MARKETING FIELD MAILING

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1 MARKETING FIELD MAILING DATE: October 10, 2014 DISTRIBUTION: FROM: All Hardee s Franchisees All Regional Vice Presidents All Directors/Franchise Operations All Directors/Operations All Franchise Business Consultants All Field Marketing Personnel All Corporate Distribution Hardee s Marketing Department ORDER DEADLINE: POP Order Deadline Monday, October 20 Table of Contents Page(s) Bass Pro Shop Sweepstakes 2-5 Bacon Velveeta Patty Melt 6-7 Southeast Indoor Menuboard Layout Revision Chili Cheese Fries 9 Order Worksheets 10 1

2 BASS PRO SHOPS OUTDOOR ADVENTURE SWEEPSTAKES We are partnering with Bass Pro, Coke and Royal Cup to repeat last year s highly-successful Bass Pro Shops Sweepstakes, with some enhancements recommended by the field after last year s promotion: Instead of just focusing on breakfast combos, the promotion has been expanded to also cover lunch/dinner Instead of handing out scratcher cards when a guest purchases a combo, the game pieces have been blown onto the large plastic soft drink up and large coffee cup. Cup graphics are below including a photo of the actual printed coffee cup to show the game piece. How the Sweepstakes Works Beginning 11/17, guests purchasing a Large Combo, Large Soft Drink or Large Coffee will receive cups with Bass Pro-themed graphics that include a peel and win blow on game piece. On the back of the peel off are instant win food prizes to bounce the guest back for an additional visit and the hunting and fishing gear prizes provided by Bass Pro. Guests who receive the instant win hunting and fishing gear prizes are directed to HardeesBPS.com for fulfillment. Under the peel off (affixed to the cup) is a unique code for them to go on line to enter and win the Grand Prize of a Tahoe Ski/Fish Boat with Trailer. Entries to win the Grand Prize will be accepted until 1/8/15. The random drawing will be done on 1/19/15. Food and hunting and fishing gear prizes are as follows: 2

3 Food Prizes Free Small Hash Rounds 15% Free Small French Fries 15% Free Small Coca-Cola 20% Free Small Colombian Blend Coffee 10% Free Small Coca-Cola and Small Fries w/purchase of Big Chicken or Bacon Swiss 10% Big Chicken Free Small Coca-Cola and Free Small Fries w/purchase of any 1/3 lb. Thickburger 10% Free Bacon, Egg & Cheese Biscuit w/purchase of Large Colombian Blend Coffee 10% Free Sausage & Egg Biscuit w/purchase of Large Coca-Cola 10% Food prizes expire on 1/31/15. The incremental cost of the Bass Pro-themed cup graphics and blow on game pieces is being funded by Coke and Royal Cup. Bass Pro Hunting and Fishing Gear Prizes Stalker Front Loader Tackle Bag 500 Pursuit Binoculars 1000 Redhead Velocity Pack 1000 Grand Prize Tahoe Ski/Fishing Boat w/trailer The total value of the Bass Pro prize pool is almost $200,000 which they are providing along with fulfillment in exchange for the brand exposure they receive by partnering with us. Key Dates Cups Force Shipments 11/10-14 POP Arrives by 11/12 Post POP and Begin Distributing Cups 11/17 Start Media 11/14 Promotion Ends Estimated 12/20 (upon depletion of cups) 3

4 Merchandising Drive Thru Extender Spike Sign & Hardware Indoor Right Menuboard Banner Register Toppers (3) Window Cling 1 Case of Trayliners (will be force-shipped w/cups from 11/10-14) 25 RealTree Decals for Crew Members Bass Pro Sweepstakes Official Rules Window Cling Advertising :15 TV :30 Radio December FSI 4

5 Crew Caps To extend the Bass Pro Outdoor Adventure Sweepstakes to the crew level, each restaurants will receive 25 Bass Pro Crew Caps to wear during the promotion and keep after the promotion. These are at no charge (funded by the various cup promotions we do with the studios Dawn of the Planet of the Apes, November Man, etc.) 5

6 BACON VELVEETA PATTY MELT How do you make a classic like a Patty Melt even better? Make it with lots of melting Velveeta and add bacon more specifically the pieces of bacon that have made the Mile High Thickburger such an incredible product. We tested a Velveeta Patty Melt several years ago with great results and have been waiting for the appropriate time to introduce at Hardee s. In test it had an ADQ of 24 or 10% of lunch/dinner transactions, well above our success norm of between 6-8% of lunch/dinner transactions. The top two box repurchase intent was 75%, close to our 80% norm, so to plus it up and command a premium price we added bacon. Hardee s and Carl s Jr. will go off National Cable in January while Hardee s promotes the Bacon Velveeta Patty Melt, a product that will play well in Hardee s footprint especially given the colder weather. Menu Status DMA Core LTO Key Dates Order POP 10/20 POP Arrives 12/10 Start Sell 12/15 Media Begins 12/29 Stop Sell 5/25 (tentative) 6

7 Builds 1/4 LB 1/3 LB 1/2 LB Sourdough Crown Sourdough Crown Sourdough Crown Whirl Whirl Whirl 1 Slice Velveeta Cheese 1 Slice Velveeta Cheese 2 Slices Velveeta Cheese oz Mayo- Coast to Coast oz Mayo- Coast to Coast oz Mayo- Coast to Coast #40 Scoop Caramelized Onions #40 Scoop Caramelized Onions #40 Scoop Caramelized Onions 0.75 oz Diced Bacon Pieces 0.75 oz Diced Bacon Pieces 0.75 oz Diced Bacon Pieces (1) 1/4 LB Thickburger (1) 1/3 LB Thickburger (1) 1/2 LB Thickburger 1 Slice Velveeta Cheese 1 Slice Velveeta Cheese 1 Slice Velveeta Cheese oz Mayo- Coast to Coast oz Mayo- Coast to Coast oz Mayo- Coast to Coast Whirl Whirl Whirl Sourdough Bread Sourdough Bread Sourdough Bread Collar Wrap Collar Wrap Collar Wrap Micro Tray Micro Tray Micro Tray 1/4 Thickburger Wrap Red Carton Red Carton Velveeta Label Velveeta Label Velveeta Label 1/2 LB Label Financials FINANCIALS 1/4 LB Combo 1/3 LB Combo 1/2 LB Combo Selling Price $4.79 $6.79 $5.79 $7.79 $7.49 $9.49 Food & Paper Cost $ $ $ $ $ $ Food & Paper % 32.40% 30.12% 32.24% 30.29% 34.94% 32.77% Penny Profit $ $ $ $ $ $ *Food costs reflect system average costs at the time of publishing POP Elements Indoor and Drive Thru Hero Translites Drive-thru P2B Translite Mile High Combo Register Fronters Window Cling Broadcast Support :30 TV :15 TV :10 Billboards :30 Radio 7

8 REVISION TO 10/20 SOUTHEAST BREAKFAST INDOOR MENUBOARD MATERIALS As we will still be early into the re-introduction of Cinnamon N Raisin Biscuit, we tweaked the Southeast indoor menuboard materials to give more prominence to Cinnamon N Raison than we had original planned. An updated composite is as follows: 8

9 CHILI CHEESE FRIES We often get requests from the field to offer trade up sides. The back of the Bass Pro Right Indoor Menuboard Banner and Drive Thru Extender will feature Chili Cheese Fries and a priceable price box. Chili Cheese Fries require no new ingredients in restaurants that currently sell Jumbo Chili Dogs. Restaurants that do not sell Jumbo Chili Dogs may bring in chili for this event. The Franchisee Field Marketing Managers will be checking on participation for Franchisees that do not currently sell Jumbo Chili Dogs to make sure chili inventory is available if they opt to sell Chili Cheese Fries this winter. Restaurants should flip the Bass Pro Menuboard Banner and Drive Thru Extender once the Bass Pro cups have been depleted and begin selling Chili Cheese Fries. Restaurants not wanting to sell Chili Cheese Fries should just discard these elements once the Bass Pro cups are depleted. Menu Status Optional By Restaurant 9

10 BACON VELVEETA PATTY MELT Merchandising Order Worksheet Order Deadline: 10/20/14 In-Store Date: 12/10/14 BILL TO: ATTN: ADDRESS: ADDRESS: City, State, Zip: CENTRAL SHIP TO ADDRESS FILL OUT ONLY IF YOU WANT POP SHIPPED SOMEWHERE OTHER THAN THE RESTAURANTS. ATTN: ADDRESS: ADDRESS: City, State, Zip: Phone #: Contact Name: UNLESS SPECIFIED ALL POP MATERIALS ORDERED WILL BE SHIPPED DIRECTLY TO THE RESTAURANTS. IF YOU WANT YOUR POP SHIPPED TO A CENTRAL LOCATION, PLEASE COMPLETE THE SHIP TO ADDRESS ABOVE PROVIDING THE CENTRAL SHIP TO ADDRESS. Bacon Velveeta Patty Melt Triad Kit Includes Indoor & Outdoor Translites, Register Toppers & Window Cling Non-Triad Kit Includes Indoor Translites, Outdoor Translites or Spike Sign, Register Toppers & Window Cling KT-3282 Estimated Cost (does not include shipping, packaging & handling) PEOPLESOFT UNIT NO. Triad Kit $45 - $55 Non-Triad Kit $70 - $85 Pepsi Kit - $70 - $85 Qty Please place your orders through KDM POP one of three ways: Fax: POP.Hardees@kdmpop.com Call: