May 16, 2008
BY ANY MEASURE IT REMAINS ONE OF THE INDUSTRY’S ALL-TIME ODDEST food promotions, the Krystal chain’s www.chilicheesification.com Web site. It was launched in 2005 as a viral effort to attract attention to the chain’s cheese- and chili-topped menu items. Once there, one encounters what can only be characterized as the bizarre. Here are college students on a Slip ‘N Slide, playing Twister, and basking in a child’s wading pool, in each case slathered from head to toe with chili and shredded cheese.
"I didn’t get it either," confesses 50 year-old Fred Exum, CEO of the Chattanooga, Tennessee, headquartered, Krystal chain. "In fact, the marketers told me that if I got it they probably hadn’t done a very good job. It did help drive sales though. I got that."
These days Exum and Krystal Vice President of Marketing Brad Wahl are reflecting upon the state of the Krystal brand as the chain, the second-oldest still-operating major quick-serve concept in the U.S., prepares to celebrate its platinum anniversary. While Exum and Wahl might be forgiven a nostalgic walk down memory lane upon such an occasion, their vision is rather firmly locked on today and tomorrow and only a bit on yesterday. The success of Krystal, famed throughout the South for its tiny mass-consumable hamburgers, is tied to a continually evolving mixture of youthful relevance and genuine brand passion.
Wahl conveys the "Aha!"of the Krystal brand when he talks about being a regional outsider who arrived at Krystal some five years ago and was soon involved in the creative development of television spots that involved interviewing students on college campuses. In an industry where so much of the marketing sense comes from a focus on product and price, it knocked Wahl over the head that there was such passion for the Krystal brand. Young people truly love the role that Krystal plays in their lives, reports Wahl, and it was obvious this was "gold from a marketing standpoint" that needed to be captured.
Nowadays, most all of Krystal’s marketing is designed to capture the charmed relationship between the 16- to 24-year-old demographic and the youthful craziness brought about by a welcoming environment where one can, at any hour of the day, join friends and consume burgers by the bagful. From one of the industry’s coolest Web sites to free music downloads to wireless Internet connections to key participation in popular youth-oriented culture like the uncut version of Borat, and the hosting of the Krystal Square Off World Hamburger Eating Contest, Krystal almost gleefully presses its edgy advantage. That edge is derived from strategy and tactics that not only seem but that are in fact relevant to the key demographic.
"I’ve come to understand," Exum says , "that making something relevant to young people means making it relevant and real in their terms, not ours. So many companies that go after this market tend to seem manipulative and phony. It’s like they are trying too hard."
Exum is certainly aware that he is talking about a 75-year-old brand with loyal customers of all ages. "The real marketing trick is making yourself relevant to young people without alienating older people, which is a real high-wire act." Nevertheless, Exum says, the feedback from older customers regarding the chain’s largely youthoriented marketing has generally been that "they like it." It seems to remind them of the place Krystal held in their affections when they were young and had all that energy.
At the same time, though, Exum is also perfectly content building a brand that meanders away from the mainstream. Pointing to the flavor profiles of some new products as well as the marketing direction, Exum lauds the principle of boldness. The Krystal vision, according to Exum, is hardly about being everything to everyone.
"It’s a polarizing brand," Exum says, "and when you love it, you’re so passionate about it. I’d much rather have products that are polarizing than a brand you can be agnostic about. I understand not everybody is going to get it."
Those who really get it have found themselves enshrined in the recently created Krystal Lovers Hall of Fame. From stories of weddings and anniversaries catered by Krystal to the story of the enormous and arduous lengths taken by some to obtain a Krystal "fix" to the story of one customer who has eaten 12 Krystal hamburgers and two orders of fries for lunch every day for the past 26 years, there is more than enough to inspire brand envy in any competing executive. Recently, the Krystal chain has taken to honoring its Hall of Famers by putting their pictures and stories on packaging, although Fred Exum wryly says that some ill will has been created by people who are upset when they are not included.
That led to Exum and Wahl’s decision to not have the chain’s 75th anniversary marked by a big birthday celebration.
"Every year is a celebration of Krystal lovers," says Wahl. And besides, how much relevance does a 75th birthday have for a group of customers pumped enough to appreciate a good game of Chili Cheese Twister?
