Aggressive Competitor Defence Strategy

"Tony analysed our sales revenue and margins from top to bottom over 3 years and presented a graphical analysis that not only showed potential buyers exactly where our business stood and the overall market trends, but helped us sell the company."
Robert Gavshon MD (formerly) Barbeques Galore

When McDonald’s launched a 30 cent soft serve, Wendy’s Supa sundaes started losing business.

The situation -

At the time Wendy’s was the clear market leader in soft serve ice cream, selling decorated soft serve (for $2.50 to $3.00) across an Australian network of almost 300 stores.

When McDonald’s launched a 30 cent soft serve, Wendy’s started losing business. Mothers with children opted for the cheaper product; causing Wendy’s to lose sales not only of the premium soft serve business but also on support products. The problem was ‘what could they do if they couldn’t afford to compete on price’?

How Solutions Marketing helped -

To help Wendy’s respond strategically, Solutions Marketing in conjunction with Wendy’s advertising agency Ideaworks, conducted qualitative focus group research, market analysis and a strategic planning session.

Strategic recommendations from Solutions Marketing & Ideaworks -

Not to produce a better quality soft-serve for kids.
Shifting the focus to adult, premium ice-cream and a new chocolate flavoured soft-serve with less than one per cent fat – both targeting the 70 per cent female population frequenting shopping centres.
Not to call any new adult product a soft-serve.

The results -

Wendy’s grew their business with the launch of Chocollo and an expanded range of award winning ice creams - all with immediate appeal to women.

McDonald’s is still selling inexpensive soft-serve ice creams, yet Wendy's business has grown significantly.