Executive Summary

Applebees has established itself as a successful neighborhood restaurant with their slogan “Eatin’

Good in the Neighborhood”. They pride themselves on being a family restaurant with a wide

variety of foods to satisfy everyone. Even with their success in the past, we believe that they

have some areas of concern in their marketing plan where there is room for improvement.

Through surveying people in the Maryville area, we have found that the biggest problems are

lack of business from college students, lack of a vegetarian menu, and a mediocre social media

presence. Our goal is to improve their marketing plan and eliminate these issues. Price seems to

be the biggest factor hindering college students from eating at Applebee's, so we would suggest

the use of direct mail marketing of coupons as well as possibly adding some more affordable

options to the menu. Making Applebees more affordable to college students would likely work

because 45% of our survey respondents, most of which are college students, said that half-priced

apps are the most appealing promotion at Applebees. Dollar drinks are also a popular promotion

at Applebees, so we would like to see more affordable promotions like these to bring in college

students. We would also suggest sponsoring Bearcat Athletics to have more advertising directly

to the students. The implementation of a vegetarian menu would include an entire new

demographic into Applebee's target market and give them another healthy option for consumers.

Currently, the Applebee's franchise has a social media presence but we would like to see one for

the Maryville restaurant specifically. We could use these social media accounts to advertise

specific promotions for our restaurant. We could combine these accounts with our sponsorship of

Bearcat Athletics as well by offering certain promotions. Applebee’s should utilize these tactics

over a five year span, but monitor their performance every six months to make sure these tactics

are beneficial to the Maryville franchise.

 Situational Analysis

Company Analysis: Applebee’s Corporation is a casual restaurant chain based in the United

States. The first Applebee’s was in Atlanta, Georgia in 1980 and has grown to over 2,000

locations worldwide, as Applebee’s has now expanded to several international locations. Their

focus is providing a casual dining experience with a wide variety of classic bar and grill food.

Within the United States alone, Applebee’s franchise sales reached $3.95 billion dollars (Lock,

2020). Through all their success they have built their company off of seven values; trust,

inclusion, community, integrity excellence, innovation, and accountability (About Us, 2020).

Customer Analysis (Target Market): The corporation of Applebee’s targets all age groups who

are local residents within the franchise location. Applebee’s mainly focuses on a mix between

families and young social groups. Their target market also is shifted more toward the middle

class due to their pricing and atmosphere. Based on our survey we sent out, the majority of the

people who took the survey were between the ages of 19-22 years old. We targeted this specific

market because part of Applebee’s focus is based on young social groups and we wanted to

understand their viewpoint of Applebee’s from their perspective. After receiving feedback from

this demographic, the most reoccurring problem related to customer relationship management is

not having enough marketing presence.

Collaborator Analysis: Applebee’s has a few partners to support them with day-to-day business

for the Maryville location. According to the local manager, Applebee’s collaborates with other

Applebee’s within the franchise. The company uses suppliers such as custom culinary and

Gordon Food service. Another key collaborator that Maryville location and other locations have

is the collaboration with Pepsi. Pepsi provides them with all their PepsiCo products exclusively.
Recently, according to the franchise operator, Applebee’s has partnered with Grubhub and

DoorDash, which are door to door delivery services that will bring the food to the customer,

across thousands of Applebee’s locations. These collaborations help promote Applebee’s in

positive ways through their variety of menu items from suppliers, PepsiCo soft drinks, and

partnering up with Grubhub and DoorDash to stay up with today’s generation and the ways of

the future. Although for the Maryville location, improvement is always needed. Finding

collaborations that could help the Maryville location alone is something the local manager

should consider, as the company declared bankruptcy in 2017 and has had to focus on building

themselves back up to success.

Competitor Analysis: In Maryville, there are a wide variety of restaurants competing with

Applebee’s. The direct, primary competitors are other local casual restaurants such as Carson’s,

A&G, Pizza Ranch, El Nopal, and Pagliai’s Pizza. These are the competitors on a local scale, but

also competitors to the Applebee’s franchise as a whole. These restaurants all have the local

dine-in experience whether they specialize in bar and grill food, pizza, Mexican style, and more.

There are also indirect competitors that Applebee’s has to compete with in Maryville like all the

fast food restaurants; Dairy Queen, Taco Bell, Burger King, Jimmy Johns, and McDonalds. With

Maryville, Missouri being such a small town there are many local and fast food restaurants

within fighting for customers every day. Another indirect competitor for Applebee’s is

consumers opting to dine at home. Because of the location, Applebee’s could sometimes be

overlooked compared to other local and fast food restaurants which would cause a negative

effect on their local business. Yet, a strength is that because there are many different restaurants

for people to choose from, Applebee’s has more opportunity for customers to come back often

because people would not get sick of their restaurant and want their experience.
 Five Forces Analysis:

Competitive Rivalry: The competitive rivalry for Applebee’s in Maryville is medium. There are

local restaurants that offer similar products and services, but there are also restaurants that offer

other alternative foods such as; Mexican, Chinese, and Italian food. As stated in the competitor

analysis, they have many local and national direct and indirect competitors. Any restaurant

industry that offers similar food, service or experience wants to appeal to the same consumer

society.

Threat of New Entrants: The restaurant industry is high when it comes to threat of new entrants

for Applebee’s. This is because it has a wide variety of menu items that reaches a large market

and reasonably priced food and drink options for all ages. There are already many casual dine in

restaurants, so the entry for another would be fairly common regardless of location. With

demographics shifting, particularly with millennial tastes very different from earlier generations,

new entrants with different offers and proposals are emerging such as; healthy chains and quick

serve restaurants. It is important to ensure that Applebee’s deals are in line with changing needs

as new entrants within the industry could arise.

Threat of Substitute Products: The threat of substitutes for Applebee’s can come from other

chains or alternatives, with online food ordering and food delivery businesses growing, they can

present a serious challenge to the casual dining restaurants. While online ordering is becoming

more popular, another substitute would be grocery store chains. Customers could choose to cook

at home rather than dine in for a cheaper option. Lastly, the last substitute that could be

considered a threat is subscription plans being offered which could convince customers to stay in

a cook certain days of the week losing potential business for casual restaurants like Applebee’s.
Bargaining Power of Suppliers: There are many external suppliers that Applebee’s uses for

their success. For example, food suppliers, liquor suppliers, furnishing and design, and real estate

suppliers. The bargaining power of suppliers for Applebee’s is low because it could be cheaper

for the restaurant chain to get these items from various suppliers because there are several

suppliers supplying these goods. If one supplier began to overcharge Applebee’s or they were

simply not satisfied with their service then they could easily look elsewhere as there are many

different options to choose from.

Bargaining Power of Buyers: The bargaining power of buyers is high because it is easy for

customers to go somewhere else and get the same type of food and experience. There is pressure

on Applebee’s to prove why customers should go to their casual dine in experience compared to

their competitors. They need to make sure they are providing unique offerings, discounted deals,

and signature items while staying in tune with what their target market is wanting. Increasing the

convenience for customers and the quality of food will help Applebee’s attract more consumers.

Context Analysis

Political: Applebee’s works within a politically stable environment. The restaurant industry is

competitive, so the industry does not have to face any risk from antitrust laws. Most of the

employees at Applebee’s work part time especially within the Maryville area because most are

college and high school students. They are subject to the part time requirement of usually less

than 30 hours a week and at an hourly pay of $7.99 in Missouri. The international development

agreements allow franchises within a given timeframe to create multiple restaurants in a

specified geography. The sector is subject to Occupational Safety and Health Administration
compliance regulations. They are also required to post all of their FDA-based nutrition

information on menus and online.

Economic: The United States is a mixed economy with a free market that still has government

controlled aspects. This gives Applebee and the restaurant industry the right to act and sell as

they see fit best for the company. Before the COVID-19 virus, the economy was in the expansion

stage as the economy continued to grow and businesses like Applebee’s maintained profit with

what they felt was best for their company. In March of 2020, due to the COVID-19 pandemic,

the economy has entered a recession due to many Americans losing their jobs. The current

global spread of the COVID-19 pandemic is rising demand in the global economy and

complicating supply chains. The social distancing regulations has caused businesses to

dramatically lose revenue and profit, some even to be shut down. During this time, Applebee’s is

offering to-go orders as a way to keep some sort of income running within the business. By

adding these factors to the economic instability needed to combat the virus, the United States is

likely to see one of the sharpest economic contractions in its history, lasting through the second

quarter of 2020 (Shambaugh, 2020).

Social: Maryville has a population of around 11,800 people and in addition to that nearly 8,000

students that attend Northwest Missouri State University. Applebee’s targets middle class, young

social age groups and families of all ages which fits right in with the demographic of Maryville.

The town consists of the majority to be low to middle class consumers, with a large percentage

being young college students. In today’s society, there is a large increase in health and

environmental consciousness, which is why Applebee’s has come to come up with a light menu

and healthy alternatives. For unique offering and discounted deals, Applebee’s focuses on their 2

for $20, half priced appetizers, limited time offers and more that appeal to the middle class and
young social age groups. These deals and offerings benefit the Maryville location tremendously

as they focus on ways to satisfy their target market and demographic area.

Technological: Applebee’s has become aware of the influence of technology in today’s world.

All of their products and services are managed through technology equipment. Applebee’s have

kiosks that allow customers to order appetizers, play games while they are waiting and pay their

bills directly at their table. They also have a “TouchTunes” jukebox which is a virtual jukebox

that can play music allowed within the business. Another use of technology is through the

computers to input orders for the kitchen and record payments to make it easier for both the

customer and employee. These technologies help eliminate the use of paper and allow for

operations to run smoothly on a day to day basis. Applebee’s technological expertise is up to

date and continues to impact the business in a positive way.

SWOT Analysis

Strengths: In regards to strengths, Applebee’s is a franchise location therefore it has a wide

location base of almost 2,000 restaurants globally. They are known worldwide, and their

recognizable brand image has increased success for the business and retention of customers.

They have a reasonably priced menu with a variety of different items on the menu. This allows

for all age groups to have the opportunity to afford something on the menu. With their

reasonably priced menu, they also have endless promotion deals such as; 2 for $20, half priced

appetizers, limited time offers, and more. This helps them be able to target such a wide

demographic and could continuously promote future opportunity.

Weaknesses: With strengths, firms always have weaknesses. With any franchise restaurant,

weaknesses are unavoidable. Due to the franchisee structure and restricted geographic reach, it is
difficult to track and monitor quality of all franchise locations. With Applebee’s being so widely

popular it is very hard to keep up with the quality of each location. Another weakness is that

Applebee’s has a limited menu for vegetarians, while the new generations favor a healthier

lifestyle and more people lean toward a vegetarian lifestyle. Lastly, because Applebee’s is such a

wide franchise there is little opportunity for micromanagement which causes lack of managers to

be able to closely control and observe the work of their employees.

Opportunities: Applebee’s has a wide variety of food items and recently they have begun a

movement toward low-calorie food items which is a step in the right direction. This provides an

opportunity to address those who are watching their weight, are on a diet, or just simply want the

choice to eat healthier. It allows for the continuation of their target market to expand. Because of

the continuous growth in menu ideas, there is opportunity for new product launches through the

low calorie menu, drink specials, and new menu items. With all these opportunities for

Applebee’s, it creates the biggest opportunity of all which is the growth of emerging markets.

They can hold onto the markets they already inquired about, while gradually moving into the

healthier market targeting an even larger demographic.

Threats: While Applebee’s has presented themselves with plenty of future opportunities, there

are threats that they need to be aware of. The first, is the increase of competition from other

casual dining chains and local restaurants. Applebee’s has many competitors when it comes to

competing for the best casual restaurants with the best pricing, service and quality. This could

potentially lead to the loss of business from customers if Applebee’s lacks anything that their

competitor would not. Another threat is that local residents are the main source of revenue.

Therefore, the performance of each restaurant matters because locals continuing to go to

Applebee’s is the main reason for their overall success. Applebee’s needs to be aware of their
competitors' deals and specials while making sure that their performance, service and quality is

best presented to maintain success at all franchise locations.

Summary Statement of Problems: We believe that the main issues with business for this

restaurant within its industry in the Maryville location would be not having a vegetarian menu,

their advertisement to the local area, lack of relationship with the local university, and location

relative to college students and local consumers.

Summary of Quantified Marketing Objectives: Our goal in this marketing plan is to expand

advertisement and awareness to local consumers and college students. We would like to provide

recognition by emphasizing a vegetarian menu as a healthy food alternative Applebee’s offers.

By utilizing various marketing tactics, we will measure the success of the new marketing

objectives by sales increases and survey opinions. The plan will be successful if it brings in a 2%

sales increase every 6 months, or has at least 5 survey answers monthly that respond positively to

marketing prompts.

Current Marketing Plan

Overview: Applebee’s is marketed nationwide as a family restaurant where all tastes and

preferences are satisfied. The Maryville Applebee’s uses tactics to market itself to the town

directly, including billboards and local advertisements. It also contributes part of its revenue to

the corporate owner, Dine Brands, for national advertisements including television commercials

and social media. Applebee’s measures promotional success through their use of email lists, and

conducts market research through on-table kiosks. The Maryville Applebee’s is required to

spend portions of their revenues on national and local advertisements through their franchise
deal. The issue facing the local Applebee’s is lack of college student spending within the

restaurant.

Marketing Strategy: Applebee’s markets using a differentiation strategy, positioning itself as a

family restaurant that appeals to many different demographics and preferences. On the company

website, they state, “Our extensive menu of delicious comfort food is sure to have something for

everyone to love.” When consumers think of comfort food, it is often food consumed in-group or

family style settings. Applebee’s has established a strong brand image through their marketing as

a “neighborhood restaurant,” where consumers can feel as if they are at home during their dining

experience. The organization designs their marketing tactics to align with their slogan “eatin’

good in the neighborhood” (“About Us”, 2020). Approximately 95 percent of survey respondents

said that Applebee’s somewhat often, often, or very often meet quality standards, so Applebee’s

is positioned as a quality restaurant with a strong family or group experience. Their target market

is any individual or family with an appetite and a disposable income.

Tactics: Applebee’s uses various tactics to influence consumers, including television

advertisements, billboards, social media, and promotions. For the Maryville Applebee’s location

specifically, a major tactic to influence locals is the use of billboards. The major route into the

town of Maryville is through Highway-71, where they have a billboard displaying their food and

keywords “next exit.” According to author of Guerrilla Marketing Jay Conrad Levinson, “the

two magic words that can spell instant success for you if used on a billboard are next exit”

(Levinson, 2007). This platform is low-cost but uses effective methods to attract consumers.

Location is also an important factor for Applebee’s marketing. The Maryville Applebee’s also

purchases some local advertisements in newspapers in Maryville. In addition, the restaurant is

located directly off the highway, so drivers can easily stop at the restaurant.
Because the Maryville location is franchised, most of their marketing is from the corporate-level

and is seen on the national stage. Based on the survey results, a majority of respondents saw

Applebee’s advertisements on television. Applebee’s television advertisements usually feature

video footage of a steaming dish, with the goal of attracting consumers to crave their dishes.

Huffington Post states this is an effective tactic “you’ll start scrounging around in your kitchen,

and you might not even make the link between what you’ve seen on the TV and why you

suddenly have a hankering for food” (Pirnia, 2019). Therefore, including footage of appetizing

dishes in their advertisements increases the likelihood that consumers will crave the dishes. This

method correlates with high circulation because they use major television networks to advertise

their products.

Another tactic Applebee’s uses on a national-level is social media. On their Twitter, Instagram,

and Facebook pages, they feature weekly specials, images of different food items, employee

spotlights, and humorous memes. By using multiple social media platforms, they increase which

customers they reach and the frequency that customers are exposed to the brand. They also have

a YouTube channel that features all of their recent commercials. A major way Applebee’s

reaches its target market is through promotions. Of the 251 survey respondents, 113 respondents

stated that the most attractive promotion that Applebee’s offers is half-priced apps. This

particular promotion is attractive to college-aged students. Other popular promotions Applebee’s

markets are dollar drinks and their 2 for 20 menu. They also have a voluntary email list where

customers can sign up and receive coupons or specials in their inbox regularly.

Measurement Plan: Applebee’s measures and stores data on consumer preferences with their

email club. Consumers can use their email club for coupons, specials and exclusives. However,

Applebee’s can also track data through email. When one orders online or takes a survey at a
kiosk discussed below, the system keeps track of the email. The company can then store data on

consumer preferences, and which products or promotions consumers interact with. In addition,

while there is no direct article stating Applebee’s measures the success of social media or

television advertisements, it is likely that they are tracking which advertisements are successful.

Marketing Research: A major way that Applebee’s conducts market research is through

surveys on kiosks at restaurant tables. In 2014, Applebee’s began installations of kiosks on tables

at their restaurants that are used to order appetizers, pay bills, play games or watch videos. When

customers finish paying their bill via kiosk, a short survey appears. These kiosks are known for

“presenting a post-meal survey for diners to fill out electronically as part of the payment process

provides the restaurants with useful feedback on food and service, and in some cases guests who

want to provide more specific feedback — such as complaining about cold fries or praising a

staff member — can send emails directly to management” (Filloon, 2017). These surveys

provide feedback on which elements of the restaurant and the restaurant marketing are

satisfactory to customers.

Budget and Costs: Due to their role as a franchise of Applebee’s, the Maryville Applebee’s is

required to pay an advertising fee to Dine Brands, the corporate owner of Applebee’s. In their

annual report, Dine Brands states that each restaurant is required to contribute 3.25 percent of the

national Applebee’s advertising fund, which funds television commercials, radio broadcasts, and

social media posts. The franchises must also spend at least .5 percent of their gross sales on local

marketing and promotions (“2019 Dine Brands Global, Inc. Annual Report”, 2020). Therefore,

Maryville Applebee’s contributes to the payment of national television commercials and social

media advertisements. However, they still have a minimum of advertising spending that they

must meet in the town of Maryville.

Problems: Applebee’s maintains a strong brand image and is positioned as a family restaurant

everyone can enjoy. However, an issue facing the Maryville Applebee’s is it does not attract

college students on a regular basis. Because Maryville is a college town, the restaurant should be

viewed as a location college students can enjoy. However, the survey results state that one of the

only reasons college students attend Applebee’s is for half-priced appetizers and dollar drinks

after 9:00 pm. Neither of these promotions bring significant revenue to the business due to their

low profit margins. In addition, Applebee’s lacks a vegetarian menu, which is a major lifestyle

for many students. In order to survive in Maryville, Applebee’s must find ways to better appeal

to the college student and Northwest Missouri State community.

Recommended Marketing Plan

Overview of our core marketing strategy: Our marketing strategy for Applebee’s is

differentiation. The Marvyille Applebee’s must utilize marketing in order to stand out among

other dining competitors as a unique and satisfying place to eat. Maryville is a college town that

allocates for many students who would prefer reasonably priced menu options. Therefore, we

want to cater to these students by displaying the alternatives and options that could be considered

affordable to them and the community. We plan to keep focus on the younger social groups, like

college students and also include middle income families coming from the community. In order

to reach the target market for the Maryivlle location, a stronger advertising presence needs to be

held. We are going to increase the local presence by using more social media to influence

specials and daily deals, allowing the use of direct mail for coupons, and include a vegetarian

menu option. Overall, by adding these promotion offers, we hope this will allow Applebees to be

seen as more attractive, affordable, and could even be considered as a healthy option. These
changes will affect our promotion, our price, and actual product to be added too, while our place

(location) will remain the same.

Core Strategy Recommendations: In our survey, it was noted that 51.3% of people are dining

outside of their home weekly. While 46.7% of the people who participated in our survey said that

they dine at Applebee’s monthly. In our survey, people’s main complaints were about the lack of

a marketing presence, lack of expansion of menu items, and pricing. For Applebee’s to best

utilize differentiation, they need to fix these items so that consumers choose their unique dining

experience. In order to fix these problems, our first tactic is to offer coupons distributed within

direct mail. By mailing coupons to all houses that students and families live at throughout the

town, Applebee’s is improving upon the marketing presence and helping with the pricing of

menu items through whatever coupon is sent that week. They could also increase social media

presence through just the Maryville restaurant. Some examples in doing so would be to host

challenges or competitions on Twitter or some form of social media and receive a prize after

customers complete. This allows for the Applebee’s in Maryville to form a stronger presence

within the community while allowing them to interact with them. Another tactic that could be

implemented is sponsoring Bearcat Sports. Applebee’s sponsoring Bearcat Sports could increase

positive word-of-mouth in the Maryville community. At Bearcat Sports games, they announce

their sponsors and local residents favor businesses that support the University. Lastly, we also

want to add to the menu because the survey showed that those who took it wanted more of a

variety of options. This includes Applebee’s adding a vegetarian menu. This would promote a

healthy alternative option, but also increase another market to expand upon. We feel like by

utilizing these tactics and expanding their menu, Applebee’s can best use a differentiation

strategy to attract consumers.

Marketing Mix Recommendations: As stated above, the location of Applebee’s in Maryville

will remain the same. From a promotional view, we are making sure that there is an increase

within marketing presence through different forms of promoting Applebee’s in Maryville like,

sponsoring Bearcat sports, coupons, and social media challenges. While the price we sell our

food at will remain the same, pricing will be affected with the discounted offers and coupons

being released. We will keep the product the same, however implement a vegetarian menu in

addition to the menu options. This will attract a larger target market, while staying consistent

with the market currently held.

Our budget for the new strategy for differentiation is $25,000. This budget does not greatly affect

the end of year cash for Applebee’s, but offers enough money for them to enhance their image

within the Maryville community. The money will be allocated to different tactics. A contribution

of $10,000 will be focused toward the sponsorship of Bearcat sports. The Maryville franchise

will contribute $5,000 to the corporation to aid in a vegetarian menu. The amount left over of the

allocated fund of $10,000 will be for direct mail, coupons and discounts, posters and other small

advertising around the Maryville area. We will be continuously tracking the results of the

sponsorship of Bearcat Sports and additional advertising every 6 months. This will allow us to

keep track of if the promotional advertisements are working. These advertisements and other

tactics will take place yearly and continue to remain as long as Applebee’s continues to see

growth in revenue and sales.

We will also measure the performance of the plan by utilizing surveys following consumer

meals. As mentioned previously, Applebee’s uses surveys when consumers pay for their meals

through kiosks. The Maryville Applebee’s can include a survey question on where the customer

inquired about deals and promotions at Applebee’s. If the survey results do not show at least 5
customers hearing about Applebee’s per month, Applebee’s should reevaluate their use of the

tactics.

Rationale: As restaurants like A&G and Carsons are close to campus, they do not need a huge

portion of advertising because students do not have to go out of their way to have a meal.

Applebee’s is located far from most students, so they must attract these customers in different

ways, such as promotions directed at students, low cost discounts and deals, and healthy

alternatives. These new concepts will give Applebee’s a competitive advantage over many of the

other restaurants that do not have the means to perform these marketing strategies.

Based on calculations of Net Present Value and Return on Investment, we believe the new

strategy will bring positive financial health to the Applebee’s in Maryville.

NPV: Maryville’s Applebee’s does not disclose the estimated revenue per year, but we will

project that they earn $300,000 within the first year and increase four percent in revenue per

year. On top of their normal marketing contributions we will add $25,000 onto the marketing

budget. Due to the cash flow over a five year span, we expect a NPV of $1,376,618.64 (see table

in Appendix below).

ROI: For the return on investment over a five year period, the investment gain would be $4,500.

The ROI per year annually would be 3.37 percent and the ROI over the five year span would be

18 percent (see table in Appendix below).

Implications for the marketing ecosystem: These alterations to Applebee’s business will have

various impacts on their stakeholders. Applebee’s competitors in Maryville with a similar current

business model include Carson’s, A&G, and El Nopal. The expected reaction is imitation of
Applebee’s tactics, including creation of a larger social media presence, mailing of coupons, and

sponsorship of community sports. If the tactics bring in more revenue to Applebee’s, it might

minimize consumer spending at competitor’s restaurants. This would cause an increase in

retention from the community strengthening the revenue and sales for the franchise.

Integration of theories, frameworks, concepts, and models: A major goal of our

recommended marketing plan is for Applebee’s to utilize the Brand Knowledge Model with their

Maryville location. A majority of our survey respondents were aware of the restaurant brand and

food services they offered, so the organization does not need to focus on brand awareness.

Applebee’s should particularly focus on altering their brand image to better fit the college

student demographic. This includes promoting the benefits of dining at Applebee’s through

social media and other local media platforms. This also includes changing the attitudes of

consumers from belief that Applebee’s is over-priced to believing they are paying for an

enjoyable experience (Keller, 1993).

Global Marketing Strategy (GMS) consists of three perspectives: standardization,

configuration-coordination, and integration. Applebee’s does a good job with its standardization

because it keeps its menu items at somewhat of a low cost and simple. This makes it easy for the

franchise to expand into other countries because their product, promotions, price, and channel

structure are all standardized which makes its operations easily transferable from country to

country. This allows the business to be efficient and consistent with its community. Next, having

a good amount of coordination allows each restaurant location to be interdependent from each

other, but still keep the same competitive advantage. This interdependency allows Applebee’s to

be able to slightly specialize based on their location with their community and even tailor their

promotions towards their respective local communities with ease. They can utilize
interdependency to direct social media and marketing campaigns towards the local Maryville

franchise. Lastly, integration, taking action allows Applebee’s to create competitive moves

because of the good level of global market participation with Canada being an active participant

especially. These integrated markets and low trade barriers allow Applebee’s to increase its

competitive leverage around the world (Cavusgil & Zou, 2002).

Applebee’s could also utilize the guerilla marketing concept of creating a detailed

marketing calendar. This will allow Applebee’s to clearly see what is working and what is not

working for them, as well as, how long they perform each particular tactic. This will make

Applebee’s more aware of how its promotions work and creates a clearer path of where to go,

ultimately wasting less time and bringing in more profits. This is important because the company

will plan ahead and stay committed to the plan. In order for the marketing process to succeed,

Applebee’s has to stick with their plan, even if results do not occur right away (Levinson, 2007).

Product: Applebee’s is a casual dining restaurant that offers a variety of menu options with table

or take out service. They are known for their menu providing a wide range of different style

foods. Some examples provided that are located on their menu are; appetizers, salads, steak and

ribs, seafood, pasta, bugers, sandwiches, and more. They also present a selection of PepsiCo

products and alcoholic beverages. Applebee’s uses their highest quality of products and

ingredients from their suppliers. While the product of Applebee’s would not change, it would be

added to by attaching the vegetarian menu to the original menu. They will adapt to the addition

of this menu as some customers do not eat at Applebee’s due to the lack of vegetarian options.

This will attract new customers that prefer a healthier alternative.

Place: Applebees is located on 2919 S Main Street. It is near most of the hotels in Maryville

therefore allows easy business from the staying visitors. The downfall to the location is it being
on opposite ends of the campus and downtown Maryville which makes it hard for Applebee’s to

attract the students and community from going to their location. As stated, this location will

remain the same as the hope for a better local presence will help draw customers to the location.

Price: Applebee’s will keep their prices the same, as there will be no increase in the food or

beverages. This will include keeping the average price of an entree between $6-$12 while

keeping the average price of a meal under $10. In addition, Applebee’s will provide discounts,

daily deals, and coupons having limited times and offers for the lowering of prices on specific

meals.

Promotion: Local advertising is going to be the key to presenting a local presence. Coupons in

direct mail, social media, sponsoring Bearcat sports, billboards, posters, and more will be used.

Applebee’s will continue to promote their deals such as; the 2 for $20 and half price appetizers.

Another promotion Applebee’s will put in place is a loyalty program. Loyalty programs have

been proven to better customer retention, increase customer referrals through word-of-mouth,

and provide businesses with increased amounts and quality of reviews, testimonials, and various

forms of user-generated content (“How to Increase Customer Loyalty”, n.d.). This will also be

very cost effective because studies show that new customers cost 5-25 times more than reselling

to a current customer. (Kulbyte, 2020). Lastly, Applebee’s will impose a student discount

percent that is for students who go to Northwest Missouri State and order Applebee’s. This will

allow Applebee’s to show how important the students are to their location.

Contingency Plan

Applebee’s in Maryville will likely benefit from these recommendations. However,

Applebee’s should measure results of the tactics as mentioned above. The restaurant should stick

to the plan for at least two years in order to stay committed to its success. If the restaurant does
not see increased sales by 2% every 6 months after the first two years, they should reevaluate the

plan and try new tactics. Other tactics could include moving their location closer to campus, or

creating a satellite location for the restaurant close to the bars to attract college students.

However, these expenditures would be more costly than the original recommendations.

Applebee’s is more likely to benefit financially from promotion tactics rather than focusing on

their location. The firm should utilize which efforts will help promote differentiation from other

Maryville restaurants.

Summary

While Applebee’s currently uses a differentiation strategy and various marketing tactics in order

to attract consumers, the franchise in Maryville has limited attraction to college students, a key

demographic group in the town. We recommend Applebee’s improve their current tactics to

better reach young consumers. These tactics include creation of a vegetarian menu, direct mail

campaigns, partnerships with Bearcat Sports at the University, and increased social media

presence. The success of these new tactics will be measured by increases in sales revenue and

customer satisfaction in surveys. The franchise will spend $25,000 on these new tactics yearly,

but will provide strong return on investment. While general menu items, price of products,

location of the restaurant will remain the same, the restaurant can add new promotion tactics to

better reach the young market. If this plan does not see revenue increases after the first two

years, the franchise can explore options related to a new location. However, this would be an

expensive avenue, and it is expected that the changes in promotion will have a positive impact on

the franchise.
 References

About Us. (2020). Applebee’s. https://www.applebees.com/en/about-us.

Filloon, W. (2017, October 5). Why Tablets on Restaurant Tables Are Here to Stay. Eater.
https://www.eater.com/2017/10/5/16428750/tablet-technology-restaurants-applebees-
outback-steakhouse.

“How to Increase Customer Loyalty” (n.d.). Feedier Blog.

https://feedier.com/blog/increase-customer-loyalty/.

Levinson, J.C. (2007). Guerilla Marketing. Houghton Mifflin.

Lock, S. (2020, February 25). Applebee's: franchise restaurant sales U.S. 2019.
https://www.statista.com/statistics/222402/applebees-us-franchise-sales/.
 Keller, K. L. (1993). Conceptualizing, Measuring, Managing Customer-Based Brand
Equity. Journal of Marketing, 57(1), 1–22.
https://ezproxy.nwmissouri.edu:2069/10.1177/002224299305700101.

Kulbyte, T. (2020, April 20). 5 Unique Ways to Increase Customer Retention (and
Increase Profits). https://www.superoffice.com/blog/customer-retention-tips-with-crm-
software/.

Pirnia, G. (2019, March 18). How Fast Food Advertisements Get Under Your Skin, Whether
You Realize It Or Not. Huffington Post. https://www.huffpost.com/entry/fast-food-
marketing_l_5c890150e4b038892f493653.

Shambaugh, J. (2020, March 27). COVID-19 and the US economy: FAQ on the economic
impact & policy response. Retrieved from https://www.brookings.edu/blog/up-
front/2020/03/23/covid-19-and-the-u-s-economy-faq-on-the-economic-impact-policy-
response/

Zou, S., & Cavusgil, S. T. (2002). The GMS: A Broad Conceptualization of Global
Marketing Strategy and Its Effect on Firm Performance. Journal of Marketing, 66(4),
40–56. https://ezproxy.nwmissouri.edu:2069/10.1509/jmkg.66.4.40.18519

2019 Dine Brands Global, Inc. Annual Report. 2020. Dine Brands.
http://investors.dineequity.com/financial-information/annual-reports.

Appendices

Samples of their current marketing pieces

Sample Tweets:
 Link to YouTube Channels with Commercials: https://www.youtube.com/user/applebeeing

Example of a corporate billboard:

Interview Questions

1. Who are some key collaborators to your business?

2. What resources do these companies seek?

3. Are your current collaborators good enough?

4. What are some strengths you believe Applebee's take advantage of? Greatest strength?

5. What are some weaknesses Applebees has but could improve on? Greatest weakness?

6. Who are your target customers? Demographic?

7. What are the current and future needs of your target customers?

8. What are the customers’ needs that are not satisfied by the company?

9. What are the perceptions about the company in the minds of the target customers?

10. Who are the direct competitors? Indirect?

11. Why do you think customers select you out of your competitors?

12. What are the core marketing strategies of these competitors?

13. What are the strengths and weaknesses of these competitors?

14. What are the perceptions about these competitors in the minds of your target customers?

15. Tell me about the history of your business

 16. How has Applebee’s positioned itself in the market?

17. What are your vision and values?

18. What is Applebee’s mission statement?

19. What methods of marketing do you believe are most effective?

20. Do you believe any of your methods are ineffective?

21. How has technology improved your business?

22. Are you connected to any other Applebee’s restaurants in the area?

23. What products do a majority of your profits come from?

24. How has social media affected your business/marketing strategy?

25. Do you offer any promotions or loyalty programs?

26. How do you keep track of your data?

Analysis of important data

All of the following graphs were taken from our consumer survey regarding Applebee’s.

Most survey respondents have eaten at Applebee’s within the last month or year. Those who

have eaten at Applebee’s within the last month is 46.7 percent and those who have eaten in the

last year is 38.2 percent. A small percentage of respondents have not eaten at Applebee’s.
All survey respondents say that they eat outside of the home monthly or more. This is an

opportunity for Applebee’s because it shows consumers frequently dine at restaurants.

Most survey respondents say that Applebee’s meets their quality standards often and very often.

This helps Applebee’s because it shows that most consumers are satisfied with their quality of

food.
A majority of the survey respondents believed that advertisements do not influence them to dine

at Applebee’s. This is an area for growth for Applebee’s to alter their choice of advertisements to

better suit customer preferences.

Most survey respondents see Applebee’s advertisements or promotions on television at 64.7

percent. The next form of advertisement is viewed from social media at 12.7 percent. This

indicates that Applebee’s needs to strengthen their local presence by using different forms of

maximedia marketing tactics.

ROI and NPV Tables

With the initial investment of $25,000 and a discount rate of five percent, we were able to gather

the projected cash flow through five years. In year 1, we project $300,000 in revenue and have

an increase in 4 percent per year. Through this information we were able to find the NPV. It is

determined by calculating the costs and benefits of the investment. This shows that the

Applebee’s in Maryville will have an NPV of $1,376,618.64 over a five year span.

The amount invested was $25,000 and through this marketing strategy we are able to get $29,500

as the amount returned within the five years. This table shows the total investment gained from

$25,000 to $29,500. We were able to determine the ROI which is the ratio between net profit

over the five period and cost in investment. A positive ROI means the investment gain is

favorable to the cost. The ROI after calculation was 18 percent over a 5 year period. While,

annual ROI over each year is 3.37 percent.

The chart shows estimated cash flows based on Applebee’s yearly income and expenses. Due to

the lack of information on current revenues for the franchise, this chart includes an estimate of

food and beverage sales, resulting in Applebee’s total revenue. The first year of total revenue

starts at $300,000. We believe that with the advertising investment, revenue will increase 2

percent every 6 months or 4 percent every year.

Based on conversations with Applebee’s manager, there is an average of 20 regular employees at

Applebees. On average, employees work 20 hours per week, earning an average of $8 per hour.

With a total of 52 weeks in the year, it is estimated that Applebee’s spends $166,400 per year to

pay their employees. An important expense for Applebee’s in our plan is their marketing

expenses. Each year, an investment of $25,000 will be made to promote the business. This fund

will be allocated to different areas, ultimately to increase yearly net profit of Applebee’s.
Another important expense to consider is their purchase of food from suppliers, an estimate from

a conversation with an Applebee’s employee.

Assuming that the tax rate is around 15%, the net income after taxes of Applebee’s will increase

significantly by increasing advertising expenses. If our projections are accurate and sales

increase by 4 percent annually due to changes in marketing, Applebee’s will have positive

financial health.