Individual Assignment #4
BURGER KING: In the early 2000’s, the kings target market were “young males with an
appetite for burgers” (Melnick, 2012). Since then, the largest consumer trends have shifted
towards nutritional, health-conscious consumption of fast foods. Burger King (BK) not only
expanded its current menu items but also included healthier choices like “mango and strawberrybanana smoothies, “Garden Fresh” salads, chicken wraps, and crispy chicken strips to mocha and
caramel frappes” (Melnick, 2012). These additions to the menu are getting similar to the
offerings from McDonalds, a major player in healthy fast food options. With these offerings, BK
hopes to establish a connection with “women, families, and the health-conscious” (Melnick,
2012). Additionally, BK realizes the fast-food powerhouse, known as McDonalds, offers items
with much appeal, therefore BK has also “added a turkey burger to its menu, [and] the “Big
King” sandwich, which is nearly identical to the Big Mac, but with .8 ounces more beef;
Sausage, Egg, and Cheese Breakfast sandwich, and a Spicy Chicken Sandwich “ (Peterson,
2014). BK has unsuccessfully used the BK mascot, The King, in its commercials. “The masked
mascot is gone, the mascot wore the forced smile of a restaurant owner who is watching another
dissatisfied customer leave his restaurant in favor of a competitor” (Melnick, 2012). Now BK
incorporates regular people is their advertisements with a much more normal sense of humor
added to the campaigns.
TACO BELL: Taco Bell’s (TB) target market consists of , highly active, high school and
college segments. TB finds its place in consumer demands as “offering consumers a break from
the usual. Products uniquely wrapped up and portable for consumers’ “on-the-go” lifestyle”
(Taco Bell, 2014). TB prides its product offerings as “Thinking outside the bun” thus offering a
totally different dining experience than what is offered by the hamburger fast food providers. TB
has introduced innovative products while creating a massive menu selection which, just recently,
added breakfast items. TB utilizes various forms of advertising. TB just recently issued a press
release stating they offer “the highly anticipated and revolutionary Waffle Taco, the all-in-one
A.M. Crunchwrap™, and the already loved Cinnabon® Delights” (Taco Bell, 2014). Social
media is a very popular and effective advertising channel with TB’s customers. Social media
advertising is further enhanced by [a] “mobile platform that puts the Taco Bell menu board and
payment in customers’ hands,” (Taco Bell, 2014). Several others advertising channels are
currently implemented like “television and radio advertising, in-store POP and packaging, as
well as digital, social and public relations support” (Lutz, 2014). Just like Burger King, TB
incorporates average, regular looking actors, as spokespeople, as opposed to using celebrities.
McDONALD’S: McDonald’s (McD) target market is designed to attract health-conscious
consumers and families with children. McD’s has changed, and added its menu to include
“choices lower in fat, salt or sugar content than its more traditional burger-and-fries options”
(Strom, 2013). These changes are in response to the trending, contemporary tastes of consumers.
McD has also added various breakfast options which complement the successfully popular
McCafe menu items. “It's the current leader for breakfast, but it must continue to innovate in
order to maintain this lead” (Moskowitz, 2014). McD also utilizes various promotional tools
from “menu boards to national television advertising campaigns, to help customers understand
the nutritional choices available” (Strom, 2013). With its global presence, McD is a big player in
TV commercials with over $291 million spent on TV ad placements this year (Tadena, 2014).
Additionally, McD recognizes the importance of social responsibility and has teamed up with the
American heart Association and the Clinton Foundation. “Companies like McDonald’s play a
powerful role in shaping the culture and environment that influences the health-related behaviors
of young people,” (Strom, 2014). The Clinton Foundation’s campaign goal is to reduce
childhood obesity. Mr. Clinton said in a news release. “[McDonalds] has added calorie counts to
its menu boards in advance of a federal requirement for such labeling that goes into effect next
year. On its menu boards, in-store merchandising, and its Happy Meal packaging, McD promote
fruits and vegetables in “fun ways””(Strom, 2014). Incorporating big names into advertising, and
social responsibility, is what McD does most often. The American heart Association, the Clinton
Foundation, and the use of celebrities in advertising is the norm. By contrast, the time and
channel of advertising differ greatly between these three corporations. Each targeting their most
profitable and established segments. “Taco Bell’s commercial spending focused on networks
such as Fox, ESPN and Comedy Central during shows and events like College football and
WWE Monday Night Raw. McDonald’s commercial spending was focused on networks like
NBC, ABC and Fox during shows and major events like NFL Football and the Olympics”
(Tadena, 2014).
CONCLUSION: Each company employs methods and messaging which aligns with their core
customer. BK executives are aware of the small market segment which was targeted to young
males. Now their campaigns offer broader selections for a larger customer base. BK is aware of
the menu offerings from McD as well and is innovating their take on similar menu items. BK
recognizes a successful business model and is promoting their product mix as an alternative to
McD. TB advertising looks to the unconventional consumer and their peculiar, bold, and exciting
taste in food. Thinking outside the bun is the best strategy in the advertising campaign. McD
executives have been under criticism by the media and it shows. McD is strategically partnering
with health organizations and incorporating social responsibility at every level. McD’s
advertising is targeting healthy choices for families.
Chapter 15:
Through their catchy advertising campaign, which advertising objectives did Allstate
pursue? How about GEICO and Progressive?
Allstate’s advertising campaign objection was to teach consumers that insurance should
not be based on price but rather coverage. Both the “Are you in good hands” campaign and
“Mayhem, It’s everywhere” campaign are designed to “position the brand as a superior
alternative to price-oriented competitors” (Kotler, pp.432). GEICO Insurance advertising
campaign was focused on price. The company’s slogan, “15 minutes can save you 15 percent or
more on car insurance”, entices customers to shop GEICO for a better deal on insurance.
Progressive insurance advertising campaign provides discounts on insurance coverage when
bundled together with other policies which cover boats, RVs’, and motorcycles.
Can these insurance companies use the same advertising campaigns indefinitely? Why or
why not? If not, what ideas would you suggest next for these insurance firms?
As read in the opening chapter, insurance companies, and most any other industry, need
to change advertising campaigns when discounted price is the only factor. Allstate’s “You’re in
Good Hands” slogan is extremely valuable and instantly creates a connection with customers.
Allstate’s characters have changed over time to “Mayhem, It’s Everywhere”, but the core
message still stands. Allstate is increasing market share by providing quality. GEICO and
Progressive cannot continue to campaign low prices indefinitely. Judging from the increased
market share from Allstate, maybe GEICO can start creating more of a value rather than low
prices. Progressive can probably continue with discounted insurance because of the bundling of
policies and wide array of product offerings. Keeping insurance discounts for Progressive will
prove beneficial.
Examine the advertising for cigarettes over time. Spend some time researching how
advertising for cigarettes has changed over the past 50 years. Look at old ads from the
1950s and 1960s and compare them with modern ads. How has the message
changed? During which time frame do you believe the advertising to be the most
effective? Why?
From my research and available youtube videos, the 50’s cigarette commercials were the
most effective because they were endorsed by doctors. At least that is what is assumed because
the commercials stated that most all doctors who were asked if they enjoyed smoking, agreed.
The cigarette companies had conducted surveys with statistics that proved cigarette smoking was
safe and relaxing. Celebrities like Frank Sinatra endorsed cigarette companies as well. Manly
men smoked cigarettes and even kids cartoons recommended them. In the 60’s the commercials
were more about refreshing taste, pleasure, sophistication, fun and sexy. I did not see any more
doctor approved commercials in the 60’s. The modern cigarette ads were all about adventure,
fine taste, luxury, and gave the user a fun/ stylish look. The advertisers associated winning and
champions with cigarettes. I believe the most effective era was during the 50’s with the doctor
approved and recommended commercials. Advertisers would dance around the truth and throw
odd statistics at consumers which, if not paying attention, would interpret the product as being
safe. More than celebrity endorsements, professionals in the healthcare industry were approving
cigarettes. This has the most credibility than any other epoch.
Chapter 16:
Read Real Marketing 16.2: "P&G" It's Not Sales, It's Customer Business Development."
Customer business development (CBD) is not a direct sales campaign. CBD is a bidirectional attempt to genuinely want to help retailers be the best they can be so P&G grows with
them. P&G is a strategic partner that creates a “win-win” relationship with retailers (Kotler, pp.
478).
What does "Customer Business Development" mean at P&G? How does it differ from the
standard sales approach?
The typical standard “Sales” approach is usually single sided with no regard to the other
party involved. Some of the vendors we have at my retail electronics store basically want to
move their product from their warehouse to our showroom. They typically want us to commit to
“minimum” purchases every month in order to “qualify” for more discounts. Sounds good until
we are stuck with the merchandise from last month and are obligated to purchase more this
month. In our industry, merchandise is “closely” regulated and trans-shipping and drop-shipping
is prohibited. Both of these terms basically mean we cannot resell the merchandise to other
retailers. We can only sell to the final customer. With this tremendous pressure, retailers resort to
selling merchandise at, or right above, cost. This floods the market with cheap priced, same
quality, product which makes it even more impossible to sell at a retail price. For our industry,
we try to partner with companies which genuinely try to help us, the retailer, by not only
supplying merchandise, but also helping with sales promotions, store layout, and product
education. That is Customer Business Development in true P&G fashion.
How do P&G sales people deal with large, complex accounts?
P&G sales people work in teams of well educated, experienced, talented members all
skilled in various fields. “As members of a full CBD team, P&G sales-people have at hand all
the resources they need to resolve even the most challenging customer needs” (Kotler, pp.478).
Anything from advertising, product placement, promotions experts all work together to ensure
retailers do whatever it takes to increase store foot traffic. Since P&G provides all these experts
in house, salespeople have all the resources they need to ensure retailers are successful.
Why do customers allow P&G to advise them on the stocking and placement of
competitors' brands as well as its own?
Customers trust P&G to do right by them. Customers believe and trust P&G to do the
right thing when it comes to product placement. Even if it means placing a competitor’s product
in a more profitable spot on the shelf. This sounds counterintuitive but goes back to the strategic
partnership. If P&G ensures the profitability of the customer, this ultimately leads to the
profitability of P&G. “Honest and open dealings also help to build long-term customer
relationships” (Kotler, pp.478). P&G ensures profitability for its customers by helping identify
opportunities and allowing their customers to make the most of them.
REFERENCES
Kotler, P., & Armstrong, G., (2014). Advertising and Public Relations: Principles of Marketing.
Upper Saddle River, NJ: Pearson.
Lutz, A. (2014, March 28). Taco Bell Made 2 Changes That Transformed The Brand. Retrieved
from http://www.businessinsider.com/taco-bell-marketing-strategy-20143#ixzz3JHChKD94
Melnick, J. (2012, August). Long Live the King. Retrieved from
http://www.qsrmagazine.com/reports/long-live-king
Moskowitz, D. (2014, March 22). McDonald's new menu item hints at new strategy. Retrieved
from http://www.usatoday.com/story/money/business/2014/03/21/mcdonalds-new-menuitem/6705499/
Peterson, H. (2014, February 18). Burger King's Menu Is Starting To Look A Lot Like
McDonald's. Retrieved from: http://www.businessinsider.com/burger-king-menu-similarto-mcdonalds-2014-2#ixzz3JHAmRLw7
Strom, S. (2013, September 26, 2013). With Tastes Growing Healthier, McDonald’s Aims to
Adapt Its Menu. Retrieved from
http://www.nytimes.com/2013/09/27/business/mcdonalds-moves-toward-a-healthiermenu.html?_r=0&adxnnl=1&adxnnlx=1416173996-yjKVR0kugfvy1NH6toEbRA
Taco Bell. (2014). Press Release: HEY AMERICA. WAKE UP. LIVE MÁS®. TACO BELL® IS
ROLLING OUT BREAKFAST NATIONALLY ON MARCH 27. Retrieved November, 16,
2014, from http://www.tacobell.com/Company/newsreleases/taco-bell-breakfast-rollsout-nationally-on-march-27-2014
Tadena, N. (2014, April 22). McDee’s vs. Taco Bell: Does A Big Ad Budget Guarantee Big
Reach? Retrieved from http://blogs.wsj.com/cmo/2014/04/22/mcdees-vs-taco-bell-doesa-big-ad-budget-guarantee-big-reach/