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Burger King is a reliable burger company which has had its ups and
downs. In 1974, it came out with a slogan of "Have it your way" and at this time
it also had a 4 % market share. Burger Kings idea was to have the customer have
their burger done their way rather than a standard burger. In the early 80s Burger
King was trying to keep sales growing so they had to keep changing their advertising. In
1982 "Battle of the burgers" and "Arent you hungry for a Burger king
now?" were the slogans used. In 1983 "Broiling vs. frying" and 1985
"The big switch". All these ads throughout the years helped increase market
shares from 7.6% to 8.3% from 1983 to 1985. "Search for herb" was a slogan used
by BK about a person that has never tasted a whopper burger, this campaign was supposed to
increase market share by 10% but in reality only increased it by 1% it was a disaster. In
1986-1987 "this is a burger king town" and "best food for fast times"
brought a lot of attention to the company. In 1988 "We do it like you do it" was
used often but a year later they came out with two new slogans which confused the
customer. In 1989 "Sometimes you gotta break the rules" and "BK tee
vee" with MTV and Dan Cortese with "I love this place". This was another
huge setback for BK because people on the go and parents found this ad loud and
irritating. BK at this time has failed to establish a solid image that would differentiate
it from its competitors. Ads if anything only confused consumers as to what advantages BK
offered. In 1993 it had a market share of 6.1% were McDonalds had 15.6% and BKs
sales were growing slower than its rivals.
Failed advertising campaigns werent the only problems, they
also had internal problems. Management lacked focus and direction and has struggled with
marketing mix decisions. Franchises became confused and angered, service was slow and food
preparation wasnt consistent. Burger King lost its core product-flame broiled
burgers, made the way the customer wanted them. Another thing that hurt them was the fact
they didnt lower prices to keep competing with their competitors this led to a below
average sales growth. Many in store promotion also failed. In 1993 a new CEO was
introduced, this allowed for huge turnaround and in fact it did. He helped please the
franchises and responded to their problems and listened to their recommendations. Then
later he lowered prices and hired a new advertising agency.
1. In reading this case analysis I figured Burger King to advertise the Whopper, but
throughout the past years they didnt do this. I figure the whopper or the flame
broiled ads would have been more productive and probably would have resulted in greater
sales margin. I also feel that the ads should have distinguished themselves from what
other ads by letting the people know that burger king wasnt just another
standardized burger. Throughout the years, BK tried to establish the market by becoming
someone they werent. I feel the ads used by BK should have been simple and to the
point. This would have caused less confusion and more honesty with the customer, this is
because you dont want to advertise a pizza or a taco if your selling burgers. Other
objectives BK wanted was to target teens with the MTV approach. This also failed because
people found it loud and annoying. Then they tried a sit in type of restaurant, which also
failed because people want a fast food low price meal not a high priced, sit down meal.
Advertising is any paid form of non personal presentation and promotion of ideas, goods or
services by an identified sponsor. Advertising is a good way to inform and persuade the
customer. Advertising objectives are based on past decisions about the target market,
positioning and target mix. There are five steps to making a major advertising decision
these steps are as follows: Objective setting, Budget decisions, Message decision or media
decision, and campaign evaluation. Along with these steps BK should also remember to
inform, persuade, and to remind. These three are a must that a company should aim at, for
example: in informing BK used the ad "Broiling vs. frying" in 1983 letting the
consumer know that their burgers were broiled and not fried. In persuading, I think BK
over did it and that is why I feel that they didnt retain market share. They tried
to be someone they werent with slogans like "search for herb" in 85 and
many others like "BK Tee Vee" trying to persuade the younger generation and
"Sometimes you gotta break the rules". These slogans and more tried to persuade
the consumer. In reminding their customers BK has done a good job. Theyve at least
expanded nationally and internationally and always have commercials everywhere with a
juicy whopper on the screen, reminding the viewer that BK is the only place a whopper is
made.
2. BKs past advertising and corporate strategy failed because BK did the two biggest
mistakes they could have done. First they didnt listen to the customer and second
they didnt advertise their main product a maintain a target market. In not
accomplishing any of these two strategies in the past it allowed their rivals to get a
lead on them. In 1993 McDonalds, for example, had a market share of 15.6 percent compared
to BKs 6.1 percent. This is because they established their market and didnt
try to invent new strategies. Burger King started to lose market shares when it first came
out with the search for herb, and then it declined again when it tried to target the
teenage generation rather than staying loyal to the general customer. It tried targeting
the younger generation through MTV. This became insulting and irritating to the old
customers and to the quiet more relaxed people and even all the young children who prefer
clowns than some man screaming on TV . BK did not listen to its customer, they tried to
establish a restaurant type of business, rather than their fast food burgers. Fast food
patrons really wanted low prices and quick but high quality food, not a higher priced, sit
down meal. The corporate strategy and the past advertising wasnt the only problem
and wasnt the only one at fault for BKs failure. They also had internal
problems. Management has had troubles with the market mix decisions. Service was slow and
food preparation was inconsistent and many stores needed remodeling. BK didnt focus
on its burger ,instead they were trying to experiment with pizzas and ice cream.
This caused confusion ,and confusion brings problems. To add to the problems BK was more
expensive than McDonalds or Wendys combos, which was also hurt sales for Burger
King.
3. For the new advertising campaign I would personally target the young and the old
generation. I would also be very health conscious and try to establish myself as an
environment safe corporation. Burger King is huge, they have the ability to do what they
please, but they better make sure the customer are happy. I would make new slogans, and
put new ideas for kids and grown ups to enjoy. I remember when I was growing up I used to
love going to Burger King for a burger and getting a little toy. Now, you get a toy but
the prices are so high you really end up paying for it anyway. I wouldnt leave out
the teenage to mid-twentys crowd, but I feel they are less influence by ads and
specials, they will buy what is probably better and cheaper. Besides if you target them
when they are small growing up then when they already grow they look they like you anyway.
That is why you have to target the young and make sure you are good to them. New slogans
are hard to come by in specially into this society where you better watch what you say or
you will get suit. I do not really believe in slogans, I personally rather buy quality
than to hear how good it could be. For me seeing is believing and I do not believe
everything I hear.
4. I recommend a couple of things for Burger King to do. One has already
been accomplish, this was I would first change the CEO. In this case Jim Adamson stepped
in July 1991, since then Burger King has made a turn around. He listened and responded to
franchise problems and recommendations. He locked into a strategy of concentrating on
BKs core products flame broiled, bigger burgers. He launched a new pricing structure
which will compete with that of McDonalds. Burger King also needed to get some
effective advertising, and I believe Mr. Adamson also accomplished this, seeing BK has
grown since 1991. He went back to the basics which I think was the most important part of
a Companys rebuilding, because this how you got to where you are and if all else
fails, its like starting again with experience. BK became known as "The voice
of the people" opposed to McDonalds been known as the voice of the Corporation.
I also feel BK advertising has improved. Now you see burgers on TV compare to Dan Cortese
a couple of years ago. You also see people having a good time and eating a whopper. I feel
Burger King is a company with many obstacles but it is also a company that if is stuck to
its basic game plan, it could regain a great deal of the market share. If I was to give a
recommendation it would probably be for BK to stay been loyal to your customers and to try
to keep the market share.
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