Burger King Final

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1.

Executive Summary
Market analysis of Burger King its success factors, SWOT analysis and competitiveness. McDonalds and
KFC are taken as direct competitors in the report, how they manage their product and service quality, how
they taking competitive priority on each other and which systems and approaches they following to
satisfy their customers where expectations of the customers are very high and changing their needs
rapidly. The target market here is demographic 18-22 undergraduate students. Burger King is the second
biggest cheap food cheeseburger chain after McDonald's. Burger King's nonexclusive methodology
bolsters its competitive advantage on cost, pricing and products features. According to consumer’s
perception burger king is affordable and has good quality food. Much like many quick service chains, its
menu has since grown to include options such as breakfast, dessert, and signature menu items. However,
its business model is successful and the company has managed to retain its leading position among QSR
brands. Rivalry in the inexpensive food industry has become higher and separated from the market
driving worldwide brands, there are some local brands competing with Burger King. There are many
chances of development and market penetration for burger king and the industry is full of opportunities.
2. SWOT
The Crucial Success Factors (CSFs)
Burger King has competitive advantage in cost leadership and broad differentiation (Gregory, 2017)
Burger King competes on the basis of product choice, service & quality, convenience (Bhasin,
2018) Burger King is one of the examples of extremely well-known and highly successful fast food
brands providing speed, affordability, predictability (Xaxx, 2019)
2.1 Identifying 3 CSFs
1. Speed
2. Broad Differentiation
3. Affordability

2.2 Competitive Strength/Weaknesses


Speed:
Speed is key to keeping the line moving—and customers coming back.
Chain Average time in seconds
Burger King 193.31
KFC 218.95
McDonald's 273.29

Burger King has the fastest drive-thru service in the country followed by KFC & then McDonald’s.
(SeeLevel HX, n.d.) However in terms of the in-place orders the reviews from tripadvisor.com comes
positive. These days, Burger King is amongst the most valuable quick service brands in the world with a
value of over seven billion U.S dollars in 2019. (Lock, 2020)
Broad Differentiation:
McDonalds and KFC fries their burger while Burger King fire-grill its burgers which make the burgers
taste differently so there’s a difference in how food is cooked. Burger King’s moderate
differentiation (e.g., grilled burgers) is a strength based on market penetration (Thompson, 2017) as it
allows the company to ensure uniqueness of some of its products as compared to KFC and
McDonald’s because they are not offering grilled burgers. But it is easily imitable and limited
product mix is a weakness because others can easily add grilled-burgers to their menu.

Affordability:
In terms of the price of food, Burger King, KFC and McDonald’s are pretty close, at least in terms of
set meals. However, if we were to look at just ordering items ala carte from the value menu, BK would
definitely emerge the winner with items like coke float, taro turnover and more going for as low as
$0.95. The runner up would be McDonald’s with their value items priced from $1 onwards,
followed by KFC. (Team, n.d.)
2.3 Opportunities and Threats from Micro Environment:
Opportunities
Burger King's chances require new methodologies, particularly for expansion and market advancement.
(Thompson, 2017) Health conscious customers: Although burger king had made its restaurants Trans-
fats free. Healthy menus with new flavor additives which is low in fat will attract more people. (Bhasin,
2018) Installation of Drive through kiosks as BK still use old way. (Team, n.d.)

Threats:
1. Intensive competition from the competitors with new products as BK’s menu is imitable
and limited. (Thompson, 2017)
2. Rise in the raw material prices may affect the industry by increasing costs. (Bhasin, 2018)

3. Targeting
3.1 Buyer Personas

Adam
21 years old
Arts Student
Loves to socialize
Often goes out and want variety of food for himself and his friends
Sarah
20 years old
Student and does Part Time job
Enjoys to have a fast dinner or lunch due to her busy routine.
Can continue it in everyday routine.

Jessie
18 years old
A cheap thrill seeker
Fast food consumer who wants the most fun out of her meal.
Usually at weekends

 Johan
 19 years old
 Less worried about health than price
 Tend to have erratic eating habits as food is cheap and convenient to pick up
 Frequently

If you visit a Burger King, you will see all sorts of people – men, women, groups, individuals, higher and
lower incomes but the biggest challenge now is capturing this new generation of consumers that are
coming in, the younger 18-24 demographic. (Machado, n.d.) The target audience of burger king includes
the thrill seekers, the junkies and socializers (co, et al., n.d.) Girls ordering smoothies in the fast-food
restaurant and having a break with chatting friends. (Perch, 2019) As the reference group has a great
impact on people Burger king can also target people of different segments such as fans of different public
figures, players, actors through promotional ads, it is also seen that their followers usually make choices
according to their favorite role models.
3.2 Perceptual Map:

High
Quality

Mc
B

Low cost High cost


Low Quality
The popularity of BK ( based on reviews ) is due to its focus on food quality and customer satisfaction.
According to consumer’s perception burger king is affordable with low prices, and has good quality food.
(nintendofan126, n.d.) Although the food is healthier at both Burger king and McDonald’s, having the
slight difference in calories whereas KFC has higher calories (Chavan, 2014) The consumer group of
burger king is interested in quality products and reasonable pricing. (Young, 2017) BKs sales are as high
because the company serves high quality, good tasting and affordable food (Pratap, 2019) Moreover the
prices have no big difference they are almost close to each other but burger king has low prices among
McDonald’s and KFC.

4. Promotion recommendation:
 Marketing methodologies that tends to the organization's worth and buyer's basic beliefs
 BK is the second place food leader, they are able to turn their attention toward improving
their (SWOT)
 BK should focus on consumers’ who are age 30 and under demographic.
 Burger King can enhance business sales by broadening their understanding of consumers’ desires.
 Customers’ preferences related to food and dining have changed a lot BK needs to follow how
their needs are changing and accordingly update their menu.
 Healthier menu and shift towards vegetarian products is also a challenge to faster expansion of
fast food brands like Burger King.
 Burger King can attract existing customers because it is very cheaper than attracting new ones.
 Using large scale advertisement Burger King can also attract non-users to eat burgers.
References
Bhasin, H., 2018. Marketing91. [Online]
Available at: https://www.marketing91.com/marketing-strategy-burger-
king/ [Accessed 31 July 2021].
Chavan, P., 2014. The Health Site. [Online]
Available at: https://www.thehealthsite.com/fitness/mc-donalds-kfc-calories-healthy-options-
251262/ [Accessed 31 July 2020].
Gregory, L., 2017. Panmore Institite. [Online]
Available at: http://panmore.com/burger-king-generic-intensive-growth-
strategies [Accessed 31 July 2021].
Machado, F., n.d. Contagious. [Online]
Available at: https://www.contagious.com/news-and-views/insight-and-strategy-behind-
burger-king- moldy-whopper-advert
[Accessed 31 July 2020].
nintendofan126, n.d. The top tens. [Online]
Available at: https://www.thetoptens.com/reasons-why-burger-king-is-better-than-
mcdonald/ [Accessed 31 July 2020].
Perch, D., 2019. The Social Grabber. [Online]
Available at: https://thesocialgrabber.com/target-markets-of-mcdonalds-kfc-and-
burger-king/ [Accessed 31 July 2020].
Pratap, A., 2019. Stats-tic. [Online]
Available at: https://statstic.com/swot-analysis-of-fast-food-brand-burger-
king/ [Accessed 31 July 2020].
SeeLevel HX, n.d. QSR Magazine. [Online]
Available at: https://www.qsrmagazine.com/drive-thru/2018-drive-thru-study-speed-
service-0 [Accessed 31 July 2021].
Team, G. F., n.d. Goody feed. [Online]
Available at: https://goodyfeed.com/mcdonalds-vs-kfc-vs-burger-king-which-is-better/
Thompson, A., 2017. Panmore Institiute. [Online]
Available at: http://panmore.com/burger-king-swot-analysis-
recommendations [Accessed 31 July 2021].
Xaxx, J., 2019. Chron. [Online]
Available at: https://smallbusiness.chron.com/key-elements-success-fast-food-industry-
24913.html [Accessed 31st July 2021].
Young, J., 2017. Panmore Institute. [Online]
Available at: http://panmore.com/burger-king-stakeholders-csr-
analysis [Accessed 31 July 2020].

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