Question: Question 42 >> 1 points Save Answer a Case Study Burger Kings Gets People to Take Whopper Detour Just as Coke and Pepsi have been



Question 42 >> 1 points Save Answer a Case Study Burger Kings Gets People to Take Whopper Detour Just as Coke and Pepsi have been fighting the "Cola Wars for decades, the battles between McDonald's and Burger King in the fast-food industry has been one of the greatest business rivalries in American history. Both started selling hamburgers in the mid-1950, but McDonald's has since become the market leader in the United States as well as around the world. Each chain has signature products: McDonald's has the Big Mac and Quarter Pounder, while Burger King counters with the flame-grilled Whopper. The Big Mac and Whopper are the two best-selling burgers of all time, with each selling hundreds of millions each year McDonald's has always dominated the burger segment of the fast food-food market including the United States, where the golden arches have a market share double that of Burger King. One of the major advantages McDonald's has over Burger King- as well as other competitors such as Wendy's, Hardees, and Sonic- is the sheer number of restaurants. McDonald's has more than 14000 restaurants in United States while Burger King has around 7.200. Because Burger King cannot compete on size, an important part of its strategy has been to challenge McDonald's products by introducing new menu item such as Big King Sandwich, as well as promoting its popular Whopper with advertising using the iconic "Have it your way theme. However, Burger King periodically comes up with clever promotions to challenge McDonald's and get consumers to switch to a Whopper instead of having a Big Mac or Quarter Pounder. It is not easy to get fast-food loyalists to change their behavior because alue menus price promotions and special deals are easy to match and usually do not result in a sustainable competitive advantage. However, in late 2018. Burger King used one of the most creative, as well as technologically challenging, promotions ever when it ran the "Whopper Detour" to entice consumers to drive to a McDonald's Whopper And yes, you read that right. The strategy behind the Whopper Detour promotion was that consumer withi Burger Ping smartphone app and who were either inside or within 600 feet of a McDonald's could order a Whopper for one per cent, as opposed to regular price of S4 or more The catch to the promotion was that the customer had to place the order on the app, which would then direct them to the nearest Burger King to redeem the offer. The promotion required a great deal oil tech said to implement as Burger King's advertising agency, Facebook New York, had to work with a digital company to use geofencing to create a virtual geographic boundary around nearlylenen McDonald's restaurant in the country because the offer would unlock only within 600 feet of a McDonald's. The agency also had to make sure the app would work with geolocation which uses a GPS chip in a smartphone to determine its exact location, and tag all of the McDonald's locations in the United States. An important part of the strategy behind the Whopper Detour promotion was the huge difference in the number of Burger King versus McDonald's restaurants, which meant that BK fans had to drive further to get Whopper. The big idea was to take advantages of the vast number of MeDonald's locations (75 percent of the US population lives within three miles of one) and, in a way turn the competitor's stores into Burger King. The promotion would activate on the BK app when people were close to a McDonald's and reward them with discount lenovo An important part of the strategy behind the Whopper Detour promotion was the huge difference in the number of Burger King versus McDonald's restaurants, which meant that BK fans had to drive further to get Whopper. The big idea was to take advantages of the vast number of McDonald's locations (75 percent of the US population lives within three miles of one) and, in a way, tum the competitor's stores into Burger King. The promotion would activate on the BK app when people were close to a McDonald's and reward them with discount for passing a McDonald's and heading to a Burger King For the detour campaign to work, Burger King and Facebook has to make fast-food customer aware of the promotion as well as get those who did not have the BK mobile app on the smartphone to download it. Prior to launching the promotion, the agency team developed a short film where actors went to actual McDonald's restaurants in the New York area and told McDonald's crew members at the drive-thru that they were to get a Whopper for a penny. Hidden cameras were used to film the interaction with the McDonald's drive-thru crews, whose faces were blurred, and voices altered in the film for legal reasons. The film was shown online to promote the limited time offer and was also used by the PR team to generate media attention. In addition to the online video, a print ad was created showing the arm of Burger King's King character changing a McDonald's sign to read "Billion Swerved" instead of Billion Served. The Whopper detour ran for only nine days in early December 2018, but the number tells the story of just how successful it was. The Burger King app was downloaded to smartphones by 1.5 million people during the promotion, and more than a half million people redeemed the one-cent Whopper offer, which was 40 times more than the previous record for a digital coupon promotion. Moreover, the impact of the promotion continued as download of the BK app were up by 4.5 million a few months later. The promotion also moved the sales needle for Burger King. Despite offering the Whopper for only one penny, total sales volume through the mobile app were two times higher than before the promotion. Burger King estimates emed the Whopper our promotion will spend around $ 15 million per year more on the Burger King app. The company's analysis of the promotion also showed that there was little cannibalization of the Whopper in Burger King restaurants because the people who came for the offer were actually new or lapsed customers, and they purchased more than just the Whopper for a penny. Burger King's global chief marketing officer, Fernando Machado, has called the Whopper Detour promotion a defining moment for the brand, noting that it marks a turning point in the company's marketing and shows the power of a big idea and what the future of creative might be. Machado notes: "Big creative ideas eat programmatic, Al, trends and even a beautifully put together McKinsey presentation for launch". The detour promotion shows that a big idea can also get people to eat a lot of Whoppers for lunch Answer all 4 Questions 1. McDonald's has always dominated the burger segment of the fast food-food market with the help of promotional strategy. Why? Justify your answer with the help of case study. consumers re 2. Discusses the "Whopper Detour promotion used by Burger King to compete against McDonald's. 3. Analyze the strategy behind Burger King promotion and the reasons it was so successful. Answer all 4 Questions 1. McDonald's has always dominated the burger segment of the fast food-food market with the help of promotional strategy. Why? Justify your answer with the help of case study. 2. Discusses the "Whopper Detour" promotion used by Burger King to compete against McDonald's. 3. Analyze the strategy behind Burger King promotion and the reasons it was so successful. 4. Do you think Burger King could use such type of promotion again to attract business from other competitors in the fast-food industry? For the toolbar press ALT+F10 (PO Or ALT+FN+F10 (Mac). B IV Paragraph Arial v 10pt III A T
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