Burger King History and success is a proof of excellent franchising and advertising strategies. The company starts in 1954 thanks to James McLamore and David Edgerton that have the idea of a fast-food store with always low prices. First in Miami, then this two entrepreneurial guys realize that advertising was the way to expand its business beyond Florida, with its first commercial on TV in 1958, when the television was in excellent popularity.
With the product known by almost everyone, McLamore and Edgerton realize that franchising also would help them to expand their company, the franchising time starts ad 1950 because of the great possibility of expand with low inversion, and Burger King Starts expanding because of this. The business was doing great, franchising gave the company the expand they needed, in 1967 the company was sold in $18 million dollars with 214 stores to the prepared-foods giant Pillsbury. Franchising however give some problems to they new owners.
The way McLamore and Edgerton handle and manage this was not the appropriate because with they low control of the franchisees around the country, the stores experience by the customer was different in each Burger King, the image the sense of the place was really different in each burger king, something that would not help to the brand and to the market share they already have got. For example, “Wealthy Louisianans Billy and Jimmy Trotter bought their first Burger King outlet in 1963.
By 1969, they controlled almost two dozen Burger King Restaurants and went public under the name Self Service Restaurants Inc. In 1970, when the franchisees in control of the lucrative Chicago market decided to sell out, Billy Trotter flew to Chicago in a snowstorm to buy the territory for $8 million. By the time Pillsbury executives got to town the next day, they found they had been bested by their own franchisee” . This was something that happens because of the lack of control of the first owners with the franchising they use do expand the company.
This situation need urgently new management that Pillsbury gave them by hiring a man with an excellent experience in manages fast food industry. His name, Donald Smith was the third in line for the top spot at McDonald’s when Pillsbury lured him away in 1977, then hired him to make a transformation to Burger king and looks more like McDonalds stores all over the country. With the new CEO changes starts coming, more control over franchises arrive and a more uniformity in ll the stores of BK was expected. However, problems arises in the 80’s and no matter the amount of communications and advertising strategies Pillsbury did, they didn’t work so good, so at the end, in 1989 Pillsbury was sold to Grand Met in around $5. 7 billion dollars. The first move, a new CEO was established, Barry Gibbons and with him a new much more aggressive strategy for Burger King starts, first to its expansion internationally, expanding in 7 years to almost 12 countries, a remarkable figure.
Was then when international expanding starts to comes, first Grande Met bought Wimpey hamburger chain, establishing BK stores in all the Wimpey stores, opening to the worldwide its brand Actually, Burger King is the second largest fast food chain in the United States behind McDonald’s. “The company now franchises more than 10,400 restaurants and owns about 1,000 for a chain wide total exceeding 11,455, with locations in all 50 states and 56 countries. The company serves 15. 7 million customers each day and over 2. billion Burger King Hamburgers are sold each year across the globe” . PEOPLE INVOLVED •CEO Brad Blum: he was the CEO of Burger King since 2002 until 2204, and he is the one how take the decision of use a agency of advertising and also he inaugurating what the chain described as a series of “ask the CEO” voice mails to employees and franchisees. Franchisees: •Mahendra Nath: She is the owner and operator of 90 stores in the upper Midwest and Florida. •Alex Salgueiro: another franchisee owner. Crispi: •Rob Reilly: a creative director for Crispi.
He is the one how made the media for Burger king the last years. UBS: •David Palmer: an analyst of the industry of the restaurant UBS. Customers: •Young people: Burger King advertising is deliberately eccentric and thus directly strives to reach a youth focused, Burger King’s target audience are basically the young people, people who are more down to earth and have an open sense of humor. ORGANIZATIONS INVOLVED Competence: •McDonald’s: since 1995, they create the Drive true, chicken McNuggets, and it’s the first competence of Burger king in numbers. Wendy’s: since 1969 start with one restaurant in Ohio. Advertising agency: •Yong & Rubicam: an agency firing by the CEO Brad Blum, they are focused on BK’S flame-broiled cooking method versus frying, and the media of the same company. •Crispin: and awarding of Y&R for the creative global account of Burger King. They are in charge of the media of Burger king. Crispin made come campaigns for BMW, MINI Cooper, IKEA furniture, Sunglass Hut, Virgin Atlantic Airways •BBDO: it’s the second advertising agency from Burger king Magazines:
Creative magazine it’ a magazine is in charge of covering all things creative in advertising and design. Commercials: •The Office “Crispin planned and entire package for advertisements in the comedy including messages in every opportunity” •Micro site: www. subservientchicken. com Music: •Coq Roq: was a campaign made from Crispin that was based on a heavy metal band (the name is in the beginning) •Manthem: it’s a parody for Helen Reddy song made for Crispin. MAIN PROBLEM SOLUTIONS QUESTIONS FOR DISCUSSION 1. WHAT ARE THE BURGER KING’S COMMUNICATION OBJECTIVES FOR ITS TARGET AUDIENCE?
Burger King did many advertising and marketing strategies in order of attracting on target customer: young men. In this order, BK communication objectives was to not only attract the young men to the BK stores, but also to generate buzz and word of mouth to everyone starts to know the stores and the products they serve, also the way the service is delivered and the ambient the stores has. In other words, to people and more specifically young men know that in BK they could find delicious food, served quickly, with a nice service and in a nice place and all this at a low price. . With its focus on the “super fan” does BK risk alienating other customers? What are the implications of this? First we have to say that Burger king have to be really intelligent with the advertising because they are always overcome for the competence for this reason burger king its trading to gain the trust of the young people (they are the ones who more buy). The biggest risk is the impossibility for expand their franchisee and off course lose the clients that already had.
Although BK’s focusing on super fans allows both media planning and creative to be focused on the small group of consumers who drive the fast food business. 3. Why is viral or buzz marketing effective? Analyze the design of the subservient chicken web site’s message, including content, structure and format. What can you conclude from this analysis? By changing the slogan and putting in practice their advertising skills, Burger King changed its customer’s perspective by loosing up their sleeves and making the advertisement more fun but maintaining the classic and relevant for today’s customers.
Buzz Marketing helped Burger King step their game up since their partners had an impressive record, even though they’re partners, there is still a sense of competition. Changing their slogan to “have it your way” open doors for advertising. 4. S 5. WHAT OTHER RECOMMENDATIONS WOULD YOU MAKE TO BURGER KING AND CRISPIN TO HELP THEM IMPROVE THE INTEGRATION OF BURGER KING’S PROMOTION MIX? As a recommendation we think that the current target market of Burger King is not pretty broad. So, not everybody is being targeted by their current strategy.
They should keep the current strategy of a slightly segmented target market, and need to include more segments in their strategy. The as a solution Burger King should increase its market not only locally but also around the world and then start to gain world market share. At the same time Burger King should develop a stronger advertising focusing more in its product and trying to make loyal the customer to its products, for this the company should use Tv advertising, boards on the side of highways or roads and maybe insert ads into magazines