Republic of the Philippines

Batangas State University

College of Accountancy, Business, Economics
& International Hospitality Management
Pablo Borbon Main I, Batangas City, Philippines

Case Study: Burger King

Submitted To
Sir Joseph D. Mendoza
MGT 406 Teacher

Submitted by:
Chan, Yasmine R.
Fernandez, Jaezel Anne
Moreno, Abegail
Rosales, Rena Cheska C.
Sumagpang, Mardee Lyn Sampol

On
May 14, 2019

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I. Executive Summary

This study provides an analysis and evaluation of Concept Design

Services strategy, from being an inward-looking manufacturing company, it has

become a customer-focused, integrated service provider. From a largely

commodity supplier, it has become known for its value-added and innovative

designs. Most importantly, its performance as a company has been little short of

spectacular, and see no reason why it cannot continue on this upward path. By

this, it had come initially from the manufacture of complex injection-molded

plastic components for large industrial customers. Following the acquisition of the

company by a large consumer products group, it had rapidly extended its range

to include popular household items such as washing-up bowls, pedal bins, baby

baths, buckets and dustpans. These were sold under the Focus brand name,

initially through wholesale distributors and then increasingly to large national do-

it-yourself (DIY) stores, often referred to as ‘sheds’. By the early 1990s, the

homeware business had grown to account for over 80 per cent of turnover, which

had itself more than doubled in 10 years. Additional large injection-molding

machines had been purchased to cope with the rapidly growing volumes of

products. These machines provided many economies of scale that enabled the

company to compete aggressively in a market where barriers to entry were low.

However, competition was increasing, mainly from small, specialized

manufacturers with low overheads. The range of products supplied by these

companies was often quite limited (just buckets or bowls, for example), largely

because of the high costs of molds, which could be up to £50 000 each.

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II. Statement of the Problem

Burger King is one of the famous fast-food restaurants known for its heavy

burger meals focusing on male customers' satisfaction that led its marketing strategy

limited to that only specific market. This results into several problems such as how it

would extend its customer bases through franchising and value meals, considering

them as short term problems, which negatively affect the costs of the business

operations.

In relation to this, it gives a long term problem for the company, particularly on

how would it match the business operations to its marketing strategy in extending its

target market. The focus of the company's marketing strategy leads to narrow

classification of its customers and unconsciously unfulfilling other customer’s demands.

This gives the managers the access in facing a serious decision on how to propose plan

of actions and recommendations to ensure the survival and long-term success of Burger

King.

III. Causes of the Problem

In relation to the problems regarding Burger King’s marketing strategy,

franchising and value meals are considered as a short term problem since it only occurs

over a relatively short period of time.

In terms of franchising, there is a small number of franchisees who are willing to

start and operate the business. This is because Burger King's starting capital were high

as well as its expenses on the franchise process. Company's marketing target which is

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men also impacts the potential franchisees of the business for it limits the target market

of the business. This led to one of the weaknesses of Burger King's marketing strategy.

Meanwhile, Burger King takes aim for McDonald's Happy Meals by introducing

"Unhappy Meals” real meals which emphasized people having various kinds of bad

days that it's OK to not be OK all the time that supports their tagline “have it your way.”.

This results to having new menu items but the fundamental problem is that according to

some analysts, Burger King may have cannibalized its sales by putting too much

emphasis on value meals resulting to a lower price of the meals than its must price. By

this, it resulted in suing the company by the franchisees. This also led to one of the

weaknesses of Burger King's marketing strategy.

Moreover, expanding its target market resulted to a long term problem on how

they will match the business operations to its marketing strategy. Burger King’s

Whopper is known for its quality and it is the best known brand in fast food until now

that makes the Whopper as their signature product and strength. However, Burger King

has a narrow classification of its customers focusing merely on men consumers offering

a high-calorie burgers disregarding the kids and women. This added to business’

threats along with their competitor McDonald's whose target market are the families or a

large number of people including young to old.

Since Burger King's marketing strategy focuses mainly on men, the management

fine it hard for the operations to be adjusted regarding its target market. This concludes

that the management lacked focus and direction that made them struggled with

marketing strategies.

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 In connection with business' model, the identification of Burger King's issues is

identified through the use of SWOT analysis. The company started in showing their

strength and opportunities within the same food industry along with their competitors.

However, as an evaluation of competitive advantage, Burger King is left behind after

focusing on its weaknesses and threats with their competitors as well.

SWOT Analysis
Strength Weaknesses
 Strong market position  Heavily concentrated in the U.S.
 Strong brand equity  Few corporately owned stores
 High quality products  Narrow based target market
 Wide variety of food products  Inconsistent management strategy
 Changing executives
 Confusing ad campaigns
 High prices
Opportunities Threats
 New product development  Changing consumer habits
 Expansion into emerging markets towards healthier food choices
 Intense competition from
McDonald's
 Increasing labor costs
 McDonald's is a way ahead in
market share

According to the data, the sale of Burger King does not significantly increase

compared to McDonald's that means it was still outperformed by its competitors.

Therefore, the usage of SWOT analysis is not that effective on the said business.

IV. Decision Criteria and Alternative Solutions

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 After analyzing the Burger King’s company structure, it resulted with right focus

on the main problem—its marketing strategy. In relation to this, it comes along with

minor problems such as why it is still being dominated by McDonald’s in terms of

number of franchises and customers, it would be derived to one possible major change

in company’s operations. The strategic marketing, as defined, involves the proper ways

of implementing the product or service promotion, assessing its quality to the customers

and assuring that it is distributed to the market through the company’s different

channels and outlets.Thus, making strategic marketing its fundamental solution to its

major issues for the company.

The following criteria are set in order to weigh out decisions that will be part of

the company’s plan of actions: tangible cost (if it will cost the company much higher),

time of implementation (if it is timely or appropriate to the given context) and

acceptability to management (if it will require lots of work and involvement of

managers and employees). The given measures allow Burger King to extrapolate its

decisions and alternative solutions in order to attain the best course of action in

overcoming its major problems in marketing.

The following alternatives are the strategic choices proposed for the betterment

of the Burger King’s business operations.

Alternative 1: Redefining Marketing Mix

There will be manifestation of Burger King’s marketing strategy growth through

reanalyzing components of marketing mix: Re-modifying and reassessing the (1)

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product which includes quality, operations, features; (2) promotion; (3) place and;

(4) price of the product according to the goal of expanding the target market.

Product Promotion Price Place

 Quality: Have  Commercials:  New set of Price:  Increase number
consistent healthy Releasing New menu for of franchise
burgers. commercials affordable burgers in outside malls
 Features: provide featuring not just men proportion of located in cities
choices of but families, women, minimized size of and provide it with
burgers by elderlies, kids and burgers and choice of a Drive-Thru
adjusting its size. the like. burger meat. counter.
 Flavors: Introduce  Media:  Price Range:  Establish a Take-
new variety Advertise Burger Expensive Burger for Out Counter
flavors of burgers King through different heavyweight beef located near
not just pure beef forms of media burger. schools, public
meat. It may namely; social media Regular-priced market, and other
include and print media. Burger for normal crowded places.
mushroom burger size beef burgers.
for healthy choice; Affordable Burger for
chicken burger for value meals in
kid’s choice and provision of
such. alternative burger
meat and minimized
burger size.

a. Pro: This will give Burger King the opportunity to change its main product’s

(burger) quality and features which involve healthier and less heavy-weight

(pound-for-pound) burgers. This accords to expansion of target market from

men to offering to women and young pals who are less heavy-eater of

burgers.

b. Con: None

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 Tangible Costs

a. Pro: This strategy, as it directly aims for modification in operations—making

less heavy-weight and healthier burgers, the cost of production will be

lessened as materials are reduced aiming for lesser-meat patties.

b. Con: In the contrary, since Burger King will be doing the market and product

development strategies at the very same time, the cost of marketing is

expected to increase as it will try to retain its existing market and penetrate

new customers.

 Time of Implementation

a. Pro: If the strategy is implemented within the span of time it is needed, the

more it is likely to produce benefits. Matching the company’s timeline to the

market trends must always be one of the goals of a business especially in

food industry.

b. Con: The strategy will produce both costs and benefits as for the Burger

King’s timeline and the business environment’s trend. Implications may start

rising when unforeseen trends happen to exist.

 Acceptability to Management

a. Pro: Best of effort will be done by every each individual to result in the

betterment of the company’s current status.

b. Con: The strategy will require more workings, effort and involvement from the

management, especially from the production staff and functional leaders in

marketing plans and tactics.

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 c. Pro and Con: It has a tendency to redirect employees in term of how

marketing strategy will be done. Prior to that, additional trainings and

seminars will be conducted for the objectives to be clarified.

Alternative 2: Competitor Analysis (McDonald’s as Direct Competitor)

McDonald’s, being one of the Burger King’s biggest competitors in the industry,

had already established its position in the market. It has been successfully working on

building the strongest brand name and committing itself in topping the list of best fast

food chains in its business field. While Burger King is still on its way in proving its ability

to overcome McDonald’s leading business operations, it must employ an analysis that

scans thoroughly the competitor’s strengths and weaknesses that will provide both

offensive and defensive strategic context to identify opportunities and threats.

Pro: This strategy will give Burger King the right weighing of its competitor’s

advantages over it and disadvantages that may potentially become its strength.

Con: This strategy will solely focus on comparison of what the two involved

entities possess, thus discarding the other possible strategies that may be implemented

by the company from its own formulation and thorough research.

The following table shows the competitor analysis of Burger King between

McDonald’s as its main competitor:

Competitor Analysis
Burger King McDonald’s
Advantage/s
 Healthy for its grilled burgers  Broad target market

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  Flexible
 Wide varieties of menu
 Many franchises
 Commercial and Advertising strategies
 Pioneers the trends
Disadvantage/s
 Limited market  Not so healthy ingredients
 Offers limited menu
 Small number of franchise
 Limited value meals
 High product costs

 Tangible Cost

a. Pro: The strategy will not require that much cost to conduct an analysis on the

competitor’s strengths and weaknesses as this will only call for the

management’s constructive plan of profiling and benchmarking.

b. Con: None.

 Time of Implementation

a. Pro: If Burger King tries to conduct the analysis before its competitor

establishes a strong brand name in the industry, with proper determining of

strengths and weaknesses, it will be the best time to discover and develop

strategies that may pioneer the field of fast food chain businesses.

b. Con: Given the context of Burger King’s current status of being behind its

biggest competition, if the strategy will be implemented at the moment, it will be

ineffective and disadvantageous as the company will be trying to compare and

profile the counterpart’s already established business name and operations. It

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 may lead to accusations of imitating and consequently adds to the company’s list

of threats from its market position.

 Acceptability to Management

a. Pro: At the time of utilization of this analysis—being part of the corporate

strategy of a business, the people that must take part in the planning shall put on

their best efforts in collecting information, analyzing it and establishing strategies

that will give the company a competitive advantage.

b. Con: The strategy will require more workings and effort in identifying the

proper marketing strategies by using the competitor analysis as a basis.

c. Pro and Con: It has a tendency to redirect employees in term of how

marketing strategy will be done. Prior to that, additional trainings and seminars

will be conducted for the objectives to be clarified.

IV. Recommended Solution. Implementation and Justification

Analyzing and reassessing what the Burger King had already done and

established in its peak and downfall year/s, among the alternative decisions that are

critically scrutinized, the best solution that must be done will be the re-modification and

reassessment of its Marketing Mix.

The following statements will explain how re-modification and reassessment of

the company’s Marketing Mix will be done.

Main Problem: Marketing Strategy

Areas of Recommended Objectives People Time Frames Success
Concerns Solutions Involved Indicators

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 1.1 Product  Consistent  To improve  Employees  6 months  To
healthy marketing increase
burgers strategy sales
 Introduce new
flavors and
sizes  3 months
 To extend  To improve

1.2 Promotion its target company’s

 Promotion of  Marketing
market image
product for group
families in all
 To attract
forms of  6 months
 To attract customers
media
1.3 Price more
 New burger  Employers
customers
set of prices
for variety of
sizes and  To
flavors  6 months increase
 To ensure
to one franchises
1.4 Place
survival
 Franchises  Employers year
and
outside malls and
success of
and employees
the
establishment
company
of take-out
counters at
strategic
places.
The table shows how Marketing Mix affect the following factors to the business in

terms of its areas of concern, recommended solutions, objectives, people involves, time

frames and success indicators. It entails details on what subjects are covered and the

relationship of every factors to have a precised recommended solution.

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 The areas of concern are the 4P’s of Marketing Mix; product, promotion, price

and place, with solutions proposed accordingly. There were objectives expected to gain

after the areas of concern are done properly. In relation to this, time frames are

practically build on how the marketing strategy will be dome.

There are people who will be affected by the planned solution to be able to solve

Burger King’s problem: first and foremost are its employees. They will have to undergo

new training sessions and seminars about the new and the improved products. This is

to ensure skill and mastery in the operation procedures to satisfy customers’ needs and

preference. In addition, they will have to be oriented on the significance of the changes

that will take place in their workplace. Marketing group, on the other hand, will have to

burst their heads out to think of more ways to improve the products and the company’s

image. Employers will have to expend extra capital to be able to fund the needed

improvement.

Therefore, the Marketing Mix is the foreseen solution to the problem, as it is able

to address the shortcomings found in the previous marketing strategy.The action must

be immediate and prompt, in order to effect change in the business and in the long run,

to ensure survival and success of the company.

Here is the list of solutions that marketing mix can provide in connection to short-

term and long term problems:

Problems Solutions
Short Term Problems The problem with regards to franchises and
value meals, marketing mix has helped to address
the problem by improving its place and price.
Through having a price range, consumers will

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 tend to purchase product they can choose from
when buying, especially burger. Adding a take-
out counter will cater to those who are far away
from the Burger King stores. They can satisfy their
cravings through the available take- out counters
nearby. Value meals will encourage consumers to
purchase more because they thought that they
gain more from the price offered them and save
more.
Long Term Problems Marketing and operation become its
problem. Marketing mix contributed to the
progress of its marketing and operations function.
By implementing promotional commercials about
family, woman, elderly and kids and not just for
men, the demand of customers increases
because it developed a broader range of target
market. Advertising through social media and print
media also can help boost its demand. The
improvements they have taken will be able to
reach its customer. With regards to operation, the
new way of preparing burgers will be the way to
address all the needs of different customer- men,
women, children and elderly. About the product
enhancement, adding varieties of meat burger
and mushroom burger will cater to those who
prefer healthy food. The different sizes of burger
will be appreciated by those who can consume
little and those who want to save in purchases.

In such case, if the recommended solution will not work, there should always be

a contingency plan if things do not go the way it was planned. As for the Burger King,

the company should hire more competent marketing strategists to help boost the

company’s image and product name/brand name by directing its focus in meeting the

food cravings of families and by introducing varieties of meat burger and healthier

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burger like mushroom burger and having them offered in different sizes. Consumers will

have options for the product, thus, leading to customer satisfaction.

Reassessing the marketing mix will help Burger King in addressing the problems

and issues with regards to “pushing” its products to the market by attracting not only

men, but the different segmentations of consumers. It will help the company to market

its products by having sensible commercials and advertisements through social media

and print media. This reassessment will help the company address the need to improve

the product, promotion, price and place as part of its corporate strategy and hence,

achieving the establishment of long-term commitment and loyalty from its customers.

IV. External Sourcing

Competitor analysis. June 2017. Retrieved May 10, 2019 from

https://en.m.wikipedia.org/wiki/Competitor_analysis

Hitesh, Bhasin. Marketing Strategy of Burger King - Burger King Marketing Strategy.

https://www.marketing91.com/marketing-strategy-burger-king/

Martin.Understanding the Marketing Mix Concept– 4Ps.

https://www.cleverism.com/understanding-marketing-mix-concept-4ps/

Sacramento, Jennydhel (n.d.). BURGER KING (Case Analysis Final). Retrieved May 6,

2019 from https://www.scribd.com/doc/55980290/BURGER-KING-Case-

Analysis-Final

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Policy : Toward Global Sustainability; Thirteenth Edition. Pearson Education:

USA.

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