Pom Company Case

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Company Case 14 Burger King: Promoting a Food Fight Challenging Conventional Wisdom In early 2004, as Burger King’s CEO Brad Blum reviewed the company’s 2003 outcomes, he decided once again that he had to do something to spice up BK’s bland performance. Industry leader McDonald’s had just reported a 9 percent sales jump in 2003 to a total of $22.1 billion while number-two BK’s U.S. sales had slipped about five percent to $7.9 billion. Further, number-three Wendy’s sales had spiked 11 percent to $7.4 billion, putting it in a position to overtake BK. Blum surprised the fast-food industry by abruptly firing the firm’s advertising agency, Young & Rubicam (Y&R) and awarding its global creative account to a small, Miami-based, upstart firm Crispin Porter + Bogusky (Crispin). The switch marked the fifth time in four years that BK had moved its account! Ad agency Y&R had gotten the $350 million BK account only 10 months earlier. To help revive BK’s sales, it had developed a campaign with the theme “The Fire’s Ready,” which focused on BK’s flame-broiled cooking method versus frying. However, observers found the message to be flat and uninspiring, and the declining sales sealed Y&R’s fate. With the move to Crispin, there was no shortage of speculation that the fickle Burger King would soon move again. Many saw BK as a bad client, impossible to work for. Others predicted that the “win” of this account would ruin Crispin’s quirky culture. But in announcing the Crispin selection, Blum indicated he had challenged the firm to develop “groundbreaking, next-level, results-oriented, and innovative advertising that strongly connects with our core customers.” BK automatically became the small firm’s largest client but Crispin was not without an impressive track record. The creative shop was known for its offbeat, unorthodox, and even irreverent promotions.

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