Burger King Corporation’s new North American President, citing disappointing results, announced today that she is putting the $400 million Burger King U.S. advertising account for review. Lowe Lintas is Burger King Corporation’s current agency of record.
Mikel Durham made the decision as part of an effort to improve sales in the Burger King North American system, which represents about 80% of worldwide sales. She said that a key factor in the decision was the failure of recent advertising to spark new sales.
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Durham said that she and Stefan Bomhard, senior vice president of marketing, plan to expedite the agency review. “We’re going to look for an agency with a point of view and a proven approach — an approach that ensures a needle-moving connection to our customers.
“This isn’t about creating advertising I like or advertising the franchisees like,” she asserted. “It is about creating advertising that our customers respond to.”
“One of my top priorities,” Durham said, “is to make sure that the customer is represented in every aspect of Burger King operations.
“We need to get back to basics, get in touch with our customers, and develop powerful, integrated communications programs that reconnect us to them,” she continued.
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By GlobalDataThe new agency partner will have the benefit of fresh insights into Burger King Corporation’s key North American customer segments as Durham and her team are in the process of fielding a new series of consumer research initiatives which will help form the base for the brand’s strategic growth positioning.
Durham thanked Lowe Lintas for the level of their commitment to the brand. She said that while the incumbent would be invited to participate in the review, she will expect them to bring a drastically new approach. “It is time for Burger King to move in a new direction,” she concluded.
Burger King Corporation also uses Uniworld and Bromley Aguilar for its African-American and Hispanic advertising. Uniworld has been Burger King Corporation’s agency of record for 17 years, while Bromley has been an agency of record for 11 years. Burger King is not planning to review these agencies.
Burger King Corporation and its franchisees operate more than 11,180 restaurants in all 50 states and 57 countries and international territories around the world, with more than 92% of BURGER KING® restaurants owned and operated by independent franchisees. Since the company’s founding in Miami in 1954, the BURGER KING® brand has become recognized for great flame-broiled taste and HAVE IT YOUR WAY® food customization. In fiscal year 2000, the BURGER KING® system has system-wide sales of $11.4 billion. Burger King Corporation is a part of Diageo (NYSE: DEO), the international food and drinks company, that includes such brands as Pillsbury, Haagen Dazs, and Guinness. To learn more about the BURGER KING® system, please visit the company’s website at www.burgerking.com.
