Bob Evans Restaurants Marketing Mix and SWOT Analysis

Explore the marketing mix and SWOT analysis of Bob Evans Restaurants in this case study. Discover how the brand aims to modernize its image and attract a younger demographic while addressing challenges in a competitive market.

Bob Evans Restaurants Marketing Mix and SWOT Analysis: A Case Study

Bob Evans Restaurants Marketing Mix and SWOT Analysis; they targets the aging baby boomer demographic with family-style dining and affordable pricing. To modernize, they face challenges like intense competition and outdated décor. Opportunities include expanding delivery services and menu diversification to attract younger customers. While maintaining their core values of convenience and community engagement.

I. Case Summary

In today’s fast-paced world, homemade meals have become a luxury, and cooking can often be a burden. Bob Evans aims to fill this need by offering a place where families can enjoy breakfast, lunch, or dinner, whether to start their day or decompress. With strategically located restaurants across the Midwest and Eastern United States, Bob Evans has been a long-standing staple, especially for the baby boomer generation, and is continuously seeking sustainable growth in a changing market.

Currently, Bob Evans operates 149 restaurants in 18 states, focusing mainly on the Midwest and Eastern half of the country, providing breakfast, lunch, and dinner. The business was built around the baby boomer demographic, who remain the primary customer. Many of these restaurants have been operating for over two decades, competing in a crowded restaurant landscape alongside chains like Denny’s, Chili’s, and Applebee’s.

To modernize its image and reinvent the brand, Bob Evans replaced the Chicago Creative Partnership with the Brunner advertising agency based in Pittsburgh. With past marketing expenditures consistently exceeding $18 million, also the company anticipates significant returns from this new partnership, hoping to usher the brand into a new era of sustained growth.

II. Problem and Root Causes

Problem Identification

The core challenge for Bob Evans is the limited target market. As their primary customer base is the aging baby boomer generation. Consequently, other segments are largely unfamiliar with the brand or unaware of Bob Evans’ existence.

Root Problem Components

Three main issues contribute to Bob Evans’ stagnation and failure to achieve market growth:

1. The Aging Baby Boomer Demographic: The current market is aging, which suggests a potential decrease in dining frequency. The food offerings, which are essentially hearty and large-portioned meals, cater specifically to this demographic.
2. Sustainment of Current Customers: The current décor and food choices are designed to retain existing baby boomer customers, which inadvertently alienates potential new patrons.
3. Inability to Grow New Customers: Younger generations prioritize quantity over quality less than baby boomers, and many parents prefer cooking at home to ensure their children have balanced, wholesome meals.

III. Marketing Mix (5 P’s)

Product

Bob Evans is a family-style restaurant specializing in home-cooked meals for breakfast, lunch, and dinner. The company is noted for its exceptional customer service. Which research by Brunner has validated as being above reproach, earning the company numerous accolades.

Price

The pricing is accessible for many families, with many menu items under $10.00. Resulting in an estimated cost of $35.00 to $40.00 for a family of four. Bob Evans also offers coupons and a promotional meal price of $2.99 for children.

Place

Bob Evans has 149 restaurant locations across 18 states in the Midwest and Eastern U.S. Beyond the dining experience, they promote in-house stores where customers can purchase country-accented pieces for their homes and sell their sausage products in major grocery chains like Walmart and Safeway.

Promotion

Promotional efforts include the use of email marketing, “BEmail,” to notify current customers of deals and new products. The company also hosts community nights to foster local connections and generate foot traffic.

People

Bob Evans is a significant employer, with staff in its restaurants, manufacturing facilities, and on its Ohio farm. The company culture, as demonstrated in a video, views staff not just as employees but as members of the “Evans family.”

IV. Social Media Strategy

Bob Evans leverages “BEmail” for product promotion, deal notifications, savings, and even sharing recipes customers can try at home.

The company uses platforms like Facebook to market its family-style dining concept. Videos are employed to encourage families to put away phones and devices, engaging in conversation without digital distraction. Facebook is also used to market products like pastries and pies. Encouraging purchases for family gatherings, reinforcing the importance of sharing a meal together at a table.

V. SWOT Analysis

Category	Strengths	Weaknesses
Internal	1. Umbrella Branding: The use of a consistent logo and name across all products (including those in grocery stores) ensures easy brand recognition.	1. Intense Competition: Bob Evans, known for breakfast, competes with breakfast-focused chains (Perkins, Denny’s, IHOP) and lunch/dinner chains (Chili’s, Applebee’s).
	2. Family-Style Dining: Encourages families to be present and reconnect, valuing the shared experience.	2. Limited Demographic Focus: Over-reliance on the baby boomer demographic excludes other age groups, who may be unaware of or uninterested in the product offerings.
	3. Focus on Convenience: Recognizes the busy lives of modern consumers by offering online ordering and meal pickup for busy professionals.	3. Lack of Outside Talent/Vision: Longevity of employees and a culture of promoting from within may contribute to a lack of marketing growth and fresh vision, despite not being inherently negative.
	4. In-Store Retail: The store offers merchandise and collectibles, capitalizing on the desire for gift-giving among family members who meet there.	4. Outdated Store Décor: The unchanging red barn aesthetic and interior décor are tired and could benefit from modernization, perhaps incorporating rustic, contemporary design elements.
External	Opportunities	Threats
	1. Delivery Service Expansion: Integrating delivery into the online ordering system would appeal to people who lack time due to traffic or busy schedules, especially given locations near high-traffic shopping areas.	1. Competitor Saturation: Perkins, Denny’s, and IHOP offer similar menus and price points. Perkins, in particular, has a wider geographical presence.
	2. Community Partnerships: Collaborating with local non-profits or children’s hospitals for fundraisers would introduce the food to diverse customer groups.	2. Rise of Meal Kits: The popularity of online food preparation kits that provide organic, wholesome ingredients caters to people who want to cook for their families.
	3. “Kids Eat Free” Promotion: Implementing a concept similar to IHOP (e.g., children 8 and under eat free) would draw in younger families and encourage them to experience the family-friendly atmosphere.	3. Tired Décor in a Modernizing Market: While the red barn is iconic, the overall décor is less eye-catching than competitors’ updated, modern designs, failing to draw in younger crowds.
	4. Menu Diversification: To align with current dietary trends, Bob Evans should offer alternative options such as organic, wholesome foods and meals free of additives, moving beyond familiar hearty, down-home meals.	4. Aging Customer Base: The decline in the baby boomer population’s mobility and dining frequency poses a direct threat, necessitating a shift in marketing focus to younger generations.

VI. Alternatives and Recommendations

Alternatives

• Customer Incentives: Offer a free dessert (to take home) with the purchase of a gift card or a meal, recognizing that eating out is a luxury.
• Product Promotions: Introduce “Buy 1, Get 1 Free” or “Buy 1, Get 2 Free” deals on Bob Evans grocery products for a limited time (e.g., during the holiday season).
• Catering Services: Launch catering options for large events like the Superbowl or retirement parties, focusing on popular items like fried chicken, and offer rewards/incentives for utilizing the service.

Recommendations

The most crucial recommendation is the expansion to a delivery service. In today’s busy society, convenience is paramount, and many people simply cannot fit a restaurant visit into their schedules. Bob Evans must conduct market testing and forecasting to determine the long-term viability of this investment. Offering delivery makes life easier for potential customers, who are actively seeking out companies that provide this service.

Bob Evans has a significant opportunity to capitalize on the demand for home-cooked style meals by consumers who lack the time to shop for ingredients and prepare meals from scratch. Identifying that customers value convenience and providing a delivery service is the right solution for Bob Evans to grow its customer base.