Yashvi Thakkar - B - 54
Yashvi Thakkar - B - 54
Yashvi Thakkar - B - 54
METHODOLOGY
Yashvi Thakkar
B-54
Burger King vs. McDonald's Marketing Techniques in
Comparison: Implications for Consumer Loyalty:
Abstract:
This study compares Burger King with McDonald's marketing strategies and explores how
they affect customer loyalty. The study looks at the marketing tactics employed by both
businesses, such as their advertising campaigns, social media presence, and brand
positioning. The study examines the effects of different marketing strategies on customer
attitudes and brand loyalty. The study's findings imply that even while both businesses
employ comparable marketing strategies, their positioning and message diverge dramatically,
leading to varying degrees of customer loyalty. The paper finishes with suggestions for
businesses to enhance their marketing plans and boost customer loyalty.
Food diversity is an unsaid characteristic of India's rich culture, which is divided into
numerous regions and states. Indians have traditionally preferred home-cooked food, which
is both a religious and a personal preference. However, as a result of greater understanding
and impact of western culture, there has been a modest shift in consumption pattern among
urban Indian households. As a result of economic changes, a slew of multinational fast-food
chains have entered India. Today, the fast-food sector in India is adapting to Indian culinary
preferences and expanding. It is growing popularity among Indian youth & younger
generations, and it is quickly becoming a way of life. This research presents an empirical
assessment of the notion that MNCs' sales promotion techniques, such as high advertising,
combination offers, low-cost meals, and Indian-inspired menus, have radically transformed
every area of the FMCG market, notably in food goods, with a focus on Chennai. This
research looks at the worldwide marketing mixture in two key markets. The goal is to
examine and comprehend the similarities and variations in the implementation of the global
marketing strategy by McDonald's and Burger King. This study employed comparative
analysis to focus on the 2P marketing mix method, which is based upon promotion & sales
analysis. This research was conducted in Chennai City. McDonald's has used several types of
its 4P in its foreign marketing mix, depending on both localization and globalization tactics,
according to the study.
Introduction:
On the international market, fast food restaurants like McDonald's and Burger King have
been vying for market share for years. Their marketing strategies are essential to building
their brand identification and drawing clients. In order to acquire insights into the
competitive market and customer behaviour, it is imperative to comprehend and analyse the
marketing tactics of these two massive fast-food chains. This study compares the marketing
strategies used by Burger King and McDonald's and analyses how they affect customer
loyalty. In order to identify the elements impacting customer loyalty to these businesses, the
research attempts to present an in-depth examination of their marketing campaigns, target
market, product offers, pricing strategies, and promotions. The report's results will aid in
determining the advantages and disadvantages of each company's marketing plans and offer
suggestions for enhancing such plans in order to increase customer loyalty.
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Marketing strategy of McDonalds:
It is underlined in recent research here on theory building of the Fast-food chain network
that crucial changes over time are taken account. It also investigates the major corporate
decisions that influenced or framed those developments. It also helps us recognize the
organization's fundamental competencies and the competitive advantage it has achieved. It
also highlights the challenges that the organization is facing. A minor affiliation with Burger
King serves as a benchmark for McDonald's execution. Given McDonalds' long history and
the number of changes in power, the contextual study's main focus is on flimsiness in
administration.
This component stood out for its diversity and differences in the guardian group's
interactions with businesses and employees. Similar to the last example, the establishment's
management is a crucial element that needs strict oversight. McDonald's has a high
proportion of franchisees (over 90%), yet it's also the biggest and most significant food
service corporation in the world, with more than $40 billion in annual sales generated by
more than 30, 000 outlets throughout the globe. Whatever the case, this company's growth
was not hastened by chance. McDonald's has succeeded because to hard effort and smart
marketing strategies. A marketing plan for the Big Mac was developed. We all know that
McDonald's is one of the most well-known fast-food restaurants in the globe. In the eyes of
the global populace, the statement "I'm enjoying it" is more well-known than the majority of
the other famous people. Compared to other significant fast-food franchisees like KFC,
McDonald's, Hardee's, and others, Burger King has a market share of over 15%.
A thorough investigation of the various marketing strategies used in various nations is
required in order to evaluate McDonald's marketing strategy. across the modern globe,
McDonald's has successfully launched its most popular brand, the Big Mac, across the
majority of its markets. This success story's early modernism was a result of the creation of a
brand for itself in consumers' imaginations. To put it simply, the goal of a company's
advertising is to increase customer awareness, likeability, and recall of a product. Even
though McDonald's has so far successfully expanded into many new areas with a variety of
products, the Big Mac has ushered in a new era for the company's sales. For practically all of
its products, including the Big Mac, McDonald's utilises five different promotion tactics,
each of which differs.
Sales Promotion - Sales promotion is the process of planning and promoting activities that
promote McDonald's in order to draw in consumers. These activities may include contests,
programming, activities, and the distribution of free coupons. - Many competitions, including
"the happiest special moments," "cross country," and "NFL love," have increased market
share by raising consumer awareness of the brand and cementing it in their minds. - These
competitions and promotions are also run on social media platforms like Facebook and
Twitter, gradually increasing brand visibility.
Media affairs: Marketing communication plays a small but crucial part in the sales and
marketing of McDonald's products. This firm has improved brand value and trustworthiness,
both of which are crucial components in creating a sustainable market. - The growth of
customer-employee interactions has long been emphasised by McDonald's. They are aware
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of how important their employees' actions and attitudes are in the current market. - By
simply conveying the nutrition facts, the necessity, and the desire that will increase consumer
satisfaction, the company's public relations department assists them in marketing their most
successful product.
Direct marketing is, as the name implies, a way of actively promoting to your clients over the
phone, via email, and online. - McDonald's places a strong emphasis on market fit,
engagement, quickness, and personalisation. - The websites of McDonalds provide
consumers with clear information about their many products and services in many different
countries, enabling them to make educated purchase decisions. - Another example of product
marketing in action is the Home Delivery System, which was one of the first successful fast-
food restaurants to do so. It answers consumer expectations by delivering the goods right to
their homes.
An approach for finding out a customer's preferences, offering advice, and getting feedback
is personal selling. Because it involves the customer giving McDonald's staff members direct
feedback, personal selling is thought to be especially advantageous. - Even for the brief time
it takes to place and service an order, maintaining a positive relationship with customers is
necessary for personal selling at McDonald's. McDonald's pays special attention to the little
things so they can keep its consumers happy. - Personal selling calls for face-to-face
interaction, which helps staff to create a favourable brand impression, which is essential to
McDonald's marketing teams worldwide.
advertising: The goal of an advertising is to get as many people as possible in one place at
one time. Since most businesses use advertising as a means of promotion, McDonald's
advertising has outperformed its other marketing initiatives in terms of results. The ultimate
objective of advertising is to persuade consumers to buy what they see. McDonald's has
outperformed the majority of its rivals in terms of signs, media, print advertisements,
television commercials, and web advertisements. More than a million places across the world
have seen advertisements for McDonald's most well-known product, the Big Mac.
Marketing Strategies of Burger King:
Burger King sets themselves apart from the competition by letting customers add extras such
fries or onion bits, cheese, bacon, mayonnaise, ketchup, lettuce, tomato, pickles, and onion to
their meals. In the future, Burger King plans to bring Starbuck's coffee to all of its US stores.
According to MC, Burger King sets its rates. BK serves coffee as well as iced coffee variants
in a range of flavours (vanilla, mocha flavours, whipped toppings). Part of BK's pricing
strategy is maximising profits. Recently, Burger King and McDonald's collaborated to offer a
$1 triple cheese burger. Throughout the summer, Burger King intends to offer $1 slush
drinks as an alternative to McDonald's $1 cocktail mixer. Burger King employs targeted
targeting, which entails concentrating on the requirements of a particular clientele. The target
audience for this campaign is the group of immature adults. Particularly among young men
who spend all of their time online and don't watch television commercials. They are open to
experimenting with novel ideas. Burger King only serves a small portion of the market.
Burger King concentrated on appealing to young adults, particularly immature guys. Burger
King promotes itself as a cheap, scrumptious, and high-quality food option. In terms of
customer service quality, price, and nutritional diversity, Burger King exceeds McDonald's.
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In a brand-new Christmas promo, the clown receives a special gift from the "King" of Burger
King Britain. Burger King's advertising have been ferocious and funny in their rivalry.
Burger King suggested fusing the two strands in a "beautiful, peace-loving burger" in 2015
that would be offered for sale on September 21, Global Peace Day. Peace The money would
eventually go to a non-profit that provides educational resources to hundreds of schools
throughout 131 nations. Burger King wanted to make a Chopper for peace, but McDonald's
rejected the idea.
Due to the existence of several local, national, or worldwide fast-food chains, it is becoming
harder for the business to expand its consumer base. It is challenging for businesses in this
industry to increase their market share in emerging nations due to a number of problems.
Low living conditions; Low per capita income; Low levels of literacy and poverty
Burger King uses a franchising system to enable physical presence and lower operating
expenses. It also encourages the online market by giving consumers discounts in an effort to
boost customer satisfaction by providing convenience and lowering costs. Customers of
Burger King are people who want to eat and drink delicious, safe fast food. Burger King
customers tend to be between the ages of 15 and 40 in less developed nations, while in
industrialised nations, the fast-food chain is popular with people of all ages. Burger King has
discovered a problem with what once seemed to be a successful marketing strategy. The
following factors are cited as the company's declining profitability at a time when the
majority of its so-called "Super Customers" are departing:
Marketing that is irrelevant: BK's advertisements were only directed at consumers between
the ages of 18 and 34. Customers stopped watching its advertisements because they were
uninspiring, despite the marketing strategy's intended focus on consumer entertainment. The
underlying assumption seems to be that hilarious commercials might draw in and keep their
target audience. BK is, however, losing the majority of these clients as the American
economy and society change.
One of the problems is that they aren't offering customers what they want, which is one of
the problems. While its rivals introduced lighter, healthier menu options, Burger King
focused on advertising that was more in line with what they believed customers wanted.
Since people are now eating healthier, the absurd advertisements and big burgers are less
appealing.
Less emphasis on kids; As can be seen, kids are MC's main target market, making them both
its biggest competitive advantage and strength. BK is, however, losing market share since it
is not focusing on this sector. Modifications to the product formula; While it's great to
experiment with new flavours or menus to appeal to consumers, this strategy doesn't always
work because each customer has a different set of tastes. BK risks losing clients if it keeps
altering its formula frequently. They should initially do client research before making any
recipe adjustments.
Literature review:
For businesses in the fast-food sector to draw in and keep customers, efficient marketing and
advertising techniques are essential. Businesses with a long history and a devoted following
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of customers include McDonald's and Burger King. The advertising and marketing methods
of these two fast-food juggernauts are contrasted in this literature review, with an emphasis
on how they affect consumer loyalty.
Two of the most recognisable fast-food brands in the world are McDonald's and Burger
King. Although the two businesses sell comparable goods, they have chosen distinct
advertising and marketing approaches to draw in and keep customers.
McDonald's is known for its creative and successful advertising campaigns. Ronald
McDonald, the company's well-known brand mascot, has frequently been used to advertise
its goods. McDonald's also has a significant social media presence, running viral campaigns
like the "McDonald's Happy Meal Toys" promotion. To encourage repeat business, the
company has also employed a variety of sales promotion techniques, such as providing
discounts on specific menu items. In order to better understand its customers and modify its
advertising strategy accordingly, McDonald's also makes significant investments in market
research. (Agnihotri, McDonald's vs. Burger King: Analyzing the advertising and promotion
strategis of two fast food giants., 2016)
Burger King, on the other hand, has prioritised witty and edgy advertising campaigns. The
company's motto, "Have it Your Way," has come to represent Burger King's dedication to
offering individualised orders. In order to encourage customers to try their products, Burger
King has also employed a variety of marketing techniques, such as providing complimentary
drinks or fries with certain purchases. The business has also adopted a contentious approach
to advertising, as seen in its "Subservient Chicken" campaign, which featured a man acting
like a chicken on order. These kinds of advertisements have assisted Burger King in standing
out from rivals and attracting customers. (Agnihotri, 2016)
Burger King and McDonald's both employ comparable marketing techniques. To market
their brands, both businesses combine public relations, sales promotions, and advertising.
However, McDonald's has had greater success in forging a distinctive brand identity because
to creative marketing initiatives, such its "I'm Lovin' It" campaign, which has been in use
since 2003. Burger King, on the other hand, has failed to establish a dependable brand
identity as evidenced by the repeated changes to its motto and advertising campaigns.
Both McDonald's and Burger King have experienced varied degrees of success in terms of
consumer loyalty. McDonald's has been successful in growing its consumer base thanks to its
strong advertising and marketing tactics. A sense of trust and familiarity with the
organisation among its clients has also been facilitated by its strong brand identity. Yet,
McDonald's has also come under fire for its unhealthy menu offerings and the detrimental
effects they have on the health of its patrons. The company's marketing strategy has changed
as a result, placing more of an emphasis on promoting healthier options. (Bozinovski, 2015)
Burger King, on the other hand, has recently had trouble maintaining customer loyalty. Even
though the company's marketing initiatives have been successful in raising brand awareness,
repeat business hasn't always followed. This problem may have been exacerbated by the
firm's inconsistent branding and marketing tactics. (Bozinovski, 2015)
The advertising and marketing methods of McDonald's and Burger King have been
contrasted in this literature review, with an emphasis on how they affect consumer loyalty.
These businesses have used distinctive strategies to draw in and keep clients, with various
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degrees of success. Burger King has set itself apart from rivals through its hilarious and edgy
advertising campaigns, but McDonald's has been able to develop a strong brand identity
through creative advertising campaigns. However, both businesses have had trouble retaining
customers over the long run, with Burger King trying to keep up with McDonald's unhealthy
menu options. (Duffett, 2017)
(Sheth, 2001)offered three criteria—comparative characterizations, interpretive comparisons,
and prescribed prescription comparisons—for evaluating marketing initiatives by businesses.
Furthermore, noted is the transition from conventional foreign marketing to integrated global
advertising. (Riyad, 2002) examined the use of the Internet in international marketing in the
electronic era, (Yoo, 2000) investigated the effect of promotional strategy on the creation of
brand equity. The literature also looks at McDonald's marketing tactics, which include using
five different types of promotions for practically all of its goods, including the Big Mac.
Among these tactics are media relations and sales promotion.
The idea of brand loyalty in the fast-food sector is covered throughout the book, especially
with regard to children. Some of the concepts that underpin this idea are brand commitment,
brand loyalty, and brand experience. (Sung, 2009) By cutting-edge technology, globalisation,
and customisation of consumers' requirements and wants, fast food firms place a strong
emphasis on fostering client loyalty and devotion. Children, teens, and young people make
up the majority of fast-food consumers; they typically eat it every day or every other day.
Fast food restaurants rely heavily on advertising to draw in consumers, especially kids who
are the subject of specific marketing and advertising campaigns. (Radunovic, 2013) Children
are drawn to fast food restaurants by toys and emotional pleas, (Issue, 2014) and while there,
they develop strong emotional ties that lead to high levels of commitment and loyalty. (Sung,
Y., and Campbell, K.W., 2009) The research focuses on McDonald's and Burger King in
Jeddah, Saudi Arabia, and employed a quantitative method—a survey—to gather primary
data from a sample of 60 patrons or their siblings, who are youngsters under the age of 12
drawn to these restaurants. The study examined the eating habits of kids when it comes to
fast food, the variables that draw kids to these establishments, the different marketing
techniques used by businesses to draw kids to their fast-food offerings, and the motivations
for focusing on this market segment. (Robinson, 2007)
The comparison and contrast of Burger King and McDonald's advertising and marketing
efforts in the fast-food industry, as well as how these tactics affect customer loyalty, are the
main goals of this literature study. The assessment also looks at how Burger King and
McDonald's have used comparable marketing strategies and the level of customer loyalty
success they have had. The topic of brand loyalty in the fast-food sector is also covered in
the literature study, with a focus on children as they make up a sizable fraction of fast-food
consumers.
Comparative Analysis:
Reliability
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Case Processing Summary
N %
Valid 86 94.5
Total 91 100.0
Reliability Statistics
.390 10
According to the Case Processing Summary, out of 91 instances, 86 (94.5%) were legitimate,
and 5 (5.5%) were excluded—likely because of missing data. Listwise deletion was used in
the study, therefore any instance with missing data for any of the variables was disregarded.
For a scale with 10 elements, the Reliability Statistics reveal a Cronbach's alpha coefficient
of.390. An indicator of how well a scale or questionnaire's items assess the same construct or
idea is called Cronbach's alpha, which is a measure of internal consistency reliability.
A Cronbach's alpha of.390 in this situation denotes very low internal consistency reliability,
indicating that the scale's components may not accurately measure the same construct. For
most research purposes, a Cronbach's alpha of.70 or more is regarded as acceptable, whereas
a value of less than.60 is regarded as unsatisfactory. As a result, the scale items may need to
be changed or reassessed in order to increase their internal consistency dependability, as
shown by the low alpha score in this instance.
Descriptives
Descriptive Statistics
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Have you ever switched from
your preferred fast-food 89 1 2 1.21 .412
restaurant to the other?
Do you think the marketing
techniques used by Burger King
89 1 3 2.20 .894
or McDonald's have influenced
your loyalty to their brand?
Which marketing techniques
used by Burger King or
McDonald's do you find the 88 1 5 2.24 .910
most effective in attracting
customers and building loyalty?
Would you recommend Burger
90 1 2 1.20 .402
King or McDonald's to others?
Valid N (listwise) 86
Correlations
his correlation table shows the relationship between "How loyal are you to your preferred
fast-food restaurant?" and "What factors influence your decision to visit Burger King or
McDonald's?" variables. The correlation coefficient is 0.238, which indicates a positive and
moderate relationship between the two variables. The p-value of 0.027 suggests that this
correlation is statistically significant at the 0.05 level (2-tailed), which means that the
observed correlation is unlikely to be due to chance. This implies that as the factors
influencing the decision to visit Burger King or McDonald's increase, so does the loyalty to
the preferred fast-food restaurant. Therefore, the factors that influence a customer's decision
to visit a particular fast-food chain can have a positive impact on their brand loyalty.
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Conclusion:
With a Cronbach's alpha of.390, the reliability analysis of the scale employed in the study
revealed that it had very poor internal consistency reliability, suggesting that the items on the
scale may not precisely measure the same construct. The Descriptives section included a
summary of the information gathered, including the age range, frequency of visits, reasons
affecting the choice to visit a fast-food restaurant, brand loyalty, marketing strategies, and
propensity to promote Burger King or McDonald's to others.
With a correlation coefficient of 0.238 and a statistically significant p-value of 0.027 at the
0.05 level (2-tailed), the correlation study showed a positive and moderate association
between brand loyalty and the variables influencing the choice to visit a fast-food chain. This
suggests that customer loyalty to the favourite fast-food establishment increases when the
factors affecting the choice to visit Burger King or McDonald's rise. In order to enhance
brand loyalty, fast food restaurants must concentrate on elements that have a beneficial
impact on consumers' decision-making processes. Overall, the study emphasises how
important it is to comprehend the variables affecting customer behaviour in the fast-food
sector.
References
Agnihotri. (2016). Journal of Business and Retail Management Research, 10(2),39-48.
Agnihotri. (2016). McDonald's vs. Burger King: Analyzing the advertising and promotion
strategis of two fast food giants. Journal of Business and Retail Management
Research, 10(2), 39-48.
Bozinovski, N. G.-T. (2015). Analyzing the effect of promotional tools on brand loyalty.
Procedia-Social and Behavioral Sciences, pp. 207,124-133.
Duffett, R. G. (2017). Burger King vs. McDonald's. Which is the better fast food chain?,
20(3),215-277.
Issue, B. (2014). Food Marketing: Using Toys to Market Children’s Meals. Healthy Eating
Research.
http://healthyeatingresearch.org/wpcontent/uploads/2014/07/her_marketing_toys_A
UGUST_14.pdf.
Radunovic, L. (2013). Kids and Advertising: using The Most Vulnerable Target Group.
Retrieved from: http://domain.me/kids-and-advertising/.
Riyad, E. &. (2002). The Internet: new international marketing issues,. Journal of
Management Research News, 25(12),54-67.
Robinson, T. N. (2007). Effects of Fast Food Branding on Young Children's Taste
Preferences. Arch Pediatr Adolesc Med., 161.8.792.
Sheth, J. a. (2001). The antecedents and consequences of integrated global marketing.
International Marketing Review, 18(1),16-29.
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Sung, Y. a. (2009). Brand commitment in consumer–brand relationships: An investment
model approach. Journal of Brand Management, 17,2,97-113.
Sung, Y., and Campbell, K.W. (2009). Brand commitment in consumer-brand relationships.
An investment model approach. Journal of Brand Management,, 17,2,97-113.
Yoo, B. D. (2000). An Examination of Selected Marketing Mix Elements and Brand Equity.
Journal of the Academy of Marketing science, 28,195-211.
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