INTERNATIONAL MARKETING

ASSIGNMENT-1

BURGER KING

Burger King (BK) is an American multinational chain of hamburger fast food

restaurants. Headquartered in the unincorporated area of Miami-Dade County, Florida,
the company was founded in 1953 as Insta-Burger King, a Jacksonville, Florida–based
restaurant chain. After Insta-Burger King ran into financial difficulties in 1954, its two
Miami-based franchisees David Edgerton and James McLamore purchased the
company and renamed it "Burger King".

TAGLINE “Have It Your Way”

HISTORY

Burger King was founded in 1953 in Jacksonville, Florida, as Insta-Burger King

by Keith J. KrameAs of December 31, 2018, Burger King reported it had 17,796 outlets
in 100 countries. Of these, nearly half are located in the United States, and 99.7% are
privately owned and operated, with its new owners moving to an almost entirely
franchised model in 2013.

Founded in 1954, BURGER KING® is the second largest fast food hamburger
chain in the world with about 18,000 restaurants operating in more than 100 countries and
US territories as at June 30, 2019.

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 The company made an advertising coup that 2010 when it signed a 10-picture
contract with the Walt Disney Company. The deal, which included such Disney films as
The Lion King, Aladdin and Toy Story, came at the height of Disney's commercial
rebirth. Accompanied with the new BK Kid's Club program, the company saw an
impressive growth within the children's market.

As of 2018, Burger King has reclaimed the second spot in the burger wars with $9.6
billion in U.S. sales when compared to $9.3 billion in sales for Wendy's for the previous
year. McDonald’s is still the leader with $37.6 billion in U.S. sales.

Burger King's stock, which trades under Restaurant Brands, has gone from $35 in
2014 to $55 as of 2018 or 57%. This journey has made the Burger King to be the business
models of today.

COMPETITIVE STARTEGY

 Burger King uses two generic strategies for competitive advantage

 Cost leadership
 Broad differentiation.
 The company's primary generic competitive strategy is cost leadership.
 Burger king follows generic strategy requires creating unique characteristics to
differentiate the business from other firms. Burger King applies this generic
competitive strategy through grilling of burger patties.
 The former slogan “Have It Your Way” and current slogan “Be Your Way”
represent Burger King’s broad differentiation in terms of offering flexible
options to its customers.
 Free drink refills are also offered in many of Burger King’s restaurants.

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MARKETING STRATEGY

 Burger King utilizes aggressive valuing as the challenge is exceptionally high from
any semblance of McDonalds.
 Burger King uses market-oriented pricing strategy as its primary approach to
pricing. This pricing strategy involves setting prices based on prevailing market
conditions, including supply and demand conditions as well as the pricing of
competing firms

 By creating new menu items from existing ingredients, like the new ultimate bacon
cheeseburger, Burger King can entice customers without overwhelming its
workers and slowing down service. For instance, the ultimate bacon cheeseburger is
similar to the classic
 Burger King creates unique characteristics that differentiate it from its competitors.
It supplies this differentiation through its advertising and brand representation. Its
slogan, Be Your Way, lets customers know that the chain offers flexible options.

 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
 Increase the customer satisfaction level by offering convenience.
 Cost control

SEGMENTATION

 DEMOGRAPHIC SEGMENTATION

 The market is segmented according to demographic criteria like Age, Gender, Income
etc.

 In Burger Kings Generally there is no age limit. The target and focus are on
each and every individual in a society.

 GEOGRAPHIC SEGMENTATION
 The market is segmented according to geographic criteria—nations, states, regions,
 countries, cities, neighborhoods, or zip codes.

 Burger Kings sells its products according to the geographic needs of the customers,
worldwide and it is measurable
 Psychographic Segmentation

Burger king divides market on the basis of psychographic variables like:

 Life Style (Lifestyle is not specific)

As Burger Kings focuses on every customer in the society

 Behavioral Segmentation

Burger king divides the market on the basis of behavioral variables as follows:

 Taste conscious
 Quality conscious
 Class conscious
 Combination of price and quality

FINANCIAL POSITION OF BURGER KINGS

COMPETITORS

Burger King is an American based chain of quick-service restaurants that operates a

sizeable number of restaurants all over the world. It was founded in 1958 in Florida as a
specialty in serving burger as the main meal on their menu.

KFC

 One of the main competitors of Burger King is KFC. Also, known as Kentucky Fried
Chicken, KFC is an American fast food restaurant chain that specializes in fried chicken.

 With a presence in over 136 countries, KFC is the world’s second-largest restaurant
chain after McDonalds 

McDonald’s

 An American fast food company that gives Burger King a run for its money is
McDonald’s. Considered as the world’s largest restaurant chain by revenue, McDonald’s
serves over 69 million customers daily in over 100 countries across approx. 36,900
outlets as of 2016.

POPEYES

 Popeyes is an American multinational chain of fried chicken fast food restaurant and is

the second-largest “quick-service chicken restaurant group, measured by a number of
units”, after KFC.

 There are more than 2,600 Popeyes restaurants in more than 40 states and the District of
Columbia, Puerto Rico, and 30 countries worldwide. Out of the lot, about thirty
locations are company-owned, the nearest franchised McDonalds.
PROMOTIONAL STRATEGIES
 Burger King relies mainly on advertising to promote its products. The company
advertises online and on TV and print media
 Burger King is famous for its creative and unique advertising campaigns
 Burger King uses sales promotions and the employees apply some degree of personal
selling to persuade customers to buy additional products from the menu. It is worth
mentioning that Burger King has lowered its advertising spending over the years and
rather focused on creativity.
 Many of its successful campaigns had melodious jingles, which went on to become hits
and its slogan “Have It Your Way” has become synonymous with Burger King.
 Several advertisements are shown on television and print media to popularize the
various outlets and food items that have become its specialty.

PRICING SYSTEM
 

 The pricing strategy of Burger King is given below;

 Bundle price strategy

 Market Oriented strategy

MARKET ORIENTED STRATEGY

 Thisstrategy of the company includes establishing the prices on the basis of current
market trends and conditions, like; competition, changes in the environment and
customer preferences.

BUNDLE PRICE STRATEGY

In this strategy the people can purchase their value meal and meals for children, which
are very much affordable for the purchasing the food products.

 Burger King has been closely monitoring and evaluating their pricing policy so that the
consumers do not feel burdened by the rates. 
 With main competition with McDonalds, the Burger King has focused more on its better
quality and taste with affordable prices.
 As Burger King’s value-added meals and beverages are ways to generate more revenues
for Burger King.
 In revenues, Burger King stands 2nd globally.
 In India, Burger King is concern about its prices and Indian consumers are price
sensitive. Hence in India, the menu of this food chain is diversified serving Indian
flavours resulting in attracting more Indian customers.
BRAND EXTENSION
 Burger King is focusing on delivery business, brand extension and innovation this year
to give a boost to its revenues in the country.
 They brought value to the customer by offering them a good and at a lower price than
competitors. 

 Burger King’s other recent brand extension – the fragrance called Flame by BK.-

This meat perfume was obviously a promotional stunt designed to sell more
burgers, but in general, corporate brand extensions are serious attempts to grow a brand
beyond its initial range of products.

 Another brand extension of Burger Kings is Lifesavers Soda was introduced back in the
80s, and was off the shelves not too long after that. It came in five flavors, and
apparently did well in taste tests before the launch.

LINE EXTENSION

 As Burger King's flagship product, the Whopper has been expanded beyond the
original sandwich into a line of sandwiches all made with the same ingredients.
 CUSTOMER RETENTION STRATEGIES
 Burger King did it with a clever 1-cent Whopper promotion:
Users had to download the app, go within 600 feet of a McDonald’s, place an
order and then receive turn by turn directions to the nearest Burger King.
We generated over 1.5 million downloads from the initiative, making the Burger
King app the No. 1 most downloaded app in the Apple store for several days in a row
and the most downloaded quick service app in the U.S. among our direct competitors in
December," 

 Integration with their CRM to build detailed customer profiles to better target and
engage
 Integration with Burger King POS. Each restaurant has approximately 5 tills, which
means customers can redeem their coupons at over 2000 stations
 Geo-location and beacons to identify the customer’s location both near and inside the
restaurant to present the most relevant messages and promotions at precisely the right
moment
 Burger King has seen tremendous organic growth in the number of app installs in the
first 90 days, demonstrating the perceived value to customers.
 Burger King technology initiatives and the loyalty program should help the company
build stronger relationships with its customers and improve its offerings through
customer feedback

FEEDBACK MECHANISM

 Burger King possessed more than adequate communication and leadership.

 Employees gave the customers feedback on their orders.
 Each customer received a receipt, which enabled them to double-check their order. The
employees also read the order back to the customer before handing them the order
.
PUBLIC RELATIONS

 Burger Kings sound in the marketing world, sometimes admitting that some causes are
worth more than profits can actually result in fond brand feelings, leading to more
engagements, and ultimately more customers—and profits
 Burger Kings start to use the social media to develop and maintain the public
communication between company and customs in where they can introduce new
flavors, can develop more brand loyalty with customers

QUALITY ASSURANCE CERTIFICATE

CSR ACTIVITIES OF BURGER KINGS

 CSR programme of BKC should aim at foods regarding to social health and environment
issues, named “Healthy Burger at Your Door”.
This plan includes four main parts:
 installing BK website with providing menu and foods nutrition, reducing fat and sugar in
products, giving more choices of low-fat foods to the customers, and using materials
come from certificated suppliers. 
 The new CSR programme will also be a chance to help people in adapting the new
development in order to make the country economic grow faster. Realizing the
importance of society and environment in expanding business, BKC, a global chain of
fast food, should implement a new CSR programme