Rebranding White Castle

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REBRANDING WHITE CASTLE Brand Image & Cultural Space Assignment By Rebecca Alexander

This paper is for educational purposes. It documents the White Castle brand and provides recommendations and a campaign to re-vitalize this iconic American brand.


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INTRODUCTION White Castle is an American fast food chain that first hit the market in 1921. 1921 It is often regarded as the founding father of the fast food industry. McDonalds and other popular fast food chains only came about in the 1950s. 50s. Thus, White Castle is a pioneer in the industry. With that said, this brand has been on the decline as of lately. This project will serve to revitalize the White Castle brand. It will analyze the brand’s history and the company’s resources. It will then conclude with recommendations and a brief campaign to restore the brand and reposition the company.


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ABOUT WHITE CASTLE COMPANY INFORMATION: White Castle is primarily a fast food chain. Over the years, the brand has extended itself to include a variety of different products. The business is a family owned business that started in 1921. Founder Ed Ingram revolutionized the fast-food industry but re-creating the hamburger market. Ingram was known for his savvy marketing ideas and for maintaining a distinct brand that was unique from all the other brands on the market. White Castle was a brand that took America by storm.

PRODUCTS OFFERED: White Castle is primarily a fast food chain. Over the years, the brand has extended itself to include a variety of different products.

QUICK FACTS Taken from http://www.whitecastle.com /company/fun-facts

White Castle was founded in 1921 in Wichita, Kansas. The name was chosen carefully with “White” signifying purity, and “Castle” signifying strength, stability and permanence. Guess it worked.

White Castle was founded in 1921 in Wichita, Kansas. The name was chosen carefully with “White” signifying purity, and “Castle” signifying strength, stability and permanence. Guess it worked.

Coke has been the White Castle beverage of choice since 1921.

Burgers were 5 cents in 1921 and that price was reduced and increased over the next several years. You may remember a big jump in December of 1950 when burgers went from 10 cents to 12.

The home office takes up residence in Columbus, Ohio in 1934 and remains there today.

When White Castle cheeseburgers were introduced to vending machines in 1993, they almost instantly became the #1 item in their vending category nationwide.


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HISTORY OF THE WHITE CASTLE EVOLUTION


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HISTORY White Castle brand is lauded for having survived the hardships of the Great Depression, the tumultuous shortages experienced in World War II, as well as the post-modern era of post-war America (Parsa & Kwansa, 1993). In the end, White Castle is associated with perseverance, having witnessed all the hardships of the 20th century. 1921: The White Castle founder chose the word “White” to convey cleanliness in a time when burgers were associated with poor hygiene (Parsa, 2000). Ingram also chose the “castle” motif for the logo to symbolize elevation (Hogan, 1997)… Thus, a method for brand recognition was created. At the time, the unique name and image were what made the company distinct (Parsa, 2000). 1930: First to advertise in a newspaper. 1940: During the post-world war II – many restaurants in the inner city were shutdown dueto the increased crime and vagrancy in the areas (Smith, 2006). This was the start of White Castle’s hardships.

1950: This time was particularly tumultuous for White Castle. Ingram was able to get through these hard times by returning to the 1920’s model of cleanliness, quality, and service. This successfully helped to restore White Castle (Hogan, 1997).

1960s – 1980: In this period, McDonalds and Burger King really took the reins. The face of fast food industry changed, becoming more competitive and competitive. At this stage, White Castle maintained their marketing in urban neighbourhoods, geared towards urban clientele (Hogan, 1999) White Castle was said to be “comfortable with its own unique identity and niche” during these decades (Hogan, 1993, 147). Unfortunately, the campaign strategies employed were described to be unsophisticated compared to the other fast food chains, with the preferred media channels using only radio and television. The 1970’s slogan read “The White Castle Hamburger” without it, all hamburgers would taste the same”. 1980s: White Castle started to expand in a major way, under the guidance of a new leader. It was at this point that White Castle brand began to decline. 1990s: At this stage, it is apparent that the White Castle brand is failing. This is due to the expansion of the company and the attempt to appeal to suburban areas. With that said, the 1994 slogan “What do you crave?” was success, and still remains today. 2000s: In 2008, the company attempted to “go digital” with the launch of the “Crave is Calling” campaign by JWT. Users were asked to put their numbers into the website and they would receive random late night calls about food promos. Users were also invited to upload videos to the Youtube channel. It was very unsuccessful; only nine videos were submitted.1 The ad campaign on the left is a “Harold & Kumar” reference. 1

http://www.adrants.com/2008/09/white-castle-appeals-to-the-17yearold.php


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BRAND IMAGE The brand image of White Castle has consistently changed. In 1921, the brand had a clean and hygienic image – it was considered to be cutting-edge.

Today, the brand image is very different. The brand image of the company has been significantly impacted by release of the 2004 film “Harold & Kumar Go To White Castle.” Generation Y’s immediately recall this film when the brand “White Castle” is mentioned. Interestingly enough, GenY’s who have never had the experience of dining at White Castle are able to identify the brand. This is a very strong brand image that has been established. Unfortunately, this contradicts previous images that have been built over the years. There is a lack of clarity in the brand image if you look at it retrospectively, and it is this lack of fortification and confusion that reduces the brand equity of White Castle.

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OLD ASSOCIATIONS: Cleanliness Hygiene Children and teens Cutting-edge, modern, and unique First of its kind

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NEW ASSOCIATIONS: Marijuana and drug use College students “I want it now” attitude Glutton and over-consumption Nonchalant attitude

It is interesting to note how different the images are in the 1920s, during the early stages of White Castle’s brand development. Since then, White Castle has morphed into a completely different brand. In terms of aesthetics, the initial branding was simple, clean and minimalistic. This really conveyed the identity of the brand at the time. The new branding is all about imagery, color, and attempts to LOGO CHANGE: grab the audience’s attention in a “look at me” manner. The brand has changed significantly over the This is the tactless branding that is far from the techniques years. See the logos on the left. There is a major that White Castle originally employed. transition from the original 1921 logo (left) to

BRAND IDENTITY The brand identity has come a long way. In the 1920’s, White Castle was. The brand began to experience problems after the 1980’s expansion. It was during this expansion that

the 2003 logo (right)


7|Page the face of White Castle started to change dramatically. The brand identity of White Castle has not been communicated efficiently over the recent years due to the constant evolution of the brand. The company prefers to react to market situations and environmental factors and craft their marketing tactics in that manner, instead of consistently crafting one main message. This is a major problem for White Castle as they are not executing long-term strategies that will build the brand.

BRAND EVALUATION STRATEGIES White Castle business strategy is traditional. The company’s business strategy was based on Henry Ford’s business model – borrowing the concept of efficiency; White Castle sought to turn a profit by producing an inexpensive product and turning over a high volume of sales (Smith, 2006). In addition to this, the company has always had a “conservative approach” towards the idea of expansion (Hogan, 1999). The brand strategy has been to evolve with the times and adapt to the circumstance. White Castle had is 90 years old and has had a colourful history. The White Castle products and services remain unchanged, but the marketing techniques and the branding have evolved with the times. Initially, branding was strong. Unfortunately, as time went by, the evolution of the brand as a whole has been more or less strategy-less. This is because the company has been passed down through three generations and the branding strategies have not been consistent over the years. The Ingram family have opted to focus on reacting to the environmental factors and external circumstances, as opposed to developing the core of the brand from within. This is a major flaw that I have identified.

MARKET & ENVIRONMENTAL INFLUENCES INDUSTRY: The market competition is fierce, because the fast food industry is in the mature stage of the product life cycle (Parsa & Khan, 1992; West, 1988). There is a lot of competition and standard marketing practices will not suffice in such an intense market. DEMAND: Consumers are met with a lot of choices in the market, creating a new breed of finicky and fickle audiences. Today’s culture is ruled by a demand for meals with nutritional value (Parsa & Khan, 1993). White Castle should be weary about the purchasing power of the consumer and cater to their needs. This was the original philosophy of White Castle that was employed in 1920 and re-adopted in 1960. Since 1980, this concept has been left to the wayside. GEOGRAPHY: Indeed, Harold & Kumar Go To White Castle has helped to build brand recognition. Unfortunately, distribution points are limited to certain geographical areas. White Castle is concentrated in certain areas, as it is a regional chain. It is for this reason that the audiences form a strong emotional bond with the brand (Braun-LaTour & LaTour, 2007). The following information was released by the White Castle Corporate Headquarters in 2006:


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COMPETITORS The market is satiated with fast-food-chains. The competition does not stop there; it extends beyond the fast-food industry. There are three main categories of competition that White Castle faces: Burger-based fast food chains: This includes classical fast food chains such as McDonalds, Burger King, Jack in the Box, Wendy’s Arby’s, and Sonic Burgers to name a few. This also includes niche-FFCs such as Shake Shack and In-&-Out Burgers. Other fast-foods chains: Popeyes Chicken, KFC, Taco Bell, El Pollo Loco, Pizza Hut, Dominos, Sbarros, California Pizza Kitchen, Quiznos, Subway, etc. Food & Beverage Industry: The food and beverage industry as a whole. Primarily, restaurants that serve burgers as well as high-end dining. This also extends to kiosks and street-food stands such as Sabrett Hotdogs.

TARGET AUDIENCE In the 1960s, with the influx of competitors in the fast food industry, White Castle focused on niche markets. At the time, it was teens and young children (Hogan, 1997). Today, White Castle seems to be targeting the following niches:


9|Page Middle America: Some of the marketing is geared toward middle-class America, including the promotional offers, coupons, and pricing. The term “middle America” refers to the socio-economic class of this market. This segment is located on the East Coast of America. College-goers: Specifically the “frat boy” and “stoner/slacker” types. White Castle is currently trying to appeal to these types who might use the brand as a “myth” associated with the movie “Harold & Kumar” go to White Castle. Nostalgics: This segment is made up of senior citizens or baby boomers, who are the largest consumer groups in the fast-food industry (Parsa & Khan, 1993). Nostalgics have a strong connection with the brand. White Castle’s earlier marketing tactics were geared towards this market segment when they were growing up. Thus, they established emotional bonds with the brand from childhood. The bonds between the nostalgics and White Castle are strong.

CONSUMER BEHAVIOR:

Shenck & Holman (1980) produced a chart about consumer behaviour and how it related to brand choice. This type of insight and understanding into consumer behaviour is essential because it produces an understanding of how they interact with the brand and what it means to them. Nostalgics use the White Castle brand to relate to a “childhood” pleasure that they enjoyed. Conversely, college-goers associate the brand with the recent “Harold & Kumar” image of the brand, pledging allegiance to a type of personality that is conveyed by the movie. Middle-America uses the brand because it symbolizes the region that they hail from. Furthermore, the brand slots perfectly into their lifestyle and needs. Based on Chernatony & McDonald’s (1992), the different segments use the brand in the following ways: SEGMENT College-goers Middle-America Nostalgics

MEANING OF BRAND Mythical Primarily socio-cultural Utilitarian Socio-cultural

Due to the fact that their mid-Americans and nostalgics have such a strong relationship with the brand, much of the recent marketing is geared towards the other segments since White Castle already has the attention of the “Nostalgics”.


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ANALYSIS: STRENGTHS & WEAKNESSES The following chart summarizes the two main strengths & weaknesses of the White Castle brand. STRENTGTHS There is a “cult following” that follows the brand.

WEAKNESSES Brand strategy has been constantly changing, which means brand image/identity is muddled for consumers.

Good relationship with current fan base.

No clear focus.

ROOM FOR IMPROVEMENT: White Castle has consistently survived through hardships and adapted with the times. But, here is the main problem: The recent marketing strategies of White Castle have really had an impact on the brand. Although they have allowed for brand recognition to occur with the use of the “Harold & Kumar” movie, the audiences that they are trying to appeal to cannot connect with the brand. These tactics do not elicit a strong emotional connection. Thus, the marketing strategies have negatively impacted the brand in the following ways: •

Reduced brand equity due to the constantly evolving branding of White Castle. The communication of brand identity and image is unclear and is unclear.

Specifically targets one segment of the market, ignoring other segments. White Castle is trying to appeal to a younger crowd, specially the college-goers. The disenfranchised segments include the largest and most influential segment of all – the baby boomers otherwise known as the “nostalgics”.

Cheapened the brand image with tactless marketing and cheap promotional tactics. This does not sit well with with the Gen-Y market that they are honing in on, as well as the Gen Z market that they could be honing in on. Reconsider brand identity and move away from current brand image: White Castle should shift away from the “Harold & Kumar” image and move beyond to a more sustainable brand image that is likely to appeal for generations to come. The Harold & Kumar image will die with Gen Y, thus it is not sustainable. Generation Z will find it difficult to relate to these tactics. Thus, White Castle must begin to understand how the brand can adapt to the needs of future generations to come.

RECOMMENDATIONS SOLUTIONS TO IDENTIFIED PROBLEMS: •

Re-think the brand identity and go back to the “roots” of the brand. Simplistic, clean, and wholesome marketing.


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Refine marketing tactics and introduce sophisticated digital strategies that will be used to connect with the audiences

Widen the audience base and expose more people to the brand.

OBJECTIVES & GOALS: The overall objective is to solidify the brand identity in the minds of the consumers, leaving them with a clear and concrete idea of the brand’s essence. Increase exposure to White Castle brand and develop brand awareness. Seek to appeal to target market and widen target audience. • •

Increase Facebook fans from 184,179 to 1 million by the end of the campaign. Short-term goal is 500,000. Increase Twitter followers from 1,874 to 10,000.

Increase communication avenues and develop symmetrical communication between brand and audience, thus continuing to strengthen the brand relationship with old audiences, as well as developing relationships with new audiences in an engaging manner. • •

Create forums and avenues where audiences can air views and participate with the brand Engage and encourage audiences to participate through the online channels

Build brand equity and improve the current image of White Castle to adapt to the current culture. Develop a sustainable brand identity that will last for generations. •

Market to wider audiences. Move beyond tacky advertising and create sophisticated campaigns that will appeal to larger markets. Move away from “Harold & Kumar” image and develop brand identity to build equity.

STRATEGY: The overall strategy is to create a nation-wide campaign that will reach out to a wider variety of audiences. This will be achieved through customer-experiences with the brand and the use of digital marketing tactics. This online strategy is almost non-aggressive which fits in with the previous marketing strategies of White Castle – a brand that can


12 | P a g e sometimes be seen as the “underdog” compared to the likes of McDonalds and Burger King.

CAMPAIGN & TACTICS: Inspired by http://www.cheese-burger.net, this campaign is based on the idea of a “perfect burger”. This campaign is premised on the idea that Americans are always looking for the perfect fixings and dressings to top off their burgers. Whether it is mustard, ketchup, mayonnaise, or pickles, each person has a specific way of dressing their burgers. This campaign invites consumers to share their views on the matter, and reveal their preferences! The campaign is executed in three parts, that each link to each other. 1. The first part will be called “Craving The Perfect Bite”. This is a promotional tactic that invites consumers to interact with the brand and allows for user experience to take place. This tactic will be executed on a national level, and serve to expose consumers to both the products offered as well as the White Castle brand. 2. The second part will be called “Chasing The Craving”. This is a promotional tactic/stunt that will generate hype with the use of a mobile kiosk. It will allow national exposure for the brand and reach audiences beyond the East Coast of America, due to the fact that the mobile van will be travelling across the country. 3. The third part will be called “Crave: Cooking The Perfect Bite”. This is a cookbook that specifically links to part one and two of the campaign. It will be a compilation of the user-generated content that was elicited by the earlier parts of this campaign. It is the perfect way to tie up the entire campaign/.

PART 1: “Craving The Perfect Bite” Part one uses crowd-sourcing techniques to engage audiences. Kits containing special items will be mailed out to 100,000 individuals nationwide (see image on the right). These kits will encourage individuals to design their “perfect bite” by customizing the traditional “White Castle” burger. -

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100,000 kits will be sent out nationwide. Distribution of kits will cover all 50 states. Kit-holders will be invited to create the perfect burger and upload photos, recipe card, & videos of their “perfect bite”. Best combo will be a staple on the menu for three months. Kit will contain a recipe card, a paper chef’s hat with the logo, a blue spatula, and a yellow pencil. Kit holders are invited to use their imagination and share their ideas and palettes with the world.

PART 2: “Chasing The Craving” This campaign will take part one “on the road”. If the campaign is successful, it can become a yearly tradition for White Castle. Half of the campaign is based on crowd sourcing techniques, while the other half is a social media campaign.


13 | P a g e • A mobile vehicle (otherwise known as the White Castle mobile kiosk) will be fully equipped with a freezer and kitchen goes on the road. • The White Castle mobile kiosk will travel across America and visit iconic locations in all 50 states. • During 2011 summer period in America (June – August). • Invite fans to the White Castle mobile kiosk to buy frozen burgers or dine on the spot. • Use Twitter and Facebook to upload photos and videos of those who come to the event One of the perks of this “on the road” concept is that it draws parallels to the “Harold & Kumar” image, thus it does not discredit the previous marketing tactics employed. Still, it updates the image and creates an avenue for interaction with the consumers. It also allows people to sample the product and thus brings in new clientele.

PART 3: Cookbook This is a brand-extension. White Castle will develop a “cookbook” based on the contributions of individuals in part I of the campaign. • • • • •

Book will be called “Crave: Cooking The Perfect Bite”. A recipe from each state will be picked. The book will contain 50 variations of the White Castle burger, as produced by the audiences. Hard-copies will be made available for purchase. Previews of the “Top 10” recipes will be available online (for free) and downloadable for iPad users.

BENEFITS: •

Create a media hype. This stunt will be published in all the local newspapers in each state.

Widens reach and doubly serves as good public relations. We are giving people access to White Castle – those who would not normally have access since WC is not available in their state.

Strengthen the brand. This campaign allows for user interaction. It will also serve to foster and enhance relationships with audiences.

COMMUNICATION CHANNELS: TWITTER: There are over 18 million Twitter-users.2 Twitter would be used to update audiences about “mobile kiosk”. Twitter posts will also capture one person in each city who can consume/purchase the most burgers of the

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http://www.penn-olson.com/2009/09/16/facebook-hits-300-million-users-twitter-18/


14 | P a g e day. This individual will have their photo taken and uploaded immediately on to Twitter. This will generate a buzz and drive people to the Twitter-site. FACEBOOK: There are over 300 million Facebook users (and counting).3 According to a social media management company, 1 million Facebook fans have been calculated to provide $3.6 million in media value.4 Facebook would be used to update audiences about “mobile kiosk” with the use of Facebook Places. Branded “White Castle” video diaries on the road will be posted on Facebook (as well as Youtube). Each state will have its own video-diary that covers the people and the icons, landmarks, and opinions on the best burgers in town.

FOURSQUARE: Foursqure is a tactic that every marketer should use. It is a social media site that encourages users to “check in” to venues and leave tips and comments. Starbucks created a “barista” badge on Foursquare.5 White Castle can take a page out of this book and create a “burger” badge of their own. Badges will be awarded to those who attend “venues” that are linked to the “Chase the Craving” this campaign.

YOUTUBE: Users will generate content and submit their works (ie their favourite dressings per burger) on Youtube with instructional videos. The video with the most views will receive a special place in the cookbook. White Castle will post video-diaries about being on the road. These diaries are cross-posted onto Facebook, and contain bits and pieces about the journey and the people encountered. The Youtube channel will be located on www.youtube.com/chasingthecraving

MOBILE APP: By 2011, over 85 million mobile phones will have web-access.6 It becomes apparent that companies must learn to adapt to this technology and consider ways to communicate their brand through these new mediums. I propose a mobile application for White Castle. The mobile app will have three components: 1. Maps & review – This will inform consumers how far a White Castle is from their current position and will provide fastest route to take to get to the WC-destination. 2. News feed – Updates from White Castle on new menus, promotional deals. 3. Mobile Game – Called “Crave Castle”. This will involve daily Top 10 Rankings of White Castle consumers. Every time a purchase is made, consumers will scan a QR code at the counter and it will automatically add points to a tally-ing system. The 10 customers with the most points will be featured a the “Top Munchers” in this Crave Castle game. The mobile phone application will be free. It will be available on the White Castle website. This is an avenue of communication that will allow consumers to always be “connected” with the brand. 3

http://www.penn-olson.com/2009/09/16/facebook-hits-300-million-users-twitter-18/ http://www.penn-olson.com/2010/04/14/1-million-facebook-fans-3-6-million-in-media-value/ 5 http://www.penn-olson.com/2010/03/12/starbucks-embraces-foursquare-introduces-the-barista-badge/ 6 http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats#internet-phones 4


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CONCLUSION White Castle has been around for approximately 90 years. Unfortunately, the brand is not as iconic as McDonalds, which was born thirty years later. The White Castle brand has been resilient in adapting to the external environment and influences. Unfortunately, this has had a crippling effect on the brand equity, since the brand image has not been consistently fortified over time. White Castle needs to tighten up their marketing techniques and reach out to audiences in a way that will appeal and engage. White Castle needs to develop long term marketing strategies, as opposed to simply creating a means to an end. The proposed campaign is a way to revitalize the brand. The use of online media is an ideal way to launch the new campaign and is the ideal way to evolve the brand.

SOURCES: •

Braun-LaTour, K. & LaTour, M.S. (2007). Using Childhood Memory Elicitation to Gain Insights into a Brand at a Crossroads: The In-&-Out Burger Situation. Cornell Hotel and Restaurant Administration Quarterly 2007 48: 246

Chernatony, L. and McDonald, M. (1992), Creating Powerful Brands, Butterworth Heinemann, Oxford.

Hogan, D.G. (1999) Selling ‘Em By The Sack: White Castle, The Creation of American Food. NYU Press, New York

Parsa, H. G. & Khan, M. A. (1992). Menu trends in the quick service industry during the various stages of the industry life cycle. Hospitality Research Journal, 15(1), 93-107.

Parsa, H.G. & Khan, M.A. (1993) Quick-Service Restaurants of the 21 St Century: an Analytical Review of Macro Factors. Journal of Hospitality & Tourism Research 1993 17: 161

Parsa, H.G. and Kwansa. (2002). “Quick Service Restaurants, Franchising, & Multi-Chain Management” Haworth Hospitality Press. NY.

Smith, Andrew. (2006). Encyclopedia of Junk Food & Fast Food. Greenwood Publishing Group.

West, J. J. (1988). Environmental scanning, strategy formulation and their effect upon firm performance. Unpublished doctoral dissertation, Virginia Polytechnic Institute and State University, Blacksburg, VA


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