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What does Klein's absence mean for Burger King advertising?
9/23/09 - Christa Hoyland
Last week, Burger King announced to its franchisees that chief marketing officer Russ Klein was taking a leave of absence. The news has raised speculation from franchisees about the future of the company's advertising, according to a story from Advertising Age.
From Advertising Age:
The company confirmed Mr. Klein was on leave, and has since insisted that this is not some sort of euphemistic — or even deceitful — way of announcing Mr. Klein's departure."Let me reiterate," spokeswoman Susan Robison said in a statement. "This is a temporary leave of absence and when Russ is ready to return, he will."As for Mr. Klein, by way of explanation he offered this statement to Ad Age, sent via e-mail: "Simply 'sharpening the sword.' And the bigger the dragon waiting for me when I return, the better. That's all you need to know. Print it." It was signed, "Positively, RK."
Burger King has raised operators' concerns throughout the last year over a number of issues.
Some claim its controversial advertising has alienated consumers and hurt sales. For example, the company's "SpongeBob Square Pants" campaign as well as ads in Spain, have angered parents, the Mexican ambassador and Hindus. Franchisees have voted down several company proposals, the most recent an attempt to offer the chain's Double Cheeseburger for $1. Franchisees also have filed two separate suits against the company over operating hours and the company's attempt to increase ad spending.
Sales have taken a hit as well. An earlier than anticipated switch to value promotions failed to boost global same-store sales, which were down 2.4 percent for the most recent quarter.
According to Advertising Age, franchisees are calling for a change in direction, but a company spokesperson said "The oversight, direction and marketing strategy at Burger King Corp. has not changed ... (and) the long-standing relationships with our agency partners will continue as well."
