Integrated Advertising, Promotion and Marketing Communications 5th Edition by Kenneth Clow,Donald Baack

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BURGER WARS
The world of fast food, especially the world of hamburgers and fries, continues to evolve. The dominant force for nearly 40 years has been McDonald's. The company is an icon in the United States and has expanded to nearly a worldwide reach. Recently, the McDonald's empire has come under attack from a variety of sources.
Socially, films such as Supersize Me criticized the basic McDonald's menu, noting high levels of calories and fat in the foods offered, complaining about the suggestive selling tactics used, and arguing that advertising to children utilizing Ronald McDonald as a spokesperson has created an unhealthy, obese, malnourished new generation. McDonald's responded with products such as salads and fruit plates, while agreeing to halt the use of trans fats in French fries and other deep-fried products. Company leaders did not agree, however, that Ronald McDonald should retire. McDonald's continues to offer birthday parties, outdoor toys, and the Happy Meal to entice kids into its stores.
The number two competitor in the world of burgers is Burger King. The company is dwarfed by McDonald's in terms of locations, revenues, and dollars spent on advertising and marketing as well as in brand recognition and recall by children and teens. In 2007, Burger King began a bold new program featuring two new spokespersons. The first is the computer animated Burger King, placed into a variety of sports events and other unusual places. The Burger King never speaks but clearly stands out. The appeal is to a slightly older generation of burger buyers than children. The second spokesperson is Homer Simpson from the television cartoon The Simpsons. Homer has always been a big burger-eater. He is highly recognizable to a generation of television viewers going back for 20 years. The Simpsons Movie, which was released as the Burger King tie-in began, created a great deal of buzz. The film was a major success in terms of tickets sold and practically ensured that the The Simpsons would continue on television, and possibly in movie sequels, for the next several years. The marketing genius of signing Homer Simpson is that the television show has an audience ranging from younger children to adults. Many 20-somethings grew up with The Simpsons as a weekly nighttime habit.
Neither Burger King nor McDonald's can ignore other burger chains. Wendy's and Hardees have been successful in some markets. Sonic also has a following among some customers. Each utilizes a unique marketing pitch oriented to individual target audiences.
At the same time, chains offering food items other than hamburgers have also made inroads. Among the most powerful new competitors is Subway, with its "Eat Fresh" campaign, spokesperson Jared, and advertising claims regarding the lower-calorie, low-fat options available. Pizza offers further competition, led by major players Pizza Hut, Papa John's, and Dominos. Taco Bell, KFC, and Long John Silver's are additional fast-food options. Under the direction of Yum, the three are often found in the same location along the Interstate, giving a weary traveler a variety of choices under the same roof.
Both Burger King and McDonald's seek to maintain a competitive advantage through differentiation. McDonald's features include its powerful brand, accessibility across the country and around the world, and the "pull" factor, whereby children entice parents to continue to visit a unit even when other options are available. For years, Burger King relied on the advertising claim that broiled burgers taste better than fried and that in taste tests people prefer the Whopper to the Big Mac.
In the next decade, the victor in the burger wars may or may not be based on what happens on the children's front. Combinations of products, prices, delivery systems, and promotions programs might make the difference. Clearly, no company can sit still and wait to see what happens with the others.
1. Conduct an IMC context analysis for one of the following: McDonald's, Burger King, Wendy's, Hardees, or Sonic.
2. Besides children, identify the target markets that are best suited to each of the following: McDonald's, Burger King, Wendy's, Hardees, Sonic.
3. What type of product-positioning strategy does each company use Discuss the merits of the positioning strategy. Should it be changed Why or why not
4. What type of promotional budget should each major competitor use
5. Based on the information in this chapter, how would a company like Hardees or Carl's Jr. (which owns Hardees) compete effectively against McDonald's What types of IMC communication components would work best