Burger King - A case Study (Have It Your Way)

In early 2004 Burger King’s CEO reviewed the company’s 2003 performance. He got the following information about the firm –

1. Main competitor McDonald’s (No. 1) gained a  9% sales jump to a total of $22.1 billion
2. Whereas (No. 2) Burger King’s sales fallen down about 5% to $7.9 billion
3. Wendy (No. 3) had spiked 11% to $7.4 billion, and having a  position to overtake BK

In that case the CEO Brad Blum took some decisions to boost up Burger King’s performance.

In course of it he took some strong promotional measures.

1. Reviewed the company’s 2003 outcome
2. Fired the firm’s advertising agency Young & Rubicam (Y&R)
3. Award the advertising authority of BK Company to Crispin Porter + Bogusk (Crispin)

That shift brought some change in the firm’s operation. Let’s take a look on them

### Previous advertising firm Y&R’s did following things -

1. It had gotten the $350 million BK account only 10 months earlier
2. To help revive BK’s sales, it had developed a campaign with the theme “THE FIRE’S READY” which focused on BK’s flame-broiled cooking method versus frying
3. Observers found the message to be FLAT and UNINSPIRING and the declining sales sealed Y&R’s fate

### In that situation new advertising firm Crispin did following things -

1. Creative shop that was known for its offbeat, unorthodox, and even irreverent promotions
2. Found an inexpensive ways to gain attention, veering away from the traditional mass media
3. Had produced award-winning, low-budget campaigns
4. Developed some loose rules
5. Zero in on the product
6. Kick the TV commercial habit
7. Find the sweet spot (the overlap between product characteristics and customer needs)
8.  Surprise = Buzz = Exposure
9. Don’t be timid
10. Think of advertising as a product rather that a service

Finally, they went back to their tagline “Have It Your Way”. Under it their launched website invite visitors to get chicken just the way they like it. Such kind of customized promotion helped them to get good return.

1.  What are Burger King’s communication objectives for its targeted audience?

Burger King’s communication objectives is to reconnect with the super fan customer, which is known to be composed of young men, in order to increase sales and make more profit. Managing to do so is the key to increase company shares value and satisfaction of the shareholders.
In order to achieve this goal, Burger King plans on communicating products and promotions to customers, and to remind them that their favorite burger comes from the King.

2. With its focus on the “super fan” does BK risk alienating other customers? What are the implications of this?

Of course, focusing on a smaller targeted audience in the marketing strategies does induce a risk of alienating customers who are out of this audience. The implications is that BK will get fewer new clients that are not young males, and more young, hungry males that come more often to eat their favorite burger at BK.

 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?

Viral marketing is effective because it:

            a. Gives away products or services

            b. Provides for effortless transfer to others

            c. Scales easily from small to very large

            d. Exploits common motivations and behaviors

            e. Utilizes existing communication networks

            f. Takes advantage of others' resources

After being seeded into several Internet chat rooms, the "Subservient Chicken" instantly struck a nerve with bloggers, in part because the site's technology allowed users to type in nearly anything and get a response from the chicken. He could do jumping jacks, dance, do push-ups and even watch television. He seemed impossible to stump. Within a day after being released, the site had a million hits. Within a week, it had received 20 million hits.

In addition to Web surfers, the creative community applauded the campaign. "It was so amazingly different and such a good use of the technology," says freelancer Matt Vescovo, one of the judges who selected the campaign to win the gold at the Viral Awards last month, even over his own MTV "Instructor" campaign. "To take that idea (that you can have chicken any way you like it) for something that really isn't that exciting-a chicken sandwich-and to so seamlessly put it into such an innovative use of technology, it just really hit so many sweet spots for me." 

4. Do the TV and viral elements of BK’s campaigns work well together? What additional elements and media might Crispin add to the integrated marketing communications campaign?

"We think that the virtual (internet) and the commercials go very well together. Both the commercials and the virtual are suggesting that you can get your chicken any way you like it therefore they coincide with each other. The only problem is on the website it does not mention “the king” at all. Maybe they could have flashes between “the king” and the chicken that was in its garter."

In 2004 , BK has used the chicken mask in their website Burger King's Subservient Chicken , and it still around ,it also contain some photos for the chicken in action;

1. Cut out mask on dotted line.

2. Put on chicken face.

3. Be subservient.

The world of mouth has a big influence in promoting the product and the viral market for example visitors telling their friends about the site which makes it successful.

The second issue, its interaction, by making the visitors busy to stick around more .interaction with users can be type literally anything into the Subservient Chicken space; Burger King needed to be prepared for that. The Subservient Chicken will respond to 300 commands.

They wanted to promote their chicken sandwiches and meals, and get across the point that you could have chicken with (make it your own way).

Next element, be Fresh. Create Ad about western whopper (bring out your inner cowboy) and create website that upload a pictures and u have mustache ….if you take long time to visited u received the message (I miss you and why haven't you waxed me?) Ad agency created electric shaver for men, and Body groom to everywhere, which let both of women and men shave their long hair. The idea, its keep all their customer had new activities in website to be refresh.

Rebuild the target of TV site and focus on the right kind of people. Moreover they should expand to worldwide not only local.

5. What other recommendations would you make to BK and Crispin to help them improve the integration of Burger King’s promotion mix?

Burger King and Crispin worked hard to improve their appearance in the market. The AD's played a massive role. Promotion mix would be a method to reach BK's goals. Promotion mix is a mixture of methods used for specific product or a set of products to introduce in a right way. It is consist of adverting, price selling, public relations, direct marketing, and sales promotion. These concepts help to improve, and give a guide line to know how win the competitors.

Advertising: It is a paid ad's used to show what the product or service include, usually it's a media ad or posters.

Personal selling: it's a personal contact. The company provides special people to visit the places that target their product and make an oral presentation to demonstrate the benefit of the product or service.

Public relations: this concept of promotion mix is offered mostly for the third-party.

Sales promotion: Is the ability to let the customer to know about your product through different way like samples, trade show. And it can be media or non media to achieve the company goal.

Watch The Video - Have It Your Way

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Mumbai Dabbawala - A Case Study

1)      How does the local issue create a need for new supply chain strategy?

Mumbai has always attracted people from different parts of India as it provides many opportunities for work. So people from different communities have different taste and preference of food. Mr. Mahadeo Havaji Bacche (Mahadeo) sensed an opportunity here and developed the lunch-box delivery services with about 100 uneducated people, who were called the Mumbai Dabbawalahs. As the Mumbai population grew, the operations of Mumbai Dabbawalahs also expanded. The number of Dabbawalahs kept growing when there were closures of some mills in Mumbai. In 1954, they organized themselves with the formation of Nutan Mumbai Tiffin Box Suppliers Charity Trust. By the year 2000, they were delivering almost 2, 00,000 lunch-boxes a day.  So New supply chain strategy was needed to invent for fulfilling the need that was created by the local issue

2)      What are the operating 5 strategies of Mumbai Dabbawalah’s business - explain briefly.

The operating five strategies of Mumbai Dabbawalah’s business are as follows:

1.      Very low cost of operations - they use the local railway, bicycle for delivering the lunch-boxes. They do not use technology because technology can increase the cost of their operations.

2.      Error-free distribution of lunch-boxes - the distribution of lunch-boxes is free in error because the coding system of their distribution is simple and helps to distribute lunch-boxes correctly at the destination point.

3.      Highest level of customer satisfaction - they ensure highest level of customer satisfaction by providing lunch-boxes to customers on time or in time.

4.      Highly motivated workforce - dabbawalahs who are appointed to give the service to customers is highly motivated because they get salary on time and special bonus on diwali festival.

5.      Minimum use of modern technology - they use minimum technology in which they take an order from customers by using SMS and Website.

3)      How the business conducts their distribution network?

Dabbawalah’s proper distribution network is shown in the following flow chart.

4)      Do you think this process can be applied in your own country and why? Justify your answer.

Yes, Dhaka is one of the densely populated cities of the world like Mumbai. There are enormous numbers of working people living in Dhaka city. The working population generally travels quite a long distance from home to work place and often takes more than an hour in travelling. People commute through huge traffic, so it is pretty tough for them to carry their lunch / Tiffin boxes. If lunch boxes of different working people can be supplied to the workplace in due time it could be an attractive and profitable new way of business. There are many unemployed people in Dhaka city; it may create better opportunities for their employment. As communication system of Dhaka city is improving, it will help in faster delivery of lunch boxes and in the long run it will assist to gain economic of scale. (Justify)

5)      What strategy factors of network design improve the efficiency of business?

Just - in - time (JIT) system helps them to gain cost advantages and operational efficiency. Mumbai Dabbawalahs resembles a ‘milk run system’. They get the cost advantage for using ‘just in Time’ system and also get time saving. They have good communication with traffic police, so they get the avoidance of road congestion and safety and ease of movement in the long distance .Mass transport system like railways are generally very cost effective as compared to other operations. 

You Can See the Video (Click On It) - Share My Dabba (Video HD)

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