Wendy's Business Essay Sample

📌Category: Business, Corporation, Marketing
📌Words: 1150
📌Pages: 5
📌Published: 16 January 2022

Introduction

Wendy’s was founded on November 15, 1969, on 257 East Broad Street, in Columbus, Ohio. The founder of the company is Dave Thomas, who chose the name to honor his daughter Wendy. The goal of creating Wendy’s was to provide customers a space with fast, good food encased in a family environment. In 1976, Wendy’s opened five hundred restaurants, including a dew in Canada. The growth of the franchise happened rather quickly by 1979 and by 2001 the restaurant had over six thousand operating Wendy’s. In addition, the company also made history by being the first to introduce a salad bar in a fast-food restaurant. Wendy’s notorious campaign slogan is “Where’s the Beef?” and the campaign was introduced in 1984, which taunted other hamburger restaurants. The slogan became a catchphrase and was culturally trendy in America during the mid-1980s (Art Bilger, founder and CEO of WorkingNation). 

Current Business Problem 

The steady number of reported COVID cases and the fragile economic crises that the world is currently facing lead to a worker shortage. According to the latest Bureau of Labor Statistics data, more than 9.5 million Americans were reported as unemployed and looking for work in June, while simultaneously job openings in the country escalated to 9.2 million, which is a reported high (Art Bilger, founder and CEO of WorkingNation). The government has been providing financial benefit programs to support the unemployed, which some employers believe is the cause of the lack of workers because they are making more money on extended unemployment benefits than they are working at their previous job. Other factors can be included in the lack of employees, such as health concerns regarding COVID-19 and the lack of affordable childcare. COVID is not only affecting 

The Marketing Mix

Price 

Wendy’s price point is based on the marketing conditions and changes that occur in the marketing industry. The main thing is that the pricing strategy depends on geography because the value cannot be of the product cannot be the same in every country; it differs from country to country. On Other factors can average, a burger costs $5 in the USA. So, it depends on the value of the product in the respective country. “Wendy's also has a bundle pricing strategy wherein it offers products in combo let’s say one burger + 1 fries + 1 beverages at a lower price. These kinds of pricing strategies helped in competing with brands like McDonald’s and Burger King. Annually, the company sees an average revenue of $1 billion” (Team, MBA Skool). 

Product 

Wendy’s fast-food chain has expanded globally and is well known for its hamburgers, five-dollar biggie bags as well as the four-for-four. Wendy’s sells a variety of items on their menu such as Burgers, Chicken wraps & more, Fresh-Made Salads, Fries, Frosty, and Beverages. Let’s break down all the most popular 6 segments of food products listed on the menu. There are multiple classic burgers on the product line, such as Dave’s Single, Dave’s Double, Dave’s triple, Baconator, and six more of this kind. Wendy’s is also known for its chicken, such as the Chicken Sandwich, Chicken Nuggets, Chicken tenders, and chicken wraps fall under this product segment. Healthier options are also featured on the menu, such as a broad range of salads, including, but not limited to, the Taco Salads, Mediterranean Chicken Salad, Apple Pecan Chicken Salad, Spicy Chicken Caesar, Caesar Side Salad, and Garden Side Salad. The sides and drinks are also continuously popular, items such as the classic French fries, Baconator fries, Chive Baked potatoes, bacon cheese potato, Caesar Side Salad, etc. The drink beverages include Wendy’s fan-favorite frosty, chocolate frosty, and vanilla frosty. Wendy's serves all sorts of beverages such as cold drinks, coffee, Chillers, Lemonade, Iced-tea, etc.

Place 

The main headquarters of Wendy's franchise is located in Ohio, USA. There are currently more than 6,000 locations with 300 of the stores are company-owned and the rest are franchises. The main mascot of Wendy’s is based on the semblance of Melinda Lou "Wendy" Morse, who is the daughter and fourth child of the founder, Dave Thomas. Wendy's main brand color is red.  The revenue of the business comes from in-store and drive-through experience as well as the advancement of food delivery apps such as Grubhub, Uber Eats, Doordash, etc. The main vision stated on Wendy’s website is “When everyday people sort through all the ‘spin’ there is one quick-service restaurant that is ‘A Cut Above’… that’s Wendy’s … we stand for honest food … higher quality, fresh, wholesome food … prepared when you order it … prepared by Wendy’s kind of people … people that believe this is My Wendy’s …we do it Dave’s Way… we don’t cut corners” (Wendy’s).  

Promotion

The red-haired mascot of Wendy’s is always its main promotional material. Through the excessive use of technology, the promotion has not only been through Tv but also the use of an online presence such as social media apps. The company is actively present on social media sites such as Facebook, Youtube, Instagram, and Twitter. The biggest social media profile hit was Twitter. With the use of Twitter, Wendy’s can interact with its consumer base by creating fun and interactive tweets as well as mock and make fun of its competitors such as McDonald’s and Taco Bell. If a customer has experienced an issue with an order and tweets Wendy’s account, the social media manager can correct the issue and communicate with the consumer to remedy the situation, which allows the company to still keep an important consumer. The primary of younger Millennials is predominantly Twitter users, while the older generation uses apps such as Facebook. To attract the older generations such as Generation X and the Baby Boomer's Facebook demographics, Wendy’s created a spoof recipe video targeted to those particular users. Wendy’s marketing campaign acted as a promotional video for their Facebook campaign since videos such as food and recipe videos are currently a trending topic on the forum. 

Marketing Situation

Political Factors 

Political factors play a significant role among numerous businesses, as well as the restaurant business. Laws such as tax rates and incentives play a role in how a business operates and how much taxes affect the cost of products. To provide food and other restaurant necessities, it is important to have an established list of reputable trading partners as well as understand if any trade regulation and tariffs laws can affect the services of transporting food and supplies from the different franchises that are located around the globe. Politics can also factor into wage legislation, such as how minimum wage and overtime can be applied to a worker's hours. In addition, the restaurant must abide by mandatory benefits, industrial safety regulations in the service sector and product labeling requirements, and cleaning requirements. 

Economic Factors 

Economical factors such as an “economic downfall, inflation rate, savings rate, interest rate, foreign exchange rate, and economic cycle determine the aggregate demand and aggregate investment in an economy” (Team, MBA Skool). There are microenvironmental factors such as a competitive edge and competitive disadvantage which affect Wendy’s daily business procedures. The company can use these economic factors such as “growth rate, inflation and industry’s economic indicators such as Restaurants industry growth rate, consumer spending, etc to forecast the growth trajectory of the organization” (Team, MBA Skool). Economical factors such as the rise of COVID and deaths related to it also affect the business. Since the rise of unemployment, the lack of workers also affects the working conditions and the production speed that the chains carry out.

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