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Fast-Food Chains Engage in High-Stakes Marketing War Over Pokémon and Toy Story

Strategic Insights

— 2 min read

A massive marketing campaign from Burger King, the nation's No. 2 burger chain, is set to create a frenzy among parents and children alike, as the company spends $22 million to promote toys tied to the Warner Bros. animated film "Pokémon: The First Movie." Meanwhile, McDonald's Corp. will spend $30 million to promote "Toy Story 2," the sequel to Walt Disney Co.'s 1995 animated blockbuster, raising the stakes in the fast-food industry's annual marketing showdown.

The intense promotional battle between Burger King and McDonald's is expected to be the largest and most expensive yet, with Burger King offering 57 different Pokémon toys in 56 days, including a set of 151 trading cards. McDonald's, on the other hand, will roll out 20 different Toy Story toys in its Happy Meals. According to Ron Paul, president of Technomic, a Chicago restaurant consulting firm, the intense marketing push is "taking the intensity to another level," and the smart betting is on Pokémon.

For Burger King, the Pokémon promotion is a crucial gambit in its effort to close the considerable gap with McDonald's, which has about 13,000 U.S. locations and nearly 43% of the U.S. fast-food market share. Burger King, owned by the London-based conglomerate Diageo, saw its share of the U.S. fast-food market grow to 21.9% last year, from 17.2% in 1993. The success of the Pokémon promotion could help Burger King narrow this gap.

Key Takeaways:

  • Burger King is spending $22 million to promote toys tied to the Warner Bros. animated film "Pokémon: The First Movie," while McDonald's Corp. is spending $30 million to promote "Toy Story 2."
  • Burger King is offering 57 different Pokémon toys in 56 days, while McDonald's will roll out 20 different Toy Story toys in its Happy Meals.
  • The promotional battle between Burger King and McDonald's is expected to be the largest and most expensive yet, with Ron Paul, president of Technomic, describing it as "taking the intensity to another level."
  • Burger King's share of the U.S. fast-food market grew to 21.9% last year, from 17.2% in 1993, while McDonald's has about 13,000 U.S. locations and nearly 43% of the U.S. fast-food market share.
  • The success of the Pokémon promotion could help Burger King narrow its gap with McDonald's in the fast-food market.

Statistics:

  • $22 million: Burger King's spending on the Pokémon promotion.
  • $30 million: McDonald's Corp.'s spending on the "Toy Story 2" promotion.
  • 57: Number of Pokémon toys Burger King is offering in 56 days.
  • 20: Number of Toy Story toys McDonald's will roll out in its Happy Meals.
  • 151: Number of trading cards in the Pokémon set.
  • 56 days: The duration of Burger King's Pokémon promotion.
  • 13,000: Number of McDonald's U.S. locations.
  • 43%: McDonald's share of the U.S. fast-food market share.
  • 21.9%: Burger King's share of the U.S. fast-food market share in 1998.
  • 17.2%: Burger King's share of the U.S. fast-food market share in 1993.

Sources:

  • Los Angeles Times

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