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MCDONALD'S INTRODUCTION
McDonald's fast food restaurant is one of the largest franchises in the United States as well as
aboard. Their top menu items include: hamburgers, cheeseburgers, McNuggets, and French
fries. They are also known for one of their popular desserts: the apple pie and their breakfast
sandwich: the Egg McMuffin.
There are more than 32,000 McDonald's restaurants serving in 117 countries. More than 75%
of McDonald's restaurants worldwide are owned and operated by independent owners.
McDonald's has several ethical and social responsibility policies in place throughout their
solely owned and franchised companies. These policies include placing the customer
experience at the core of what they do, committing to their employees by nurturing their
talent and rewarding their achievements, maintaining high standards regarding the conduct
for business, and giving back to the communities in which they are established. All of these
values are infiltrated through all levels of the company, which keeps McDonald's thriving as
a successful fast food chain restaurant.
Risk management is imperative to McDonald's. They have a risk assessment tool that they
use to determine the country risk: which pertains to the specific country/region they are
located in; industry risk: pertains to supplies produce; and facility risk: which is a
combination of both country and risk groundwork. These factors are all part of the risk
assessment tool that is used in each of their companies to help them with risk management.
Security features in McDonald's includes their security camera systems within the facilities to
continuously monitor all activity in and around the restaurants to ensure the safety for the
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workers as well as customers. McDonald's use these security cameras also in regards to
workers compensation claims or liability lawsuit claims from consumers. McDonald's also
monitors their computer software systems with an ACS system that monitors the
technicogical factors of their business.
EARLY HISTORY
During this time McDonald’s also introduced three features that would define its brand and
further public recognition. First, in 1963, the public face of the company was introduced, a
clown named Ronald McDonald; however, criticism over marketing to children and the
growing negative perception of clowns resulted in the company largely sidelining the
character in the early 21st century. Perhaps the most notable addition occurred in 1968, when
McDonald’s added the Big Mac to its national menu; the iconic hamburger went on to
reportedly become the company’s top-selling item after french fries. In addition, during the
1960s the chain refined its logo, eventually debuting the famous double-arch M design,
which became its enduring symbol and one of the most famous logos in the world; it was
inspired by the tall yellow arches that had dominated earlier McDonald’s restaurant rooftops.
These changes helped spurred McDonald’s growth. In less than 10 years after Kroc became
the sole owner of McDonald’s, the number of the chain’s outlets topped 1,000. Boosted by
these numbers, the company’s stock began trading publicly in 1965.
MCDONALDS MISSION
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McDonald's brand mission is to be our customers' favorite place and way to eat and drink.
Our worldwide operations are aligned around a global strategy called the Plan to Win, which
center on an exceptional customer experience – People, Products, Place, Price and Promotion.
MCDONALDS VISION
To be the best quick service restaurant experience being the best means roviding outstanding
quality service cleanliness and value so that we make every customer in every restaurant
smile
OUR VALUES
The backbone of our Brand is, and always has been, a commitment to a set of core values that
define who we are and how we run our business and restaurants.
When we live our values every day and use them to make decisions - big and small – we define
McDonald’s as a brand our people, and the people we serve, can trust.
Our values are the filter through which all business decisions are made because actions are
bigger than words.
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we place the customer experience at the core of all we do
The SWOT analysis is a process that a company undergoes to analyze the following aspects
Strengths,
Weaknesses
Opportunities
Threats
SWOT Analysis is a proven management framework that enables a brand like Mcdonald’s to
benchmark its business & performance as compared to the competitors and industry.
Following is the SWOT analysis of McDonald’s
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STRENGTHS OF MCDONALDS
Strength shows the aspects where McDonald’s is strong at and in which aspects it competes
with competition
According to Forbes and Interbrand, McDonald’s brand is the most valuable brand in the
world. McDonald’s has built up huge brand equity. With a brand value of $150 billion, no
other brand in the fast-food category is even close to McDonald’s.
TECHNOLOGY INNOVATION
Mcdonals is talking revolutionary technology to keep up with the market standards. Its
acquisition of Dynamic Yield is a step towards enhanced personalized marketing. It has
also adopted Internet access terminals, to reduce the amount of lag time between the order
and pick up of the order.
Mcdonald’s fries are considered one of the tastiest froes in the fast-food world. Come on
we all love it, don’t we? Apart from the existing menu, it keeps on updating its menu, by
adding new items like coffees, smoothies, and Angus Burgers.
WEAKNESSES OF MCDONALDS
Weakness are the aspects where a company is weak and where a company needs to improve
to sustain
HIGH EMPLOYEE TURNOVER
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McDonald’s has around 210,000 employees. However, the employee turnover rate is still
high. Many quit their jobs, due to the low pay or high work pressure. Lack of employee
satisfaction is causing the company reputational harm.
The Franchise business model in fast-food restaurants comes with its disadvantages. This
can expose the brand to certain risks, as they have no control over their day-to-day
performance.
SUPPLY CHAIN
McDonald’s is one of the most popular fast-food chains in the world, it has the busiest
food chain due to which it has to limit the availability of food items These interruptions
result in more operational expenses and thus reduce profits
Opportunities are the aspects where a company can work before the competitors to get an
added advantage to its side
GROWTH OF THE FAST-FOOD INDUSTRY
This is one of those industries that have the potential to develop. Launching more items
according to geographical conditions can help McDonald’s maintain their charm for a
longer period. Due to a change in eating habits. Mcdonald is very popular in the US, it
should prepare an international strategy to expand in Asian markets.
LOW COST
The low-cost menu can attract lots of new customers. Having a meal at Mcdonald’s is a
kind of big deal for the middle class or lower-middle-class families.
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Currently, while everyone is focusing more on health and avoiding fast food as they are
presented as junk food, while other fast food units are struggling with profits, McDonald’s
can rebuild their brand as a Healthy fast-food chain to regain the trust of their customers
HOME DELIVERY
McDonald has started doing Partnership with Ubereats which helps them reaching to the
customers and meeting the everchanging customer needs
THREATS TO MCDONALDS
Threats are the aspects from which a company need to be protective and to use the strengths
to overcome them
HIGH COMPETITIONS
We have seen above how Mcdonald’s faces fierce competition from national,
international, and even local retailers of food products. Although
Mcdonald’sMcdonald’shighest market shares, it only takes one strong marketing strategy
to shift consumers from one brand to other.
MORE HEALTH-CONSCIOUS CONSUMERS
Ever since the Covid wave hit us, more and more people are shifting towards a healthy
diet. This change in eating habits can affect the revenue of the business. If Mcdonald’s
wants to maintain its market share, it can up with more healthy food items.
CULTURAL PREFERENCES
While operating in different countries McDonald’s needs to make sure that they fulfil the
cultural preferences in that particular country
For example, McDonald’s stopped selling beef products in India as Indians believe cows and
buffaloes as spiritual animals
Now that we have analysed the SWOT Analysis of McDonalds let’s jump to the conclusion
and recap what we have understood.
CONCLUSION
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Mcdonald’s is a popular food chain of all times. It is well versed to make use of advantages
and has the right strategies to capture the market.
But despite the company’s continuous growth, it needs to keep in check the aspects which
can cause trouble. McDonald’s will keep winning the market and hold to the first position in
the fast-food industry if it continues to leverage its strengths.
Thank you for reading this case study on the SWOT Analysis of McDonalds. If you found
this blog useful do share it with your friends and help them learn as well. To read more such
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Commonly used in traditional marketing, extended marketing mix, also known as the
7 Ps of marketing (Product, Place, Price, Promotion, People, Process, Physical
Evidence), can also be applied to digital marketing.
To get an idea of how the marketing mix is used in the real world, read this case study
of what the 7Ps look like for McDonald's restaurant chain.
PRODUCT
McDonald's is best known for its range of burgers such as the cheeseburger and the
Big Mac, and their French fries.
The fast-food restaurant allows its customers to buy individual items or purchase a
meal that includes a drink.
In addition to its traditional menu, McDonald's offers a range of hot and cold
drinks such as tea, coffee and milkshake. The dessert menu includes the chain's
famous Apple pie, McFlurry ice cream, and more.
The modern menu is very different from the first McDonald's Franchise restaurant's
menu, which included only a handful of items.
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HOW MCDONALD'S PRODUCTS CHANGED OVER TIME
What was on the original McDonald's menu
How the menu changed over time
What influenced the changes
When brothers Richard and Maurice McDonald's opened their 'McDonald's Famous
Barbeque' restaurant in California in 1940, little did they know that their small
business would go on becoming a global brand. The original restaurant served more
than forty barbequed items. However, the brothers soon realised that most of their
profit came from selling hamburgers. So in 1948, they redesigned their restaurant
by implementing assembly line principles for speedy food preparation and started
selling a limited number of items, including hamburgers, cheeseburgers, potato
chips, cold drinks and coffee. The following year, the chips were replaced
by French Fries and Triple Thick Milkshake was added to the menu.
The Happy Meal was created to bring in more families with small children and was
added to the national menu in 1979. It comes with a small toy or a book along with
food.
McChicken sandwich was first introduced in the US in 1980. However, after failing
to meet expectations, it was removed from the menu and replaced by
chicken McNuggets in 1983. McDonald's eventually brought McChicken back in
1988. In 1996, it was replaced in the US with the Crispy Chicken Deluxe. But once
again, McDonald's started reviving the McChicken in 1997. Currently, McDonald's
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restaurants all over the world serve an extensive range of chicken burgers and
wraps.
In addition, the chain has recently introduced their first Vegan Burger,
the McPlant, in selected restaurants.
PLACE
McDonald's became a corporation in 1955 and has been growing ever since. There
are now over 37000 McDonald's restaurants in more than 100 countries. The design
of McDonald's restaurants differs from country to country and even city to city.
However, the yellow arched letter M logo remains the same around the world.
PRICE
Offering an extensive range of food items, McDonald's has different prices for
different products.
Having branches all over the world, McDonald's also works with multiple
currencies.
Another pricing strategy the chain uses is Bundling, offering a discount on the
purchase of a full meal to encourage customers to spend more money.
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PROMOTION
In-store promotions include the saver menu, limited-time offers on certain items
and the Happy Meal, which includes a toy along with a smaller sized meal, to
attract families with young children.
PEOPLE
McDonald's restaurants employ over two million people worldwide, making the
chain one of the largest employers in the world. McDonald's refers to its staff
as crew members. The crew members are responsible for food preparation,
customer service, cleanliness, and hygiene.
PROCESS
McDonald's makes sure that customers are served as fast as possible, whether they
buy food in one of the chain's many restaurants, use a drive-thru, or
order McDelivery.
PHYSICAL EVIDENCE
The fact that you can find McDonald's restaurants all over the world, including in
unusual locations, such as the desert near the Dead Sea in Israel, is clear evidence
of the chain's success.
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McDonald's branding on their product packaging, such as drink cups and French
fry and burger boxes, is another evidence of the restaurant's success.
SEGMENTATION
mcdonalds respect different culture of different countries it bring changes in its menu
according to the culture, country and customers
mcdonalds has introduced mc spaghetti to its menu and in the middle east it has introduced
mcarabia
in European countries mcdonald even sell a draft beer as part of drinks with their food
in few countries mcdonalds facilitate senior citizens with a gold card (free coffe and tea)
like in Pakistan it gives free mini cones (ambrosesmith,2016)
TARGETING
Mcdonalds main target audience is children,youngsters ( free wifi) mcdonalds has recently
updated its menu which served breakfast
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Its served all day breakfast on the fact it might lose its breakfast lovers
POSITIONING
mcdonalds is fighting to poition its brand against its competitors which includes kfc,
subway, burger king.
mcdonalds has used advertising through social media and billboards as their mainstream
to position its brand against its compititors
NBA themed cup ,toys ,collecting cards and even a burger named after Michael Jordan
called mcjordan
.
Mcdonalds current slogan is I’m lovi’n it. And now it’s a word of mouth ( devin ,
November 5, 2014)
BRAND ELEMENT
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From colours of yellow and red, to advertisement and its layout to its bright menu and
chairs table to the way customers in macdonalds behave nicely there are many brand
elements which contribute towards making mcdonalds an admired brand
1. BRAND IDENTITY
Mcdonald’s brand identity is one of the key factors behind its global success. It seamlessly
operates its chain all over the world because people are familiar with it and already know what
they’ll expect from it.
This level of trust and dependability is the result of its strategic brand positioning and
consistent theme.
Mcdonald’s has created a certain image in its audience’s mind to connect with them on a
deeper level. It deliberately adds emotional elements in its advertising to position itself as a
family-oriented brand.
Look at its copywriting and commercials.
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From the “I am loving it” slogan, its distinct mascot, to its product packages, all emphasize
happiness, taste, and community.
Its consistent theme in all its branding further strengthens its identity.
No matter which branch you visit, you’ll find the distinct golden arches, red boxes, and a
similar friendly atmosphere in all its franchises.
The consistency makes its restaurants recognizable and provides a sense of comfort to its
audience.
TakeAway
Your brand identity gives a face to your company. It makes you authentic, credible, and
unforgettable.
It also allows you to personalize your services and offer a unique shopping experience to your
customers.
2. PRICE STRATEGY
Mcdonald’s main target market consists of middle to lower-income groups. Since this
customer segment has low purchasing power, they tend to gravitate towards the restaurant
that offers cheaper options.
While Mcdonald’s meals are inexpensive, so do any other fast-food brand.
How does it attract customers, then?
It uses psychological pricing strategies to make them appear even more inviting.
If you ever plan to go over to the restaurant next time, check out its entire menu.
You’d notice, Mcdonald’s almost always displays features deals for its customers,
irrespective of the occasion.
This is its bundle discount sales technique to incite impulse purchase and upsell its low-
demand items at the same time.
So, when people have the option to buy a Big Mac and drink for $5 or take a combo meal
with fries for $6, they most likely would prefer the latter.
There is one other psychological trick McDonald’s frequently uses in its price strategy.
It rates its item in decimals instead of the whole number.
The method is based on the idea that people will perceive the item as inexpensive if you
tag it as $3.90 instead of $4. While technically, there never is much difference between the
two, it works all the same.
TakeAway
Psychological pricing strategy provokes an emotional response from your potential buyers
and influences their buying decision.
You can use it to increase your product appeal and drive customer satisfaction.
Another thing that helps McDonald’s win more sales is its clear value proposition.
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VP is a summarization of the benefits your product offers to your buyers. It tells your
audience what makes you a better option and why they should choose you over your
competitor.
McDonald’s is one among many that provide low-priced, high-quality fast food. To
increase its product value, it instead focuses on its strength—which is convenience and
comfort.
With drive-thru, pick up, McDelivery, and mobile app, it has made it easier for its
customers to place their order without waiting in line. It also uses third-party services like
Uber Eats and free delivery feature to further facilitate the buyers.
With the ease of ordering, Mcdonald’s attract tons of customers and generate a high
volume of sales.
TakeAway
People only buy items that offer them value. The benefits they get from your product are
what drives them to come back for more.
Use that to your advantage and create a clear value proposition. It will help you make your
products more appealing to your audience, drawing them towards your brand.
4. PERSONALIZED EXPERIENCE
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5. DISTRIBUTION STRATEGY
Mcdonald’s has, in its life, employed two growth strategies that became the turning point
for the brand, leading it to where it’s today.
One was introducing a happy meal as mentioned above, and another was pursuing
franchising.
Franchising was McDonald’s first successful expansion decision that kick-started its
growth and built its brand outside its business territory. It helped Mcdonald’s cater to a
diverse market and made it easier for it to launch lucrative services like a 24-hour open
door option.
It has worked so well, nearly 93% of its restaurants are operated by independent
franchisers today.
It now not only makes most of the money from its franchises, but also gathers deep
customer insights on its foreign target market to introduce new flavors.
TakeAway
Franchising is a distribution method in which companies grant product selling rights to
another party for profit cuts or royalty. It increases your brand awareness, allowing you to
reach areas you can’t typically access due to limited resources.
Large enterprises frequently go for franchising for this very reason. With it, you can scale
your business without incurring risks that usually come with expansion.
Mcdonald’s has been around for 66 years, during which, it has faced tons of challenges often
associated with changing trends. But it has always bounced back from it because of its
readiness to upgrade its strategies to meet the ever-changing consumer demands.
For instance, in the mid-nineties, when take-out services were an emerging trend, the
McDonald’s brothers redesigned their restaurant to include a drive-thru in their restaurant.
As Post-war altered consuming habits, it focused on fast service to accommodate customers
accustomed to instant meals.
When coffee trends bloomed, it launched McCafe to target a new market.
As people began to adopt a healthy lifestyle, it introduced salad and a healthy menu.
Mcdonald’s has, over the years, made several changes to keep up with its consumer’s needs. It
leverages the current trends and social movements to connect with its prospects and convert
them into paying customers.
It is how it stays at the top and maintains its position.
TakeAway
People’s shopping behavior often changes with the trend.
By keeping pace with their expectations, you can forecast your audience preference and bring
a fresh idea to retain your customers. It will help you withstand the transition period and
sustain your business.
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7. DIVERSE MENU
Mcdonald’s matches its menu items with the geographical location and people’s taste.
What it serves in New York is entirely different from what its Singapore franchise offers to its
customers. Even within the same country, its special deals and menu vary according to where
it’s situated.
Do you know why?
Adapting its menu to local taste allows Mcdonald’s to cater to a diverse market.
A versatile menu is part of its globalization strategy that involves offering both standard
products and extra items to grab the attention of local customers. Through it, Mcdonald’s
delivers a consistent experience worldwide and at the same time attracts the locals
It also serves another purpose.
By offering different menus, it publicly declares its support for cultural diversity to strengthen
its global image.
TakeAway
Adapting your strategy to your target market’s lifestyle is critical in ensuring the success of
your business expansion.
It helps you deliver a clear brand message without misinterpreting people’s preferences or
making cultural blunders.
McDonald’s shares its brand values globally, mainly through its product features. But you can
replicate the same tactic in your digital campaigns as well.
8. TRANSPARENT MARKETING
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CONCLUSION
If I sum up Mcdonald’s marketing strategy, I would say its entire model revolves around its
mission statement—to make delicious feel-good moments easy for everyone.
Think about it.
It offers multiple delivery options to provide quick service.
It has franchises to meet consumer demands. It shares consistent branding and a clean
restaurant layout to make people comfortable.
Every touchpoint it creates in its marketing funnel is focused on achieving its company’s
mission.
This is the secret behind McDonald’s massive success.
American global chain of hamburger fast food restaurant is known as Burger King. It is the
world’s second-largest hamburger fast food restaurant chain after McDonald which estimated
to have 15,243outlets at 100 countries in September 2016. The founder of the company is
Keith J. Kramer and his wife's uncle, Matthew Burns in 1953 atJacksonville, Florida was
known as Insta-Burger King. In 1954, after they ran into a financial problem, itwas purchased
by David Edgerton and James McLamore where later on change the name as “BurgerKing”
instead. It was officially owned by David Edgerton and James McLamore since then and
theheadquarters were located in Miami Dade-Country, Florida, and United States. Their
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products have expanded from the basic offers of burgers, french fries, sodas, and
milkshakesinto a hugely diverse set of products where it was known as the “Whopper” so-
called Burger King'ssignature product. It became the first major addition to the menu which
they try to improve on.
Howevertheyfailedtocatchholdinthemarketplaceduringintroducingduetothevarietyofproducts
Unfortunately, it was not a failure at all because it succeeded in foreign markets because they
alter the menu based on the regional tastes which grab the consumer’s attraction and interest
Plus, they also use demographics which they choose a certain age of individuals which
mostly male by providing them with larger products. This is because men usually carry
largeamountsofunhealthyfatsandtrans-fatsandits correspondingly meet the demand and the
supply of their companybutitwilleventuallyaffectthecompany's
financialunderpinningbecauseofanegativepartonits
earnings.Afterrealizingtheirmistakesintheprevious
menu,thecompanystartedtochangetheirmenuby introducing new items to their menu that
would help them maintain in the market in the long-term.
Burger King was discovered Keith J. Kramer and his wife's uncle, Matthew Burns in
Jacksonville, Florida in 1993. Before Burger King was named, it was known as Insta-Burger
King. The initial stores were centred on a chunkofkitcalledthe Insta-Broilerandit wasvery
effectiveatcookingburgers.Theyneedalloftheir franchises
toholdthedeviceduringtheirfranchising growth because it was a success While the
Jacksonville chain kept expanding, both of them,James McLamoreandDavid Edgerton were
seekingachancetoopentheirownbusiness.AfterJames McLamore visit the initial hamburger
which is belong to Dick and McDonald in San Bernardino, California, he sensing potential in
their innovative assembly line-based production system and he decided to open a similar
operation James McLamore and David Edgerton acquired a license to operate an Insta-
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Burger King franchise and opened their first location at 3090 Northwest 36th Street in Miami
on 4 December 1954. The pair had stores at several locations within the Miami-Dade area
and operations were growing at a fast rate in
1959.However,thepartnersdiscoveredthattheinsta-broilerunits’
heatingcomponentswereliableto degradation from the drippings of the meat patties. Both of
them eventually created a mechanized gas grill that avoided the issues by prepare the meat
patties a special method within the unit. The new unit worked so well that they made the
decision to exchange all of their Insta-Broilers with the newly designed unit.
The group ran into financial problem even though the original Insta-Burger King had rapidly
expanded throughout the state and its operations totaled more than 40 locations by 1955. By
1959, James McLamore and David Edgerton purchased the national rights to the chain and
renamed the company as Burger King of Miami Beside the flame broiler, since become
closely associated with the chain the company added two more features during this period of
time. In 1955, it was first created a mascot and then they invented “Whopper” which
knownastheirsignaturesandwichwhereit had beencreated in1957byJames McLamore. He
trusts that the success of the rival product was its size so he devised the Whopper. The name
was chosen because he felt that it conveyed “imagery of something big” and they made its
first advertising in the new medium of television with commercials for the chain in 1958.
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Burger King Strengths
The strengths of Burger King looks at the key aspects of its business which gives it
competitive advantage in the market. Some important factors in a brand's strengths include its
financial position, experienced workforce, product uniqueness & intangible assets like brand
value. Below are the Strengths in the SWOT Analysis of Burger King :
Burger King is a hugely popular brand name in the fast food industry with a high
brand loyalty
Burger King serves close to a billion burgers every year globally
Product differentiation is focused of the brand based on geography and demographics
The brand has grown globally by opening in new geographies as well as creating a
localized menu
Burger King has a strong brand equity in fast food segment world over
More than 20,000 people are employed with the brand
Burger King is present at more than 15000 locations in more than 70 countries
The annual revenue of the company is more than $1.5 billion
The brand has also introduced a loyalty program to target its repeat customers &
provide them with an additional incentive
Burger King's sales have increased with the growth of online food ordering & home
deliveries
The weaknesses of a brand are certain aspects of its business which are it can improve to
increase its position further. Certain weaknesses can be defined as attributes which the
company is lacking or in which the competitors are better. Here are the weaknesses in the
Burger King SWOT Analysis:
. Alleged high fat and high calorie food not good for health conscious people
.Intense competition means limited market share growth for Burger King
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The opportunities for any brand can include areas of improvement to increase its business. A
brand's opportunities can lie in geographic expansion, product improvements, better
communication etc. Following are the opportunities in Burger King SWOT Analysis:
. Expanding home delivery options for customers can really boost Burger King's sales
. Open new branches and outlets at new locations can help the brand grow
geographically
. The company can advertise more and give discounts to capture new market
. Product improvement & innovation by tailoring it as per tastes of people around the
world can boost Burger King's business worldwide
The threats for any business can be factors which can negatively impact its business. Some
factors like increased competitor activity, changing government policies, alternate products or
services etc. can be threats. The threats in the SWOT Analysis of Burger King are as
mentioned:
Threat from other eating joints & restaurants, which can impact Burger King's market
share
Health concerns among general public regarding fast food
Food costs are rising higher than standard inflation which lead to decline in margins
PRODUCT
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As a fast food hamburger restaurant (FFHR) chain, Burger King produces, hamburgers,
cheeseburgers as well as Fries, Salads, Hash browns, Onion rings, Coffee, Juice, Shakes,
cookies and pies.
Burger King sets itself apart from competition with its “have it your way” theme which
allows individualize each orders with many options including fries or onion rings, cheese,
bacon, mustard, ketchup, mayonnaise, lettuce, tomato, pickles, and onion.
The nation’s No. 2 burger chain will add Starbucks Corp.’s Seattle’s Best Coffee to all its
U.S. restaurants in a phased roll-out that begins in the summer of 2010. Under the effort,
more than 7,000 Burger King Restaurants will begin selling the coffee along with iced
varieties that also come with a choice of plain, vanilla or mocha flavors and whipped
toppings.
Burger King has signed a licensing deal with ConAgra Foods Lamb Weston which will
result in offering a retail line of microwaveable Burger King Brand French fries at select
retailers in the United States, including Wal-Mart.
PRICE
Burger King plans to sell slushy drinks for $1 leading into the summer in order to offer an
alternative to McDonalds $1 summer drink.
The company also will continue to sell its new premium burger, the Steakhouse XT, for
$3.99 through mid-September, with another national television ad splash planned in
August.
PLACE
Burger King operates its business via franchises, under a franchise arrangement, the
franchisees invest in the equipment, signage, seating and decor, while the company owns
or leases the land and building. The company generates revenues from three sources: sales
at company restaurants, royalties and franchise fees and property income from those
franchises that lease or sub lease property from the company.
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PROMOTION
Burger Kings Big Value Menu $1 Talent Show invites customers to display their talent via
videos they submit with the goal of winning a menu item.
The company has coined the term “next best move” to feature scheduled promotional tours
with stops in urban communities around the country. The effort is augmented by a special
website where
Participants can describe community service contributions.
Burger King is backing its biggest product launch of the year, the Tendercrisp Premium
Chicken burger, with a promotion theme encouraging consumers to “cheat on beef”’.
The campaign began in March of 2010 using ads created by Crispin Porter & Bogusky.
PROCESS
A Burger King strategy has focused the customer segment that spends the most money at
its restaurants. These young men and women visit fast-food burger chains on average
almost 10 times per month.
The company has employed a combination of “loss leader” promotions” coupled with
upsells of more expensive menu items, specifically higher-margin French fries and soft
drinks.
Recently Burger King has concentrated on adding restaurants and entering new strategic
markets. They have added over 400 new restaurants in the last three years.
The company seeks to further growth and popularity via its innovative marketing
promotions such as the King television commercials.
PHYSICAL EVIDENCE
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Burger King, based in suburban Miami, Florida, operates more than 11,900 restaurants in
all 50 states including 107 in Alabama, 122 in Arizona, 336 in Michigan and 547 in its
home state of Florida.
Burger King has an internet presence via its website BK.com. The site provides company
information such as a video history of the company, press releases, and stock information.
The company is in the process of reinventing its image via key changes in its decor. Its
new restaurants will feature modern, box-like architectural lines and urban-industrial
building materials, including corrugated metal.
PEOPLE
John W. Chisley is Burger King’s Chief Executive Officer and Executive Chairman of The
Board. He has served in the CEO capacity since 2008.
Alexandra Galindez the director of multicultural marketing for Burger King and in charge
of implementing its “Next Best Move” initiative, which seeks to strengthen its standing in
urban communities by conducting a national tour to community basketball courts in 41
markets.
In 2009 Black Enterprise magazine named Burger King one of the “40 Best Companies for
Diversity.”
Burger King pairs its “have it your way” theme with speedy customer service. To facilitate
fast service Burger King takes customer orders on a continual basis. After an order is
taken, the customer then moves down the line where another employee is preparing the
order. Meanwhile, the original employee is taking another customer’s order. Customers
also get their own drinks while they are waiting for their meal.
MARKET SEGMENTATION;
Firstly BK restaurant appeared in the US.BK main target market is male audience from 18
to35 years old, but now BK focus started to women and children as well.
However targeting thekids has not become burger king key strategy. Basically burger king
target young adults whowant tasty food, quick service and a good environment.
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International expansion now the keytargets of the company BK wants to enter different
market before it becomes too tough because in economic difficulties business environment
is not always welcoming. This will behelpful to increase overall sales of the burger king.
MARKET TARGETING
Burger King are utilizing concentrated targeting, it means dressed ores on functioning
manydemands of a peculiar client group. This is aiming the demographic group with
immature egrownup market. Notably among immature males which they do non watch
telecastingcommercial and surfing on cyberspace all the clip. They are willing to seek new
things.Burger King merely aim on section within the entire market
MARKET POSITIONING
Burger King had aiming immature grownup market, particularly immature males
market.They position Burger king providing high-quality, great-tasting, and low-cost
nutrient.Burger King provides better service quality with the similar pricing and more
assortment pickof nutrient than McDonalds. Burger King UK released a new ad on the
event of Christmas,where the ‘King’ gifts an extra-special gift to the clown. Campaigns of
Burger king have been amusing and quite fierce for its competitor.
In 2015, Burger King proposed that the two chains combine “the tastiest bits of Big Mac
andtheir Whopper, united in one delicious, peace-loving burger” which they would sell on
PeaceDay, September 21. The proceeds of which, would be donated to Peace One Day, a
nonprofitthat provides educational resources to thousands of schools in 131 countries.
McDonald’showever, disregardedBurger King’s proposal to create a McWhopper for
peace.
LINE OF BUSINESS:
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.Royalties in terms of fees paid by the franchisees as a percentage of total sales made
Due to the presence of various local, national and international fast food chains, it
is becoming difficult for the company to increase its customer. In developing nations, it is
toughfor the companies in this industry to increase the market size due to several factors like
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National Breakfast Day promo; During the promotion period, every customer whovisits
any Breakfast Store during Breakfast hours shall be eligible to get a free Veg.McMuffin
or Egg and Cheese McMuffin. McDona
breakfast activation by serving more than 315,000 McMuffin sandwiches tocustomers all
over the country. On March 17, 2014, starting at 6:00 AM,
allparticipating McDonald’s breakfast stores nationwide are joining the c
elebration tosay “thank you” to its customers who start their day at McDonald’s.
Each participating McDonald’s breakfast store will be giving away free McMuffins to the
Customers are loyal because Mc had pleased Customers with variety of Menu, HappyMeal
and Mc café
IRRELEVANT MARKETING:
BK marketing was based on customers of 18 to 34 years and itsadvertisements were based on
this segment only. Its marketing strategy was to focus onentertainment of its customers and
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the main thing was missing due to which customers stopwatching its advertisements because
it was irrelevant. The idea seemed to be that funny adscould attract and keep their target
customers. But now, due to changes in the U.S. economyand culture, BK is losing many of
these customers.
CUSTOMER FOCUS:
Part of the problem is they are not giving customers what they want. Whiletheir
competitors added lighter and healthier items to their menus, BK relied on an adcampaign
and more of what they thought customers wanted. Now that people are eatinghealthier, the
goofy ads and bigger burgers are not a strong enough draw.
LIMITED MENU:
BK has a wide range of products in its menu but still there are many productswhich can
also be added to attract the customers but BK is not working on it, its main focus isonly on
its Burgers it has wide range of burgers but it is losing its customers because it is
notworking on other segments like deserts.
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MCDONALD’S VS. BURGER KING
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The average royalty revenue per McDonald's franchisee restaurant is significantly higher
compared to Burger King, since the former serves more customers per restaurant, given it
shigher market share.
McDonald's is also piloting its "Experience of The Future" stores where orders can be
placedvia kiosks, saving time and making it easier for customers to personalize their orders.
While both Burger King and McDonald's are likely to launch their mobile ordering platforms
thisyear.Restaurant Brands International, on the other hand, appears to be lagging behind in
menuinnovation, introduction of healthier menu options, and technology initiatives. Burger
King ismuch smaller in size compared to McDonald's thus has a greater growth and
expansion potential. However, it appears that the company is not able to keep pace with McD
onald'smenu and technology innovations and hence is unlikely to gain market share and grow
at afaster pace in the next few years
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Best fries and best burger from a burger chain.
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BRAND BATTLE OF MCDONALDS VS BURGER KING
The war between two of the biggest food chains, Burger King and McDonald’s has been
going on for ages. In fact according to reports, the term ‘burger wars’ as coined in these
venties after a series of competitive advertising campaigns launched by the two chains.
McDonald's customer base is much wider than that of Burger King with 28,000 franchised
stores spread worldwide ranging from developed markets to developing nations in
comparison to Burger King's 13,000 franchised restaurants in selective developed markets.
McDonald’s and Burger King both are working to introduce different business strategies
to be the market leader in fast food business in UK. Both companies have many future planw
hich can help to increase customer satisfaction for example, in MC the company is planningto
focus on different market segments like kids adults and older customer segment. On
the basis of demand and expectations of different segment the company is working onappropr
iate menu and balance food with keeping in mind the health of its customers. If we talk about
burger king they have mentioned that they are focusing on customer complaints management.
The company plans customer survey on regular basis and take corrective action in the entire
Burger King system to reduce number of complaint and to increase customer satisfaction.
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CONSUMER PREFERENCES TOWARDS BURGER KING AND
MCDONALD’S.
Customers also have higher expectations in terms of the food production process. As a result
of demands for better ingredient quality and less animal cruelty, companies have already been
forced to adapt. Consumers are also requesting lower prices, causing many stores to
offer discounts and deals
. McDonald’s started offering breakfast all day after years ofpressure from customers.In
1994,McDonald’s first step out and it attracting people from past 20 years.it is one of themost
love fast food chain. The reasons why people are loyal towards McDonald’s that
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It has easiest accessibility to the main market make it first choice as compared with burger
king.
The customers indicates that their preference is based on service quality and attractive
packing they get at McDonald’s
It is noted that McDonalds customers remember its menu by heart they said that they do
not need any menu before ordering.
The amount of customers at Burger King are still however a drop in the ocean of
McDonalds crowd. Burger king consumers know the fact that its outlets are less
packed than McDonald’s which makes the takeout experience less onerous
Burger King definitely packs more flavor category, it is said that the Burger Wars arenot
just about tasteit’sabout the overall experience and the strategies in the background.
Being an established global brands MC and BK can continue to be therivalry to each other
in the market.
Burger king believes that complex ideas ruin the overall brand image too many it emsin
menu make customers confused, provide less quantity and varieties but maintain the
quality
Your customer are your assets if you are ignoring them they think that you are only
concerned about profit, during 2010 MC work was much better than burger king and
people negatively portrayed burger king to compete in the clown’s market however in
last five years BK came up as an extra ordinary growing brand beating popular fast food
chains. Today we see great response by brand they made a positive move by focusing on
their branding and customer loyalty.
McDonald’s has been recruiting and hiring people to ensure quality product and services,
McDonalds has been providing training to staff to develop employee knowledge and skills
to gain highest quality standards and deliver customers atisfaction
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alsousing customer satisfaction tracker known as customer experience program, According to
store manager it is one of the most unique approach of measuring customer satisfaction,
these programs are helpful to investigate and analyze customer experience, it is also helpful t
oretain existing customers and attract new customers. In addition, information collected
through this program helps BK to focus on the organization operational aspects of food
quality, cleanliness and speed of the service etc, these tracking programs directly feedback to
entire BK in real time.
When it comes to value, Burger King offers the best deal for the buck since you getmore
burger.
If customers want to eat burgers then BK is the best choice but if customer is
healthconscious then MC is best choice
SIMILARITIES;
Both use expended product portfolio
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CONCLUSION;
According to my report I think the better fast food chain is McDonalds. Today there is better
technology which helps to manage the resources more effectively.MC is very strong fast food
chain in the world as in its maturity stage it has more growth opportunities. It can also
introduce new products. McDonalds is planning to open more outlets in more countries.
Although in McDonald’s there may be more problems than Burger King but the fact
is there cannot be a perfect one in the world. burger king is also trying to compete
McDonalds it might be possible that burger king is better in many things but still McDonalds
is on number one fast food chain in world because of its strong background and more
importantly due to strong customer loyalty.
RECOMMENDATIONS:
Based on the analysis we can conclude that; to perform better and to achieve their objectives
the company should start working on solving their internal issues first.
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SUGGESTIONS AND RECOMMENDATIONS FOR BK AND MC
TO INCREASE CUSTOMER SATISFACTION:
The company should focus on the current trends in fast-food markets and thus focuson the
demands and expectations of the customers of different segments;
The company must be committed to deliver or offer quality products and services tothe
customers as well as the company have to offer competitive price of their foods;
It is important to develop and implement different business strategies in line with
customers’ feedback and suggestions, so the company should carry out marketresearch and
collect customers’ feedback and suggestions on regular basis; and
The company should build strong relationships with customers through focusing ontheir
economic, social and psychological perspectives.
QUESTIONNAIRE
How often do you visit fast food restaurant?
Everyday
Few times a week
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About once a week
Few times a month
Once a month
Less than once a month
What comes as your first choice when you want to have a meal in fast food restaurant?
Mcdonald’s
Burger king
Other
what do you think will be the number 1 restaurant among all of its competitors ?
Mcdonald’s
Burger king
Other
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Overall quality of Burger King [RATING]
5
4
3
2
1
Not visited
Age group
Below 10
10-18
18-28
Above 35
Occupation
Student
Employed
Unemployed
Other
Name
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Classification No. of responses percentage
everyday 5 5
Few times a week 19 19.4
About once a week 27 27.6
Few times a month 25 25.5
Once a month 13 13.3
Less then once a month 9 9.2
Interpretation
From the above table it can be inferred that 5% of the respondent visits fast food restaurant
everyday, 19.4% of the respondent visits few times a week , 27.6% of the respondent visits
once a week, 25.5 % of the respondent visits few times a month, 13.3% of the respondent
visits once a month and 9.2 % of respondent visits less than once a month
It can be concluded that most of the people visits once a week
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Mcdonald’s 16 16.5
Burger king 50 51.5
Both 22 22.7
none 9 9.3
Interpretation
From the above table it can be inferred that 16.5% of the respondent belief mcdonald’s
provide better offers and discounts , 51.5% of the respondent belief burger king provide
better offers and discounts, 22.7% of the respondent belief both of them provide better offers
and discounts,and 9.3% % of the respondent belief none of them provide better offers and
discounts,
It can be concluded that most of the people belief’s burger king provides better offers and
discounts.
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Interpretation
From the above table it can be inferred that 13.1% of the respondent belief mcdonald’s
provide healthier food , 42.4% of the respondent belief burger king provide healthier food
32.3% of the respondent belief both of them provide better healthier food,and 12.1% of the
respondent belief none of them provide healthier food .
It can be concluded that most of the people belief’s burger king provides healthier food
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Interpretation
From the above table it can be inferred that 20.4% of the respondent’s first choice is
mcdonald’s when they want to have a meal , 63.3% of the respondent first choice is burger
king when they want to have a meal, and 16.3% of the respondent first choice is other
It can be concluded that most of the respondent’s first choice is burger king when they want
to have a meal.
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Interpretation
From the above table it can be inferred that 8.1% of the respondent’s likes their services ,
42.4% of the respondent’s likes their quality/taste of food ,36% of the respondent’s likes
convenience , 9% of the respondent’s likes speed you get your food and 4% of the
respondent’s likes other things . from their favourite fast food restaurant
It can be concluded that most of the respondent’s prefer quality/taste of food .
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Interpretation
From the above table it can be inferred that 24.5% of the respondent belief mcdonald’s will
be the number 1 restaurant , 64.3% belief burger king will be the number 1 restaurant and
11.2% of the respondent belief other restaurant will be the number 1 restaurant among all of
its compitiors .
It can be concluded that most of the people belief’s burger king will be the number 1
restaturant among all of its competitors.
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Interpretation
From the above table it can be inferred that 12.1% of the respondent has given 5 as a rating to
the mcdonald’s , 39.4% has rated 4, 35.4% has rated 3 , 6% has rated 2 , 2 % has rated 1 and
5 % of the respondent has not been visited Mcdonald’s
It can be concluded that most of the respondent has rated 4 to the , mcdonald’s .
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Interpretation
From the above table it can be inferred that 41.2% of the respondent has given 5 as a rating to
the mcdonald’s , 28.9 % has rated 4, 18.6% has rated 3 , 4.1% has rated 2 , 2 % has rated 1
and 5.2 % of the respondent has not been visited burger king
It can be concluded that most of the respondent has rated 5 to the , mcdonald’s .
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Interpretation
From the above table it can be inferred that 0% of the respondent age is below 10 , 10.2% of
the respondent belongs to the age group between 10-18 , 65.3% of the respondent belongs to
the age group between 18-28 , 20.4% of the respondent belongs to the age group between
28-35 and 4.1% of the respondent age is above 35 .
It can be concluded that age group between 18-28 visits fast food restaurant more.
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Interpretation
From the above table it can be inferred that 54.2% of the respondent are students, 37.5 % the
respondent are employed , 5.2 % of the respondent are unemployed and 3 % respondent are
other .
It can be concluded that students visits fast food restaurant more.
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