Miami-based Burger King Corp. (DGE) is rewarding its customers with frequent buyer points that they can use to bid on compact discs, tickets and other rewards from on-line auctioneer eBay Inc. This is the first of such loyalty programs with which executives are preparing the company for separation from London-based parent Diageo Plc.

Moderator Comment: Burger King to try something new — rewarding consumers with edible food and better service.

  1. The consumer defines a brand’s equity. What type of equity does a business have if it loses it customers based on the availability of plastic toys?
  2. Who is your consumer? Even mass-market businesses can’t be all things to all people. One stop is a myth.
  3. What does your consumer want? If plastic toys are what consumers want, BK is in the wrong business. KFC has taken an interesting approach in its new marketing program, essentially, asking consumers would they prefer real food or the gray stuff in a bun offered by the hamburger competition.
  4. Meeting the expectations of consumers is good enough. To be better than good enough requires exceeding expectations.
  5. Start back on #1.

What do you think is required to develop a sustainable advantage in the marketplace? [George Anderson – Moderator]


Discussion Questions


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