Out first opened in 1948. California’s first drive thru hamburger stand, Harry Snyder everyday got fresh meat and produce for their ingredients. 1948 had a two way speaker box introduced. 1979 provided large comfortable dining areas so customers can sit and enjoy their burgers. Found information at www.in-n-out.com/history.aspx

PHILOSOPHY (MISSION, VISION, VALUES) “The arrow points to pride” “We all work under the same arrow” MISSION- Give customers the freshest highest quality foods you can buy and provide them with friendly service in a sparkling clean environment. VALUES- Fresh ingredients, good customer service.

PRODUCT -

Double Double -$3.15 Cheeseburger- $2.15 Hamburger- $1.85 Fries- $1.40 Shake (Vanilla, Strawberry, Chocolate, Neapolitan) - $1.95 Soda- Small $1.30 Medium $1.40 Large $1.60 X Large $1.80

SERVICE: Clean environment, well trained friendly employees, drive thru, fast and convenient FACILITY INVENTORY/OFFERINGS: T-shirts, hats, mugs

ORGANIZATIONAL CHART

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See appendix A

VARIOUS STAKEHOLDERS: -

Consumers Ingredient suppliers Local community Employees Franchises

FINANCIAL STATUS AND FINANCIAL GOALS Increase sales by 5% by the end of every year. We strive to satisfy our customer’s needs. By doing so, we provide a family friendly environment which draws people to come and purchase our goods. Also, because of our availability, young adults are able to come during late hours which help increase sales. HISTORICAL MARKETING EFFORTS:

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Updated logo in 1954 with arrow instead of “no delay” sign.

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Lap mats in 1961 and in 1971. Butcher paper lap mats were replaced with printed mats that offered information to customers. 1961, banner was hung inviting guests to try “double-double.” 1963 Planted cross palm trees in front of most in-n-out locations. They didn’t spend much time on advertising because they relied on word of mouth or different logos to bring in customers. Today, there are ads on the radio as well as billboards that our products. In the past, In-N-Out used TV commercials to promote their service but now use word of mouth and other resources. Found information at www.in-n-out.com/history.aspx See appendix B.

IMAGE AS VIEWED BY THOSE BOTH INSIDE AND OUTSIDE OF THE ORGANIZATION: -

In-N-Out burger strives to maintain an image as a family business; they do this by having a casual environment that is good for kids. California Customers view In-N-Out burger as a piece of home. Employees feel that In-N-Out is a good company to work for. See appendix C for customer/employee reviews

SWOT ANALYSIS STRENGTHS -

There is a hidden menu which makes the style of burgers unique. Fresh ingredients Promotional deals to bring in customers Reasonable price Cleanliness Customer Service Hours of Operation

WEAKNESSES -

Limited areas/locations Small selection of food

OPPORTUNITIES -

Expand locations to areas on the east coast

-

Expand menu Franchise

THREATS -

If economy declines fewer people will eat out. Cheaper fast food restaurants nearby, restaurants, home cooked meals

MARKET RESEARCH SEGMENTATION Demographics (Age) 0-11 12-25 26-36 37-57 58+

Psynchographics Breakfast Lunch Dinner

Geographics Los Angeles Orange County San Diego Riverside

TARGET MARKETING PRIMARY: Youth/Young Adults ages 12-25 years old- because a high percentage of this age group eats at fast food restaurants. SECONDARY: Age 37-57 because they are most likely to have families and In-N-Out is a family friendly establishment that can be enjoyed by kids and adults.

SWOT FOR TARGET MARKET STRENGTHS: Affordable, fresh ingredients WEAKNESSES: Limited variety of food OPPORTUNITIES: Promotional deals (ex: Free shake Friday with purchase of….) THREATS: Don’t have money or resources to purchase food.

POSITIONING POSITION

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How we want the customers to view our company/reasons customers should choose our organization over another…..see In-N-Out for its quality service and food.

POSITIONING STATEMENT -

For people who are ages 12-25, In-N-Out offers burgers that you will enjoy. That’s because we use fresh ingredients.

POSITIONING MAP -

See appendix D

PRICING STRATEGY Our current pricing strategy is penetration, (trying to be cheap) based on our analysis we recommend that we continue with penetration pricing strategy because: - Keep prices of products low and quality of product high -Money isn’t put toward expensive advertising but used to buy fresh, quality produce/products -Cheaper than competition with same quality burgers (5 guys, Island Burger….) -Price not affected too much because no change in product

PRODUCT MIX: We decided to keep the traditional menu and not make any changes because customers are satisfied with the current product.

In-N-Out PLACE/DISTRIBUTION -

Controlled expansion and growth Private-family owned business Non-Franchised Locations in California, Nevada, Arizona, Utah, and Texas Easy to supervise –Family owners are from the west coast Customer Location-easy access. Locations found right off freeway exits, in shopping centers, small business areas.

We recommend that we expand our locations across the U.S. There is a demand on the east coast for In-N-Out restaurants because there are no locations nearby (especially in Arlington).

PROMOTIONAL PLAN To Free Shake Friday, we used flyers because it can be seen everywhere and there are no limitations as to where you can post them. A flyer would be easy to distribute around places where youth/young adults hang out; such as stores, schools, workplace, and malls. This will appeal to our target market as our company wants to focus on youth/young adults ages 1225. Customers’ ages 12-25 lean towards products that are inexpensive, fast, and convenient which makes this promotional item one way to help them save money while still purchasing InN-Out products. Young adults are always trying to save money as well as get something for free; providing free shakes will help draw in our target market and get service. A promotional event that In-N-Out may provide could be a hamburger eating contest. This contest will see who can eat the greatest number of patties in a given time. The winner will get their picture taken and put on the wall and receive a free T-shirt. At the event spectators will have opportunity to buy merchandise and food. This event will encourage target market participation along with their family and friends. It will increase number of customers creating demand/want in other locations, the News/other media could cover event to spread word/ for In-N-Out organizations. Our marketing objective is to increase number of restaurants in already existing states which will help with sales. Eating contest-would get attention from youth/young adults. They like competition or a challenge and if they had fun at this event, they would be more willing to tell their friends and will be more likely to return. Free food and opportunity to buy merchandise-attracts teens and other customers. Another promotional event would be a beach volleyball tournament. In the parking lot, there will be two In-N-Out food trucks with other merchandise that can be purchased on site. At this event, local communities would gather together and enjoy each other’s company. Today, there is a trend of living a healthy lifestyle which is how we will bring in new customers. This event will help In-N-Outs image of “healthy” living. Our target market will be drawn to this event because the beach is a place of socializing, volleyball is a form of fitness, and In-N-Out will provide food for participants. Furthermore, bumper stickers are a great promotional tool because they are easy to make and distribute. There is always traffic in California, so by having a bumper sticker on your car, it is an ment in itself and many people will be exposed to In-N-Outs logo. Our target market is a population that follows trends and one trend that is seen today is having stickers on your car.

We will evaluate our success of our marketing efforts through online surveys. If they fill it out, they will receive a coupon for a 10% discount off next purchase. This incentive will help us gather the information we need to be successful in future marketing efforts. See appendix E for Promotional Plan examples.

APPENDICES APPENDIX A

ORGANIZATIONAL CHART

President: Lynsi Torres

Chief Financial Officer: Roger Kotch

Chief Operating Officer: Mark Taylor

Planning and Development Executive, Vice President, and General Manager

APPENDIX B https://www.youtube.com/watch?v=_UUmpogN-RM https://www.youtube.com/watch?v=pEwcWtI_HJM&feature=endscreen&NR=1

APPENDIX C YELP CUSTOMER REVIEW

San Francisco, CA 3/29/2013 Here are some facts about my relationship with In-N-Out: - It borders on obsessive. - We are here so often that employees recognize us. - I'm currently partial to the hamburger: animal style, protein style, no onions, with chopped chilis and extra lettuce. Did you know? (a) An animal-style burger is cooked in mustard; it's not just extra sauce and grilled onions you're getting. (b) In-N-Out's chilis are just amazing. Crucial, even. (c) The workers kindly do not judge you if you order something with an obnoxious number of customizations. - On one occasion, I brought along avocado to eat with my burger. It. was. amazing. Yes, there are some off days (when the burgers are still great, but aren't up to usual par). And yeah, they don't make hearty, gourmet burgers like the ones in fashion nowadays. But seriously -whatever. I can always depend on In-N-Out for a truly excellent California-style burger that's affordable, relatively healthy, quickly prepared, and totally satisfying. EMPLOYEE REVIEW http://www.indeed.com/cmp/In--n--out-Burger/reviews Level 7 / All Star (Former Employee), Sacramento - CA – April 28, 2013 Pros: the coworkers, customers Cons: grease, late nights. This company is everything an employer should be. Great pay, easy concise advancement and amazing associates to work with. Better pay than you'll find in most "real" jobs once you get to management and a great faced paced work environment.

APPENDIX D

Free shake Friday!! !! APPENDIX E

Come to your nearest In-N-Out