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000432 Burger King Plans New TV Campaign

April 15, 2000

Orlando, FL - Hoping to revive sales and placate its franchisees, Burger King unveiled a new television ad campaign using the voice of actress Kathleen Turner and a new catch-phrase: “Got the urge?”

The company also promised to beef up marketing efforts on its trademark Whopper hamburger and said it's ready to implement a $500 million plan to reshape the fast-food brand.

“We have an opportunity to change this brand for the new millennium,” Burger King CEO Dennis Malamatinas told hundreds of franchisees at the company's annual Business Information Meeting in Orlando. The meeting was closed to reporters and the public.

Burger King officials later dismissed speculation that its British parent company, Diageo PLC, would be willing to sell the company to a group of Burger King franchise owners called the National Franchisee Association Inc.

NFA President Steven Lewis wouldn't comment Wednesday on reports the franchisees want to buy the fast-food restaurant chain, but Burger King's spokesman, Robert A. Doughty, said that would never happen. Diageo has spent several hundred millions of dollars to reshape the brand and they want to see a return on their investment, Doughty said.

“The brand is not for sale. Period,” he said. “There is no question.”

The new multimillion dollar ad campaign is hitched to the “Got the urge?” tagline, which will be used in television commercials and billboards. The television commercial shows images of Burger King's food and is narrated by Turner, who's known for her sultry voice. The ad will air nationwide starting this week.

The company didn't waste time putting the catchphrase to use, taking out a fullpage ad in Wednesday's USA Today with “Got the urge?” underneath a color picture of Burger King's newest product, the X-treme Double Cheeseburger, which was launched Monday.

Burger King also intends to unveil two new products at the meeting: a spicy chicken sandwich and a frozen Coca Cola that are to be packaged together as “Fire and Ice.” Restaurants will start offering that meal next month.

Burger King executives said they now realize they need to refocus their marketing efforts on the Whopper. Burger King's lackluster 1999 was partly due to the company offering too many marketing promotions, such as 99-cent cheeseburgers.

In addition, Burger King's two big marketing pushes last year focused on Pokemon figures and the movie, “Wild, Wild, West,” not Burger King's food, said Barry Schwartz, the company's director of research.

“We did little to work the brand,” Schwartz said. “We did little to promote a brand personality.”

Some franchise owners praised the company for the promised attention to the Whopper, the company's most recognizable product.

“The focus has to be the Whopper,” said Paul Dobbel, who owns 19 franchises in the Madison, Wis., area.

Company officials said they're ready to roll out plans to revamp Burger King's 10,850 restaurants, most of which are owned by franchisees. The changes include a new logo, a computer-game area for children and new uniforms.

A new drivethru section will offer debit or credit card use, menu boards with enhanced graphics and a price confirmation display. The company is still working out kinks in the redesign of its kitchen.

But analyst Brian Eisenharth said he doesn't know how effective the changes will be in helping Burger King, the world's No. 2. hamburger chain, catch up to rival McDonald's.

“Right now, they're kind of in a slump,” said Eisenharth, a stock analyst of Burger King's British-based parent company, Diageo PLC, with Collins & Co. in San Francisco.

The final rollout should be ready in 11/2 years. Officials hope the changes improve customer service and speed of service, which in recent years has become one minute slower on average.

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