Session 5 - Wendys

Summary

• Netflix: Classic Disruption
• Mobile Wallet: Platform Disruption
• Google Car: Multi-sided Platforms
• Open Banking: Architectural Disruption
• Wendy’s: Leveraging Platforms

Wendy’s Case Study

Def: Multihoming

Maintaining an active presence on multiple platforms at the same time.

There is often no clean casual link on whether or not Wendy’s Twitter strategy increased sales or profits.

Valuing Marketing Strategies

1. Conservative Assumptions:
   1. Audience Growth
   2. Conversion: only a small fraction of new follers become customers ~5%
   3. Spending: New customers make limited, infrequent purchases
   4. Retention: some customers return in subsequent years
   5. Costs: Account for COGS and ongoing social media costs
2. Implication: Even under conservative assumptions, social media activity can generate meaningful incremental revenue and profit
3. Plausible estimates based on case facts (2017-2020):
   1. Incremental sales: 4-5 Million / year
   2. Incremental profit: 2-3 million / year