MOHAMEDALI KAKAL

BHMS
MS. ELDA EICHER
BURGER KING USA
TOTAL WORD COUNT 3435
Table of Contents

1. Abstract
2. Background and introduction
3. Mission
4. Vision
5. Aim
6. Market segment
7. Maslows pyramid
8. The 4 P’s
9. Mission and values
10. SWOT analysis
11. PESTEL analysis
12. Ansoff matrix
13. Positioning
14. Action plan
15. Sales forcasting
16. Conclusion
17. References
Abstract
The main goal of this thesis is to find out the market data to develop marketing strategies
related to Burger King, USA. The reach objective mentioned above a PESTEL analysis was
made a market segment was created a SWOT analysis was conducted. The survey shows that
the fast food market is already quite mature but it still has a lot of loop holes to be filled. It
also shows that the competition in the fast food market is quite fierce but the methods used by
Burger King are helping them boost their sales year by year mainly due to the prices that it
offers and the quality of food they serve.

Background and Introduction

Founded in the year 1953 Burger king was formerly known as Insta Burger. It was then
changed to Burger king in 1954 by their founders Keith. J. Kramer and Matthew Burns. The
headquarters of the company is based in Miami, Florida USA. Their parent company is
Restaurant Brand International
.

Mission
Burger King’s mission statement is to “offer reasonably priced quality
food, served quickly, in attractive, clean surroundings.”

Vision
Burger King’s vision statement is “to be the most profitable QSR
business, through a strong franchise system and great people,
serving the best burgers in the world.”

Aim
Great Food Comes First
 Market segment
Criteria Characteristics
Geographic - area: United States of America
segmentation: - population diversity: city area
- language: English, Spanish
Demographic - age: 4-60
segmentation: - sex: female-male
- size of the household: 2.58
income: 59,000 per year
- occupation: employees from lower to middle MGMT
- religion: ethnically respectful
- education: diploma, degree, completed
Social-psychological personality: budgeting to extravagant, dependent and
segmentation: interdependent, ambitious, modern, open minded
social level: middle- upper-class
Behavior related general: socializing , traveling , world open, regional sports,
segment: football, outgoing, partying, open minded,
related to product or service: International vacation, sports,
international news, Jazz, pop to RnB, club members, recreational
sports
source of information: Internet, personal contact, advertising,
website, word of the mouth
Maslow’s Pyramid

The employees are always

kept motivated by staff
meetings and
performance reviews

The employees are given

employee of the month
awards and a special badge to
wear on their uniforms

The employees are given bonuses for

their commitment towards the company
and their continous good work

By offering benifits packages for the managers and by

offering dental and legal shield as an added benifit for
the employees. They also have safety cameras and fire
extinguishers in case of emergencies.

Burgers, Hotdogs, Chicken, Salads and Veggies, Breakfast,

Beverages, Coffees and Frappes, Sides, Sweets, Value Menu, King Jr
Meals.
 The 4 P’s
Promotion

Kids meal with a free toy

Monthly Specials
Festive Burgers
Menu Items

Burger King Pricing and Strategy

1.Market Oriented Pricing

2.Bundle pricing strategy

Burger King Promotion Mix

1.Advertising
2.Sales Promotion
3.Personal Selling
4.Public relations

Burger King Marketing Mix

1.Restaurants
2.Mobile App
3.Website for Deliveries

Burger King Product Mix

1.Burgers
2.Chicken and Fish
3.Sides
4.Salads and Veggies
5.Beverages
6.Desserts

Place

1.Burger King works its business through establishments, under an establishment plan, the
franchisees put resources into the gear, signage, seating and style, while the organization
possesses or rents the area and building. The organization creates incomes from three
sources: deals at organization eateries, eminences and establishment expenses and
property wage from those establishments that rent or sub lease property from the
organization.

2.Burger King involves essential areas.

Product

¥ As a fast food ground sirloin sandwich eatery (FFHR) chain, Burger King produces,
cheeseburgers, cheeseburgers and Fries, Salads, Hash tans, Onion rings, Coffee, Juice,
Shakes, treats and pies.

¥ Burger King separates itself from rivalry with its "have it your way" topic which permits
individualize every requests with numerous choices including fries or onion rings, cheddar,
bacon, mustard, ketchup, mayonnaise, lettuce, tomato, pickles, and onion.

¥ The country's No. 2 burger chain will include Starbucks Corp's. Seattle's Best Coffee to all
its U.S. eateries in an eliminated roll that starts in the late spring of 2010. Under the exertion,
more than 7,000 Burger King Restaurants will start offering the espresso alongside frosted
assortments that likewise accompany a decision of plain, vanilla or mocha enhances and
whipped garnishes.

¥ Burger King has marked an authorizing manage ConAgra Foods Lamb Weston which will
bring about offering a retail line of microwaveable Burger King Brand French fries at select
retailers in the United States, including Wal-Mart.
Prices
Burger King's estimating methodology is construct essentially in light of its non specific
procedure of cost administration, which minimizes expenses and costs. In this part of the
promoting blend, proper estimating of items is considered. Burger King's valuing systems are
as per the following:

1. Market-situated evaluating procedure

2. Bundle estimating procedure

Burger King utilizes market-arranged valuing system as its essential way to deal with
estimating. This valuing system includes setting costs taking into account winning economic
situations, including free market activity conditions and also the evaluating of contending
firms. Burger King's auxiliary valuing methodology is the pack evaluating procedure. For
instance, clients can purchase esteem suppers and children dinners at pack costs that are more
moderate than purchasing sustenance things independently. This segment of the advertising
blend demonstrates that Burger King for the most part considers economic situations to
decide its costs.
Mission and Values

The main mission for burger king is to be the in the best quick service restaurant in the
world. Their main aim is to serve reasonably priced products in fast and clean manner. They
want to have a strong franchise system with great and happy employees and want to sell
the best burgers all around the world.
For more than 60 years, their eateries have been serving excellent, awesome tasting and
moderate nourishment around the globe. Their dedication to the nourishment we serve is
the thing that characterizes us as an organization and is at the focal point of our image
guarantee. Their image guarantee enables our visitors to settle on taught decisions in
tweaking their suppers to fit their individual ways of life. They give nitty gritty nourishment
data to our visitors so they can settle on educated dinner decisions. We perceive that there
will dependably be extra strides we can take to improve our menu alternatives and fulfill our
visitors. Our item advancement groups are continually attempting to grow new alternatives
that give an assortment of awesome tasting sustenance while meeting our visitors'
developing way of life needs.

They are also committed to supporting and putting resources into our kin – workers,
franchisees, suppliers and eatery visitors – on the grounds that they are the foundations of
our business. We do all that we can to serve workers and visitors alike. The BURGER KING
McLAMORE℠ Foundation is however one way that we bolster our BURGER KING® loved
ones. Notwithstanding the establishment, alongside our franchisee group, we bolster
various nearby and territorial activities around the world.

Swot Analysis

Strengths

The main strengths of Burger King are strong brand image, high market penetration, and
moderate differentiation of products. Burger King is one of the market leaders in the QSR
business. This makes it easy for the company to bring new products to the market and start
new restaurants. The strength is mainly based on the amount of restaurant BK has all
around the world. They also differentiate by having grilled burgers which is different from its
competitors.

Weaknesses
Despite the fact that Burger King has moderate separation, one of its shortcomings is that its
plan of action and items are effectively imitated. For instance, different firms could offer
comparable barbecued burgers. Additionally, Burger King's constrained item blend is a
shortcoming since it keeps the organization from drawing in clients searching for more
alternatives. Furthermore, despite the fact that Burger King became universally through
franchising, the franchising model is a shortcoming since it limits corporate control on
franchisees' ways to deal with administration.

Opportunities

Burger King has the chance to extend its item blend by adding new product offerings to
draw in more clients. Likewise, the organization could set up new organizations or auxiliaries
as a feature of business sector advancement to acquire incomes while lessening the impacts
of business sector dangers. Moreover, Burger King has the chance to expand administration
quality as a method for separating its business from rivals like McDonald's

Threats

Burger King confronts the danger of forceful rivalry, considering different firms like
McDonald's and Wendy's. The organization's plan of action is additionally imitable,
prompting the risk of impersonation by new contestants. Moreover, the sound ways of life
pattern is a risk since Burger King's items are censured as unfortunate.

Porters Generic Strategy

Cost Leadership

Burger King USA has the dollar menu in which they have a variety of options which they sell
for a dollar and for another fifty cents they can get either fries or onion rings added on their
burger. These prices are market leaders as no other QSR business in the US sells a burger or
a menu for a cheaper price than Burger Kings’. They have also started selling 10 chicken
nuggets for $1.49 which is way cheaper than what any other fast food chain is selling it for.
They also have continuous discounts and offers on their products. They sell the $5 sandwich
meal whereas at McDonalds the cost of a meal is $7.50 which is a turnoff for some
customers and attracts them towards Burger King.

Service Trends
The company started as Insta Burger king and after the company faltered in 1959 the
franchise owners from Miami, Florida purchased the company and named it Burger King. It
was run alone for eight years expanding to 250 locations in the United States. In 1967 it was
sold to Pillsbury Company. They tried to reconstruct the company in the late 1970’s and
1980’s then hiring Mcdonalds executive in 1978 to change the company from the others.
They introduced an updated franchise agreement, a broader menu, and standardized
restaurant designs. In the 21st century the company returned to to independence when the
company was purchased by Diageo group. The company was then taken public in 2006
which was highly successful for the company. They also hired a new advertising agency
which was successful for them as well. The company was sold to 3G capital of Brazil in 2006
after its decrease in sale. It was taken of the New York Stock Exchange after the analyst
decided it would be better for the company to not remain public anymore. This action was
mainly taken to decrease the gap from its main competitors McDonalds.

Economic Factors Important to Burger King

Financial conditions straightforwardly influence Burger King's remote or full scale
environment. This a player in the PESTEL/PESTLE investigation diagrams the monetary
changes and patterns that impact business execution. The accompanying are the principle
financial outer variables that influence Burger King:

1 Expanding global exchange assentions (opportunity)

2 Economic strength of the U.S. (opportunity)
3 High monetary development in creating markets (opportunity)

As nations execute increasingly and extended worldwide exchange assertions, Burger King
can become through worldwide store network improvements. Additionally, U.S. financial
dependability empowers the organization to slowly develop in the nation. In connection,
Burger King has the chance to quickly grow in creating economies. These conditions
demonstrate that, in the political measurement of the PESTEL/PESTLE examination model,
Burger King must concentrate on outer elements that present open doors for development
and extension, particularly in creating economies.
Social/Sociocultural Factors Influencing Burger King’s Business Environment
Burger King should dependably represent sociocultural impacts in its remote/full scale
environment. The social patterns and changes and their impacts on buyers and
representatives are considered in this a player in the PESTEL/PESTLE examination. The
fundamental sociocultural outside variables influencing Burger King are as per the following:

1 Increasing buyer assorted qualities (opportunity)

2 Higher wellbeing cognizance (danger and opportunity)
3 Increasing backing for every living creature's common sense entitlement (danger and
opportunity)

The expanding populace differing qualities introduces the open door for Burger King to
advance its items to draw in purchasers of different foundations. Higher wellbeing
awareness debilitates interest for Burger King's items, which are at times scrutinized as
unhealthful. In any case, the organization has the chance to enhance the invigorating effect
of its items. Every living creature's common sense entitlement backing keeps on pulling in
consideration, undermining the primary results of Burger King. Still, the firm can actualize
new store network approaches to address worries on every living creature's common sense
entitlement and welfare. This a player in the PESTEL/PESTLE examination focuses to Burger
King's chances to enhance in spite of the dangers connected to sociocultural outside
components
Technological Factors in Burger King’s Business
Burger King's business mostly depends on innovations. In this measurement of the
PESTEL/PESTLE examination, advancements and related patterns are considered as far as
their impact on the remote or large scale environment of the firm. The accompanying are
the major mechanical elements influencing Burger King:

1 Higher accessibility of robotization advancements (opportunity)

2 Higher prevalence of versatile innovations (opportunity)
3 Low R&D movement in the snappy administration eatery industry (opportunity)

More computerization innovations are presently accessible for organizations. Burger King
can apply these advancements to enhance operational proficiency. Additionally, the
organization can tap portable clients to pick up a greater piece of the pie. With respect to
the low R&D movement in the fast food eatery industry, Burger King has the chance to
support its R&D ventures to enhance execution. In this a player in the PESTEL/PESTLE
investigation, Burger King has real open doors for execution enhancements taking into
account innovative outer components
Ecological/Environmental Factors
The earth can force points of confinement to Burger King's business. This measurement of
the PESTEL/PESTLE investigation covers the effect of natural conditions on firms' remote or
full scale environment. On account of Burger King, the accompanying are the most striking
environmental outer elements:

1 Climate change (danger)

2 Emphasis on business maintainability (opportunity)
3 Increasing notoriety of low-carbon ways of life (opportunity)

Environmental change undermines to diminish the security of Burger King's inventory

network. Notwithstanding, the organization has the chance to enhance its maintainability
status. Likewise, Burger King has the chance to enhance effectiveness to pull in shoppers
who advocate low-carbon ways of life. The natural outside variables in this measurement of
the PESTEL/PESTLE examination show that Burger King can sensibly chip away at
maintainability and proficiency.
Legal Factors
Burger King must agree to lawful prerequisites. The impacts of lawful frameworks on firms
and their remote or full scale environment are considered in this a player in the
PESTEL/PESTLE examination. The major legitimate outer elements impacting Burger King are
as per the following:
1 Import and send out control (opportunity)
2 Environmental assurance laws (opportunity)
3 GMO direction (danger)

Burger King has the chance to become taking into account import and fare controls that
backing new universal exchange assentions. Likewise, the organization can upgrade its
maintainability execution to surpass desires and necessities in view of natural assurance
laws. Be that as it may, GMO directions, particularly in Europe, restrict the execution of
Burger King, considering the across the board accessibility of GMO fixings utilized as a part
of the business. This measurement of the PESTEL/PESTLE examination underlines
development and maintainability in light of lawful outside elements.
Burger King’s PESTEL/PESTLE Analysis – Recommendations
Burger King’s PESTEL/PESTLE analysis raises various issues, not all of which can be
realistically addressed. With regard to the remote or macro-environment of the fast food
restaurant industry, Burger King must prioritize the following concerns:
1 Growth and expansion, especially in developing markets
2 E-commerce and mobile transactions
3 Product improvement for health-conscious consumers
4 Business sustainability

Ansoff Matrix

Product Development
Burger King has been very active in developing products in the recent years mainly after it
was purchased by 3G capital. They have introduced various products such as strawberry and
banana smoothies, garden fresh salads, chicken wraps, crispy chicken strips to mocha and
caramel frappes. In India as beef is banned due to religious reasons the introduced a lamb
whopper instead of their trademark beef patties. The have also introduced a wide variety of
vegetarian and vegan products in their stores due to increasing trend of vegans. They have
also become Halal friendly to match the religious needs of the Muslims and the Jewish. They
also introduce limited edition burgers every month to keep the customer wanting more.
They also have festive burgers like Santa and Claus during the Christmas period.

Positioning
Burger King has different kinds of products on its menu. They mainly sell beef burgers, fries
and drinks. They follow the same recipe all over the world to maintain the same quality for
all of its customers. Their main slogan is house of the whopper which is their trademark
burger which states that the customers can only have the whopper in burger king. They are
reasonably priced in almost every country and is found near almost every main
transportation facility in the countries they are present in. Their target customers are aged
between 4-60 years old. They also call themselves a family restaurant as they believe that a
person of any age group can enjoy a meal in the restaurant. They have also launched the
campaign have it your way which allows the customers to customize their products as they
like.
Action Plan
Burger king has introduced a new advertising campaign, newly designed restaurants and
accelerated product innovation. They introduced new items on its menu and a new slogan.
This has already shown a rapid increase in its sales and the people at Burger King believe if
they stick to these ideas the sales would increase even more.

Sales Forecasting
A survey was held to find out what the people think about the fast food restaurants and the
food they serve. They were asked a few questions related to fast food and the fast food
restaurants and if they had a future in their country or not.
Problem statement
In the focused fast-food industry, fast-food eateries need to keep up effectiveness in their
standard operations and stay aware of the nature of their items and administrations.
Notwithstanding, we surmise that there are some issues concerning the conventional
approach to request nourishment in fast-food eateries.

The following questions were asked to the people who did the survey.
1. How often do you consume fast food?
2. Which fast food chain do you prefer?
3. Why do you eat fast food?
4. Why do you prefer your selected fast food chain?
5. Do you think fast food restaurants are healthy?
6. Do you think fast food restaurants have a future in your country?
7. Why do you think so?
8. How often did they eat at a fine dining restaurant?
9. Name, Age, Country of Residence

How often do you consume fast food?

The first question asked to the people was how often do they consume fast food and 64.4%
of the people said that they consume it once per week. The reasoning they gave for
consuming it often was mainly because it was easily accessible to all the people anywhere
and at any time. This would be accurate as a survey held in the United States showed that 1
out of 4 Americans consumes fast food every day and the trend is spreading all around the
world.
Do you think fast food restaurants are healthy?

Even though majority of the people have said that fast food restaurants are unhealthy they
still consume it once a week. When asked why their reply was that it was because it was
easily accessible everywhere and they had access to it easily. A study held by fox news
magazine shows that even though people think fast food restaurants are unhealthy they
consume it at least once a week due to the cost convenience and taste.
http://magazine.foxnews.com/food-wellness/study-says-majority-americans-think-fast-
food-unhealthy-dont-care

Do you think fast food restaurant have a future in your country?

Majority of the people who took part in the survey believe that fast food restaurants have a
future in their country. The reason being that they are introducing healthier options at their
restaurant and are starting to make their products more health friendly due to the people
becoming aware of the harms of fast food. A study held by best health mag shows that all
the fast food restaurants and increasingly introducing healthier options in their restaurants.
http://www.besthealthmag.ca/best-eats/swap-and-drop/the-future-of-nutrition-in-fast-
food-restaurants/

Conclusion
Burger king operates in a highly competitive environment in the United States of America.
The number of competitors to burger king is very high and there are other factors that affect
the business. While its competitors are employing almost the same strategies that burger
king is employing, it is important to build a point of difference that will set burger king apart
from them. Burger king is known for its innovative and quality products, high standard
service and operational excellence. In order to remain competitive, burger king must
differentiate itself from its competitors. This can be done through differentiation of
products. It must also explore new markets and take advantage of new opportunities.
Burger king must maintain its global perspective and continue with its market expansion
strategies. The changing consumer preferences and demands to be satisfied. In order to do
that, burger king must develop a diverse product line.
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