BURGER KING ANALYSIS

Group 3 :
Guided by Prof. Dr. JOSEFINA ABILAY
Completed by Group #3 (Peter, Kelvin, Tony, and Doris)
Name : Tran Le Dung , Nguyen Tan Kiet, Truong Tan Khang, Tran Tien Dat

25 January 2015
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1. Executive Summary
Burger King is one of the world best known fast food restaurants (it is the second
largest company in the world). Start in 1954 when David R.Edgerton obtained the
Miami areas rights to fast food concept.Burger King is a
global chain of hamburger fast food restaurants headquartered
in unincorporated Miami-Dade County, Florida, United States. The company began
in 1953 as Install-Burger King, a Jacksonville, Florida-based restaurant chain
Business Established: 1954
Franchising Since: 1961
Start-up Cost: $50,000
Total Investment: $300,000 - $2.8 MM
Net worth requirement: $1.5M
Cash liquidity requirement: $500,000
Current CEO: John W. Chisley.
History development record:
1957 Mc Lamoure invents the Whopper and claimed it was the first fast food jumbo
hamburger
In 1961 BK made it first move outside of Florida when it opened a franchise in
McLamoress hometown of Wilmington.
Until 1983 BK commercials reverted back to attacking Mc Donald. About soft drink it
switched from Coke to Pepsi in US.
In 1984 two BK franchise named Consumer Food Service begin experiment with
local delivery.
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Operations: BK opened 356 new restaurants in fiscal year 1984,about 86% of all BK
restaurants worldwide where opened by independence franchises holders.
2. Statement of the problem:
Market shares:

The analysis on opportunities on market both challenging, difficulties and

advantages, factor
internal and external below could support decision marking.

SWOT Analysis:
Strengths

Global strong brand in fast food : Burger King is a globally recognized fast
food brand thanks to the famous hamburger whopper and its slogan have it

your way.
Large market share, well known trade make serve system whole worldwide.
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The company financial growth is able to grow while minimizing large capital

expenditure, meanwhile it collects fees and royalties from each franchise.

There are a lot of burgers that is available in other fast food restaurants.
Diversify product differentiation with large, small size.

Opportunities
Healthy Menu Items: Burger King Premium Chicken Burger and accompanying the
launch with a marketing campaign called cheat on beef. Emphasis the new
healthier menus like they do with the new satisfies fries and highlight the fact that
contrary to their main competitors most of their items are more healthier.
Involving the customers through digital game in order to raise loyalty (such as a BK
Nation or Lovers) and implement a crow-funding strategy
They corporate social responsibility, by introducing clean energy and packaging to
respond to the social change and lifestyle. Underline and expand the BK McLamore
Foundation worldwide
Diversification of their services, for instance with a coffee corner in the most
profitable restaurants which will serve Seattles Best Coffee (a Starbucks brand)The King coffee a possible way to compete with the Mc Coffee
Reduce cost of entry for Burger King franchise and under performing outlets
Branding Licensing : Burger King has entered into a licensing arrangement
(brokered by Broad Street Licensing Group) to further increase the companys brand
awareness and broaden the presence of the iconic King character, various

licensees of Burger King Corp. will soon launch a line of branded T-shirts, and also
an exclusive collection of sleep ware and lounge ware.

Threats.
Eating habits changes towards healthier food alternatives may influent to target
directly fast food chain such as Burger King.
Intense competition from other chains such as McDonalds, Wendy, KFC but also
little fast food restaurants targeting specific segments.
Increasing labor cost putting pressure on margins and is a threat to keep low price
$1.
Saturated fast food markets in the developed economies
The Slow Recovering Economy:The challenging global economy continues to
hamper the companys financial strength (ranked 238th among its peers). Burger
King posted weaker-than-expected.
Superior Growth Plan: Most of Burger King Restaurants are owned and operated
by independent franchisees, many of them family-owned units that have been in
business for decades. The company is able to grow while minimizing large capital
expenditure, meanwhile it collects fees and royalties from each franchise added.

Weaknesses
Heavily concentrated in the United States: Although the company operates in many
international venues, the majority of restaurants are in the United States. This

concentration of operations in one geographic area companys exposure to local

factors.
Relies on franchises: The company doesnt have enough corporately owned stores
which means it relies heavily on franchises to excite its promise.
High calorie food: Its always an issue that fast food with high fat and high calorie is
not good for health conscious people. And there is some indication that Burger King
may have been slow to transition to leaner and healthier restaurant to please its long
term customers who are fans of the big sandwiches.
Burger King dose not advertise their products like their competitors.
Competitor : FC,Pizza Hut, Mc Donalss,Domino.

There is some indication that Burger King may have been slow to transition to leaner
and healthier restaurant fare in favor of pleasing its long term customers who are
fans of the big larger portion sandwiches.

5P Analysis

-Products

Burger King's typical Products.

Burger King's typical Products.

After being acquired by its Miami, Florida, franchisees and renamed to its current
moniker in 1954, BK began expanding the breadth of its menu by adding
the Whopper sandwich in 1957.
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PLACE:
As the company expanded both inside and outside the US, it introduced localized
versions of its products that conform to regional tastes and cultural or religious
beliefs.
There are 3 main market are China, Japan and US.
Burger King operates its business via franchises, under a franchise arrangement, the
franchise invest in the equipment, signage, seating and decor, while the company
owns or leases the land and building.
The company generates revenues from three sources: sales at company restaurants,
royalties and franchise fees and property income from those franchises that lease
or sub lease property from the company.
Burger King occupies primary locations.

PRICES POLICY:

BK joined with Mc Donald with offer $1 double cheeseburger promotion.

Burger Kings Big Value Menu $1 Talent Show invites customers to display

their talent via videos they submit with the goal of winning a menu item.
The company has coined the term next best move to feature scheduled
promotional tours with stops in urban communities around the country. The
effort is augmented by a special offer.

PROMOTION STRATEGY:
Burger King coupons and deals on site. Customers can buy online. To redeem online
deals, just click on the link "Click Here to Redeem" and the discount will be
automatically applied at checkout.
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3.

Cause of the problem :

Training: is geared to provide you with the skills to help build a successful
business in this extremely competitive marketplace. The initial training that covers a
broad range of technical and managerial skills. Courses can be added later for you
and your team to increase experience, business, and operations knowledge. General
business knowledge and past food service experience is required.

BK took action to increase productivities in employee and equipments, it is

necessary in service especial at the peak hours. Customer cant wait long for an
order.
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Burger King has two of its own in-house national charitable organizations and
programs. One is the Have It Your Way Foundation, a US-based non-profit (501(c)
(3)) corporation with multiple focuses on hunger alleviation, disease prevention and
community education through scholarship programs at colleges in the US. The other
charitable organization is the McLamore Foundation, also a non-profit, 501(c)(3)
corporation that provides scholarships to students in the US and its territories

PEOPLE :

Consumers truth BK brand like a meals for their friend.

Employees shows well appearance in servicing the customers.
John W. Chisley is Burger Kings Chief Executive Officer and Executive Chairman of
The Board.
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Alexandra Galindez the director of multicultural marketing for Burger King and in
charge of implementing its Next Best Move initiative, which seeks to strengthen its
standing in urban communities by conducting a national tour to community
basketball courts in 41 markets.
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 customers
order. Customers also get their own drinks while they are waiting for their meal.
4. Decision Criteria and Alternative Solutions:
Consumers habits causes BK focus on improvement their
services,products,marketing strategy.
Product quality also the second key important in business development,MK must
monitor strictly input and output.
Limit time in delivery each order, make customer happy is the key to attract new
customer arriving.
Action Solutions:
BK creative replacement products in case of habit change take place but it meet
initial standard and adding other values to the service environment such as forum for
young, communicating group.
The effort setting deadline for each order 20 minutes from phone call is made. Quick
action makes happy to everyone saving their value time. To be done well the
commitment BK must have a strong delivery team who raise high service spirit to
customer.

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To keep quality of products ,BK equips the intelligent monitoring for the store
systems to reject immortally any product is not meet requirements.Technicque factor
also important, all the equipment must have maintain schedule strictly to ensure all
of them are working in best condition.
5. Recommended solution Implementation and Justification:
BK focuses on groups were held to gain insight into a variety of patrons of
restaurants. These focus groups provided useful insight into the decisions, and
decision making processes, of consumers. Early realize customer demands to make
decision. The suggestion card system has several statements that patrons are asked
to rate in terms of a given scale. There are also several open ended questions that
allow the customer to freely offer constructive criticism or praise. Sigmund's will
work hard to implement reasonable suggestions in order to improve their service
offerings as well as show their commitment to the customer that their suggestions
are valued.
Conclusion:
Im prove customer services by obsessive customer attention is the mantra.
Sigmund's philosophy is that whatever needs to be done to make the customer
happy must occur, even at the expense of short-term profits. In the long term, this
investment will pay off with a fiercely loyal customer base who is extremely vocal to
their friends with referrals.

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External Sourcing
http://www.marketingteacher.com/burger-king-marketing-mix/

http://www.marketingteacher.com/burger-king-swot/
https://bigmacvswhooper.wordpress.com/2013/11/01/swot-analysis/
http://www.mplans.com/pasta_restaurant_marketing_plan/marketing_strategy

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5. http://en.wikipedia.org/wiki/Burger_King
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