Burger Kings Whopper-Sized Portions

A Case Study

Submitted by:

Soccoro Jane Averia Razor Bucatcat Olive Grace Ma. Cachapero Marc Damil Lyan David Juanico Kent Joseph Limpot Ruiza Tolentino

(2ALM)

Submitted to: Prof. Antonino Arturo Manahan, DBA

September 20, 2010

1. Background of the Case

In this day and age, technology has unceasingly blossomed. Many new technological advances have been made in the 21st century. With the continual blossoming of technology, man has been used to things which come in an instant instant noodles, instant information on the World Wide Web, instant food. You can name it all. This is where fast-foods come into the picture. Man has become impatient; man wants to do anything with ease and comfort. These attitudes of man are best recognized when he looks to fulfill his most basic necessity food.

Before we go on, let us look at the perspective of fast-food chains. Pursuant to the Encyclopedia of Food and Culture, The fast-food is the sector of industry concerned with the preparation and service of food and beverages quickly for immediate sale to the customer for consumption either on or off the premises. These range from traditional fish and chip shop through a series of ethnic cuisines to the high street branded operations of Wendys, McDonalds, KFC or Burger King.

There is a popular saying that If you cannot beat them, join them. This may be applicable to the above-mentioned fast-food chains. However, Burger King chose not to stick with the current trend of placing healthful food options on the menu. Instead, it retained the products that it is known for, Burger Kings Whopper-sized portions. Before, Burger King thought that having a low-fat meal would sell. However, this was not the case. From that time onwards, it changed its course altogether by re-offering products containing an enormous amount of fats, calories, and cholesterol.

Despite all of the criticisms thrown by nutrition-centered groups against Burger King, it has still managed to earn its way to the top by using that kind of strategy. Many still patronize their Whopper-sized portions. What are the factors affecting such case? What should be the actual priorities of the customers in choosing where and what to eat? This is what this case study is all about.

2. Time Context

This case study basically focuses on the current period wherein Burger King is bucking a trend which does not resemble that of the other fast-food chains that are catering to health- and fitness- conscious diners. Specifically, it deals with Burger King outlets in the United States. Moreover, in the future period wherein the authors recommended Burger King to offer products which will promote societal marketing (e.g. health-centered food on the menu) and at the same time retain the products strong appeal to the customers. Particularly, the study also covers the year 1957, when Burger King Whopper was introduced, up to now, when it is still dominantly taking over the fast-food market. The time context also mentioned of the dark years of Burger King when it struggled to sell low-fat products on its menu. In a nutshell, the time context discussed is a combination of previous, current, and future periods.

4. Problem Identification

4.1 Immediate Problem: What are the factors that affect customers decision on what and where to eat? 4.2 Intermediate Problem: What are the factors that affect customers decision to eat at Burger King? 4.3 Root Problem: Why do the consuming public patronize Burger Kings Whopper sized portions despite health issues?

5. Setting Objectives

5.1 General Objective The general objective of this study is to be able identify the consumers criteria in selecting a place where to eat. 5.2 Specific Objectives Specifically, it also aims to: 1. Identify the factors that affect customers decision to eat at Burger King. 2. Understand the reason behind the customers patronizing of Burger Kings Whooper sized portions despite health issues.

6. Areas to Consider

According to the book Food and Beverage Management written by B. Davis, A. Lockwood, and S. Stone, there are five (5) factors that affect customers decision on what and where to eat. The following are: 6.1 Price and Value for Money For the majority of customers, except perhaps for those who can afford to regularly patronize high-quality restaurants, there exists a trade- off point between the task preparing a meal at home, or paying for a meal out. Generally speaking, the higher the disposable income, the higher the trade- off level is. Customers will frequent a restaurant not only because of its food and service, but also because they feel the price they are paying represent value for money. In the context of Burger King, their Enormous Omelette Sandwich - no less than two omelette and cheese slices, three strips of bacon, and a sausage patty in a bun, only costs $2.99. Since it is very affordable for the Americans, it helped the company increase its sales by twenty percent (20%). A three-layered Whopper Burger which was offered by Burger King in conjunction with the release of Universal Pictures King Kong Film sells for $3.99. Such price is still affordable compared to an average eat-in restaurant.

6.2 Food and Drinks

The range of tastes, textures, aromas and colors offered by a food dish, or the taste, color and aroma offered by a drink influence the type of food and drink that people choose to consume away from home. In the case of Burger King, the ingredients that they use in making their burgers are truly tasty. Among these are: bacon, cheese, stacks of burger patties, sausages, jalapeos, mayonnaise, pickles, lettuce, tomatoes, and ketchup. When placed in two slices of bread, as stated in the Encyclopedia of Food and Culture, all of these ingredients are truly delicious. 6.3 Location and Accessibility The location of a food service facility is said to be an important feature and probably needs a more careful identification on where the market is catering. Services which are not appropriately located may not be performed at all (Ratmell, 1974). Another feature is also the convenience it provides. It should cater a speed of service because mostly, people are becoming busier and busier. They are headed to fast-foods since they do not have any more time to do their meals at home. As in the case of Burger King, the burgers are made only for a minimum period of time since the method of food production are often partially or fully automated and frequently using commodities of the convenience type (e.g. frozen chips, concentrated beverage syrups). In a book written by Bernard Dubbis entitled Understanding Consumer Behaviour, he cited Burger King as an example of a company which managed to appeal to their customers by showing information that are relevant to them. As mentioned above,

people nowadays are busy; hence, to cater to these types of people, Burger King extended their operating hours. In the book entitled Encyclopedia of Food and Culture, it was cited that Burger King, alongside with McDonalds, is one of the fast-food chains that is mushrooming in different states and towns of the United States of America. They really want to make sure that they are accessible to people. 6.4 Variety in Menu Choice The type of menu and offered by an establishment and the variety of menu choice should also enhance the total meal experience. Variety in menu choice is also important so that the customers will continually be interested in the said establishment. And Burger King is one of the fast- food chains that successfully carried out such variety in menu choice. Aside from their enormous sized Whopper burgers that you can eat while on the go, Burger King also offers heavy snacks for the people en route to work. They have chicken fries, similar to that of French Fries. In a book entitled Consumer Behavior: An Asia Pacific Approach, it was cited that Burger King is an example of a company who did not fail to understand where consumption occurs. It offers French Toast Sticks and miniature pancakes that could be easily held and dipped into maple syrup. 6.5 Expectations and Identification A single customer or group of customers arriving at a restaurant for a meal bring with them a series of expectations regarding that restaurant - the type of service they will receive, the price they will pay, expected atmosphere and mood of the restaurant, etc. Upon arrival, if the product presented to the customers is in harmony with their

expectations, it is very likely that they will be pleased with their choice and will have a relaxed and enjoyable meal. Should customer sense disharmony, however, between their expectations and the actual product they find, for example, if it is too intimate for the occasion, they may not enter the restaurant but choose another. If disharmony is not realized until the customers are seated at the table, it is unlikely that they will leave but will have a hurried and uncomfortable mood. This is one of the things that Burger King achieved. By focusing essentially on one group of consumers - the Super Fans, Burger King makes sure that it meets these peoples expectations and identification. These people who call them Super Fans are men aged 18 to 34 who are avid football fans and whose gray collar jobs are not the most important aspect of their lives. These guys like spicy and fatty foods. Burger King strives to meet their expectations by continuously offering products that will truly satisfy them. 7. Alternative Courses of Action

7.1 Yes, Burger King offers affordable products and in that way, customers continue to patronize their products. Most of the time, people tend to choose to eat the food that has a cheaper value and at the same time can satisfy their cravings. The first thing that they think of in buying what to eat is price since Burger King offers the price that is easily handled by the pocket and makes it easy for the customers to choose and eat it. It is important for customers that their money will be worth spending for. With the money that people spend on food, they feel fulfilled when they do not spend too much. Yes, it is

affordable but the contents of the food are not of the best quality. Like in other products, it is cheap but it has low quality because of the ingredients or materials used

7.2 Despite the rapid success of fast-food and soft-drink enterprises throughout the world, hamburgers and fast food have been condemned almost from the beginning when it comes to health issues. The key to the fast-food chains success according to Regina Herzlinger, a professor at the Harvard Business School, is allowing it to concentrate on speed and consistency. The food they offer is what customers want and will continuously search and crave for. On the other hand, despite of satisfying customers cravings, the bodys nutritional needs are not satisfied. People just think of the taste they are looking for and do not mind the needs of their body.

7. 3 Many people say that one day is not enough to accomplish all the things needed to be done. Having fast food chains like Burger King that caters ready-to-serve meals is a big help for people working in a busy environment. They got used to eating while driving, eating while walking, eating while they are on their way to work, and eating while working. On the brighter side it is a good thing because they get to manage their time and do multi-tasking works and at the end of the day accomplish all the jobs they have to. On the other hand, ethical values and customs are forgotten. The value of eating is not practiced well. Eating should be done on the table with family members and now, it is not valued anymore. More people are career-oriented nowadays and they choose to be more focused with work than family. It is important to value work but not to the extent that other things are forgotten. The thought of having everything done fast is

not also good for the reason that it may lead to more doomed situations. Besides, success is not attained in a fast phase manner. It cannot be achieved overnight. 7. 4 Burger King has many choices for food to eat but with the varieties they have, they just focus on meat, burgers, fries and more food rich in fat, salt, oil, and cholesterol. Unlike McDonalds, they came up with the new salad menu which is a strategic change in the positioning of its menu in Europe. It is a response to the rise of fast casual restaurants such as Cosi; a gourmet sandwich shop, and to concern over obesity. In America, the company has already introduced a range of new salad. (The Economist Vol. 37; 2004). They do not get innovative enough when it comes to experimenting more healthful food. 7.5 Burger King wants their customers to have good first impressions on the food they serve. They make sure that people are attracted to their products and when consumed, they will be satisfied. They focus on having a particular group of customers.

8. Choice Among the factors that affect peoples decision where and what to eat, particularly Burger King, there are two factors that affect why people patronize Burger Kings Whopper sized portions: 1) Food and Drinks and 2) Price and Value for Money. The Food and Drinks is one of the most important reasons why people go to Burger King. Their well-known Whopper Burgers are the reason why people primarily go to Burger King. Their food and drinks are filled with tasty and delicious flavors. However,

these flavors are offered with additional amounts of fat, oil, and salt. But people do not mind these. In a book entitled, Consumer Behavior (Seventh Edition), it was mentioned that there are really some customers that can be classified as Type T or Thrill seekers. These are individuals who are known for being risk takers which are more likely to end up with health hazards not considering the benefits that the product has to offer. This is the reason why people are used to eating foods which are of very minimal benefit. The second most important factor that influences people to continuously patronize Burger Kings Whopper sized portions is the price and value for money. The Whopper sized-portions of Burger King are truly affordable and worth it to spend for that is why people continuously buy it. 9. Recommendations

Part of Burger Kings marketing strategy is focusing essentially on one group of consumers the Super Fans. They design their food fit to these groups of people, forgetting other groups of consumers. Hence, it is recommended that they expand their exposure to the wider crowd to attract more customers. But of course, they must retain their relationship with their loyal fans. They should still retain their Whopper-sized products. More so, they should also invent new yet healthy and nutritious products that would draw people closer to the said fast food chain. These products should alleviate the negative effects of their fatty, cholesterol-rich, and high-calorie burgers.

For consumers, they must attend to their knowledge about the consequences of the food they eat by considering the nutritional facts and not the mere taste of it. For future researchers, they should also consider other factors that affect consumer buying decision on where and what to eat. What are stated above are expandable and can be further improved.

10. Action Plans and Programs Activity Offer a Whopper sized burger that is less in fat, Objective Strategy Concerned Dept. & Personnel The Human Resource Department must hire food technologist so as to create alternative Timeframe Contingenc y This will

In order to expand their market target, thus attracting

Aside from sustaining long term relationship with the avid fans of Whopper sized burgers,

Given the

time for the only be food possible

technologis with the -ts to create alternative cooperation of the manageme nt as a whole. Before coming up with a final decision,

calories, and new cholesterol content but caters the same taste which is more healthful. customers, the objective is to include

ingredients, thus ingredients making Whopper sized burgers less in fats, calories, and cholesterol which are more healthful for the innovated

those people they should who are health conscious. make innovations. That is to

produce the same burger which is of similar quantity and quality but made in a healthconscious fashion.

content as compared to the original burger.

Whopper size burgers. The timeframe will also be until the time the products will be sold to the market.

the manageme nt must call a series of meetings so that the new move is wellthought of. In the end, it will be more fulfilling for Burger King if it would be able to serve products which does not only satisfy the customers taste but

also the customers health needs. More importantly, the support of the market is vital. Even if there is an offer but there is no acceptance, there is no concurrenc e of wills.