A Review Of Wendys

A Review Of Wendys Executive Summary Wendys Old Fashioned Hamburgers is an international fast food chain restaurant founded by Dave Thomason November 15, 1969, in Columbus, Ohio, and moved headquarters to Dublin, Ohio on January 29, 2006. Wendys was Americas national food, and the worlds third largest hamburger fast food chain with approximately 6,700 locations. On April 24, 2008, the company announced a merger with Triarc, the parent company of Arbys. Following the merger, Triarc became known as Wendys/Arbys Group. Wendys/Arbys Group is the parent company of Wendys, and is a publicly traded company. Arbys Restaurant Group, Inc. is a wholly owned subsidiary of Wendys/Arbys Group, Inc. This report will be focusing on Wendys Burgers of the Wendys/Arbys Group. The main aim of this report is to investigate and analyze the marketing activities of Wendys Burgers. What is the Wendys orientation? What are the strengths, weaknesses, opportunities, and threats (SWOT) of Wendys? What are the competitive advantages of Wendys? What is the impact of Wendys marketing mix? This report will try to address the above questions and more. INTRODUCTION Wendys/Arbys Group is the parent company of Wendys, and is a publicly traded company. Approximately 77% of Wendys restaurants are franchised, the majority of which are located in North America. Wendys and its affiliates employs more than 46,000 people in its global operations. In fiscal year 2006, the firm had $9.45 billion (USD) in total sales.While Wendys sets standards for exterior store appearance, food quality and menu, individual owners have control over hours of operations, interior decor, pricing and staff uniforms and wages. Wendys ended 2007 with just under 6000 Wendys Old Fashioned Hamburgers restaurants in operation. Of these, 1,274 (21%) were company owned and operated while the remaining 4,662 restaurants were franchised. In addition to Wendys Old Fashioned Hamburgers, Wendys is invested in the Cafe Express and Pasta Pomodoro restaurant chains, owning 70% and 29% of those chains, respectively. Until 2006 Wendys International Inc. also owned the Tim Hortons and Baja Fresh franchises. The chain is known for its square ground beef hamburgers and the Frosty, a form of soft serve ice cream mixed with frozen starches contracted from potato products. The idea for Wendys old fashioned hamburgers was actually inspired by Dave Thomass trips to Kewpee Hamburgers in his home town of Kalamazoo, Michigan. The Kewpee sold square hamburgers and thick malt shakes, much like the well-known restaurant that Thomas eventually founded in Columbus, Ohio, in 1969. Thomas named the restaurant after his fourth childMelinda Lou Wendy Thomas. WENDYS ORIENTATION Nature of demand Over the century, market for fast food has increased drastically, time being one of the major constraints. A recession in the early 1980s, combined with high beef prices and Wendys explosive as well as threatening growth incited the burger wars. Wendys moved into the number three spot behind McDonalds and Burger King, fuelled by its introduction of a chain wide salad bar, chicken breast sandwiches, and baked potatoes. Extent of demand As of December 2006, Wendys was Americas national food, and the worlds third largest hamburger fast food chain with approximately 6,700 locations. Approximately 77% of Wendys restaurants are franchised, the majority of which are located in North America. Wendys and its affiliates employs more than 46,000 people in its global operations. In fiscal year 2006, the firm had $9.45 billion (USD) in total sales. Orientation Wendys tries to sense the customer needs and demands. This proves that the company is marketing oriented. Let us now analyze the Wendys orientation towards the marketplace. Companies have their respective beliefs concerning their marketing efforts which are usually varied from company to company. The challenging concepts beneath which companies perform their marketing activities are Production Concept Customers are attracted to those products which are available and cheaper. Organizations following this concept targets on accomplishing the large production competence, minimal costs and bulk distribution. Product Concept The way that Wendys Old Fashioned Hamburgers does business and markets its product to consumers is due to the change in our society to where the consumer wants the biggest, fastest, and best product they can get for their money. Wendys introduce healthier options amid rising obesity levels and a general interest in healthier foods, some fast food companies have been going in the opposite direction, introducing ever more calorific and fat-laden burgers in a bid to win customers. Selling Concept The concept of ready-cooked food for sale is the primitive selling concept of Wendys burgers. Wendys uses ‘fresh, never frozen beef/fresh ground beef in their hamburger, has moved in line with the Quick Service Restaurant or QSR industry and has been working to offer healthy food choices. Wendys has added sandwiches and salads to its menu, and offers side dish substitutes for French fries. Marketing concept Marketing is the science of actualizing the buying potentials of a market for a specific product. It reflects a selling concept because it centers on promoting a product rather than meeting a defined area of consumer need. The marketing concept sidesteps the basic conflict between buyer and seller. Buyers want lower prices. Sellers want higher prices. The marketing concept does not provide a solution to the classic bargaining problem. Holistic Marketing Concept This involves development, design and implementation of marketing programs, processes, and activities that recognizes organizations breadth and inter dependencies. Precisely, this concept is an approach to marketing that tries to identify and resolve the opportunity and difficulties of marketing activities. There are four main elements in Holistic marketing namely (Kotler and Keller 2006: 16) * Integrated marketing involving communications, products services, channels * Social responsibility marketing involving Ethics, Environment, Legal and Community * Relationship marketing involving Customers, Channel and Partners * Internal marketing involving Marketing department, senior management and other departments. Wendys strictly follows the above concepts as it includes most of the marketing activities. Wendys Business Strategies Wendys new strategy puts its food on center stage and changes its media-buying habits to zero in more narrowly on different market segments. TV spots and print ads will focus on specific audiences instead of delivering the same message to all demographic groups, tailoring the messages to the audiences. In addition, the nearly 6,700-unit chain will advertise on the Internet to attract younger consumers and use a character named Smart Square to appeal to them in TV spots. Globally, all the Wendys employees work together to achieve in Driving Growth, Funding Growth and become Best Place to Work. Conclusion Colgate is a Marketing orientation company. This can be clearly shown below S.W.O.T Analysis â€Å"SWOT analysis is a structured approach for evaluating the strategic position of a business by indentifying its Strengths, Weaknesses, Opportunities and Threats† (Jobber 2007: 63). To get a clear idea of Wendys/Arbys groups outlook, it is useful to analyze the restaurants Strengths, Weaknesses, Opportunities and Threats (SWOT). Additionally, a SWOT analysis summarizes the outcome of marketing audit of the company (Jobber 2007: 61). Positive factors Internal factors Negative or potential to be negative Strengths Weaknesses Opportunities Threats External factors Strengths Positive, tangible and intangible attributes internal to an organization and within the organizations control. * A strength in Wendys manufacturing is that their food is known for its freshness and quality. * This quality of food it said to be one of the main reasons why Wendys has outpaced the annual sales gain of McDonalds from 1998 to 2002 (â€Å"Industry Surveys,† 2003, p. 3). * The expert management system of Wendys burgers adds to its much strength in time managing and store managing skills. * The pleasant atmosphere of all the Wendys stores adds value to its strong customer oriented approach. * Hamburgers are made with fresh, never frozen beef which is a huge hit with the customers. * Being a Global brand, Wendys is capable of worldwide expansion with huge market share and consumer base to capture. * Strong supply chain is one of the key strengths of Wendys burgers with the suppliers meeting the fast food chains constant demand for the in time supply of raw materials in turn meeting the customers requirements. * Another major strength of Wendys is its mid night push plan, it is operating its stores after the mid night also, which attracts the teenage and young people a lot. * One of the major strength of the Wendys is its nutritional valued menu for the people who are maintaining balanced dite. * Wendys is the first restaurant which is offering a special menu for children ansd even for the kids. Weaknesses Internal factors within an organizations control that detract from the organizations ability to attain the desired goal. * A manufacturing weakness could be that it will be difficult for Wendys to make dramatic improvements in the area of store management in the future. * Breakfast menu Wendys experimented with serving breakfast for a short time, but the endeavor was unsuccessful due to several issues. * Constant management changes have lead to a reduction in customer as well as employee satisfaction hindering its growth and expansion. * The franchisee stores are given freedom to have their own store atmosphere and layout and also employee uniforms. * High dependence on a major country is the main weakness of the Wendys. Though it is globalized, it was operating mostly in USA and Canada.In the year 2007,more than 70% of its revenue is from the USA,this phenomenon leads to loss in profit rates at internatioinal market. * The Wendys spreading of its stores is relatively very less, when compared to its close, rivals McDonalds and Burger King.The McDonalds opening 200 stores per year, The Burger King is opening at a rate of 150 per year, but Wendys is opening only 50 stores per year,so the expansion of business will be less. Opportunities External attractive factors that represent the reason for an organization to exist and develop. Brand recognition is the significant factor affecting their competitive position. * Wendys international brand image gives it a scope for expansion into International markets. * Recession has little or no effect on the fast food industry which provides a great opportunity for growth and expansion. * Wendys was the first to introduce ‘fish sandwich making its mark and grabbing a huge market share. * Raising of restaurant business in USA ia a great opportunity for Wendys. According to the Forbs magazine survey, in the year 2007 more than 25% of USA government revenue from fast food sector. The reasons for increment in convenient food consumption is, increasing single parent families, dual working house holds, no time for active cooking at home, hike in living standards of people etc.Wendys can utilize this as a great opportunity to increase its business * Increasing population of teenagers and young people is a great opportunity for Wendys, as it was targeting them. According to the census in 2008, more than 40% of american people are teenagers,which was a great opportunity for Wendys. * Increasing opportunities in developing countries like China and India. In 2007 Wendy,s make one percent of its revenue from India and two percent from China,still to be increased. There is a great opportunity for Wendys to develop its business in developing countries as there is less operating cost when compared to the developed countries. Threats External factors beyond the organizations control which could place the organization mission or operation at risk. * Accusation Wendys was accused recently as a consumer found a human finger in one of its item (Chili). Such kind of accusations would surely affect the brand image and high chances of drop in the market share. Much time and money is consumed to regain the lost share of the fast food market. * Competitors Wendys faces stiff competition in the overall fast food industry, as McDonalds holds a dominating 18% share of the market with Wendys and Burger King holding shares of approximately 2% each. In recent years Wendys has been lagging behind McDonalds and Burger King in same store sales growth, an indicator of how established franchises are faring. In addition to traditional hamburger-based fast food restaurants, Wendys must compete with chains such as Subway, Yum! Brands (YUM) and Jack In The Box (JBX). * Controversy Wendys found itself the focus of a boycott by gay rights groups when the company pulled advertising from the sitcom Ellen in 1997, which it deemed controversial. * Illnesses caused by food is the major threat for any fast food company. Though more care was taken, there was chance of food borne illnesses like e coli, gastric trouble etc. This was a major threat for Wendys. * Food storage and transportation is also a major threat for Wendys. As it is more difficult to store raw materials as there are highly vulnerable. * Targeting a particular section of people is a major threat for Wendys, as it is targeting the teenagers only. This will leads to loose the satisfaction of people of other sections. * International Business expansion Limiting the business to the USA is the major threat to Wendys at international level. Limiting the business may leads to limiting the globalization and decreasing the brand name, profits and sales. Strengths Weaknesses Opportunities Make the most of these Watch competition closely Threats Restore strengths Strategic turn around required Conclusion Wendys/Arbys group has to maintain all their strengths and grab all the opportunities. On the other hand, Wendys/Arbys group should sooner overcome all its weaknesses and work harder on the threats. Competitive Advantage â€Å"Competitive advantage is the achievement of superior performance through differentiation to provide superior customer value or by managing to achieve lowest delivered cost† (Jobber 2007: 27). Competitive Factors Product Strength — Lack of differentiation- Consumers have accessibility to similar menu that is used by other hamburger chains of the same segment. Hence fulfilling consumers needs. — Unique patty shape- Wendys burgers have a unique square shaped patty instead of a regular round patty, which other hamburger chains use. Customer Loyalty and Satisfaction — Convenience- The ease of accessibility of its stores by deploying them in prime locations adds to consumers convenience. — Speed of service- Implementing drive through and home delivery system in all its stores to attain speedy customer service. Market Share — Third largest company in QSR or Quick Service Restaurants — Introduction of new products like fish sandwich, square shaped fresh ground beef patty, salads in its breakfast menu, etc have been introduced by Wendys. — Fifth in terms of highest total revenue generated next to McDonalds Corporation, Doctors Associates, Yum! Brands and Jack in the Box. Customer Concentration — Location variables Setting up Wendys restaurants where the potential consumer(working class, teenagers, etc) concentration is high. — Strengthen penetration To attain a firm grip in the market where it is already existing. Cost Control — Centralized distribution center — Reduce labor costs Costs associated with labor is a major factor in the success of any business. Wendys labor costs include upper management, but the bulk of Wendys employees are the workers at individual restaurants. Wendys achieved to cut labor cost by downsizing the number of managers from 3.6 to 3.3 by June of 2007. Wendys expects that this will not only decrease labor costs but also enhance efficiency at individual restaurants as they have found that a high number of managers can result in division of responsibility and confusion. In 2007 Wendys total operating costs were approximately $2.29 billion while total revenue was about $2.45 billion, leaving a slim operating income of approximately $156 million. If Wendys labor cost reduction initiative can successfully decrease labor costs without negatively impacting revenues, Wendys could see a substantial increase margins and operating profits. http://cdn.wikinvest.com/i/px.gif — Economies of scale Investments — International fast food market is the best place to invest in as far as Wendys investment options are considered. — Research on untapped foreign markets in order to gain knowledge for future investments. Marketing Mix Analysis †¢ The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives †¢ 7Ps Price, Product, Promotion, Place, People, Process, Physical Environment †¢ Traditional 4Ps extended to encompass growth of service industry Marketing strategy is generally obtained by the 3 key elements namely the target markets, competitors targets and the competitive advantage (Anderson 2008). Once the marketing strategy is finalized, the company starts looking into the facts of the marketing mix. â€Å"Marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.† (Armstrong and Kotler 2009). Marketing mix is essential for the company to develop the demand for its products. This can be collectively done by the four vital categories which are well-known as 4-Ps of marketing mix. The 4-Ps are namely Product, Price, Place and Promotion (Armstrong and Kotler 2009: 83). 1.1.1 Product Customer solution â€Å"Product is a good or service offered or performed by an organization or individual, which is capable of satisfying customer needs† (Jobber 2007: 28). Brand name and Quality The brand image is obtained by utilizing the fundamentals of marketing mix (Jobber 2007: 332). Wendys/Arbys Group is the parent company of Wendys, and is a publicly traded company. Wendys Restaurant Group, Inc. is a wholly owned subsidiary of Wendys/Arbys Group, Inc. Wendys/Arbys Group, Inc. is the franchisor of the Arbys and Wendys restaurant systems and trades on the New York Stock Exchange under the symbol WEN. A change in the companys ownership set the course for menu expansion and a strengthened brand. On September 29, 2008, Triarc Companies Inc. merged with Wendys International, Inc. to form Wendys/Arbys Group, Inc. Wendys/Arbys Group, Inc. is the third largest quick-service restaurant company in the United States. Wendys restructured its cleanliness standards, menu and other operational details to ensure that stores met the goals and standards of the parent company so that its franchises were competitive in the market. Wendys mission is to deliver superior quality products and services for their customers and communities through leadership, innovation and partnerships. Their vision is to be the quality leader in everything they do. Wendys has a strategic vision focused on these core values: Quality: Freshly-made products and superior service are their passion; consistent excellence in customer service is their goal. All actions are guided by absolute honesty, fairness and respect for every individual. People(consumers) are the key to success, they value all members of the diverse family for their individual contributions and their team achievements. Satisfying internal and external customers needs is the focus of everything they do. Continuous improvement is how they think and innovative change provides competitive opportunities. Features and Variety The Wendys menu features a variety of products that are stated below which are unique from its competitors. * Signature roast beef, including Roast burger. * Market Fresh deli sandwiches. * Market Fresh salads. * Toasted subs. * Jamocha and specialty shakes. * Curly Fries and Side kickers. * Wendys featuresFrench friesas a primary side item, but also offers a number of options for side items/dips, includingsalads(side and Caesar side),chili,yogurtwithgranola,mandarin oranges, andbaked potatoes. In several markets, the customer may request any of these side items to be substituted for fries in its value meals. * In June 2006, Wendys removed their classic Biggie and also the Great Biggie sizes in favor of a more traditional sizing system like; Small, Medium, and Large. * Frostydessert It is asoft serve ice creamdessert sold in chocolate or vanilla flavours. Also sold as a floatand a mix-in dessert called the Twisted Frosty. * In Japan, Wendys offers ared bean pasteand cheese sandwich called as an An Burger * Big Classic- It is a sandwich that directly competes with the Burger Kings Whopper. * Mayonnaise, lettuce, tomato,pickle, ketchup and onion served on aKaiser-style roll. A second version with bacon is available, called the Big Bacon Classic. * Baconator- with mayonnaise, 6 strips of bacon, two 1/4 pound (113.4 gram) patties, ketchup and two pieces of American cheese. * In Dec 2006, Wendys phased out and stopped offering their fried Home style chicken strips in most of its U.S.locations. There is now a chicken club combo in the place of the strips, which features a Home style chicken patty, Spicy chicken patty or a Grilled Chicken patty with Swiss cheese and also bacon. The Home style chicken strips are still available in parts of Canada. * In the Philippines they serve fried chicken, which forms a staple at most fast food restaurants in that country. 1.1.1 Price Customer cost â€Å"Price is the amount of money customers must pay to obtain(buy) the product.† (Armstrong and Kotler 2009: 83). The price of any product partially highlights its quality. Pricing Strategy The Pricing strategy primarily consists of * Getting to know the market. * Elasticity. * Keeping in pace with the competitors. * Because Price and Convenience are near universal throughout firms in the industry, Wendys must focus on becoming the â€Å"highly favored† fast-food choice. Doing so will give customers more inclination to visit store locations. Place Convenience â€Å"Place includes company activities that make the product available to target consumers.† (Armstrong and Kotler 2009). The vital role of marketing is the process of how the product is being sent from seller to buyer. The means by which the products and services reach the consumer from the producer and where they can be accessed by the consumer. The more places to buy the product and the easier it is made to buy it, the better for the business (and the consumer). Availability Approximately 77% of Wendys restaurants are franchised, the majority of which are located in North America. Wendys and its affiliates employs more than 46,000 people in its global operations. While Wendys sets standards for exterior store appearance, food quality and menu, individual owners have control over hours of operations, interior decor, pricing and staff uniforms and wages. Wendys operates in 19 countries around the world while its headquarters is based in Dublin, Ohio. It operated in more countries, but closed down in some of them due to certain circumstances. Inventory Wendys never uses frozen beef, its always fresh. 1.1.1 Promotion Communication â€Å"Promotion means activities that communicate the merits of the product and persuade target customers to buy it.† (Armstrong and Kotler 2009). Different ways of promoting the product are Advertising Advertising is a major phase of overall product or service development and management. Advertising is specifically part of the outbound marketing activities, or activities geared to communicate to the market, e.g., advertising, promotions, public relations, etc. Wendys recently began a cross-promotion withNintendo. When you buy specific Wendys items you receive a code on that can be entered on the web siteFrostyFloat.comand be entered to win aWii. Wendys marketing arm engages inproduct placementin films (such asThe Day After Tomorrow,Mr. Deeds,Garfield: The Movie, andClick) and television and is sometimes seen on ABCs hitreality showExtreme Makeover: Home Editionserving food to the more than 100 construction workers. A recent Wendys commercial features the tune from theViolent Femmessong Blister in the Sun.ScrubsstarZach Braffcan currently be heard invoiceoverin Wendys newest commercials. With the launch of the new ad campaign, Wendys has also unveiled a new slogan, Thats right. Few of the advertising slogans of Wendys are given below US Canada * 1970 Present:Quality Is Our Recipe * 1978:Juicy hamburgers and lots of napkins * 1979: Hot-N-Juicy * 1980:Wendys Has the Taste * 1981:Aint No Reason to Go Anyplace Else * 1982:Youre Wendys Kind of People * 1983:Parts is parts * 1984:Wheres the beef?[3] * 1986:Choose Fresh, choose Wendys[15] * 1987:Give a little nibble * Circa 1990:The best burgers and a whole lot more(also was printed inside the hamburger wrappers during the 1990s) * 1997 Present:Eat great, even late * 2002:Its hamburger bliss. * 2004:Its better here[16] * 2004:Always Great, Even Late. * 2005 2007:Do what tastes right.(primary slogan) * 2005 Present:It takes flair to be square. * 2007:Thats right. * 2007:Uh Huh. * 2007:Hot Juicy Burgers International * 1983:Its the best time forWendys(Philippines) * 2000 (approx) Present:We dont cut corners(New Zealand) * 2000 (approx) Present:Wendys cuadra contigo(Wendys fits with you). The wordcuadra(fit) is a reference to the wordcuadrothat meanssquare(Venezuela) * 2001 (approx) Present:El Sabor de lo Recien Hecho(The Flavor of the Brand New Made) (Honduras) * 2007 (approx) Present:Wendys es Sensacional(Wendys is Sensational) (El Salvador) Personal selling Personal selling involves incentive programs, sales presentations and trade shows (Armstrong and Kotler 2009: 383). Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to close the sale Personal selling is one of the oldest forms of promotion. It involves the use of asales forceto support apush strategy(encouraging intermediaries to buy the product) or apull strategy(where the role of the sales force may be limited to supporting retailers and providing after-sales service). Sales Promotion Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service. Sales promotions can be directed at either thecustomer, sales staff, ordistributionchannel members (such asretailers).

Harley Davidson Essay

Market segment: is a portion of a larger market whose needs differ somewhat from the larger market. Market segmentation involves four steps: Identifying product-related need sets, grouping customers with similar need sets, describing each group, selecting an attractive segment(s) to serve. The goal is develop a product focused solely on the needs of the segment this will meet the segment’s desires better than a firm whose product or service attempts to meet the needs of multiple segments. Q2. Geographic segmentation- allows us to segment a market that is spread over a large geographic area into sub-markets that cover smaller geographic areas. Geographic segmentation usually involves dividing up geographic markets by using existing political boundaries, natural climatic zones, or population boundaries. Demographic segmentation- occurs when one or more demographic traits are employed to divide a market. Typical demographic traits that are used include age, gender, race, ethnicity, marital status, family size and stage of the family life cycle. Psychographic segmentation- bases divide markets based on differences in lifestyles or differences in personality traits. Lifestyle segmentation is one of the most popular and effective ways to create segments for consumer products. Consumer shopping behavior patterns include such things as the type of store shopped in, timing of purchases (i.e. time of day, week, or year), how much of a product is purchased on a given visit to the store, and how often the individual frequents a particular type of retail establishment or shopping mall. Behavioral segmentation-include product consumption or usage rates base (as discussed earlier). Other segmentation bases included in this category are product usage occasion, product use versus non-use, and loyalties to specific brands. Website: http://courses.unt.edu/kt3650_7/sld006.htm Q3. Harley-Davidson has change their market segment by attacking the market globally in different areas of the country. Harley noticed next to China, India is the second largest two-wheelers market in the world. More than 500-600 super bikes are sold every year in India. The super-bike segment in India is currently dominated by Japanese bike makers including Honda, Suzuki and Yamaha. Another way Harley-Davidson is changing their segments is by reaching more diverse customer pool, even as the company consistently grows with their traditional customer base. â€Å"In 2012, U.S. sales of new Harley-Davidson motorcycles to our â€Å"outreach† customers — young adults 18-34, women, African-Americans and Hispanics – grew overall at more than twice the rate as sales to our traditional U.S. customer base of Caucasian men, ages 35-plus.† For the fifth straight year in 2012, Harley-Davidson was the number one seller of new street motorcycle to each of these groups. In fact, Harley-Davidson experienced double-digit market share gains from 2008-2012 in the U.S. with these segments. Q4. Marketing potential in general boils down to a very basic formula. It figures out a customers’ profile (who you want to target with your marketing) and combine that with the geographic size you want to target (how many of those people are in that area). This is a general market potential. It relates to target market because it narrows down the customers that are more advantages to buy the product per contra to not having not having a target market which puts a higher risk for product sale but also enables a large slice of the market. Website: http://courses.unt.edu/kt3650_7/sld006.htm

Case study The fashion channel

â€Å"TFC was a successful cable TV network- and the only network dedicated solely to fashion (Stahl,2007)†. It was one of the most widely available niche networks with an 80 million subscriber base (Stahl,2007). It has had a constant growth above the industry average until the emergence of new competitors such as CNN and Lifetime in 2006. One of the most important strengths of TFC is the fact that the channel is in the basic cable package. As opposed to CNN or Lifetime, TFC is not a pay channel and thus has a higher possibility to reach more viewers than its competitors.However, TFC is currently facing two major problems. These are an unclear targeting group and an increased power of competitors. These problems could be also seen as their weakness. Since their target group is unclear, unclear strategies might be formulated that could hinder the growth of the channel. Based on the customer and market data from the case, the largest current customer base of TFC are females betw een the age of 35 and 54 (representing 27. 45% of the viewers). While their ideal targeting groups is slightly younger females from the age of 18 to 34, they only make up for 20.13% of the viewers.Generally, this group likes to follow the way celebrities dress. Information about discounts in fashion stores and fashion recommendations are valued as well by this age range. However, it should be noted that their income might be lower compared to other age ranges. On the other hand, male viewers could also represent an interesting customer base for the channel. Males nevertheless, focus more on new designs, fashion trends and new brands. Different to young females, males can be less sensitive to price.Unfortunately, TFC has the lowest market share with only  1. 1M households (representing 1% of the market share). Besides, the biggest customer bases for Fashion Today are females ranging from 18 to 34 years old representing 27. 09% of their viewers. They represent a big threat for TFC a s the later might profit by targeting this age range in the future. On the other hand, Fashion Tonight from CNN especially targets male customers. Therefore not surprising, males represent 45% of their viewer’s base. Both Fashion Today and Fashion Tonight also have a larger customer base than TFC, which are 3. 3M and 4. 4M respectively.In order to change the current situation, Wheeler came up with three scenarios. The first one is maintain a multisegment of Fashionistas, Planners & Shoppers and Situationists. The advantage of this scenario is the increase in net income partially because no incremental costs would be incurred. At the same time, TCL could also target the 18-34 age group. However, the CPM will be $0. 2 lower than 2007. Also, in this scenario, no clear targeting group would yet arise. The second scenario is targeting the segment of Fashionistas.The narrower segmentation will put the company in a disadvantage situation with a 0.8% decrease of its market share (0. 88M). It also requires an incremental cost of $15 million. Finally, the risk exists that a large part of the current viewers wants might not be met by this differentiation as programs might be seen as to â€Å"professional† or â€Å"distinct†. However, buying power in this group is high and CPM will go up to $3. 5 resulting in the increase of both ad revenue ($322,882,560) and net income ($151,496,083). The third scenario entails focusing on two segments, Fashionistas and Shoppers & Planners. The average rating could increase to 1. 2% with a broader viewers pool (1.32M) and extract highest ad revenue and net income with $345,945,600 and $168,867,232 respectively.Meanwhile, younger aged females should especially be targeted if this segmentation is put into place. Nevertheless, a $20 million investment is required for this scenario and only targets around 50% of the females. There is a possibility to lose customer loyalty in this case and consequently part of its custome r base. Based on the analysis, it is wise to choose scenario 3 which entails the dual targeting of Fashionistas and Shoppers & Planners as a new implementation strategy since it generates highest ad revenue, net income and profit margin.50% of the entire female viewer base could be targeted by this dual targeting with passion for fashion and high income. In this case, females from 18-34 will be targeted as they represent their largest viewers base which takes 32. 5% of the entire female segment. In terms of positioning, 4Ps is appropriate to describe the strategic changes needed. It is advised to modify the program profile into one that is more novel and intriguing to the younger generation by improving product quality. For instance, it can invite celebrities more often to the program. Thus, it responds to the needs of the target group (females aged 18-34).With respect to price, it could decrease their ad price by 5% which would result in a CMP of 2. 375. It is predicted that with a lower price, more advertisers are willing to launch their ad on the fashion channel. Besides, TFC should boost promotion by opening a website with specific focus on fashion news and brands for youth, thereby rapidly establishing customer sensitivity and awareness to their product. Lastly, in terms of Place, TFC might find it in their interest to expand overseas through contracting with foreign TV channels, producing tailored programs based on local preferences on fashion.

What Does the Law Say About Prayer in School

One of the most highly debated topics revolves around prayer in school. Both sides of the argument are very passionate about their stance, and there have been many legal challenges about whether to include or exclude prayer in school. Before the 1960s there was very little resistance to teaching religious principles, Bible reading, or prayer in school—in fact, it was the norm. You could walk into virtually any public school and see examples of teacher-led prayer and Bible reading. Most of the relevant legal cases ruling on the issue have occurred over the last fifty years. The Supreme Court has ruled on many cases that have shaped our current interpretation of the First Amendment in regards to prayer in school. Each case has added a new dimension or twist to that interpretation. The most quoted argument against prayer in school is that of â€Å"separation of church and state.† This was actually derived from a letter that Thomas Jefferson had written in 1802, in response to a letter he had received from the Danbury Baptist Association of Connecticut concerning religious freedoms. It was not or is not part of the First Amendment. However, those words from Thomas Jefferson led the Supreme Court to rule in the 1962 case, Engel v. Vitale, that any prayer led by a public school district is unconstitutional sponsorship of religion. Relevant Court Cases McCollum v. Board of Education Dist. 71, 333 U.S. 203 (1948): The court found that religious instruction in public schools was unconstitutional due to a violation of the establishment clause. Engel v. Vitale, 82 S. Ct. 1261 (1962):  The landmark case concerning prayer in school. This case brought in the phrase â€Å"separation of church and State†. The court ruled that any type of prayer led by a public school district is unconstitutional. Abington School District v. Schempp, 374 U.S. 203 (1963):  Court rules that reading the Bible over the school intercom is unconstitutional. Murray v. Curlett, 374 U.S. 203 (1963):  Court rules that requiring students to participate in prayer and/or Bible reading is unconstitutional. Lemon v. Kurtzman, 91 S. Ct. 2105 (1971):  Known as the Lemon test. This case established a three-part test for determining if an action of government violates the First Amendments separation of church and state: the government action must have a secular purpose;its primary purpose must not be to inhibit or to advance religion;there must be no excessive entanglement between government and religion. Stone v. Graham, (1980):  Made it unconstitutional to post the Ten Commandments on the wall at a public school. Wallace v. Jaffree, 105 S. Ct. 2479 (1985):  This case dealt with a state’s statute requiring a moment of silence in public schools. The Court ruled that this was unconstitutional where the legislative record revealed that motivation for the statute was to encourage prayer. Westside Community Board of Education v. Mergens, (1990):  Ruled that schools must allow student groups to meet to pray and worship if other non-religious groups are also allowed to meet on school property. Lee v. Weisman, 112 S. Ct. 2649 (1992):  This ruling made it unconstitutional for a school district to have any clergy member perform nondenominational prayer at an elementary or secondary school graduation. Santa Fe Independent School District v. Doe, (2000):  The court ruled that students may not use a school’s loudspeaker system for a student-led, student-initiated prayer. Guidelines for Religious Expression in Public Schools In 1995, under the direction of President Bill Clinton, the United States Secretary of Education Richard Riley released a set of guidelines entitled Religious Expression in Public Schools. This set of guidelines was sent to every school superintendent in the country with the purpose of ending confusion regarding religious expression in public schools. These guidelines were updated in 1996 and again in 1998, and still hold true today. It is important that administrators, teachers, parents, and students understand their constitutional right in the matter of prayer in school. Student prayer and religious discussion. Students have the right to engage in individual and group prayer as well as religious discussion throughout the school day so long as it is not conducted in a disruptive manner or during school activities and/or instruction. Students may also participate in before or after school events with religious content, but school officials may not discourage nor encourage participation in such an event.Graduation prayer and baccalaureates. Schools may not mandate or organize prayer at graduation or organize baccalaureate ceremonies. Schools are permitted to open their facilities to private groups so long as all groups have equal access to those facilities under the same terms.Official neutrality regarding religious activity. School administrators and teachers, when serving those capacities, may not solicit or encourage religious activity. Likewise, they also may not prohibit such activity.Teaching about religion. Public schools may not provide religiou s instruction, but they may teach about religion. Schools also are not allowed to observe holidays as religious events or promote such observance by students.Student assignments. Students may express their beliefs about religion in homework, art, orally, or in the written form.Religious literature. Students may distribute religious literature to their classmates on the same terms as other groups are allowed to distribute non-school related literature.Student garb. Students may display religious messages on items of clothing to the same extent that they are permitted to display other comparable messages.