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Revitalizing

the Brand
Presented by:
Rabia Ajmal
15586
“We are not a brand that lacks fame, we are a
brand that lacks emotional connection.”
– Russ Klien, Chief, Global Marketing
Background
• Started in 1952 in Miami under the name, ‘Insta-Burger King’

• With quicker service as its USP, BK used instant broiler that could make 400 burgers
in an hour.

• Burger King launched its Whopper sandwich for 37 cents a piece. Whopper was the
first high-priced Burger King product, with its first ad campaign, ‘Home of the
Whopper’

• In 1962, opened its first international Burger King franchisee in Puerto Rico

• In 1967, identifying the need for financial liquidity, the company merged with the
milling company, Pillsbury

• In 1974, another major campaign was launched ‘Have it your Way’


Background
• Have it your Way was about customizing your order, around 1024
combinations of orders were possible for the Whopper sandwich

• To emphasize it’s flame-broiling, it came out with the campaign, ‘broiling


vs frying’, market share during this period increased from 7% in 1983 to
8.3% in 1985.

• But some other campaigns failed:


- ‘Search for the Herb’
It was created to generate buzz for the sake of buzz. To get people talking about Burger
King. Creating buzz apparently worked. But did it drive sales? No.
The problem was the idea connected poorly with the brand.
Background
• But some other campaigns failed:
- ‘Search for the Herb’
It was created to generate buzz for the sake of buzz. To get people talking about Burger King.
Creating buzz apparently worked. But did it drive sales? No.
The problem was the idea connected poorly with the brand.

• In 1989, its ad campaigns like “Sometimes you got to break the rules” and
“BK tee vee” with MTV, proved unsuccessful as customers found these
advertisements loud, confusing and irritating

• By 1993, Burger King’s market share was 6.1% compared to 15.6% of


McDonald’s. The sales were increasing at a slower pace compared to its rival’s
sales.

• Some of the failed advertisement campaigns were attributed to the downside.

• It was felt that the chain lacked a proper mix of products and
message.
• In 1999, to compete with McDonald’s in the French fries segment,
Burger King launched its crisper french fries coated with potato
starch.

• The company spent $70 million on the promotion of the new


product.

• But, the product failed because of its poor taste and the ad
campaign was reported to have exaggerated the superiority, which
in reality was not offered.

• A lot of our marketing problems have to do with not having top


management with vision and strategy
• The compounded annual growth rate in the market was just 2%,
compared to 7% registered between 1980 and 2000.

• All the three major players, Burger King, McDonald’s and Wendy’s
were facing tough competition from non-burger chains like Kentucky
Fried Chicken (KFC)

• Pizza Hut, including other non-burger chains, were among the


growing companies in the restaurant sector in the US.

• The same store sales at Burger King fell by 4%. Burger King closed all
its outlets in Japan, incurring huge losses.

• Sales from European divisions also fell by 9%.

• A major cause was the outbreak of the foot-and-mouth disease and


the growing negative attitude among consumers against fast
food.
• To recover from the crisis, McDonald’s, the largest hamburger
chain, deployed price reduction and discounts

• It launched a value menu, an assortment of eight items, two


sandwiches and other side items and desserts at $1. To
compete, Burger King came out with a 11-item menu
(hamburgers, tacos, chili, and other side dishes) for 99 cents.

• During the price war, Burger King was reported to have lost its
customers to McDonald’s. Customers switched brands and,
moreover, McDonald’s $1 assortment offered a bigger serving
than that of Burger King.
• While Wendy’s, on the other hand, positioned itself as a high-
quality, high-service product. In contrast, it was felt that the
Burger King brand was never properly marketed in Burger
King’s advertisements.
Summary of Problems
1. Burger King constantly changed its advertising agencies.
criticized for selecting its ad agencies on the basis of ideas rather than strategies. No consistency in
message.

2. Wrong positioning in Ads


- Sometimes, the retail offer did not match the message delivered in the ad campaigns.
- Emotional appeal missing

3. Lacked a leader with vision and strategy

4. High franchisee fees


Burger King charged a franchisee fee of $50,000 as against its earlier $40,000 and 8.5% commission on
sales, while McDonald’s charged $45,000 with an 8% sales percentage

5. Expansions without planning


Around 13 franchisees that operated 167 restaurants went bankrupt because of the huge debts they had
accumulated over their expansions.

6. Constant change in senior management

7. Increasing awareness in consumers regarding risk of obesity from fast food


Dasburg’s leadership 2001-2003
• To initiate the split and revival of brand , Burger King appointed
John Dasburg as new (7th) CEO and chairman as an essential
element for the planned separation of Burger King as an
independent business.

• In his leadership, sixteen new products were added in the menu


and unsuccessful products were eliminated

• Marketing alliances were made with AOL Time Warner, Universal


and dream works in which burger kind rewards and buy one get
one free coupons were launched

• Dasburg was successful in obtaining franchisees support as


franchisees shows confidence on him over centralized marketing
activities.
Bradley Blum - The brand revives
2002-2004
• In 2002, Burger King was sold to a US-based conglomerate of venture
capitalist firms, Texas Pacific Investment Group, Goldman Sachs Capital
Partners and Bain Capital.

• Burger was sold to Texas pacific investment group for $1.5 billion while the
initial deal was set to $2.26 billion due to declining sales.

• Bradley Blum appointed as new CEO while Dasburg remained as chairman


. Also Robert Nilson appointed as president of Burger King

• Y&R agency was hired to pursue marketing activities but failed to produce
results

• Blum changes its advertising agency to CP&B to build brand


momentum in order to drive traffic and get result
• Focused on quality over quantity. Blum restricted price
reduction as it hurts the brand image badly thus the price was
set to $1.99 from 99 cents

• Blum decided to shutdown all under performing franchisees


in the country

• To promote its product Tendercrips , Burger King launched a


new web portal in which a character was disguised as a
chicken explained to the audience as ‘Have it in your own
way’
• Repositioning. Burger King repositioned itself in burgers as ‘fire grilled’
replacing the popular ‘flame broiled’ to differentiate itself from the
competitors and places better in consumer minds

• Radio and TV adds were made and the emotions were added that was
missing in past

• ‘Have it in your way’ campaign was relaunched.


It planned for an innovative campaign that customized everything in
Burger King’s restaurants, including the way the door opened, ‘Push or
Pull, Have it your way’

• The interiors were renovated with new color schemes and uniforms.
• Service and cleanliness at the restaurants was also assured to improve
guest experience. By improving the ambience at the restaurant, Burger
King aimed at word-of-mouth advertising through its satisfied customers.

• Brand was successful in increasing the share of Burger King to 10.6% in


May 2004 and 7.6% increase in its franchisees over the previous month’s
sales
• Redefined vision
“The Burger King vision is to delight our guests with the best
burgers in the business and a variety of great tasting, healthier
foods that are cooked over an open fire. We must serve the best
burgers in the business. It’s our name. It’s our promise. It’s our
obligation”
So how’s Burger King doing
now ?

Let’s have a look at their recent


campaigns . .
Instagram
• Stories Ordering – InstaWhopper
Twitter
• “Some things from 2010 are worth revisiting – like your old tweets, and
Funnel Cake fries “

• #EatlikeAndy
• Bullying Jr. 7.9 Million views

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