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You may already be tired of your kids whining for one of those new Backstreet Boys CDs at Burger King. But that whining is music to the ears of Burger King execs, who hope its newest promotion will mark the return of teen and preteen customers to the burger-buying fold. Burger King and major competitor McDonald's have generally done a bang-up job of attracting kids as customers. But they've been less successful in retaining their loyalty as they grow up.
Judging from the numbers just released by McDonald's, however, Burger King has reason to be optimistic about its five-week-long CD promotion, which began on Aug. 28. Burger King is selling the Backstreet Boys CDs (which double as CD-ROMs) at $2.99 each, with the purchase of a Value Meal. The promotion follows a similar end-of-summer deal at McDonald's, which hyped a $4.99 CD and
video from Britney Spears and 'NSync. McDonald's also made two other CDs available, one featuring hip-hop artists, the other with Latin musicians.
The lure of music seems to have paid off for McDonald's. Mickey D reported on Sept. 13 that its year-to-year sales in the U.S. jumped 4% in August. That success could mark a big turning point in the fast-food wars. In August, 1999, McDonald's was pushing Inspector Gadget toys to grade-schoolers. The Gadget toy giveaway ranked among the top 10 promotions in McDonald's history. So the fact that the music promo lifted sales over the previous August is seen as quite a feat, especially considering that the CD was not a giveaway -- customers had to shell out cash. And, notes McDonald's spokeswoman Anna Rozenich, this summer's promos were targeted to the "above-Happy Meal age."
ETERNAL RECURRENCE. Now, Burger King is hoping for the same results. Indeed, a spokeswoman there says of its CD promotion: "It is the first time we've targeted the 'tween market,'" referring to those just leaving their childhood years. An added bonus in trying to appeal to these young customers through music is that there's less risk in a tie-in with established pop stars than there is with a movie, whose success cannot always be taken for granted.
The apparent success of these CD promotions could easily be a forerunner of more music to come. Indeed, Dennis Lombardi, executive vice-president at food-services consultant Technomic in Chicago, says parents should brace for more musical tie-ins aimed at 'tweens and teens because they seem to be a win-win situation: "The customer gets an unusual value. The record companies get distribution. And the chains get customers." And parents get to hear Britney and the Backstreet Boys, over and over and over....
By Taeyma Sapp and Michael Arndt in Chicago Edited by Robert McNatt
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Copyright 2000, Bloomberg L.P.
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