The success and history of Burger King serve as evidence of its remarkable franchising and advertising strategies. Founded in 1954 by James McLamore and David Edgerton, Burger King was conceived as a fast-food store offering affordable prices. Initially established in Miami, McLamore and Edgerton recognized the potential for growth through advertising and decided to expand their business beyond Florida. In 1958, Burger King aired its first television commercial, capitalizing on the rising popularity of television at the time.
McLamore and Edgerton recognized the potential for expanding their company through franchising. They started franchising in 1950 as it offered a low-cost opportunity for growth. Burger King began to expand rapidly as a result. The business flourished, and in 1967, Pillsbury, a major player in prepared foods, purchased the company for $18 million with 214 stores. However, franchising also presented challenges for the new owners.
The way McLamore and Edgerton handled and managed the franchisees around the country was not appropriate. Due to their low control, each Burger King store offered a different experience to customers. The image and atmosphere varied greatly from one burger king to another, which did not contribute to the brand’s success or market share. For instance, “Wealthy Louisianans Billy and Jimmy Trotter purchased their initial Burger King outlet in 1963.”
By 1969, the first owners had nearly twenty Burger King Restaurants and became a publicly traded entity known as Self Service Restaurants Inc. In 1970, amidst a snowstorm, Billy Trotter traveled to Chicago to purchase the highly profitable territory for $8 million after the franchisees in charge of the area opted to sell. The following day, Pillsbury executives arrived in town only to realize they had been outdone by their own franchisee. This illustrates the consequences of insufficient control from the initial owners regarding their franchise-based expansion of the company.
This situation requires urgent new management. Pillsbury managed to hire a man with excellent experience in managing the fast food industry, Donald Smith. He was the third in line for the top spot at McDonald’s before Pillsbury convinced him to join their company in 1977. They hired him to make Burger King more reminiscent of McDonald’s stores across the country. With the arrival of the new CEO, changes began to occur, including increased control over franchises and a push for greater uniformity among all BK stores.
However, problems arose in the 80s despite Pillsbury’s attempts at communication and advertising strategies. These strategies did not prove as effective as desired. Eventually, in 1989, Pillsbury was sold to Grand Met for around $5.7 billion dollars. With this change in ownership, a new CEO named Barry Gibbons was brought in. He implemented a much more aggressive strategy for Burger King, starting with its international expansion. In just seven years, the company expanded to nearly 12 countries—an impressive feat.
Burger King’s international expansion began when Grande Met acquired the Wimpey hamburger chain and converted all Wimpey stores into BK stores. Currently, Burger King is the second largest fast food chain in the United States, after McDonald’s. The company has a total of 11,455 locations across 50 states and 56 countries, consisting of over 10,400 franchised restaurants and approximately 1,000 owned restaurants. With a daily customer base of 15.7 million, Burger King sells more than 2 billion hamburgers annually worldwide.
Key individuals involved in Burger King’s operations include CEO Brad Blum (2002-2004), who implemented hiring an advertising agency and introducing “ask the CEO” voice mails for employees and franchisees. Notable franchisees are Mahendra Nath (owner/operator of 90 stores in upper Midwest and Florida), Alex Salgueiro (another franchise owner), and Rob Reilly (creative director for Crispi).
He is the individual responsible for creating media for Burger King in recent years. UBS: David Palmer, an analyst for the restaurant industry at UBS. Customers: Burger King’s advertising deliberately appeals to young people, aiming to reach a youthful audience that has a down-to-earth and humorous sensibility. ORGANIZATIONS INVOLVED Competitors: McDonald’s has been creating the Drive True and chicken McNuggets since 1995, making it Burger King’s primary competitor in terms of numbers. Wendy’s started with a single restaurant in Ohio in 1969. Advertising agencies: Yong & Rubicam, an agency hired by CEO Brad Blum, focuses on BK’s flame-broiled cooking method versus frying, as well as managing the company’s media. Crispin is an award-winning agency affiliated with Y&R and is responsible for the creative global account of Burger King. They have also created campaigns for BMW, MINI Cooper, IKEA furniture, Sunglass Hut, and Virgin Atlantic Airways. BBDO is another advertising agency utilized by Burger King. Magazines:
Creative magazine is responsible for covering all aspects of creativity in advertising and design. It showcases various commercials, such as Crispin’s well-planned advertisement package for the comedy series “The Office,” which includes messages incorporated into every opportunity. Another notable campaign by Crispin is Coq Roq, a heavy metal band-inspired campaign. Additionally, Crispin created “Manthem,” a parody of Helen Reddy’s song. The main problem is identifying Burger King’s communication objectives for its target audience. Solutions and questions for discussion include:
- What are Burger King’s communication objectives for its target audience?
Burger King employed diverse advertising and marketing strategies to appeal to their target audience, specifically young men. Their communication goals were not only to attract young men to their stores, but also to create excitement and stimulate word of mouth so that everyone becomes aware of the stores, the products they offer, the service they provide, and the overall atmosphere. In essence, Burger King aimed for people, especially young men, to recognize that they could discover delectable food, efficient service, pleasant surroundings, and affordable prices at their establishments. Nevertheless, by concentrating on the “super fan”, Burger King runs the risk of alienating other patrons. This may have consequences such as impeding franchise expansion and potentially losing existing clientele.
Although Burger King’s focus on super fans allows them to concentrate on the small group of consumers who drive the fast food business, it is important to analyze the effectiveness of viral or buzz marketing. This analysis includes evaluating the design of the subservient chicken website, including its content, structure, and format. By implementing these changes and using their advertising skills, Burger King successfully changed their customers’ perspective by making their advertisements more fun and engaging while still maintaining a classic and relevant appeal for today’s consumers.
Buzz Marketing played a role in helping Burger King improve their performance as their partners had an impressive track record, despite the existence of competition between them. The decision to change their slogan to “have it your way” created opportunities for advertising. Additionally, we suggest that Burger King and Crispin make additional recommendations to enhance the integration of Burger King’s promotion mix. One recommendation is to broaden Burger King’s current target market as their current strategy does not cater to everyone.
To improve its strategy, Burger King should maintain its current approach of targeting a slightly segmented market. However, it should also consider expanding its target market on a global scale in order to gain a larger share of the world market. Burger King should also enhance its advertising efforts by placing a stronger emphasis on its products and fostering customer loyalty. This can be achieved through television advertising, roadside billboards, and potentially including ads in magazines.
