Monday, March 31, 2014

I’ve Seen This Before…

I wasn’t really planning on an update to my last post, or anything else about the ongoing burger wars, but over the weekend I kept seeing the new Taco Bell ad (the one with a bunch of guys who are actually named Ronald McDonald eating the new Taco Bell breakfast products) in heavy rotation, and I could not shake the feeling that I had seen this somewhere before. Of course, I am getting older, and given my ongoing memory problems there are going to be times when a sensation of déjà vu is unavoidable. But then I saw an article on the AdWeek site which points out that this has, in fact, been done before…

You can pick up the original article here, if you want to, but the details are simple enough. About 12 years ago, one of the other quick-serve hamburger chains called Jack-in-the-Box pulled exactly the same stunt, finding a guy whose legal name was Ronald MacDonald and getting him to eat and express appreciation for their new burger product on camera. The Jack-in-the-Box people apparently selected a guy who uses the alternate spelling of MacDonald on purpose, just in case their larger competitor decided to give them grief about the campaign, but their ad agency admits that they also chose that particular Ronald because he performed well on the video. Other than that, though, the commercial uses almost exactly the same gimmick in almost exactly the same way…

Whether or not this will have any effect on the ad campaign – or on sales of the new products it is trying to promote – remains to be seen, of course. As of this writing the Jack-in-the-Box chain is only operating in 19 of the states, and with only 2,200 locations it’s still relatively small when compared to Taco Bell’s 6,500 locations, let alone McDonald’s. People in many parts of the country may never have seen a Jack-in-the-Box restaurant (the Company’s website lists the nearest one to East Lansing as being 210 miles away in Indiana), or even seen one of its ads. And even if they have, people don’t necessarily devote that much time to memorizing ads run by (relatively) small fast-food chains a decade or more ago. There’s also the issue that Taco Bell itself has a history of running with unconventional advertising…

Probably the best-remembered Taco Bell campaign is the Talking Chihuahua series of the late 1990s, although the late 1980s “Make a Run for the Border” campaign is still widely satirized. My personal favorite will always be the company’s stunt in 2001 when the Mir space station was falling out of orbit, and the company put up a 40’ by 40’ target in the South Pacific and broadcast that if any part of the falling station hit the target they would give a free taco to every person in America. With a history like that it’s hard to imagine that anyone would get that worked up about this new Ronald McDonald campaign, even if it is ripping off an earlier commercial made by a rival company. A much bigger issue is how McDonald’s will respond to the Company’s new breakfast products…

As I noted in my last post, the off-peak sales have been a key factor in making the McDonald’s locations more profitable than any of their competitors, and while it will take time for any new product to gain traction, let alone non-traditional offerings like a taco made out of a waffle, it seems highly likely that they will have to do something in reply to this new challenge. There is no question that McDonald’s represents an entrenched competitor with an established customer base and a large network of locations already optimized to sell breakfast products during the relevant business hours; the question is whether that will be enough to carry the day. Or, more to the point, perhaps, how will they respond to the challenge? Because if the history of the Burger Wars has taught us anything, it’s that McDonald’s is unlikely to just sit still for this…

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