Marketing Management (MMT)

PGDM (RM)

INSTITUTE OF RURAL MANAGEMENT ANAND

Burger King: Developing a marketing mix for growth

PREPARED BY: Group 8

P44128- Anadi Vaibhav Singh

P44137- Gourav Kumar

P44153-Nikita

P44162- Roopika Rose Thomas

P44177- Tushar Mittal

Introduction
In 2015, Burger King (BK) operated within the highly competitive fast-food industry, contending
with industry giants such as McDonald's, Wendy's, Sonic, Jack in the Box, and emerging fast-
casual chains. In order to thrive, BK required a distinctive marketing mix strategy to differentiate
itself from the competition and narrow the gap with industry leader McDonald's. This strategic
approach also influenced the allocation of resources between BK's domestic and international
markets. The roots of BK's history extend back to 1953 when it was established as Insta-Burger
King in Florida, drawing inspiration from the success of McDonald's. Following initial
challenges, the company underwent a change in ownership in 1954, introducing the Burger King
mascot and the iconic Whopper sandwich. Subsequent ownership transitions involved entities
such as Pillsbury, Grand Metropolitan PLC, Diageo, and private equity firms. In 2010, 3G
Capital assumed control, initiating a substantial restructuring effort under CEO Daniel Schwartz,
which entailed cost-cutting measures and the divestiture of corporate-owned restaurants. A
pivotal move occurred in 2014 when BK acquired Tim Hortons, culminating in the formation of
Restaurant Brands International, a formidable global fast-food entity. In 2015, BK's marketing
mix comprised elements related to Product, Price, Place, and Promotion.

The following are the primary components of this mission statement in terms of Burger
King's business:

 Reasonable prices
 Food of high quality
 Service that is quick
 Aesthetically pleasing and spotless surroundings

Vision Statement

To be the most lucrative QSR business, with a strong franchise structure and wonderful
employees, offering the tastiest burgers in the world
Current Marketing mix of BK
Burger King's current marketing mix (4Ps), is crafted to navigate the competitive global fast-
food industry. This comprehensive approach includes strategies for product, place (distribution),
price, and promotion, all strategically designed to make Burger King competitive against major
players like McDonald's and others.

Product

Burger King's product strategy centers around its specialty—burgers. While burgers remain the
main focus, the menu is expanded to include chicken, fish, sides like fries, drinks, and desserts.
Notably, Burger King has a history of menu innovation, introducing items like chicken tenders in
1986 to compete with market rivals. Global expansion involves adapting menus to include
regional delicacies, showcasing an awareness of and responsiveness to local tastes.

Place (Distribution)

Burger King ensures widespread accessibility through various channels, including its global
network of restaurants, a mobile app for exclusive deals, and websites for convenient ordering
and home delivery. The physical restaurants play a pivotal role in reaching customers, and a
commitment to enhancing customer experience is evident in the interior renovations, resulting in
a significant sales increase in renovated sections. In 2015, strategic efforts to optimize
distribution were undertaken when RSI took charge, successfully identifying promising new
distributors.

It has remodeled store interiors with the "20/20" plan, introducing modern features like red
flame chandeliers and TV screen menus. By January 2015, a significant portion of US and
Canadian locations had undergone this transformation, resulting in notable sales increases. The
brand operates in all 50 US states, with about half of its restaurants located there, and the
remaining half spread across 85 countries worldwide. While Burger King has a broad presence in
the Western Hemisphere, Western Europe, and East Asia, its footprint in Eastern Europe and
Africa is limited, with outlets only in South Africa, Morocco, and Egypt. This strategic
distribution enhances accessibility and aligns with the brand's efforts to create more appealing
and modern store environments globally.
Price and Pricing Strategies

Burger King employs a pricing strategy based on market orientation, adjusting prices based on
market conditions. Additionally, bundle deals are offered to make meals more affordable,
especially for groups like families. A notable example is the discounted offering of chicken
tenders in late 2014 and early 2015, strategically positioning their per-unit cost below that of
McDonald's. This flexible pricing approach showcases a willingness to adapt to market
dynamics, enhancing competitive positioning.

Promotion

Burger King heavily relies on advertising, historically using television commercials as a primary
platform with memorable slogans like "It takes two hands to handle a Whopper." In 2003,
Burger King introduced web-based ads and revived their mascot, "the King." Some controversial
ads targeting a broader demographic stirred public outcry. In 2013, advertising shifted toward
mainstream appeal with celebrity features. Despite some controversies, this approach marked a
departure from the traditional male-oriented humor. This multifaceted promotional approach
aims to connect with diverse audiences and maintain relevance in the ever-evolving landscape of
fast-food marketing.

Burger King's current marketing mix is characterized by a diverse and innovative product
offering, a flexible pricing strategy, engaging promotional efforts, and a commitment to
enhancing the physical and distribution aspects of their stores. These elements collectively
contribute to Burger King's competitive positioning in the fast-food industry.
Develop a marketing mix that enables BK to close the gap with McDonald’s
and distance itself from its other competitors?

Product

Introduce distinctive and innovative menu options that differentiate BK from the competitors.
Market research can be conducted to detect the trends and customer preferences.

Healthier Options: To attract health-conscious customers, expand the menu with healthier
options. To appeal to a broader audience, additional salads, grilled options, and plant-based
alternatives can be included.

A strategy of providing limited-time specials on a frequent basis to keep the menu fresh and
intriguing, thereby encouraging return visits.

Seasonal Offerings: To create a sense of urgency and excitement, seasonal items or limited-time
specials related to holidays and events can be introduced.

Price

Combo Deals: Create tempting combo deals that include popular menu items at a reduced price.

Dynamic Pricing: Use dynamic pricing strategies based on demand, time of day, or other factors
to maximize income and thus providing pricing flexibility.

Student and Senior Discounts: To attract a diverse variety of customers, unique discounts can be
provided to students and elderly.

Introduce value meals and bundles that offer cost savings compared to individual purchases,
giving customers an incentive to select BK over competitors.

Loyalty Programs: Create a loyalty program to reward loyal consumers and encourage repeat
purchases. Such as giving loyal consumers discounts, free meals on completing a certain number
of purchases etc.

Place

Continue the 20/20 redesign work to improve the shop interiors and to provide customers with a
more attractive, and inviting atmosphere.
Drive-thru efficiency can be improved by investing in technology and training to reduce the wait
times and enhance the overall customer experience.

Pop- up stores and Food trucks can be experimented with in high traffic locations.

Collaboration with well-known meal delivery businesses to enhance the reach and convenience
of BK's offerings through home delivery.

Promotion

Community engagement: To promote a positive brand image and interact with local
communities, community engagement projects, sponsoring local events, and participating in
charitable activities etc. can be done.

Encourage and respond to customer feedback thereby demonstrating that BK values its
customers' opinions and is committed to ongoing improvement.

To reach a wider demographic, invest substantially in digital marketing, such as social media
campaigns, such as contests, challenges, or surveys, targeted online ads etc to stimulate user
participation.

Partnership with movie-release or events: Movie themed menu items or exclusive offers that
align with the interest of the target audience can be introduced.
 Consider the marketing mix that you developed. What percentage of BK’s
resources would you allocate to the U.S. market, and what percentage would
you allocate to international markets?

Resource allocation strategy includes consideration of different factors like market share, growth
potential, and strategic objectives. As BK has a substantial presence in the United States, with
around half of its total stores situated across the 50 states. However, the US market is fiercely
competitive, with numerous players vying for consumer attention. To navigate this challenging
landscape, BK needs to carefully allocate its resources across different regions and segments to
maximize its market share and profitability.

In the United States, BK commands a significant market share, but sustaining and expanding this
share requires a targeted approach. Allocating 30% of resources to the US market is a strategic
move, recognizing the need to strengthen brand loyalty among American consumers. Despite
their diverse preferences, BK has the opportunity to win over customers and increase sales by
building strong brand loyalty. This can be achieved through innovative marketing strategies,
introducing new menu items, and ensuring exceptional customer service.

Turning our attention to developed countries, where BK is performing well, there remains an
untapped potential that the brand can leverage. Allocating another 30% of resources to developed
countries acknowledges the existing market dynamics. BK should focus on identifying and
capitalizing on gaps in the market that competitors may have overlooked. By cultivating brand
loyalty in these regions, BK can position itself as a preferred choice among consumers, thereby
altering the competitive landscape in its favor.

The remaining 40% of resource allocation is earmarked for developing countries, where the
demand for fast food is on the rise. Consumer preferences and lifestyles are evolving, presenting
a lucrative opportunity for BK to establish a strong foothold early on. New players are entering
these markets, and BK can gain a competitive edge by strategically opening new stores and
implementing robust marketing campaigns. The potential for growth in these regions is
substantial, and BK stands to become a market leader by seizing this opportunity.

In Africa, where BK's presence is currently limited, there is room for expansion. Allocating
resources strategically in this region can unlock new avenues for growth and help BK tap into an
emerging market. The key lies in understanding local preferences, adapting the menu
accordingly, and implementing effective marketing strategies to create awareness and drive
consumer engagement.