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for example. This allows brands in the Sauce of conversation industry to offer a broader product range, as well as making them appear more sophisticated and knowledgeable about food trends. The idea is that this should make the business more differentiated than its competitors and more relevant to a wider group Vanessa Cohen of customers. Partner Examples of this type of activity abound. McDonald’s has run Chinese Prophet menus around the world to coincide with the Olympics, while Hut’s rebranding of some of its outlets as ‘ Hut’ introduces its special Christmas flavour variants each year. has generated consumer discussion, but it is a stunt that is These are short-term tactics but they unlikely to produce long-term growth for the brand can help to strengthen and extend the brands by giving them a reason to izza Hut’s recent ‘rebrand’ of 30 will see a positive long-term effect on appear on customer radars. outlets in the UK as Pasta Hut to its brand or its business results. It is important, however, for P promote its new Italian menu But just what does this marketing seasonal and short-term sales boosting generated acres of media coverage stunt tell us about the branding campaigns to be well planned and and not a little puzzlement. challenges facing chains? And based on genuine customer needs. Initially, it appeared that the what can other businesses learn from Companies need to be careful not to company was throwing away a brand this example? overstretch themselves and make sure name that had been in use since 1958. that any promotion stays true to the But it became apparent that The good news for spirit of the brand. the renam ing was a temporary Short-term sales promotions are often For an example of what can go promotional effort. criticised for being detrimental to long- wrong, look no further than Burger After a successful trial in the US term brand building. Based on a ‘more King’s recent launch of a £95 burger in earlier in the year, where two million for less’ promise, these can undermine the UK. Made from Wagyu beef from pasta dishes were sold in the ‘Pasta the quality perception or premium Japan and containing white truffles, Hut’ campaign’s first month, the positioning of a brand. the expensive snack was only available ’s parent business has been However, in the fast food business, at one restaurant in West London. rolling out the idea to its other markets. there are very few brands aiming to Did this promotion really make But despite the US sales, is this be premium marques anyway. As a sense to customers? It was so really a sustainable strategy? After a result, most companies are happy unexpected and removed from the honeymoon period of increased sales to use short-term tactics, and brand – after all, is not a figures, it seems unlikely that Pizza Hut promotions have become integral to premium restaurant – that it is hard to the fast-food business. see who it would have appealed to. It Fast-food chains use sales was innovation for novelty’s sake. promotions to provide more variety in A good short-term promotion an industry with typically static should always menus. They often tap into seasonality,

>Facts&Figures 3% 19 G Global same-store- G Consecutive sales growth at quarters of Pizza Hut’s parent positive growth Yum! Brands. globally at Pasta Hut’s menu is a Burger King. departure from the usual pizza offer (right). Burger 11% King had to re-engage men G Rise in McDonald’s 5o aged 18 to 35 to reverse a profits in the G Age of the Pizza decline in its performance last quarter. Hut brand.

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encourage trial, rather than dissuade distinct change from the burgers and about being a better-quality burger into from it. A perennial issue for fast food nuggets adorning its menus. a rule-breaking, politically incorrect businesses is that consumers tend to Pizza Hut, however, is adding message that tells consumers: “Yes, order the same meals on each visit. dishes that people who Italian food we know it is fast food and yes, it is Sales promotions aim to increase are already familiar with, such as red meat, but you like our big and purchase size. arrabiatas and alfredos. Such a greasy burgers. You are a man and For example, people who regularly minimal menu change is unlikely to nobody needs to tell you what is and order a burger and fries may add win new customers. isn’t good for you”. wings or a to their The aim of Pizza Hut to offer a Coupled with bold advertising and typical meal when these items are on healthier proposition alongside its innovative campaigns – promotion. in the UK runs is also questionable. The menu like the current ‘Meat Beast’ promotion a ‘Sub of the Day’ offer, where a reveals that most of the pasta dishes that combines beef, pepperoni and particular costs just £1.99 on contain cream and cheese in bacon in one bun – this has put Burger that day, and this has encouraged abundance; they would be unlikely to King back on the map. It has recorded customers to return to its outlets to try appeal to those watching their more than 19 quarters of positive out a variety of . waistlines. international sales. So how does the Pizza versus Pasta Pasta Hut seems unlikely to Hut campaign score? Early signs imply Needs versus novelty deliver the same success that has been that the renaming strategy is helping to By contrast, Burger King is a good seen at Burger King. The Pasta Hut boost the brand’s lacklustre image. example of how a brand can turn campaign may well result in short-term The initial results show that online, round its decline by focusing better on revenue increases as it reminds there has been a more positive than customer needs. For many years, it consumers about the chain’s presence negative reaction to the strategy. The had pushed a message of having but it seems unlikely it will either YouGov Brand Index, which measures burgers ‘your way’. Yet the chain’s attract a different type of consumer or consumer reactions online, reports that profits fell by 21% to $288m (£165m) stretch the brand effectively. Pizza Hut’s ‘net buzz score’ increased between 2000 to 2002. If Pizza Hut really wants to tap by five points to 10 October 2008. It took Burger King multiple into new opportunities, it needs to The increase seen in the brand’s ownership structures, advertising learn the lesson of ongoing menu corporate score on the index also rose campaigns, management teams and variation from its fast-food colleagues. by 13 October by eight points to go-to market strategies before it finally More importantly, though, it reach minus 16. It is clear that understood that the brand had become needs to understand what consumers customers have at least acknowledged irrelevant to 18-to-35-year-old males. really want before it has the chance that the chain had made a change Since then, the fast food giant has never to take a big bite out of other worth talking about. looked back. It has reshaped its brand companies’ profits. G But will the Pasta Hut campaign to appeal to this group. have medium-to-long-term benefits for It has done this through embracing This paper was co-written by Teresa the brand? We are not convinced. innovation across product, price, Schrezenmaier, senior associate at When McDonald’s promotion and place. In terms of the Prophet. started offering product, it has evolved its message www.prophet.com ‘premium ’ in 2003, this was a

McDonald’s deploys novelty strategies in its , such as a Texas outlet modelled as a Happy Meal box. It has extended its offer to salads (above right), rather than changing its core menu

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