Burger King Media Plan Morgan O’Neill and Jason Erivn Fall 2009-JB 3013 Advertising Media and Markets

Table of Contents Situational Analysis…………………………..1-2 Media Objectives…………………………….3 Media Strategies…………...................................4-5 Media Tactics……………...................................6 Media Scheduling and Cost…………………..7-9 Plan Performance……………………………10 Summary……………………………………..11

Situational Analysis Product Evaluation: Burger King is second most rapidly growing chain in category of fast food hamburger restaurants. Burger King is a friendly hamburger chain that provides more choices every day. The Burger King Web site says that about 11 million people in the world a day go to Burger King. Target Market: Age- 18-24 Sex: Male Average Income: $40,000 or less Race: White and Black Martial Status: Married and Single Education: High school and or College Psychographics: The target market would be considered makers and survivors. The makers are hard working individuals that are somewhat traditional. Survivors have little, and therefore have to use every resource they have to get by. Sales History: In 2007 and 2008 the sales for Burger King were higher in the spring and summer months. In 2008 the net revenue was $594 million and revenues had risen 10% from the previous year. In 2007 the net revenue was $539 million. The 2009 net revenue was not posted.

Situational Analysis Cont. Product Distribution: There are 11,900 Burger Kings worldwide currently, and they are located in all 50 states and 73 different countries. SWOT: Strengths: -Net revenue going up -Is a competitive international corporation -Number 2 in hamburger chains Weaknesses: -Competitors are emerging Opportunities: -Growth for more franchises in the states and internationally -Possibilities to refinance -Advertising possibilities - Making sure franchise agreements are renewed Threats: -Competition’s growing revenues -International economies

Situational Analysis Cont. Competitive Analysis: McDonalds- They are the leader in the hamburger fast food category. Their net profit in 2008 was $4.3 billion. Many experts have said that McDonalds has been one of the best corporations to deal with the economy this past year. Wendy’s- Their net revenue was $530.8 million for 2008. They have 6630 restaurants operating nationwide. Their new advertising campaign helped their sales this past year. Advertising History: In 2002 Burger King focused most of their advertising on promoting the whopper. In 2004 Burger King switched advertising agencies and their sales decreased because their advertising was confusing. In 2007 Burger King’s advertising was getting much better, because they focused on their target market more and reached them. Burger King currently uses the King as their advertising campaign; their advertising is more hip and speaks to a younger audience. Burger King has used many different media to advertise, including radio, television, magazines, and outdoor. Marketing Goals: Our marketing goal for our new advertising campaign is to increase sales 10%.

Media Objectives Target Audience: Primary Audience- advertising should be directed toward our target market, males 15-25 in lower to middle income groups who are single and often on the go. Geographic Coverage: The advertising will be national because they are located in all 50 states. The advertising will be about the same throughout the entire nation, but increase more when the remodeling of the restaurants begin. Burger King is remodeling restaurants all over the world with a new, fresh, futuristic style that will successfully reach our target audience. Pattern of Scheduling: The advertising for this campaign will be done all year round, but will increase during the fall for our promotion and in the spring and summer months, because this is when sales are highest. We have higher sales in the spring and summer months due to families traveling and consumers being out and about more. We will use television, radio, and internet to advertise during the months that sales are higher and when we are promoting our new Xbox 360 game. We will use magazines as our continuity advertising for the campaign, so our target market thinks of us all year round.

Media Objectives Cont. Reach/Frequency: Burger King will have a reach of 70 and a frequency of 8, because frequency is very important for low involvement purchases. Creative Implications: The only creative implication Burger King could have would advertising with the internet for the Xbox 360 game promotion featuring the King in October. The internet will be the best way to reach this target market and therefore creates a creative implication. Promotion Support: The promotional event that Burger King will take part of this fiscal year will be the October, 15 launch of the Xbox Transformers game which features the King in the game. Burger King has made their own games for Xbox 360, so there is already a connection through these two brands. Burger King representatives will attend several video game conventions to promote the new game before the launch of the new game. Burger King will also increase advertising the months prior to the launch of the game. There will be special Transformers cups with every value meal and transformers toys in the kid’s meals to promote the launch of the new game. These special advertisements will last two months prior to the launch. Media Budget: Our media budget will be 32 million dollars.

Media Strategies Target Audience: The best media for our target audience would be television, radio, Internet, and magazines, because they are the most popular with men ages 15-25. Rationale: Television, radio, Internet, and magazines are the most popular medium with the ages in our target market and will give us the most effective reach and frequency. Geographic Coverage: We will the target audience through ESPN Magazine. Rationale: ESPN Magazine is most popular with our target market and will be extremely effective, because it has lots of pass-a-long readership. We will use national coverage with television, by using primetime television on FOX, because they are the leading network. Primetime will reach our target market effectively.

Media Strategies Cont. Pattern of Scheduling: We will use magazines as our continuity media. Rationale: Magazines are more price efficient than television, because of its high pass-along readership. Magazines are a long lasting media and for that reason a good continuity medium to use. We will use television for the promotional support and as a fighting strategy. Rationale: Television is a very expensive media and is not a tangible object that can be viewed over and over. Television does offer the option to increase the frequency of an advertisement especially before our big Xbox promotion and busy spring and summer months, and not waste advertisements for less buys times of year. We will be using Internet to solely advertise for the Xbox 360 promotion. We will only be using Internet in the 4th quarter when the promotion is going on so the banner advertisements will take the consumer to the site where the game can be purchased. Rationale: By only using Internet for this promotion we will eliminate wasteful advertising, because this media will reach the target market for the promotion very effectively.

Media Strategies Cont. Reach/Frequency: For reach the most effective medium would be magazines. Rationale: Magazines exist longer than television commercials and allow a consumer to keep coming back to the advertisement. For frequency the most effective would be television. Rationale: With television we have the option of when to increase advertisements for special promotions and for times when business is busier, and eliminates wasted funds on advertisements when they are needed less. Creative Implications: With our only implication being that the special promotion is for the Xbox 360 game that includes the King, and needs to be promoted through internet to reach that target market we will have to change our advertising strategy somewhat. Rationale: The internet will effectively reach the target market for the Xbox promotion and eliminate waste, but using the internet for our target market for our regular campaign would not be as effective.

Media Strategies Cont. Promotion Support: To communicate our promotion for the Xbox game featuring the King we will be using internet, television and magazine. Rationale: For the month of October we will use Internet for the promotion (when the game is released) and one-month prior we will begin to advertise for our promotion with all other media. We will advertise to our target using the internet the most, followed by an advertisement about the promotion in our magazines for those months, and doing more television commercials during this time period to raise awareness about the game.

National Media Tactics Television: *Advertise on Network Television in 1st and 3rd quarters *30 second spots on FOX *We will advertise during the Primetime Daypart Magazine: *Advertise in ESPN Magazine *We will advertise in an issue twice a month all year long *This will be our continuity media *It will be a full page advertisement *We will use color for the full page advertisement *We will allow bleed costs

National Media Tactics Cont. Radio: *We will use network radio to reach our target market *We will use network radio in the 1st and 3rd quarters *We will use sports talk radio and the Top 40 radio show because it is most popular with our target market *We will advertise from 10:00 am-3:00 pm on weekdays because this is when our target market tunes in most * We will use 30 second spots for our advertisements Internet: *The internet will be for the advertisement of our Xbox 360 promotion in October *The internet advertising will only take place in the 4th quarter *We will be using two sites to advertise, ESPN.com and Facebook.com *We will be using banner advertisements *The banner advertisements will be located on the homepage of the site *The banner advertisements will link to the homepage of the new Xbox 360 game featuring the King

Plan Performance Total Schedule Medium Weeks of Adv. GRPs Net Reach Avg. Freq. Estimated Cost Network Televsion 8 800 92 8.6 $22,307,200 Network Radio 12 1200 62 19.4 $4,800,000 ESPN Magazine 24 1320 55 $2,973,660 Internet 5 280 70 4 $1,860,600 Total 45 3600 95 37.9 $31,941,460

Summary Our Media Plan for Burger King explains detailed rationale for each media choice for the January 2010-Decmber 2010 campaign. We have chose to use four different media. After detailed research we have decided that national coverage with television, radio, internet, and magazine we will reach our target market most effectively. We have effectively used $31,941,460 of our $32,000,000 budget. We have made decisions about the media based on our target market and their lifestyle. Our overall reach is 95%, which exceeded our expectations and our overall frequency is 37.9, which also was higher than we expected. We have targeted what our target market likes and dislikes and have advertised with the accessible media to them. We are certain that with this thoroughly planned campaign that Burger King’s sales will increase 10%.