Why Panda Express named Opinionated its creative AOR—behind the pitch and strategy

Panda Express has appointed Opinionated as its creative agency of record following a pitch that began in January. The decision comes as the family-owned American Chinese chain shifts from product-centric and limited-time offer-focused creative toward brand and guest-centric work aimed at increasing customer loyalty. Agency Review Tracker Stay up to date with the latest account reviews Click here Going from ‘known’ to ‘loved’ The agency brief was turning Panda Express from a “known brand” to a “loved brand,” according to Panda Express VP of Integrated Marketing Communications Fabiola del Rio. Panda Express has about a 93% awareness nationally, according to del Rio, but “when you get into actual consideration, purchase, and loyalty, you have a deep dropoff. So our objective was really about how do we shift our storytelling,” she said. The chain recently identified that it was losing consumers at a faster rate than other brands in the quick-service restaurant category, which she attributed in part to the many choices available as well as challenges brought on by the pandemic. The chain has been losing ground with the younger demographic at a faster rate than other age cohorts, according to del Rio. The chain will begin focusing on marketing to 18-to-24-year-olds, which hadn’t been a priority in the past, del Rio said. Despite these challenges, Panda Express is now the largest Chinese fast-food chain in the U.S. and QSR Magazine ranked it the 14th largest U.S. quick-service chain by sales in 2023. Panda Express, which has more than 2,500 locations, reached $5.9 billion in U.S. sales last year, up from $5.1 billion in 2022. Portland, Oregon-based Opinionated will be tasked with building its new brand platform. Panda Express launched its “However you Panda” platform last year with the help of its creative incumbent The Many. The initiative marked the brand’s first shift away from product-first marketing. “We still don’t feel like it’s there, so we’ll continue to evolve that until we feel like we get it right,” del Rio said. The Many, which has held the account for five years, will work on the business until October; Panda Express credited the agency with helping it rise from No. 19 to No. 12 in the Technomic Top 500 Chain Restaurant Report. “The Many is honored to have had such a rewarding partnership with Panda Express,” a spokesperson for the agency said. “We look forward to continuing our relationship with the brand on a project basis and furthering the company’s success.” Opinionated will also be charged with establishing a “red thread” through all of Panda Express’ marketing, which includes national promotions, social, philanthropy, and its loyalty program, which was launched last year and has 10 million users, del Rio said. “We’re really trying to understand what makes our guests tick,” del Rio said. “How do we stoke the fandom that exists in the brand, and how do we leverage Panda [fans] to fire up that love and then try to find like-minded consumers.” See America's Hottest Brands 20 brands that are trending in 2024 Click here Winning the pitch The pitch came down to two finalists, Opinionated and Pereira O’Dell, according to multiple people close to the situation. Del Rio declined to comment on other agencies in the pitch. Pereira O’Dell also declined to comment. Opinionated’s “strategic thinking was beautiful in its simplicity. It was so simple and it was so on the nose,” del Rio said. The indie agency is expected to launch its first campaign for Panda Express, under a new brand platform, in January 2025 to coincide with Lunar New Year. It will focus on the Rosemead, California-based brand’s American Chinese heritage. To help with its pitch, Opinionated enlisted cross-cultural agency TDW+Co, which has experience connecting with Asian communities in addition to other demographics. Opinionated was the only agency to bring a partner to the pitch, which del Rio said showed “humility and self-awareness that you don’t always find in the industry.” It was also the first time del Rio had seen that type of partnership in a pitch. “They brought along a multicultural agency to ensure that they didn’t miss the American Chinese nuance and in doing that, they basically brought to life the inherent tension that exists in our brand,” said del Rio. The move struck a chord with Panda Express, which hadn’t sought out that type of expertise in the past because its leadership is already rooted in Chinese culture. “There’s a lot of tension with being Chinese, [especially] since the pandemic,” del Rio added. “I think at times, we weren’t brave enough to lead with that … but they really helped us see the possibility of leading with culture and they just did it in a very beautiful way.” TDW+Co will continue to consult Opinionated. This is Opinionated’s first big agency of record win since hiring Kate Higgins as its chief growth officer in June. Over the past year, the agency has added Dick’s Sporting Goods and FootJoy to its client roster. It has also grown its partnerships with Adidas and Drumstick, for which the agency created a Super Bowl spot for this year. Also read: Kate Higgins on the power of LGBTQ+ representation Marketing mix and new products Panda Express is on pace to spend $35 million on advertising this year, which the chain is looking to increase moving forward, del Rio said. The chain has seen success in linear TV and has been investing more in CTV and online video ads, according to del Rio. While 26% of the chain’s sales are coming from online orders, del Rio said she is looking for a more balanced media mix, with a focus on driving customers to its physical restaurants. “The best experience you can get out of Panda is if you go into the restaurant and eat with your eyes,” del Rio said. “Our highest overall satisfaction happens when you walk into the restaurant. So I am very cautious about how much digital to drive versus how much to [focus on] driving people into the restaurant. There’s a more personal experience that happens when you are there. And we still have a very healthy percentage of our business happening in the restaurants.” Panda Express will continue working with its media agency Pal8. Last year, the chain shifted its media spend to invest more in markets that are “east of the Mississippi,” she said, to drive consideration. On the West Coast, the chain has shifted to focus on converting customers through lower funnel work. Besides its loyalty program, Panda Express has made other changes of late, such as launching its first dessert item last year and reintroducing its Beyond Orange Chicken after customers signed a petition asking for it. The chain will be focused on experimenting with new flavors and spices, del Rio said. For example, del Rio alluded to Panda Express bringing back the food collaboration it did with the spicy wings show “Hot Ones” last year. View this post on Instagram A post shared by Panda Express (@officialpandaexpress)

Why Panda Express named Opinionated its creative AOR—behind the pitch and strategy

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