The following is the analysis the segmentation, targeting positioning of Burger King. Burger King Corporation is founded by James McLamore and David Edgerton, beginning the legacy of flame-broiled beef and commitment to quality ingredients and friendly service. BURGER KING is the second largest fast food hamburger chain in the world. Nowadays, more than 11 million guests visit BURGER KING Restaurants around the world. When back to early 2004, their sales profit starting to slump. Burger King’s CEO had change their advertising agency CPB and amend their marking strategy to gain their revenue.
Markets consist of buyers, and buyers differ in one or more respects. They can be divided by demographic factors, geographic factors, and behavioral factors or by psychographic factors. Any of these variables can be used to segment a market. Seller can design a separate product or marketing program potential customer. Burger King have dividing their market into demographic factors, geographic factors, psychographic factors and behavioral factors. As geographic factors, Burger King are dividing the customer by region , they located in USA since 1954.On June 30, 2004, Burger King had 7,976 store all around in USA, the local people can just came by their neighborhood to enjoy their meal. As demographic factors, they dividing the customer by young male, kids and family. Burger King Start to use a logo which is a man sitting on a hamburger and holding a soft drink to represent their company in 1955.In 1960, Burger King transformed their logo from a man into an animated cartoon character that a kid wearing a crown in their television advertisements, introducing children to BURGER KING with the famous slogan, “BURGER KING®, Where Kids Are King!”
In order to take the kids as potential customer, Burger King had to including the parents which pay for the children‘s meal at the same time. Burger King started The HAVE IT YOUR WAY® marketing campaign revolutionizes the fast food industry by encouraging customers to customize the ingredients of all BK® sandwiches to fits the whole family member need. As behavioral factors, Burger King dividing the customer by benefits by speed and economy, regular occasion and regular user, a fast food restaurants which affordable food products that can be prepared and served within a short stipulated amount of time. As y psychographic factors, Burger King dividing the customer by lowers social class and working class, which they will buy their meal in a fast food restaurants quickly and take away their food then they can able to back to work.
Market segmentation reveals the market-segment opportunities facing the firm. The firm now has to evaluate the various segments and decide how many and which ones to targets. A development of a marketing max which can then be directed at a particular unique segment. Burger King are using concentrated targeting in the case, it means concentrates on serving many needs of a particular customer group. Burger King‘s advertising agency CPB advice to using The HAVE IT YOUR WAY® as the theme and begins to experiment with humorous web marketing campaigns, such as the Subservient Chicken. CPB designing a web site which allowed visitors to type in commands that a man dressed like a chicken executed.
This is targeting the demographic group with young adult market, notably among young males which they do not watch television commercial and surfing on internet all the time, they are willing to try new things. The most important thing is they will share the fun news with their friend and family, it can let the campaign became word of mouth and spread it all over the world. In 2005, CPB created a faux heavy metal band called Coq Roq to launch the new product chicken fries by Web site, music videos, t-shirts, CDs, and ring tones, this is also targeting the same demographic group. It shows that Burger King are just target on segment within the total market.
Market positioning is the process of communication the brand to the target customers in such a way that can easily recognize where it fits with competing products. Burger King had targeting young adult market, notably among young males market. They position their market as serving high-quality, great-tasting, and affordable food. Compare with their mainly competitor McDonald are targeting kids and families, they had a different targeting audience. McDonald also serving affordable food, but them serving the customer differently, Burger King promise their customer can HAVE IT YOUR WAY®, customer can customize the ingredients of all BK® sandwiches, with the similar pricing of food, Burger King having better service quality. When their competitor McDonald only provide snacks like French fries and chicken nuggets, Burger King had both products and they provide onion rings, Burger King had provide more variety choice for their customer.
In conclusion, Burger King had using the marketing strategy to maintain the second largest fast food hamburger chain in the world. Burger King using concentrated targeting with the young adult market, notably among young males, Burger King does not require the use of mass production, mass distribution, and mass advertising. Burger King had gain the big success. There is still a disadvantages, they have abandon the female market and the other potential customer. The whole world trend has encourage people to eat healthy food, the entire fast food hamburger chain had facing the challenge. The time had change, female are the next global emerging market, their economic power is truly revolutionary, representing the largest market opportunity in the world. Probably Burger King should targeting the female market, create a new brand with brand new healthy food menu, they even to serve coffee and desserts, and held up the charity function or donation to develop a positive image.
Philip Kotler, 1994. Marketing Management: Analysis, Planning, Implementation, and Control (The Prentice-Hall Series in Marketing). 8th Edition. Prentice Hall. BPP Learning Media, 2012. CIM – 1 Marketing Essentials: Study Text. Edition. BPP Learning Media. About BK® | Company Information | BURGER KING®. 2014. About BK® | Company Information | BURGER KING®. [ONLINE] Available at: http://www.bk.com/en/us/company-info/about-bk.html. [Accessed 02 April 2014]. .2014[ONLINE]Available at:http://investor.bk.com/download_arquivos.asp?id_arquivo=E1719FB0-8AC7-4769-A163-6CDD72847D64. [Accessed 02 April 2014]. Burger King – Subservient Chicken – YouTube. 2014. Burger King – Subservient Chicken – YouTube. [ONLINE] Available at: https://www.youtube.com/watch?v=bBsEJKRM-oQ.
Burger King: Selling Whoppers In Japan
This particular case is about the implementation of the popular fast-food chain, Burger King, into the Japanese market. Despite its’ strong market position in other countries, Burger King has some difficulties to face within the Japanese market. In this report, my team and I will analyze Burger King’s current situation and problems and suggest alternatives.
The situation at hand is Burger King’s downfalls within the competitive Japanese market. Burger King faces tremendous competition. McDonald’s controls half of the entire fast-food market in Japan having 2,000 outlets and generating $2.5 billion in sales. KFC has 1,040 stores making it number two in the fast-food market. The most effective way to analyze Burger King’s situation is through the SWOT analysis method.
One of Burger King’s most important strengths is its strong market position. It is the second largest fast food chain in the world, trailing McDonald’s. There are 11,550 stores in 71 different countries. Its geographic diversification is a competitive advantage. Burger King’s slogan, “HAVE IT YOUR WAY,” and its’ famous “WHOPPER” brand are very recognized by all consumers. These two campaigns were created in the 70s and have stuck around ever since. Talking some numbers, between 2006 and 2008, the chain’s profitability increased from $170 million to $354 million. In 2010, $2.5 billion was expected to be made and Burger King was able to reach just those projections.
Another strength is Burger King’s franchise development having 90% of its restaurants franchised. The franchise concept allowed the company to grow with minimal capital expenditure and receive royalties and fees. Burger King went above and beyond and created a new model of its restaurant to attract more franchisees. The new model featured restaurants smaller in size, which allowed franchisees to seek smaller investments. These smaller restaurants reduced average capital expenditure costs by approximately 20%. Engaging in the concept of franchising has allowed Burger King to develop its brand rapidly and penetrate the international market. Between 2007 and 2008, Burger King hit 8 new countries: Japan, Indonesia, Poland, Egypt, Columbia, Bulgaria, Romania and Curacao.
Burger King has very innovative marketing techniques including successful campaigns, strong sponsorships and creative advertisements. The strong sense of marketing allows this chain to raise sales and generate restaurant traffic. A great example of exquisite marketing is when Burger King hit some speed bumps in France. They have to revive their brand name and to do so diffused 64 unique pre-roll advertisements on YouTube. Innovative marketing techniques are key to providing more visibility to the company, which ultimately leads to increased sales.
Due to the high price of the location, Burger King found a judicious way to penetrate the Japanese market. Burger King decided to create a joint venture with a local brand, Tabacco which is partly owned by...
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