DDB bites a chunk of McDonald's business

<p>MANILA: Fast food chains are stepping up marketing activities in </p><p>the Philippines, where a fragile economy has created growth </p><p>opportunities for this segment of the food and beverage business. </p><p><BR><BR> </p><p>McDonald's has appointed DDB to handle its 20th anniversary campaign, </p><p>while the third-ranked Burger King has awarded its advertising contract </p><p>to Campaigns & Grey. </p><p><BR><BR> </p><p>The fast food market is dominated by local player Jollibee Foods, which </p><p>is estimated to control 46 per cent of the 60 billion peso (USdollars </p><p>1.3 billion) business with its Jollibee and Chowking brands. </p><p><BR><BR> </p><p>McDonald's is said to have 29 per cent of the market and Burger King at </p><p>just three per cent. </p><p><BR><BR> </p><p>McDonald's decision has come as a surprise since its agency of record </p><p>Leo Burnett, the other agency in the pitch, was expected to win on the </p><p>back of a strong track record for the hamburger giant. </p><p><BR><BR> </p><p>The two agencies have been battling around the globe to expand their </p><p>share of the McDonald's business. </p><p><BR><BR> </p><p>A DDB source close to the pitch said its recent win has dealt a blow to </p><p>Burnett because the project is earmarked as one of McDonald's high </p><p>profile promotions in the country this year. </p><p><BR><BR> </p><p>Despite the appointment, Burnett remains the brand steward. </p><p><BR><BR> </p><p>A source from the agency shrugged off speculation that DDB was winning </p><p>the upper hand in the Philippine arena in the long-running DDB-Burnett </p><p>battle for the McDonald's account globally. </p><p><BR><BR> </p><p>"Shifts will occur. It's normally a question of when, but it ain't </p><p>happening now," the source said. </p><p><BR><BR> </p><p>Meanwhile, Campaigns outgunned Publicis AMA, Santiago & Puno Advertising </p><p>and incumbent Lowe-Lintas for the Burger King brief. </p><p><BR><BR> </p><p>Campaigns had been doing promotional work for Burger King since December </p><p>last year, but had to wait until this year for head office approval to </p><p>handle local advertising, said the agency's account manager Jev </p><p>Ramos. </p><p><BR><BR> </p><p>Both appointments were sealed amid intensifying competition in the fast </p><p>food market: McDonald's is said to be investing USdollars 50 million to </p><p>expand its presence, while Burger King's agency switch is in line with </p><p>the more aggressive advertising stance it has taken since mid-2000. </p><p><BR><BR> </p><p>Burger King is looking to Campaigns to help it improve itslow market </p><p>share. It plans to focus on its value meals as well as expand marketing </p><p>efforts to provincial cities. </p><p><BR><BR> </p><p>Campaigns' general manager and chief operating officer Angelito </p><p>Pangilinan said services will include advertising as well as PR to </p><p>introduce Burger King in the market, especially in the kids segment, and </p><p>expand its appeal to the mass consumer market. </p><p><BR><BR> </p><p>Burger King is operated through a franchise held by Ayala Corporation's </p><p>Pure Foods Unit. It is understood that Ayala intends to keep the </p><p>franchise even after it sells off Pure Foods. </p><p><BR><BR> </p><p>Since making its menu more affordable, Burger King has succeeded in </p><p>pinching market share from Jollibee, according to market observers. </p><p><BR><BR> </p><p>Along with stepping up its marketing, the chain plans to increase the </p><p>number of outlets from 24 to 36 in the next three years. </p><p><BR><BR> </p><p>- Additional reporting by Lee Chipongian. </p><p><BR><BR> </p>