Nandini Project ON MCD

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A PROJECT REPORT

ON
“COMPARATIVE STUDY ON
McDonalds AND BURGER KING”

Submitted in partial fulfillment for


the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION


DEPARTMENT OF BUSINESS ADMINISTRATION
SESSION (2021-2022)

Under the guidance of Submitted by:


Mrs. ARVEEN KAUR NANDINI SINGH RANA
Assistant Professor Roll no. 0503738
Batch: BBA 2022-23

Dr. VIRENDRA SWARUP INSTITUE OF COMPUTER STUDIES, KANPUR


AFFILIATED TO
C.S.J.M. UNIVERSITY, KANPUR
ACKNOWLEDGEMENT
This project is our professional experience that enriched our knowledge to a great extent. During
the course of our project, we had the good fortune of being guided by Mrs. Arveen Kaur who with
all her magnanimity supervised the project report through all its stages.
I have benefitted a great deal from her intensive analysis critical suggestions. Our special thanks
to all our faculties for their help in numerous ways, which deserve adequate experience on this
page.
In the end we would like to say that it was a great experience working on this project.
Preface
A professional course (Bachelor of Business Administration) is incomplete unless the theoretical
knowledge acquired in the classroom is backed up by practical exposure. Practical exposure was
gained by market survey, which has been an integral part of the syllabus.
I was assigned a project “Comparative study on Mcdonalds and Burger King”. I have tried my
best to be as systematic as possible and to avoid any sort of biasness.
Student Declaration
I Nandini Singh Rana student of BBA (2020-2023) and Dr. Virendra Swaroop Institute of
Computer Studies, Kanpur of hereby declare that the project work entitled a study on the
“Comparative study on Mcdonalds and Burger King” is compiled and submitted under the
guidance of Mrs. Arveen Kaur. This is my original work whatever information furnished in this
project report is true to the best of my knowledge.
Name: Nandini Singh Rana
BBA 2nd Year
Roll no. 0503738
Table of Content
SR No. Title Pg. No.
1. Cover Page
Acknowledgement 1
Preface 2
Student Declaration 3
College Certificate 4
Table Of Content 5

2. Chapter 1: Introduction

1.1 Introduction of the topic


1.2 Industry Profile
1.3 Company Profile & SWOT Analysis

3. Chapter 2: Literature Review

4. Chapter 3: Research Methodology

3.1 Research Problem


3.2 Research Objectives
3.3 Research Design
3.4 Sampling (Population, Sample Area, Sampling Technique,
Sample Size & Sampling Unit)
3.5 Research Hypothesis
3.6 Data Collection (Data type, Sources of data, Description of the
Questionnaire)
3.7 Scope of the study
3.8 Limitation of the study

5. Chapter 4: Data Analysis and Findings

6. Chapter 5: Conclusion and Suggestions

5.1 Suggestions and Recommendations


5.2 Conclusion

7. References (Bibliography) 57
8. Annexure (Questionnaire) 58-60
Chapter 1: Introduction
1.1 Introduction of the topic

This project is based on the comparative study of Mcdonalds and burger king. Both are the
leading fast-food businesses in India and other countries. Fast food is one of the most common
businesses in developed countries because it takes less time to prepare and delivering to the
customers. In today’s ever-increasing globalization of services and brand service-oriented
businesses such as fast-food restaurants need to gain the loyalty of their customers. Fast food
restaurants, along with fast-casual restaurants, make up a segment of the restaurant industry
know as Quick Service Restaurants (QSR). This segment accounts for more than 50% of sales in
the entire restaurant sector. While Quick Service was once dominated by fast food, fast casual
continues to gain market share. McDonalds and burger king are in direct competition with each
other and gain customer loyalty because customer loyalty is becoming key issue and concern for
business particularly for fast food business it is used for measuring the organizational
performance of a business. The battle between McDonald's Corporation and Burger King
represents one of the great rivalries. For more than 60 years, McDonald's has been the trailblazer
that set the standard by which all other franchises operated. With rapidly growing middle-class
population and changing lifestyle, India is blessed with one of the Fastest growing fast-food
markets of the world. The Indian fast-food market is growing at the rate of 30-35% per annum.
almost all big fast-food brands of the world have succeeded in making their presence felt in the
country and most of them are posting appreciable growth. Consequently, all the popular fast-food
chains have chalked out massive plans for expanding their business and presence throughout the
country. Moreover, foreign fast-food chains are aggressively increasing their presence in the
country.

According to “Indian fast food market analysis”, Although the market has witnessed a robust
growth in the past couple of years, it remains largely under penetrated and concentrated in two
metropolitan cities. However, there is large room for growth in tier-2 and tier-3 cities, which are
mostly untapped. Day 4, the future of Indian fast-food industry lies in masses that live in Tier 2
and tier three cities. This research is based on comparative analysis of fast-food joints in India,
mainly McDonald's, and Burger King.
1.2 Industry Profile

The food service industry encompasses all of the activities, services, and business functions
involved in preparing and serving food to people eating away from home. This includes all types
of restaurants from fine dining to fast food. It also includes institutional food operations at
locations such as schools and hospitals, as well as other specialty vendors such as food truck
operators and catering businesses.

Trends in Foodservice Industry


Trends are new practices or conditions that point to the way things will be in the future Current
trends
• Globalization of cuisine
• Technological developments
• Sustainable practices
• Home meal replacement

Global Cuisine -Global cuisine is a blend of ingredients and cooking techniques from around the
world. Today’s dinners are rarely limited to local dishes and food products. Restaurateurs and
chefs are constantly exploring the world of food for new and interesting items to put on their
menus. Diners are traveling and trying new foods, and through exposure to media they are being
introduced to new foods and cooking techniques

Technology- Computers allow foodservice professionals to create spreadsheets and word


processing. Computer programs allow servers to take and send orders to the kitchen. Video
technology allows chefs to monitors more than one area at a time. Managers use cell phones and
walkie-talkies to maintain contact with staff throughout a large facility. Technology has made
kitchen equipment more accurate and efficient with programmable cooking cycles

Sustainable Practices- Concerns about the Earth, and going “green”. The number of products
used and waste created by the industry has a large impact on the environment. Sustainable
products and practices can be produced or carried out over a long period of time without a
negative effect on the environment. Organic foods are grown without manmade fertilizers or
pesticides and from animals who have not received antibiotics or hormones. Recycling waste-
recycling, composting. Energy efficient appliances
Home Meal Replacements- Given the increase of dual-earner households, working longer hours
and hectic schedules, home meal replacements have become more popular. Home meal
replacements are meals that are consumed at home but prepared somewhere else. Restaurants
offer carry out meals. Dinner stations offer places to make numerous meals, take home to freeze
or use. Dinner stores offer meals already made and frozen, which can be taken home reheated
and eaten. Can also be bought in stores.

Different segments of the food service industry

The foodservice industry is divided by the level of customer service performed and includes-

• Full Service
• Quick service
• Eating and Drinking Place
• Retail Host

Quick Service Restaurant

Quick service restaurant (QSR) is a restaurant which offer certain food items that require
minimal preparation time and are delivered through quick services. Typically, quick service
restaurants or QSRs cater to fast food items over a limited menu as they can be cooked in lesser
time with minimum possible variation. QSR restaurants are known to have standardized,
modular and efficient processes which help them in reducing the lead times to fulfil the orders
but still maintain the quality expected by the customers. Preparation methodology and usage of
technology are pillars of a Quick service restaurant (QSR).

Quick Service Restaurant (QSR) Strategy

Quick service restaurants have much variety when it comes to the type of service they offer.
There are also drive-through restaurants, which do not offer any tables or seats but rather collect
the order and deliver it through a single counter. The orders are generally pre prepared and are
highly standardized with no room for customization. These types of businesses don’t rely on
margin over their services rather rely on the frequency of footfall. A key strategy used by quick
service restaurants is the bundle pricing. QSR combine their food items on the menu into a
bundle of complementary meals for example McDonald’s value meal of fries, a soft drink and a
burger. Usually, customers prefer these meals over individual food items as the former creates a
sense of value addition and diversity to their expenditure. For the retailers, they give attractive
discounts over bundled meals and set a substantial profit margin to lure from these offerings.

Types of Quick Service Restaurant (QSR)


Quick service restaurants generally function in a chains or franchises as they gain profit from the
number of footfalls they receive. Operating multiple stores enables them to harness the footfall
frequency from multiple locations and add to the company’s value. These restaurants often cater
to complementary food items or just a single class of food stuff for example Starbucks. Starbucks
offers beverage services along with light snacks which complements its taste. Similarly, Pizza
hut and Domino’s offer fast foods combined with light beverages. High degree of standardization
is required at a QSR to deliver quick services to the customers that includes:

1. Self service restaurants: the customers approach the counter and order. For receiving the order,
they collect it by their own from the counter

2. Assisted self service restaurants: places where either the order is collected at the table of the
customer or the food is delivered to the table of the customer

3. Full serviced restaurants: places where both the order placing and the food delivery are done
by the staff at the table
Examples of Quick Service Restaurant (QSR)
Some real-life examples of quick service restaurants are Mc Donald’s, Subway, Burger King,
KFC etc. Recent trends have shown a tremendous shift in the operations of local quick service
restaurants. With rising number of food delivery services, these restaurants have started
separating a division for food items which are cooked in bulk and then stored to be supplied to
the delivery services. This does not only give them an opportunity to earn margins by not
investing in the restaurant seating spaces but also provides brand marketing for their restaurant
brands.

QSR Market Report (2021)

During the FY 2016 - FY 2020 period, the QSR market increased at 17.27% and is expected to
reach INR ~827.63 Bn by FY 2025. QSR has gained popularity due to growing eating-out habits,
rising disposable income, changing lifestyle, and the online food delivery system's growth. Both
chain QSR and standalone QSR segments are expected to contribute equally to the market's
development during the forecast period. Major players operating in the Indian QSR market
include Burger King India Pvt. Ltd., Jubilant Foodsworks Limited, Burman Hospitality Private
Limited, Jumbo king Foods Private Limited, and many mores.

Impact of COVID-19

The pandemic and the prolonged global lockdown severely impacted the foodservice market in
India. In the middle of March 2020, the Government of India temporarily closed all hotels,
restaurants, and food courts across the country as a precautionary measure to contain the spread
of COVID-19. In response to the COVID situation, QSRs have increasingly turned to the food
delivery sector. Many foodservice companies have adopted take-away services to deliver safe,
hygienic, and customized orders to their customers.
Market segment insights

In FY 2020, chain QSRs held the highest market share (~54.2%) in India's overall QSR market.
An increase in consumers' propensity to eat out and a growing number of innovative fast-food
chains are the driving factors for chain QSRs segment.

Besides, innovative payment systems and point of sales systems are the primary factors for the
growth of the chain QSRs segment in the QSR market. Based on the model, the take-away and
home delivery segments are expected to expand at a higher growth rate of around ~18.0% and
~17.4%, respectively, between the FY2021 and FY2025 period as compared to dine-in segment

Key growth drivers of the market

• The increasing trend of eating out in urban cities in India, across all the economic classes,
without the need for any special occasion, has boosted the demand for QSRs. People
increasingly prefer eating outside as a part of their leisure outings or shopping
experience. This trend is mainly visible among the millennial age group of 25 to 40 years.
Moreover, with the growing exposure to international lifestyles and culture, people have
started developing their tastes and are eating out at restaurants more often to have
different cuisines
• Rapid urbanization due to the increase in population and economic growth and the rise in
disposable income of people have led to the penetration of eating out culture in the
country. Per-capita monthly income in India is estimated to have increased by 6.8% to
INR 11,254 in FY 2020 from INR 10,534 in FY 2019. Besides, an increasing number of
fast-food franchises in untapped areas and expansion of tier II and tier III cities have led
to the rise in the number of quick service restaurants.

Quick Service Restaurants Holds Major Share

India has observed a significant growth in Quick Service Restaurants (QSR) in the past 10-15
years. The concept of quick serving restaurants has been successful in the country due to shorter
lead times and quicker food consumption alternatives for the consumers. According to FICCI,
QSRs have the highest growth rate followed by casual dining restaurants in the country. QSRs
will be driving the growth based on the operating model, where centralized commissaries and a
robust supply chain will help in attaining deeper penetration in Tier II and Tier III cities. Foreign
brands that understand the needs of local consumers and adapt are more successful in India.
Pizza Hut has localized its flavor (its newest offering is biriyani pizza) and communicates this
message through rregularmarketing. On the other hand, Subway's chatpata chana and chicken
tandoori have a loyal following in the area, and the restaurant also makes an effort to segregate
the vegetarian and nonvegetarian serving counters, subject to space constraints.

Key deterrents to the growth of the market

Setting up restaurants in India is a very time-consuming and tiresome process since it requires
multiple government clearances. Apart from that, the lack of a skilled workforce is another major
challenge faced by quick foodservice providers, primarily in small cities and towns.
1.3 Company Profile

MCDONALD'S INTRODUCTION:

McDonald's is known to be the largest fast food restaurants franchises in the United States as
well as in the world.MC famous food items are hamburgers, cheeseburgers, McNuggets, and
French fries. It is also popular for desserts: the apple pie and their breakfast sandwich: the Egg
McMuffin. McDonald's current Chief Executive Officer is James Skinner. McDonald's is serving
in 117 countries with more than 32000 restaurants. McDonalds has 75% independent owner
worldwide. McDonald's is working on many ethical and social policies throughout its 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 practiced through all
levels of the company, which keeps McDonald's to be as successful fast food chain restaurant.
Risk management is crucial to McDonald's. They have a risk assessment tool that they use to
determine the country risk: which related to the specific country/region they are located in;
industry risk: related to supplies produce; and facility risk: which is a combination of both
country and risk groundwork. These all factors help the company to manage its risk.
To ensure the safety of its workers and customers McDonald's is providing security to them
which include camera system which continuously monitor all the activities within the restaurant.
McDonald's also monitors their computer software systems with an ACS system that monitors
the technological factors of their business.
MCDONALD'S HISTORY: Dick and Mac McDonald, the owner of MC started their business
as a small hand burger stand in Bernardino, California. And Mac wanted to enhance their
business so that they close it for three month and re-opened on dec,1948 which include drive
through, self-service driven restaurant, serving only nine items: hamburger, cheeseburger, potato
chips, milk, coffee, and slices of pie. In 1954 Ray Kroc, a salesman showed interest in the hand
burger business and sign a franchise agreement with Dick and Mac McDonalds, as he observe
they wanted to go on April 15, 1955 first MC franchise was opened. From that day to till now
MC successfully working on its Frenching business.

MCDONALD’S VISION "To be the best quick service restaurant experience". Being the best
means providing outstanding quality, service, cleanliness, and value, so that we make every
customer in every restaurant smile.
MCDONALDS MISSION “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. We are committed to continuously improving our operations and
enhancing our customers' experience.”

MCDONALD’S VALUES

• We place the customer experience all the core of all we do.


• We believe in the McDonald’s System.
• We are committed to our people.
• We operate our business ethically.
• We give back to our communities.
• We grow our business profitably.
• We strive continually to improve.

SWOT ANALYSIS OF MCDONALD'S


Strengths:

• McDonald’s has successfully rolled out new items with wide audience reach.
• Strong product offering.
• Operations are spread around the world.
• Successful brand name.
• Professional training for employees.
• Competitive price
• Operating in many diverse cultures.

Weaknesses:

• It will be harder to find prime locations to build a set of golden arches.


• Management of franchisee.
• High employee turnover rate.
• An increasing price of competition.

Opportunities:

• There are opportunities for new restaurants.


• Menu innovations are limited only by imagination.
• Low interest rates provide cheap capital for growth.
• Growing dining out market.

Threats:

• Governments are considering regulations targeting fast food.


• McDonald's faces competition. From local competitors.
• New products.
• More health-conscious customers.

Marketing mix for McDonald’s

Product: As consumer preferences changes frequently so McDonalds is keeping its offerings


according to customers demand. McDonalds offers variety of products to its customers includes
burgers, sandwiches, drinks, deserts, nuggets, filo-fish, salads, fries, beverages, shakes, cones,
McFlurry and Mccafé etc.

Price: McDonald’s offer bundle pricing with premium pricing for their consumers.

Promotion: McDonalds works a lot for its promotion for different targeted segment, starting from
kids' happy meal, it always attracts customers with famous Animated Movie characters of that time
for example Shrek, toy story etc. It also focuses on single person meals to family meals and created
share box. It uses associations and do great promotions related to different occasions and events
for example Cricket events, football events, Olympic events etc.
McDonalds uses Advertisements on television, billboards, brochures, newspapers to attract
customers and it does gorilla marketing in streets in a creative way that attract more customers.

Place: McDonald’s operates from busy places like famous shopping malls of cities, rest areas in
highways, busy roads etc. so that customers can easily visit the place.

Process: McDonalds maintains similarity in its processes from greeting customers, preparing fast
meals to delivering them timely, it tries to deliver efficiently. It cares a lot about cultural, legal,
health and religious needs of customers.

People: People at McDonalds include everyone who is directly or indirectly involved with
customers. Workers at McDonalds cares a lot of their customers from greeting them to delivering
orders they take great care of their services to customers.

Physical Evidence: McDonalds building appearance, interior decoration and painting, sitting
chairs, atmosphere, packaging of products, Comfortable, lively and fun-loving environment for its
customers all are included in physical evidence.

CONSUMER LOYALTY FOR MCDONALDS


• Mcdonald’s smile loyalty card
• National Breakfast Day promo; During the promotion period, every customer who visits any
Breakfast Store during Breakfast hours shall be eligible to get a free Veg. McMuffin or Egg and
Cheese McMuffin. McDonald’s will be celebrating the biggest breakfast activation by serving
more than 315,000 McMuffin sandwiches to customers all over the country. On March 17, 2014,
starting at 6:00 AM, all participating McDonald’s breakfast stores nationwide are joining the
celebration to say “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 first 1,000
customers at a first-come-first-serve basis – that’s over 315,000 hot and fresh McMuffins to be
given away nationwide via Dine-In, Take-Out, and Drive Thru.
• McDonald’s Focused on Attracting Local Customers with Mobile App
• Customers are loyal because Mc had pleased Customers with variety of Menu, Happy Meal and
Mc café

BRANDING AND BRAND LOYALTY OF MCDONALDS

Brand element

From colors of yellow and red, to advertisement and its layout to its bright menu and chairs table
to the way customers in MacDonald’s behave nicely there are many brand elements which
contribute towards making McDonald’s an admired brand.

McDonald's branding Strategy

• McDonald’s is so much popular among propel that I cannot think of one person that has
not eaten at MacDonald’s at least once in their life which prove that it has strong and
successful branding strategies
• The main strategy used by McDonald’s tis that it tailors its advertisement according to a
specific demographics so that the company could promote what will be highly successful
in one place that may not be as successful in another.
• Though, Macdonald’s advertisements stay memorable, exciting, fun, and repetitive
through their slogan: “I’m loving it.” In addition, there is a goldmine behind the
McDonalds Monopoly, which is a powerful prize-game and marketing technique running
since 1987.

McDonald's Main Business Strategy Was and Still Is Investing in Advertising & the
Franchise Model

• McDonald's spends approximately 2 billion dollars in advertising – targeting different


groups including children.
• McDonald's has three objectives for advertising: make people aware of the item, feel
positive about the item, and remember the item.
• McDonald's invested in advertising earlier in their establishment.

McDonald's Advertises Towards Children & Family

• McDonald's presented as a fun place to go with your family.


• McDonald's Created the Recognizable Icon of the Golden Arches

McDonald's Created the Recognizable Icon of Ronald McDonald

• In 1967, Ronald McDonald was introduced clown icon to appeal the children after this it
become more popular among American children than before.
• Ronald McDonald ranks second in terms of the most recognizable fictional character after
Santa Claus among U.S. School Children.

McDonald's Focuses on Customer Satisfaction

• McDonald’s gives specific training to its staff which include to be friendly with its
customers and served with a smile.
• McDonald's Operations Competitive Strategy focuses on cost, speed, and nutrition. They
prioritize making the customer “happy.”

McDonald's Make Customer More Satisfied with Fast Service


• McDonald's brothers "defined a totally new food service concept that include a Factory-
line assembly design to a commercial kitchen. They cut the serving time down from 20
minutes to 30 seconds.
• Ray Kroc who later took over McDonald's implemented having two separate windows for
drive-thru (one to pay, one to get food). This created a faster flow through drivethru which
decreased wait times.

McDonald's Creating a Clean Environment

• It is indicated that Ray Kroc when opening his first McDonald's it highly focuses on
cleanliness which included (crisp white button shirts, black slacks, and a paper hat).it is
still practiced in today.
• McDonalds focuses on clean bathrooms because it create positive image among customers.
• “Kroc was crazy about quality of food, fast service, good operations, and most intense
about cleanliness.”

McDonald's works on Higher Quality Products

• McDonald's has a strict regimen for safety and food quality standards. There have been
questions about chicken McNuggets, which McDonald's debunks
through their video. McDonald's works on Affordable Prices
• McDonald's found new ways to streamline the foodservice workplace and employ cheap
labor. For example, McDonald's utilizes self-service kiosks.
• McDonald's is the biggest purchaser of beef, pork, and potatoes in the United States. They
are second for the largest purchaser of chicken.it reduces the price they charge customers.
• McDonald's cutting back costs with encouraging more independence from the consumer
such as people serving themselves pop and throwing out their own trash.

One of the reason that driven McDonald's Success is their Relationship with Suppliers

• They work with their suppliers to develop and create new and innovative
products and processes.
• McDonald's Promises Loyalty in Business in Exchange for Innovation
• McDonald's reduced their costs by encouraging their suppliers to work on
latest technology to bring loyalty in business

The Secret to McDonald’s Global Branding Success

McDonald’s is currently ranked the 6th most important brand in the world and is one of the most
visited restaurants. The key to McDonald’s branding and marketing success is segmentation and
experimentation. They served in over 117 countries, feeding millions of customers every day,
McDonald’s branding success is unquestionable. McDonald’s is based on uniformity; no matter
what McDonald’s you are in the world you will always have the most iconic items. It is true that
the marketing and branding strategy of McDonald’s is based on uniformity, no matter where in the
world you will always be able to order the most iconic menu items such as the Big Mac.
McDonald’s fulfilled expectations with same kind of experience and atmosphere.

McDonald’s competitive strategy

McDonald’s is an industry leader in the fast-food industry. Its key competitive advantages have
included nutrition, convenience, affordability, innovation, quality, hygiene, and value-added
services. McDonald’s continuously overcome its weaknesses and embrace change. It needs to
reduce costs for operational efficiencies. It should integrate technology as a means of ensuring that
its key standards can be attainable. Burger King has been successful because it has been able to
focus on product diversification, reliable customer services, and continuous innovation.

Competitors:
SEGMENTATION, TARGETING AND POSITIONING OF MCDONALDS

Segmentation:

• Segmentation of McDonald’s market around the globe is based on the Demographic,


Geographic, and Behavioral segmentation.
• McDonald’ is attractive among children because on weekends and holidays it offer
children featured product like happy meals which is served with toys.
• McDonald’s restaurants include party rooms for children.
• Pricing of products in McDonald’s depends on the respective countries
• United States include dollar menu .
• MC Donald’s respect different culture of different countries it bring changes in its menu
according to the culture country and customers.
• Mc. Donald’s has introduced McSpaghetti to its menu and in the Middle East it has
introduced McArabia
• In European Countries McDonald’s even sell a draft beer as part of drinks with their
food.
• In few countries Mc. Donald’s facilitate senior citizens with a gold card (free coffee and
tea) like in Pakistan it gives free mini cones.
Targeting:

• McDonald’ main target audience is children, youngsters (free WIFI) . MC Donald’s has
recently updated its menu which served breakfast.
• Its served All day breakfast on the fact that it might lose its breakfast lovers

Positioning:

• McDonald’s is fighting to position its brand against its competitors which


includes KFC,SUBWAY, BURGER KING.
• McDonald’s has used advertising through social media and billboards as their
mainstream to position its brand against its competitors.
• Ronald McDonald House Charities (RMHC) is an independent nonprofit
organization whose mission is to create, find, and support programs that
directly improve the health and well-being of children.
• McDonald's utilizes Branding and Co-branding.
• McDonald's has found strategic ways to co-brand with major companies(Coca
Cola, Walmart, Walt Disney & Cadbury)
• NBA themed cups, toys, collecting cards, and even a burger named after
Michael Jordan called McJordan (Michael Jordan cups, Dennis Rodman cups
where his hair would change depending on the temperature)
• McDonald's Uses Catchy Phrases and Messages in their Advertisements
• McDonald's has 23 different slogans in the US from 1960 to now.
• Slogan is used to create a positive image in minds and Mc|Donalds is
excellent in it. McDonald's current slogan is “I'm lovin' it”. And now it’s a word
of mouth
BURGER KING INTRODUCTION:

After McDonalds Burger King Corporation Restaurant Company is the 2nd largest hamburger
chain in US. They are famous for flame-broiled fast-food hamburgers. Burger king has 14000
stores in more than 100 countries, headquarter is in Miami Florida. In 1954 by James W.
Mclamore and David Edgerton in Miami burger king was started. In 1953 a venture founded in
Jacksonville, Florida, by Keith Kramer and Matthew Burns. In 1959 Mclamore and Edgerton
sold their first franchise and it soon become national chain. In 1953 the company expanded
outside the US. In 1967 it was sold to Pillsbury company. In 1989 Pillsbury was itself acquired
by the British company Grand Metropolitan (Grand Met). In 1997 Grand Met became Diageo
PLC after its merger with the Irish brewer Guinness PLC. In 2002 Diageo sold Burger King to a
consortium of private equity financiers, namely the Texas Pacific Group, Bain Capital, and
Goldman Sachs Capital Partners. In 2010 3G Capital, an investment group controlled by the
Brazilian billionaire Jorge Paulo Lemann, took over the company in a leveraged buyout. By
2012, Burger King Shares were being sold to the public again, but 3G retained a controlling
interest. In 2014 Burger King Worldwide merged with the Canadian doughnut and fast-food
chain Tim Hortons, and a new parent company called Restaurant Brands International was
formed. In what some critics saw as a tax-avoiding “corporate inversion” move, Restaurant
Brands International was headquartered in Oakville, Ontario, Canada. In 1957 whopper was
introduced which is a large hamburger and Burger King’s signature product, at a time when its
competitor McDonald’s was still selling only small hamburgers. In 2016 burger king introduce
hot dogs.

HISTORY OF BURGER KING

• In 1954, Burger King Corporation was established by David Edgerton and James
Mclamore
• In 1957, the trademark burger of Burger King, the Whopper was introduced
• In 1958, Burger King began their first advertisement on the television
• In 1959, they began their franchise
• In 1967, Pillsbury bought over Burger King
• In 1970s, Burger introduced the first indoor and enclosed restaurant
• In 1977, the franchise was restructured by Donald N.Smith
• In 1981, Norman E.Brinker become the head of Pillsbury’s restaurant division
• In 1989, Pillsbury was acquired by Grand Metropolitan PLC
• In 1997 Grand Metropolitan merged with Guinness and was renamed Diageo PLC
• In 1997 seventy million dollars was spent on a French fry advertisement campaign
• In 2000 Diageo was considering the possibility of either selling the company or IPO
(Initial Public Offering)
• In 2002 Texas Pacific Group’s investors acquired Burger King
• In 2006, Burger King was publicly listed in the stock exchange
• In 2009, Burger King opened its 12,000th store at Beijing

Burger King Mission Statement


Burger King’s mission statement is to “offer reasonably priced quality food, served quickly, in
attractive, clean surroundings.” This mission statement indicates the kind of outputs expectable
from the organization. With regard to Burger King’s business, this mission statement has the
following main points: Reasonable prices Quality food Quick service Attractive, clean
surroundings

Burger King Vision Statement


To be the most profitable QSR business, through a strong franchise system and great people,
serving the best burgers in the world.

Burger King Values


• Teamwork and family
• Excellence
• Respect

BURGER KING SWOT ANALYSIS


Strengths:

• Strong brand image.


• High market penetration.
• Moderate differentiation of products.

Weakness:

• Easily imitable business


• Limited product mix
• Low control on franchise model

Opportunities:

• Diversification/product mix widening


• Market development
• Service quality improvement

Threat:

• Aggressive competition
• Imitation
• Healthy lifestyle trend

7P'S ANALYSIS OF BURGER KING

Product: 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 order with many
options including fries or onion rings, cheese, bacon, mustard, ketchup, mayonnaise, lettuce,
tomato, pickles, and onion. Burger king future plan that it will add Starbucks coffee to all its US
restaurants. Burger king sell coffee along with iced verities that will come along with different
flavors (vanilla, mocha flavors whipped toppings)
Price: BK set their prices according to MC. Pricing strategy of BK include profit maximization
Burger King recently joined McDonalds in offering a $1 double cheese burger. Burger King plans
to sell slushy drinks for $1 leading into the summer in order to offer an alternative to McDonalds
$1 summer drink.
Place: Burger King operates its business via franchises. 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. Burger King occupies primary locations.
Promotion: Through social media (direct media) 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. “Next best move” done by BK is at it feature scheduled promotional tours. Special website
where Participants can describe community service contributions. The company seeks to further
growth and popularity via its innovative marketing promotions such as the King television
commercials.
People: People refer to the customers, employees, management and everybody else involved in it.
It is essential for everyone to realize that the reputation of the brand that you are involved with is
in the people's hands. John W. Chisley is Burger King’s Chief Executive Officer and Executive
Chairman of The Board. Alexandra Galindez the director of multicultural marketing for Burger
King and in charge of implementing its “Next Best Move” initiative.

Process: 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.
Physical evidence: Burger King, based in suburban Miami, Florida, operates more than 11,900
restaurants in all 50 states. Burger King has an internet presence via its website BK.com. The
company is 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.

STP OF BURGER KING

Market Segmentation: Firstly BK restaurant appeared in the US.BK main target market is male
audience from 18 to 35 years old, but now BK focus started to women and children as well.
However targeting the kids has not become burger king key strategy. Basically burger king target
young adults who want tasty food, quick service and a good environment. International expansion
now the key targets 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
be helpful to increase overall sales of the burger king.

Market Targeting: Burger King are utilizing concentrated targeting, it means dressed ores on
functioning many demands of a peculiar client group. This is aiming the demographic group with
immature grownup market. Notably among immature males which they do non watch telecasting
commercial 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
pick of 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 and their Whopper, united in one delicious, peace-loving
burger” which they would sell on Peace Day, September 21. The proceeds of which, would be
donated to Peace One Day, a nonprofit that provides educational resources to thousands of schools
in 131 countries. McDonald’s however, disregarded Burger King’s proposal to create a
McWhopper for peace.

COMPETITIVE ADVANTAGE IN THE MARKETING STRATEGY OF BURGER KING


Strong parent company: Restaurants Brand international being the parent company has helped
the Burger King in utilizing their capabilities and the infrastructure support which is helping the
company in achieving its goals and objectives.

Line of business: Burger King generates its revenue through three different businesses

1. Royalties in terms of fees paid by the franchisees as a percentage of total sales made.

2. Properties leased out or subleased to franchisees.

3. Revenue from the company-owned restaurant outlets


Intellectual Property Rights: Mora than 4600 Trademarks and above1000 domain name
registration around the world that owns by burger king.

CUSTOMER LOYALITY OF BURGER KING

Customers of Burger King are the people who want to enjoy safe, tasty fast foods and beverages.
Most of the customers of Burger King are in the age group of 15-40 years in developing nations
and in developed nation’s customers of all age groups prefers the Burger King fast-food chain.
Burger King points to a weakness in what seemed like a profitable marketing strategy. It reveals
lower earnings by the company at a time when many of their so-called “Super Customers” are
leaving them and the reasons behind it were as following:

Irrelevant marketing: BK marketing was based on customers of 18 to 34 years and its


advertisements were based on this segment only. Its marketing strategy was to focus on
entertainment of its customers and the main thing was missing due to which customers stop
watching its advertisements because it was irrelevant. The idea seemed to be that funny ads could
attract and keep their target customers. But now, due to changes in the U.S. economy and culture,
BK is losing many of these customers.

Customer focus: Part of the problem is they are not giving customers what they want. While their
competitors added lighter and healthier items to their menus, BK relied on an ad campaign and

more of what they thought customers wanted. Now that people are eating healthier, the goofy ads
and bigger burgers are not a strong enough draw.

Less focus on kids: As we can see that its biggest competitor MC main target market is kids which
is its biggest strength and competitive advantage. But BK is not focusing on this segment it is
losing some of its market.

Changes in product recipe: It is good to work on different taste or menu to appeal customers but
sometimes it did not work well because different customers have different taste So, if BK is
bringing regular changes in its recipe, then it may be losing its customers. If they want to bring
changes in recipe, they should study their customers first.
Limited menu: BK has a wide range of products in its menu but still there are many products
which can also be added to attract the customers but BK is not working on it, its main focus is only
on its Burgers it has wide range of burgers but it is losing its customers because it is not working
on other segments like deserts.

New policies and techniques: Burger king developing new policies and techniques to gain
customer satisfaction for example burger king monitoring customer flow within store through
cameras also check the customer behavior and movement within restaurant.

MARKET ANALYSIS IN THE MARKETING STRATEGY OF BURGER KING

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 tough for the
companies in this industry to increase the market size due to several factors like

• Low per capita income


• Literacy level, poverty level
• Standard of living

In order to keep the operating cost low Burger King is operating in the franchised model for
physical presence and it is promoting online sales by offering discounts to customers in order to

1. Increase the customer satisfaction level by offering convenience


2. Cost control

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’ was coined in the seventies 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. Both companies have many future plans
which can help to increase customer satisfaction for example, the company is planning to 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 on appropriate 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.

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 of pressure from customers. In
1994, McDonald’s first step out and it attracting people from past 20 years.it is one of the most
love fast food chain. The reasons why people are loyal towards McDonald’s that;

• 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 number 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 are not
just about taste it’s about the overall experience and the strategies in the background. Being
an established global brands MC and BK can continue to be the rivalry to each other in the
market.
• Burger king believes that complex ideas ruin the overall brand image too many items in
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.
• McDonalds thinks according to the customer tastes, value system, lifestyles, perception
and language that reflect the commitment of the business to increase and improve customer
satisfaction.
• 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 customer satisfaction.

CUSTOMER LOYALTY OF MCDONALDS AND BURGER KING:

There are different ways to identify the level of satisfaction for example, McDonald’s do different
surveys to hear from its customers as well as recent experience from restaurants to know customer
satisfaction The Store Manager of McDonald’s has mentioned that with the help of customer
feedback the business has been developing and implementing different actions to increase
customer satisfaction for the next time.in contrast Burger King is also using 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 to retain 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.

• A whopping 88 percent of customers who dine at McDonald’s will return the following
year as compared to burger king return figure is 73 this makes sense. Also, 80 percent of
customers who dine at Burger King in a given year also dine at McDonald’s.
• When it comes to taste, McDonald's is the more popular choice.
• When it comes to value, Burger King offers the best deal for the buck since you get more
burger.
• When it comes to international presence, McDonald's seems to be in more places than
Burger king but if we talk about burger king its presence is less than MC.
• If customers want to eat burgers, then BK is the best choice but if customer is health
conscious, then MC is best choice
• According to research it is noted that MC do different advertisement for adults and different
for kids but BK advertisement are same for all. In past BK rely on word of mouth and
media ads but time has been changed now BK focusing on company websites, social media,
food-based sites, YouTube, Facebook, Instagram etc. to reach out to its customers.

Similarities:

• Both use expended product portfolio


• Both use franchises as source of money
• Both use psychological marketing
• Fast food meal

Chapter 2: Literature Review

Marell, Richel, Competitors Analysis – McDonalds Vs Burger King, 2014, McDonald’s has
thousands of competitors, each seeking a share of the market. McDonald’s recognizes that it is up
against not only other large burger and chicken chains but also independently owned fish and chips
shops and other eat-in or take-out establishments. Therefore, a company like McDonald’s has to
develop competitive strategies to differentiate themselves from their rivals. Actually, any
organizations need to be in touch with their business environment in order to make sure that what
they do fits with customer expectations. Especially, that expectations change over time and
countries. Indeed, even huge corporation like them have to watch their back in order to remain in
the top of their game. Moreover, the market segment in which McDonald’s operates is becoming
increasingly competitive. But how this firm stills the number one in the global market scale? In
this purpose we will look together how and why the American multinational remain on the top of
his game in three crucial regions of the world. First of all, if McDonald is the world’s largest chain
of fast-food restaurants is because the corporation serves around 68 million customers daily in 119
countries. But the secret of such success lies on a strong strategic competitive advantage that the
company still building until now. Indeed, the impressive supply chain of the corporation is pretty
well known. And it plays a key role since it permits them to offer the lowest meal. Furthermore,
McDonald does not hesitate to go to new markets with an extremely clever distribution channel.
Regarding Burger King, the majority of their fast-food restaurants is located internationally and is
privately owned franchises. Whereas the majority of those franchisees are smaller operations,
several have grown into major corporations in their own. At the end of the company’s fiscal quarter
in September 2014, Burger King reported it had 12,667 outlets in 73 countries of these 66% are in
the United States and 95% are privately owned and operated. The company locations employ more
than 37,000 people who serve approximately 11.4 million customers daily.
Besides, Burger King is also redesigning it is restaurants, changing it is packaging, cleaning up it is
cooking process and changing uniforms to reflect a more modern approach to food services.
Finlay, these factors will contribute to a more desirable experience for customers. But Burger
King does look rather old school and “out of touch” by not having the premium chicken wraps,
salads and coffee drinks that have become the “most-have” in a fast food in 2014. Not having
those items certainly has not helped in the battle to stay relevant. As far as improvement goes,
Burger King’s core question should be: how to better present the value proposition? And how to
better underscore what makes Burger King the ideal destination for fast food customers? In fact,
there must be something McDonald’s and Wendy’s are not doing and something that can be tied
back to Burger King’s specific promise to their customers. That would present a competitive
advantage if introduced into the market. That is how Burger King will truly stand out.

Murti, Ravindra, Competitive Marketing in Fast food business in India, 2014, McDonald's
takes into account cultural factors in serving the Malaysian consumers. The food serve is halal and
servers' local taste as well. They have wide range choice of menu similar with burger king.
Seasonally they serve the 'prosperity burger' for Chinese New Year. McDonald's also serves
healthy food but this will affect on the taste and consumers eating experience. For instance,
saturated oil that now is replaces with Trans-fat oils have change the taste of the McDonald's
famous fries. McDonald's have more price reduction compared to KFC and Burger King. They
offer a very competitive food price. They have the "Value Mc Savers" and the "Mc Value Meal".
KFC do have their value meal called "Jom Jimat Everyday" and Burger King but in term of their
price, McDonald offers the best price for fast Food. However, McDonalds, they offered only
during certain period of time there-for rise the question of its availability. In terms of distribution,
McDonalds have 185 restaurants nationwide. They are built or open in retail areas like shopping
malls due to a trend of all Malaysian who loves to shop in malls. They also open in some rural
areas however KFC has more restaurants in the rural area. In some strategic places, McDonalds
also opens in several local gas stations such as PETRONAS Mesra. They open an express café that
serve some popular products. This can satisfy the hunger of consumers such as, working
executive’s on-the-go and motorist. Events and sponsorship by McDonalds are mainly to
coordinate with their social responsibility. They usually organize events for their Ronald
McDonald Charity House. However, KFC doesn't focus on charity however more related to
increase their position in the market. Recently, "they organize campaign, entitled 'Good things
come together with KFC', aims to differentiate KFC from its rivals and highlights the fast-food
chain's presence and role in everyday Malaysian life. Burger King has no known. McDonald's in
Malaysia primarily focus of it marketing campaign by sending flyers to houses and attach coupon
in newspapers. KFC also gives discount coupons as well as Burger King. However, Burger King
Coupons are purchased from the store not given for free like KFC and McDonald's. McDonald's
also advertise their product using billboard. They place their latest advertisement on "McDonald's
Mc Value Meal" at major roads that indeed attract attention. KFC and Burger King do not use this
advertisement tool to promote their brand. McDonald's have more price reduction compared to
KFC and Burger King. They have the "Value Mc Savers" and the "Mc Value Meal". KFC do have
their value meal called "Jom Jimat Everyday" and Burger King but in term of their price,
McDonald offers the best price for fast Food. Therefore, we can conclude that McDonalds spends
heavily in promotion especially their advertisement to gain their market position. This is aligning
with the global McDonald advertising strategy of retaining customers.

Ibrahim, Essam, Indian Fast Food Industry Analysis, 2012, This report provides an analysis of
the international marketing environment of the global fast-food industry and evaluates the
international marketing activities of McDonald’s, which is considered a key player. Based on the
industry analysis, McDonald’s was identified as the market leader and an examination of their
market entry modes was carried out. Their international marketing mix was evaluated to identify
success factors, drawing focus upon international branding, international distribution, international
communications and standardization vs. adaptation of the service offering. An internal analysis
identified the firm’s strengths and weaknesses whilst an external analysis considered the
opportunities and threats posed to McDonald’s as market leader. Finally, short and long term
strategic and tactical recommendations were outlined in order to enhance McDonald’s competitive
position within the global fast-food industry. These recommendations are both realistic and well
supported, based upon the evaluation of their current strategy and activities. The fast-food industry
was identified as a low-cost, high-turnover industry with strong competitive rivalry. After a
thorough industry analysis, McDonald’s was identified as the market leader and was selected as a
key player on which to carry out an evaluation regarding their international marketing activities.
Upon recognition of both internal and external factors, supported recommendations were formed
to enhance McDonald’s’ competitive position in the international market. Han, Jing, The Business
Strategy of Mcdonald’s, 2013, As one of the most successful fast-food chains in the world,
throughout the development of McDonald’s, we could easily identify many successful business
strategy implementations. In this paper, I will discuss some critical business strategies, which
linked to the company’s structure and external environment. This paper is organized as follows:
In the first section, I will give brief introduction to the success of McDonald’s. In the second
section, I will analyze some particular strategies used by McDonald’s and how these strategies are
suitable to their business structure. I will then analyze why McDonald’s choose these strategies in
response to the changing external environment. Finally, I will summarize the approaches used by
McDonald’s to achieve their strategic goals. To sum up, there is a strong possibility that if the
company fails to recognize the new competitions, shifting of consumer interests, and the social
trends or innovative technologies, it will lose its market share. Previously, McDonald’s emphasis
on adding new restaurants for near 5 years, more than 50% of increase in new restaurants opened.
Unfortunately, there was only 2% of increase in the sale of the food. So, in the year 2003
McDonald’s decided to change its focus on increasing sales at existing restaurant and reduced
capital spending which allows for a sizeable amount of cash be returned to shareholder. For
achieving their objectives, the McDonald’s strategy should be attracted more new customers,
encourage existing customers to visit McDonald’s more often, build brand loyalty and, ultimately,
create enduring profitable growth for the company.

Belkoura, Mounia, Market Analysis of McDonalds, Burger King and KFC, 2014, This
research paper is a business analysis on the two publicly traded corporations, McDonalds and
Burger King. Both of them are competing in fast food industry. Fast food industry is one of the
largest food services sectors around the world. This industry focuses on the lower prices strategy
in order to attract customers worldwide. Therefore, S&P Industry surveys suggests that “Our view
is that restaurants will be largely unable or unwilling to raise prices much, if at all, for fear of
losing customers to the competition” (Restaurant Industry Survey, Standard and Poor’s). On the
other hand, the fast-food industry is facing great criticisms from different health organizations and
most people blame the fast food for causing health problems such as obesity and diabetes to the
teenagers and adults nowadays. Recently, the San Francisco Board of Supervisors “passed a ban
on restaurant toy giveaways unless the aforementioned meals meet certain healthy nutritional
standards for calories, sodium and fat”. The authority urged the fast-food industry to balance the
nutrition needs for kids. With the economic downturn, fast food industry is still making money
because “During a recession, the spike in unemployment generally leads to declines in
consumption levels. When personal consumption expenditure is high, consumers will be more
likely to spend money on eating out at fast food restaurants.
Hence, most fast-food restaurants start to provide healthier food like yogurt, salads and fruits in
order to minimize the impacts of these criticisms. Fast food industry is still generating significant
number of profits in the US market even though people have realized the importance of health.
Right now, the fast-food industry is trying to sell more healthy food which will enhance the
corporation image and provide more choices to the public. McDonalds and Burger King are not
only competing against each other, they also need to face the challenges from other types of
restaurants. For instance, most dine-in restaurant such as TGI Friday and Chilies offered low price
menus last year which greatly affected the attractiveness of McDonald and Burger King’s food to
the customers. Furthermore, other fast-food restaurants such as Kentucky Fried Chicken, Wendy’s
and KFC has launched various marketing campaigns and provided more choices of food to suit
the customers’ needs. There is rapid competition in the fast-food industry when the economy is
bad because people are spending less on food and often pick up the cheapest one with the most
values. Consumers will spend more in affordable restaurants as the Economist reports, “Fast food
was once thought to be recession-proof. When consumers need to cut spending, the logic goes,
cheap meals like Big Macs and Whoppers become even more attractive. Furthermore, it is more
difficult to further expanding the fast-food industry in the European countries. People around the
world think of fast food as American culture and tradition. As far as we know, most Europeans
love their traditional food and hesitate to try the American fast food. For instance, most Europeans
rather spend money in the local stores than eating hamburgers in McDonald. They always criticize
about the monopoly behaviors of McDonalds and the unfair labor contracts provided by
McDonalds to the employees. Moreover, some Europeans just value the time of cooking and eating
and they do not prefer eating 5 minutes wrap up meal with excessive number of calories in fast
food stores.

Mura, Roman, An Analysis of Consumer Attitudes towards Fast Food Restaurants, 2011, At
first, the author completed a literary exploration of the fast-food industry, marketing research and
Porter’s Five Forces Analysis. The findings were incorporated into the theoretical part of the thesis
which was divided into three sections. The first section concerned the fast-food industry and was
dedicated to its history, development and trends. Moreover, it covered the Czech fast-food market
and customer. Acquired information served as a theoretical foundation for the research executed
in the practical part. Similarly, the marketing research and Porter’s analysis parts of the theory
provided us with a theoretical knowledge necessary for the practical application of the research.
The practical part of the thesis began with the research methodology which described the whole
process of the analysis. The analysis as such was performed by means of the Porter’s five forces
analysis and marketing research. The Porter’s analysis explored Opava region fast food market
and its competitive rivalry. Subsequently, the marketing research executed by questionnaire survey
discovered whether there are customers demand for a new Fast-Food restaurant in Opava region.
Both results of the Porter’s Analysis and questionnaire survey revealed that there is a viable
possibility of the establishment of a new fast-food restaurant in Opava region. The results of the
Porter’s Analysis determined that a fast-food chain unit should be established rather than an
independent fast-food restaurant. The following questionnaire survey analysis ascertained that it
is advisable to establish a chicken fast food type, preferably a new KFC unit. Finally, the results
pinpointed an ideal location of the new KFC unit to Opava city Centre. In the end of the thesis the
author proposed the recommendations to a possible business plan for an establishment of a new
fast-food restaurant in Opava region. The recommendations were based on the analytical findings
and provided a reader with the type of the fast-food restaurant to be established including favorable
fast food chain brand and its location. Moreover, it was proposed a marketing strategy which
should ensure an advantageous position in the market and maximize profit potential. Finally, there
is need to say that the thesis has a potential to be extended into a Master's theses which would
cover a complete business plan. In other words, the thesis would be the marketing part of the future
business plan.
Chapter 3: Research Methodology
Research methodology is a way to find out the result of a given problem on a specific matter or
problem that is also referred as research problem. In research methodology, researcher uses
different criteria for solving / searching the given research problem. Different sources use
different types of methods for solving the problem.

3.1 Research Problem

This study was conducted between two giants McDonald’s and Burger King. The research is
basically a comparative study of two well known competitors. The primary purpose of this
research was to found out the brand preference of one brand over other. This research required us
to conduct the consumer research on why they chose the brand and to find out the factors and
reasons that influence their decision.

3.2 Research Objectives

• To perform the comparative analysis among McDonalds and Burger King


• To identify the current trends in Indian fast-food market.
• To analyze the customer’s perception towards McDonald’s and Burger King
• To measure the opportunities and challenges for fast food businesses in India

3.3 Research Design

The research is descriptive in nature as the study carried out the survey questioning, which is an
attributes of descriptive research.

3.4 Sampling

Population: Population of Kanpur city

Sampling Technique: Convenience sampling technique

Sampling size: 100

Sampling unit: Customers of McDonald’s and Burger king


3.5 Research hypothesis

H0a- Customer prefer Burger King over McDonalds

H1a- Customer prefer McDonalds over Burger King

H0b- Customers are not satisfied with the service of Burger King over McDonalds

H1b- Customers are not satisfied with the service of McDonalds over Burger King

3.6 Data Collection

A research can use either secondary or primary or both the research methods to collect the
information depending on the research need and depth of information and coverage needed. In
this particular research, researcher has used primary research methods to collect the information.

Primary data

The data which is collected fresh and for the first time is called as primary data. Thus, it is
original in nature. It is collected by first hand either by the researcher or investigator or someone
for the purpose of study. It is original data collected for a specific project or specific objective.
The authenticity and relevance of primary data is very high.

Sources of primary data

• Direct personal observation


• Indirect personal observation
• Interview method
• Questionnaire

To collect the primary data researcher has made a questionnaire.

3.7 Scope of the study

This research identifies the current trends in Indian fast-food market. This research performs the
comparative analysis among McDonald’s and Burger King. This research analyzes the
customer’s perception towards McDonald’s and Burger King. This research measures the
opportunities and challenges for fast food businesses in India.
3.8 Limitations of the study

The main three limitations of this research are time, finance and access. The research is time
crucial due to the deadline placed on the submission of the final research findings. Therefore,
starting from sampling till data collection everything needs to be done as quickly as possible thus
leaves researcher with limited amount of time. Access to companies data may not be an issue
because the researcher will not be able to reach due to limited time.
Chapter 4: Data Analysis and Findings

Data Analysis

Disclaimer: All the questions asked in this questionnaire are solely for academic purposes and
won’t be used against you in any case. This information shared will remain confidential.

Instructions:

1. All questions are compulsory to answer.


2. Your feedback is highly valuable. Hence, kindly be honest about your views.

Name-

Age-

Gender-

1. Which fast food chain do you like most

o McDonald's
o Burger King

percentage

25%

75%

Mc Donald Burger King

Interpretation: The aforesaid pie-chart shows the percentage distribution of customers it


states that 75% prefer McDonald's and 25% prefer Burger King .
2. Which brand do you think is more effective in advertising

o McDonald's
o Burger King

Percentage

46.70%
53.30%

Mc Donald BurgerKing

Interpretation: The aforesaid pie-chart shows the percentage distribution of customers it


states that 53.3% prefer McDonald's and 46.7% prefer Burger King.

3. Do you think ambience of the food joints influences your choice for a particular joint?

o Agree
o Strongly agree
o Neither agree nor disagree
o Disagree
o Strongly disagree
Percentage

6%

17% 27%

17%

33%

Agree Strongly Agree Niether Agree nor Disagree Disagree Strongly Disagree

Interpretation: The aforesaid pie-chart shows the percentage distribution of


customers it states that 33% of customers strongly agree, 27% of customers agree, 17%
of the customers neither agree nor disagree, 17% of customers disagree and 6%
strongly disagree.

4.Does McDonald’s have better ambience in terms of cleanliness and crowd as


compared to burger king?

o Agree
o Strongly agree
o Neither agree nor disagree
o Disagree
o Strongly disagree
Percentage

0%
10%
23%

27%

40%

Agree Strongly Agree Neiher Agree nor Disagree Strongly Disagree Disagree

Interpretation: The aforesaid pie-chart shows the percentage distribution of


customers it states that 40% of customers strongly agree, 23% of customers agree, 27%
of the customers neither agree nor disagree, 10% of customers disagree and 0%
strongly disagree.

5.Customer service of McDonald’s is more prompt than burger king

o Agree
o Strongly agree
o Neither agree nor disagree
o Disagree
o Strongly disagree
Percentage

17%
23%

17%

10% 33%

Agree Strongly Agree Neither Agree nor Dissagree Disagree Strongly Disagree

Interpretation: The aforesaid pie-chart shows the percentage distribution of customers it


states that 33% of customers strongly agree, 23% of customers agree, 10% of customers neither
agree nor disagree, 17% of customers disagree and 17% strongly disagree.

6. The food products provided by Burger King are more reasonably priced than
that of McDonald’s

o Agree
o Strongly agree
o Neither agree nor disagree
o Disagree
o Strongly disagree
Percentage
0%

10%
27%

33%

30%

Agree Strongly Agree Niether Agree nor Disagree Disagree Strongly Disagree

Interpretation: The aforesaid pie-chart shows the percentage distribution of customers it


states that 30% of customers strongly agree, 27% of customers agree, 33% of the customers
neither agree nor disagree, 10% of customers disagree and 0% strongly disagree.

7.Burger King provide frequent discounts relative to McDonald’s

o Agree
o Strongly agree
o Neither agree nor disagree
o Disagree
o Strongly disagree
Percentage

8%
20%

30%
17%

25%

Agree Strongly Agree Neither Agree nor Disagree Disagree Strongly Disagree

Interpretation: The aforesaid pie-chart shows the percentage distribution of customers it


states that 17% of customers strongly agree, 20% of customers agree, 25% of the customers
neither agree nor disagree, 30% of customers disagree and 8% strongly disagree.

8.McDonald’s food is quite oily, compared to Burger King

o Agree
o Strongly agree
o Neither agree nor disagree
o Disagree
o Strongly disagree
Percentage

10%

30%

33%
0%

27%

Agree Strongly Agree Neither Agree nor Disagree Disagree Strongly Disagree

Interpretation: The aforesaid pie-chart shows the percentage distribution of customers it


states that 0% of customers strongly agree, 30% of customers agree, 27% of the customers
neither agree nor disagree, 33% of customers disagree, 10% of customers strongly disagree.

9.Home delivery services of McDonald’s are better than that of Burger King

o Agree
o Strongly agree
o Neither agree nor disagree
o Disagree
o Strongly disagree
Percentage

13%

33%

34%

10%
10%

Agree Strongly Agree Neither Agree nor Disagree Disagree Strongly Disagree

Interpretation: The aforesaid pie-chart shows the percentage distribution of customers it


states that 34% of customers strongly agree, 13% of customers agree, 10% of customers neither
agree nor disagree, 10% of customers disagree and 33% of customers strongly disagree.

10.The presentation of food of McDonald’s is more appealing than that of Burger


King

o Agree
o Strongly agree
o Neither agree nor disagree
o Disagree
o Strongly disagree
Percentage
0%

12%
25%

19%

44%

Agree Strongly Agree Neither agree nor Disagree Disagree Strongly Disagree

Interpretation: The aforesaid pie-chart shows the percentage distribution of customers it


states that 44% of customers strongly agree, 25% of customers agree, 19% of customers neither
agree nor disagree, 12% of customers disagree and 0% of customers strongly disagree.
Findings

In India, there is a lot of competition in fast food industries this is going to increase day by day.
So, we are examining here the competitive situations with McDonald's by comparing one of big
name in fast food industries which is Burger King. These companies target to find where is the
fast-food seekers and how can we find them? Therefore, McDonald's provides their customers,
high quality and fresh fast food. Within a given market there are many things that are to be
discovered about the competition as it serves as a maker as to how difficult or easy it is to work
inside that market. Rent less competition will undeniably affect the marketing working outflow,
as a result it is useful to know what kind of struggle bus going to occur to face inside that market.
It is important to know the market is operating the company and knowing potential for entering
the market and the possible customers are essential. Moreover, it's a good idea to look at the
macro-environmental factors that are influencing the market

Customer service is a union to provide their customers requirements and desires l. Businessman
can present promotions and discount in prices to get as many new customers, but if a
businessman wants his customers to visit again, the business won't be beneficial for long.
Superior consumer service is basically to get customer's back again and if businessman sends
their customer pleased. It is the sign of positive feedback to business beside to others, who might
be trying the product or service businessman offers. Constructing a customer loyalty will be
easier if the businessman has loyal employees. The trade people are very important for the
manufacturer to safeguard those workforces who interacts with clients. The rising development
nowadays is to drive customer service and technical hold up call to next obtainable person.

McDonald's sales rising per annum more than $6.42 billion, as same as immeasurable awards
and honors has been granted its chain over the past 42 years. McDonald's has more than 36,899
units globally and its rapid growth attracting many investors. Being a part of international market
where these big competing with each other, McDonald's taking a challenge to face the Market,
McDonald's changes in it by making casual and attractive menu and adding some new meals in
its item menu which are customers choice.

In the above discussion we reach to this point that by using different marketing strategy in
McDonald's we can establish customer loyalty to our customers. The reason behind this research
is also to express about the market status of McDonald's with comparing to Burger King. This
research also gives that how you need to behave to retain your customers and make them your
long-term customer.
Chapter 5 Conclusion and Suggestions

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.
• It is suggested that McDonalds should take active participation on social media
platforms so that it can help to interact more frequently with its customers.
• Now a days people are more health conscious so MC should not only focus on taste it
should introduce its healthy menu.
• As MC has higher turnover rate so it is suggested that they should recruit their employs
more carefully and motivate them as well on regular basis.
• As we can see that burger king is not having latest inventory supply chain system, they
should adopt latest technology & update it on timely basis.
• Burger King is facing continuously competition. To compete MC burger king should
increase its number of stores in the world according to customer need and demand.
Company has less accessible to their customers as compare with the competitors like
MacDonald’s that why company is losing the business
• Burger King can implement the following recommended strategies;
Diversify/widen product mix to address current product mix limits
Increase service quality
Improve products to address the healthy lifestyles trend

According to the evaluation so concerned and undertaken it is relevant that the most important
objective of the McDonald's chain is to be ranked segment bun which McDonald's serves.

In addition to this l, McDonald's does not purposely select the new countries to enter. It is also
found that the product policy so undertaken is global in nature by using the techniques that can
assist in branding and also establish the name worldwide.

According to the marketing theory, McDonald's also applied the service marketing concepts in
the form of different elements of promotion mix with a specific reason to supplement the level of
brand awareness as well as awareness about product offerings so concern.
The overall objective of the organization is to enhance brand awareness among customers and
also to establish its name in the market it serves so that the total sales can be raised significantly.

It also adopted the advertisement plan which is distinctive so that it can easily avail the benefits
from the market so concerned and thus creating opportunities to expand its business. The
promotion techniques to be adopted should carry a differentiated and a unique message.

Thus, it is recommended for the McDonald's that it should concentrate on its message which is to
be carried with regard to its taste, food, affordability and quality to be delivered to the customers

It should also focus on the target groups such as family, teenagers and students as these target
groups spend a lot of time on social networking sites or other sites. So, McDonald's can add
banners on such networking sites which are regularly visited by the target groups so concerned

The publications such as newspaper can also be used for this purpose. It should also concentrate
on the differentiated ideas and also the potentialities so that more of the benefits can be achieved.

Suggestions and Recommendations for Burger King and McDonald’s to


increase customer satisfaction:

• The company should focus on the current trends in fast-food markets and thus focus on
the demands and expectations of the customers of different segments;
• The company must be committed to deliver or offer quality products and services to the
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 market research
and collect customers’ feedback and suggestions on regular basis; and
• The company should build strong relationships with customers through focusing on their
economic, social and psychological perspectives.
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.
Bibliography
➢ https://study.com/academy/lesson/food-service-industry-definition-history.html
➢ https://www.google.com/amp/s/ziphaccp.com/amp/food-service/food-service-
industry.html
➢ https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/17868-
quick-service-restaurant-qsr.html
➢ https://www.slideshare.net/kellimccabe/food-service-industry
➢ https://www.google.com/amp/s/finance.yahoo.com/amphtml/news/india-quick-
restaurant-qsr-market-132900020.html
➢ https://www.mordorintelligence.com/industry-reports/india-foodservice-market
➢ https://pdfcoffee.com/study-on-mcdonalds-and-burger-king-5-pdf-free.html
➢ https://www.scribd.com/document/344423421/Comparative-Analysis-of-Major-Fast-
Food-Joints-in-India-Mcdonalds-Kfc-Subway-and-Burger-King-1
Annexure (Questionnaire)

Disclaimer: All the questions asked in this questionnaire are solely for academic purposes and
won’t be used against you in any case. This information shared will remain confidential.

Instructions:

3. All questions are compulsory to answer.


4. Your feedback is highly valuable. Hence, kindly be honest about your views.

Name-

Age-

Gender-

1.Which fast food chain do you like most

o McDonald’s
o Burger King

2.Which brand do you think is more effective in advertising

o McDonald’s
o Burger King

3.Do you think ambience of the food joints influences your choice for a particular joint?

o Strongly agree
o Agree
o Neither agree nor Disagree
o Disagree
o Strongly disagree.
4.Does McDonald’s have better ambience in terms of cleanliness and crowd as compared to burger
king

o Strongly agree
o Agree
o Neither agree nor Disagree
o Disagree
o Strongly disagree

5.Customer service of McDonald’s is more prompt than burger king

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

6.The food products provided by Burger King are more reasonably priced than that of McDonald’s

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

7.Burger King provide frequent discounts relative to McDonald’s

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

8.McDonald’s food is quite oily, compared to Burger King

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

9.Home delivery services of McDonald’s are better than that of Burger King

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

10.The presentation of food of McDonald’s is more appealing than that of Burger King

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

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