Burger King PPT

Service Marketing Story -
* Brief introduction on the company
* Product, Brand and Logo
* Understand the market plan of the respective firm
* Services marketing strategy
* Elements in the service offering and its relevance
* Identify the key issues and challenges
* Suggestions to overcome issues and challenges.

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INTRODUCTION
•BurgerKing(BK)isanAmericanmultinationalchainofhamburgerfastfood
restaurants.
•TheParentorganizationoftheBrandBurgerKingis“RestaurantBrands
International”.
•HeadquarteredintheunincorporatedareaofMiami-DadeCounty,Florida,the
companywasfoundedin1953byKeithJ.KramerandMatthewBurnsasInsta-
BurgerKing,aJacksonville,Florida–basedrestaurantchain.
•AfterInsta-BurgerKingranintofinancialdifficultiesin1954,itstwoMiami-based
franchiseesDavidEdgertonandJamesMcLamorepurchasedthecompanyand
renamedit"BurgerKing".
•In1957,the"Whopper"becamethefirstmajoradditiontothemenu,andithas
becomeBurgerKing'ssignatureproductsince.
•AsofDecember31,2018,BurgerKingreportedithad17,796outletsin100
countries.
•Thenumberofemployeesasof2020are2,00,000.

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PRODUCTS
Hamburgers
Chicken
French Fries
Soft Drinks
Milkshakes
Salads

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Brand and Logo
•TheBURGERKING®brandisthesecondlargestfastfoodhamburger
chainintheworld.TheoriginalHOMEOFTHEWHOPPER®,
theBURGERKING®systemoperatesmorethan17,800locationsinmore
than100countriesandU.S.territories.

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Market Plan
Porter’s 5 Forces
Competitive Rivalry or Competition (Strong Force)
BurgerKingcompeteswithmajorfirmslikeMcDonald’sandWendy’s.Thedegreeof
competitionisexaminedinthisaspectoftheFiveForcesAnalysismodel.Themain
externalfactorsthatcreatethestrongforceofcompetitiverivalryagainstBurgerKing:
•Highnumberofcompetitors(strongforce)
•Highvarietyoffirms(strongforce)
•Lowswitchingcosts(strongforce)
Bargaining Power of Customers/Buyers (Strong Force)
•ConsumerssignificantlyaffectBurgerKing’sperformanceandthequickservicerestaurant
industryenvironment.ThisaspectoftheFiveForcesAnalysismodelexplorestheinfluenceof
customersonfirms.ThemainexternalfactorsthatleadtothestrongbargainingpowerofBurger
King’scustomersareasfollows:
•Lowswitchingcosts(strongforce)
•Highsubstituteavailability(strongforce)
•Moderatepresenceofconsumerorganizations(moderateforce)

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Bargaining Power of Suppliers (Weak Force)
•Suppliersaffectthequickservicerestaurantindustryenvironmentthroughvariables
likepricingandsupplycontrol.TheimpactofsuppliersonfirmslikeBurgerKingis
consideredinthisaspectoftheFiveForcesanalysis.Thefollowingarethemajor
externalfactorsthatcreatetheweakbargainingpowerofBurgerKing’ssuppliers:
•Highnumberofsuppliers(weakforce)
•Highoverallsupply(weakforce)
•Lowforwardintegration(weakforce)
ThreatofSubstitutionorSubstitutes(StrongForce)
•SubstitutestechnicallycompeteagainstBurgerKing’sproducts.Thisaspectofthe
FiveForcesAnalysismodeldeterminestheinfluenceofsubstitutioninthefastfood
restaurantindustryenvironment.InBurgerKing’scase,thefollowingarethemain
externalfactorsthatcontributetothestrongthreatofsubstitution:
•Lowswitchingcosts(strongforce)
•Highavailabilityofsubstitutes(strongforce)
•Satisfactoryperformanceofsubstitutes(strongforce)

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ThreatofNewEntrantsorNewEntry(ModerateForce)
•NewentrantscandisrupttheperformanceofBurgerKing.Theeffectsofnewentryon
thefastfoodrestaurantindustryenvironmentareexaminedinthisaspectoftheFive
Forcesanalysis.Theexternalfactorsthatleadtothemoderatethreatofnewentrants
againstBurgerKingareasfollows:
•Lowswitchingcosts(strongforce)
•Moderatecostdisadvantage(moderateforce)
•Moderatecostofdoingbusiness(moderateforce)

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Objectives
•Better restaurant operations
•Branded affordability
•Menu variety and beverage choice
•Grow market share
•Maintain debt-to-capital levels to 35-40%
•Create long-term profitable growth for shareholders

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SWOT Analysis
Strengths
•BurgerKinghasverybrandawarenessgloballywitharound100branches
worldwideandstillexpanding.
•Itoffersdiversifiedproductlinewhichhelpsattractdiversifiedcustomers.
•Moreover,itisincreasingpopularityamongmiddleclasscustomersisraising
thenumberofloyalcustomersandrepeatedvisitors.
Weaknesses
•Thekeyweaknessesofthecompanyisadvertisingunhealthylifestyleand
menuitemsthatcreateobesityorotherdiseases.Thisingeneralisraisedas
concernofmanywhichsometimesaffectsthebusiness.
•ThenetworkofBurgerKingisexpandingataslowerpaceduetolackof
Franchisebusinesspreference.

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Opportunities
•A very obvious opportunity for Burger King is more expansion, working on
ventures or franchising business to cover major fast food markets in the
world.
•The other opportunity is introducing a healthy food line like salads, more can
be added like cholesterol control items that attract a lot of obese segment.
This will immensely increase the sales.
Threats
•Stern competition in this industry is quite a threat for Burger King. Because
one good product launch of a competitor can hit the business in one go. In
order to compete this, company has to think ahead of time and introduce
strategies and products accordingly.
•High food items cost is directly reflective on prices of the company especially
in inflation season. Thus this can also serve as a threat for the company.

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ServiceDistinction
•McDonaldsismorefamousthanBurgerKing,andtheformerhasawiderpresencethan
BurgerKing.
•WhengoingtotheMcDonaldsrestaurant,yougetqualityservice.Theyconcentratemoreon
thequalityoftheservicethanthespeedwithwhichthedishesareserved.
•WhencomparingMcDonalds’servicetoBurgerKing’s,theserviceatBurgerKingisfaster.
•BurgerKingisknowntoprovidethecustomerwithmanychoicesandalsotoprovidequicker
service.
•AtMcDonalds,theorderistakenbyanemployee,andthesameemployeeservesthedish.
However,atBurgerKing,theorderistakenatoneplace,andthefoodisservedatanother
place.
Vision
BurgerKing’svisionstatementis“tobethemostprofitableQSRbusiness,
throughastrongfranchisesystemandgreatpeople,servingthebestburgersin
theworld.”ThisvisionstatementdirectsBurgerKingtoachieveleadershipinthe
globalquickservicerestaurant(QSR)industryorfastfoodindustry.
Marketing Strategy

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MarketSegmentation
GeographicSegmentation:
•AsgeographicfactorstheyarelocatedinUSAsince1954.OnJune30,2004,Burger
Kinghadalmost7,976storesallaroundinUSA.
•Andmanyotherbranchesallaroundtheworld.
DemographicSegmentation:
•BurgerKingStarttousealogoin1955.
•IntroducingchildrentoBURGERKINGwiththefamousslogan,“BURGERKING®,
WhereKidsAreKing!”
PsychographicSegmentation:
•Dividingthecustomerbylowerssocialclassandworkingclass,whichtheywillbuy
theirmealinafastfoodrestaurantsquicklyandtakeawaytheirfoodthentheycan
abletobacktowork.

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Behavioral Segmentation:
•Dividing the customers by benefits, by speed and by economy, regular
occasions and regular users.
Target Market
•Age: 16-35
•Gender: Male & Female
•Economical conditions: Mostly target the people of high society, with high
income and will to pay.
Market Share:
•Our markets share is 4.6%.

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ProductPricing
•BurgerKing’spricingstrategiesareasfollows:Market-orientedpricing
strategy.
•Bundlepricingstrategy
ProductPlacementChannels
BurgerKingusestodistributeitsproducts:
•Restaurants
•Mobileapp
•Websitefordeliveries
BK’sProductpromotionchannels
•OnlineAdvertisement
•PrintmediaAdvertisement
•BillBoardsandPamphlet
•Salespromotions
•Personalselling
•Publicrelations

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Positioning Market
•BurgerKingusedtopositionthemselvessomewhattraditionallyasthe
numbertwobrand(competingwithnumberone,McDonald’s)–we
tryharder(“HaveitYourWay”),we’rebetter(“WhopperVirgins”
tastetest),etc.
•FernandoMachado,globalCMO,BurgerKing,saidatZeeMELT2019,an
annualadvertisingandmarketingsummit,heldinMumbai,onThursday.
•Machadoaddedthatbrand’spositioningcanbecondensedintothreekey
points.ThefirstonebeingthatBurgerKingisaperfectly‘imperfect’,brand.
Secondlythe‘crown’whichisaverypowerfulequity,spreadsthemessage
thateveryoneiswelcome.Lastly,thebrandrespectsindividualityandthisis
reflectedthroughitscommunication.“WeputpositioningattheCentreof
every single touch-point,” he added.

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Challenges and Opportunities
CHALLENGES
•Ineffective advertising
•Changing executives
•McDonald’s used “value” platform to gain market share.
OPPORTUNITIES
•Smarter target segmentation
•New product introductions
•Social media campaign

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