Burger King Rethinks Price Strategy In Fast Food Wars

NEW YORK – Burger King is getting ready to shake up the fast food wars by embarking on a ‘value-pricing’ strategy to compe… Word of the new tact comes as fast food industry sources speculated that BK marketing chief Sid Feltenstein will leave the company by the end of the year. Feltenstein is a strong supporter of D’Arcy Masius Benton & Bowles, which handles the lion’s share of BK’s $160 million account and which prepared the new marketing effort breaking next month. BK said there was no substance to the reports. Feltenstein could not be reached.Sources last week said BK will reverse its course over the last year and embrace a new ‘value-pricing’ strategy. The new menu will be three-tiered and attempt to combat chains that have used value pricing to boost sales and customer counts. Taco Bell shocked the business several years ago when it offered three pricing tiers, all below $1. McDonald’s responded with price cuts.A BK spokesman would not confirm the shift to the value menu, but did say, ‘We’re looking at localizing our menu strategies. We’ve had the best success when we’ve offered a variety of strategies for our operators to pick and choose from.’DMB&B is currently developing a major campaign for this fall to support the value-pricing strategy, according to sources. The new ads will continue the ‘BK TeeVee’ theme; however, last year’s prime pitchman, MTV star Dan Cortese will be noticeably absent, according to sources (ADWEEK, Apr. 12).Copyright Adweek L.P. (1993)