Tuesday, May 21, 2019

Advertising and promotion strategy Essay

Since the inception of the companys first outlet in Cleveland, Mississippi in the year 1987, Back Yard Burgers depended more often than not on the word of mouth publicity to spread awareness and promote its home cooked burgers. New outlets that opened in the subsequent years expanded not only the companys consumer base and revenue unless also stressed the need for aggressive marketing strategy to sustain the increased follow of operations. Back Yard Burgers started advertise on the television in the year 1993.The initial announce campaigns were titled the great burger wars that took a punch at the competitors. In June 1994 the company launched a series of campaigns that featured Dennis R. Phillipi, a popular comedian in Memphis who soon became famous as Dennis the Back Yard Burgers Guy. The commercials communicate the burgers as bigger, tastier, and healthier than those offered by the competitors due to its grilled cooking method that melted most of the fat. The advertising cam paigns were effective in increasing sales and altitude the revenue by 10 to 15%.Launch of new intersection points and subsequent commercials on the television featuring Dennis Phillipi was an effective strategy. The company used the audio of these commercials in wireless advertising that was cheaper. In addition the company also used direct mail advertising. The company collects 1% of taxable sales from each franchisee and company-operated restaurants that goes to the national advertising fund. 50% of this fund is utilized for marketing promos through various channels like radio, television, and print media.The rest 50% is used for market research, new product testing, and development, improvising on the operational front. The companys marketing director monitors product launch and new restaurant opening progressions and marketing managers with a well-trained staff. The management deeds in collaboration with the franchisees towards advertising and promotion of its restaurants. The advertising fee earned by the company increased from $314,000 in July 1, 2006 period to $318,000 in June 30, 2007 period.The $4000 increase everywhere the earlier period is accounted to the 1% of sales that goes to the national advertising fund as per company policies. The company also recorded an increase in the advertising expense from $668,000 in the July 1, 2006 to $814,000 in June 30, 2007 that attributes to approximately 5% of the net restaurant sales on advertising in the past year. (see annexure for the comparative income statements). The company has been stressing on the advertising and promotion strategy but it has not been very effective. There are some important points that can be highlighted in this respect. The company has not been able to create bell ringer loyalty and brand awareness in spite of heartfelt quality products and effective marketing strategy. This could be attributed to low brand visibility. This can be remedied with aggressive market campaigns th at aim at the younger generation since this is the biggest consumer segment for the fast victuals industry. Strategies that aim for deeper market penetration, fun logotype that people can relate to enjoyable food and moments are essential for brand positioning. Fun logo is a opinion that the consumers can equate with good times.The simple logo of McDonalds is easily identifiable and children and youngsters can spot it from a distance this is one of the best examples of effective brand positioning. The other concept that the Back Yard Burgers can adopt is the use of bright color-coding for their outlets and the signboards. A bright color scheme attracts the younger generation and gives it an inviting number. The uniformity in look and feel of the franchisee restaurants and the other company-operated restaurant is essential to make an easily identifiable picture in the consumer minds. In running a successful brand promotion campaign the essential point is to identify the consume r segment. Who are the consumers and the target focus group for this chain of restaurants? The children and adolescents who form a major chunk of the consumer group typically favour the fast food industry. The working people segment is another segment that will stop by for fast and filling food in their office hours. Fast service food is ideal meal for this segment.Campaigns attracting these two segments will create brand awareness and spell higher revenues for the company. Last but not the least the quality of food and service efficiency is the crux of the fast food industry. A good and satisfying meal will permit the consumers returning for more. The satisfied and happy customer will not only promote brand loyalty but will have high recommendations regarding the food and service to their friends and families. This is the greatest form of publicity that a fast food outlet can expect.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.