Burger King, a well-known brand for its tempting burgers as well as its out-of-the-box marketing strategies and techniques. The second-largest burger brand globally made a late entry in the Indian Food Chain market, but its success has been laudable. So much that, within just 5 years of entering the Indian market, the Miami-based burger joint went public and released it’s Initial Public Offering (IPO) on 2nd December 2020.
Today, as soon as the IPO of Burger King India opened, it was oversubscribed within a few hours of opening. According to the news of Money Control, the IPO was subscribed 2.1 times by 11.30 am IST, whereas the retail portion was oversubscribed 11 times. Burger King received bids for Rs. 15.82 crore equity shares against an IPO size of Rs. 7.45 crore equity shares, as per the data available on National Stock Exchange (NSE), India.
As the IPO received such a booming response, we tried to find out the reasons behind this craze through our marketing lens, let me also show you what we saw. Let’s get started,
Extensive Press Coverage
The most initial and important factor that helped Burger King IPO in capturing the attention of the masses was its extensive press coverage. From the time Burger King’s IPO was in discussion till the time it was seeking approvals for issuing IPOs and till now, when the bidding is open and also IPO is oversubscribed. This extensive press coverage by Indian media made Burger King’s IPO a topic of discussion on every corner of the streets, especially during Thanksgiving weekend.
Word of Mouth
The second reason behind the hype of Burger King India’s IPO is the word of mouth. As it is said, Words spread faster than fire, the views of stock market experts during the discussions gave positive word of mouth to the investors.
The positive word of mouth gave people confidence, which traveled amongst the majority of the investors like a wave, and people believed the statements as they were made by their trusted sources.
Later, the statements from the bulls and wolves of the Indian stock market acted as an assurer for the insurer and made Burger King’s IPO a favorite buy for them.
Impact of Content Marketing
As this IPO has already gained the attention of many investors because of press coverage and word of mouth, content marketing added more fuel to the fire. Press and Media agencies were already publishing content to build more authority on their news coverage, financial advisors and investment agencies joined them with their content marketing channels. Financial Advisors and Investment agencies smelled the desire of the audience to learn more about Burger King and its upcoming IPO, so they started publishing content with the views of their experts which were also positive. These contents made investors more eager to invest in this IPO, and the only thing they were waiting for was for the biddings to open. Views of investment influencers acted as a cherry on the cake of the craze of investors.
Conclusion
Over Subscription of Burger King’s IPO is a commendable thing with respect to the financial sector but it also has many marketing lessons to learn. The most important thing that we should notice here is that the trust that was built amongst the audience was one of the major factors behind this remarkable bidding on Burger King IPO on the first day, two days of bidding is still pending. Marketing with a balanced approach where your customers turn into your brand advocates can do wonders.
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