In this year’s fiscal year, Burger King will end one of its most popular customer perks. During a recent earnings call, King’s CEO Jose Cil hinted that the chain would be dropping its popular paper Burger King coupons.Decade-Old Burger King
It is no longer offering printed coupons for deals such as Buy One, Get One for $1 and 2 for $6, which have dropped to third place behind McDonald’s and Wendy’s in terms of sales. Moreover, the chain intends to reduce overall promotion volume. Sales may have been hurt by
Burger King’s historically high value deals, rather than boosted by them.
The company has been spreading itself too thin across too many messages for years, with mixed results. “We’ve consistently had three times as many value constructs as our leading competitors, diluted marketing firepower and exacerbated operational complexity,” Cil said.Decade-Old Burger King
“Also, it caused confusion among guests.”
Now Burger King will leverage its Royal Perks loyalty program and its digital interfaces, like the Burger King app, to deliver value offers. It makes sense, in theory, to replace paper coupons with digital
promotions: printed coupons cannot be
ensured to reach an end-user who will use
them – if they reach anyone at all. The advantage of digital promotions is that they
can be tailored to a specific customer and
sent to them directly, increasing the chances of them converting to sales.
If Burger King discontinues paper coupons, it risks losing approximately 20% of its potential customer base, namely older Americans. 69 percent of U.S. consumers in the Baby Boomer or older age groups don’t order food online, according to PYMNTS.com. Taking advantage of digital deals may help the chain attract younger customers-something it desperately needs-but may also alienate older customers.
In its latest earnings report, the chain announced a comeback, but it was another disappointing report. Sales at Burger King declined 2.8% in Q3 2019 compared to Q3 2018.
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FAQ
Burger King’s popularity can be attributed to what?
Burger King’s Whopper is its top-selling item. The Whopper (Burger King’s signature burger)
is sold by the chain every year for around 2.1
billion calories. The Whopper Jr., Impossible Whopper, and Chicken Garden Salad also make it to the top five most popular menu items.
How does Burger King market its products?
A variety of promotional channels are used
by Burger King to market its products. A variety of sales promotions, advertisements, social media, deals, and discounts are available. Gamification of marketing communication is exemplified by Burger King.
The Burger King audience consists of what type of people?
Based on Interprets New Media Measure®, Burger King serves older demographics better than its competitors. In comparison to Wendy’s and McDonald’s, Burger King has 34% older customers.
In the Burger King advertisement, what message is being conveyed?
‘Have it Your Way’ messaging is being
updated at Burger King in a new campaign,
according to Marketing Dive, celebrating guests’ individuality and everyday victories.