Burger King (NYSE: BKC) (NYSE: BKC),, often abbreviated to BK, is a global chain chain of hamburger hamburger fast fast food restaurants. The first restaurant was opened in Miami, Miami, Florida in 1954 by James by James McLamore and David David Edgerton, and Edgerton, and has since used several variations of franchising to franchising to expand its operations. Burger King Holdings Corporation is the parent company of Burger King; in the United States it operates under the Burger King Brands title while internationally it operates under the Burger King Corporation banner. It is a publicly traded company with investment firms of TPG TPG Capital, Bain Capital, Bain Capital and Goldman Sachs Capital Partners each owning about 25% of the company. At the end of its financial year 2008, Burger King reported that there are more than 11,550 outlets in 71 countries; 66% are in the United States and 90% are privately privately owned and operated. The operated. The company has more than 37,000 employees serving approximately 11.4 million customers daily. In North America, franchises are licensed on a per store store basis, while in several international locations licenses are sold on a regional basis with franchises owning exclusive exclusive development rights for for the region or country. These regional franchises are known as master franchises, and are responsible for opening new restaurants, licensing new third party operators, and performing standards oversight of all restaurant locations in these countries & franchises is of Dubai. 1
Methods of collecting information for this assignment involves getting original data directly about the Primary research involves product and market. Primary research data is data that did not exist before. It is designed to answer specific questions of interest to the business - for example: Business is rated good, bad or excellent? What do customers think of a new version of a popular product? To collect primary data a business must carry out field research. The main methods of field research are: Face-to-face interviews – interviewers ask people on the street or on their doorstep a series of questions. questions. Telephone interviews - similar questions to face-to-face interviews, although often shorter. Questionnaires – sent in the post (for example a customer feedback form sent to people who have recently recently bought a product product or service). In most cases it is not possible to ask all existing or potential customers the questions that the business wants answering so primary research makes use of surveys and sampling to obtain valid results. The main advantages of primary research and data are that it is:
Up to date. Specific to the purpose – asks the questions the business wants answers to. Collects data which no other business will have access to (the results are confidential). In the case of online surveys and telephone interviews, the data can be obtained quite quickly (think about how quickly political opinion polls come out).
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In secondary research, the company uses information compiled from other sources that appears applicable to a new or existing product. The advantages of secondary research are that it is relatively cheap and easily accessible than the primary research. Secondary data is data that already exists and has been collected by someone else for another purpose. Secondary research involves the investigation of secondary sources of data. Sources of secondary data can come from within the firm itself – this is known as internal secondary data. External secondary data, on the other hand, is data that has been published by other organisations What are internal sources of secondary data? Every department within an organisation will have its own records that represent a potential source of valuable data. For instance, records of past advertising campaigns within the marketing department can be compared with copies of invoices held in the sales department in order to judge their effectiveness and get ideas for future campaigns. Past sales figures can also be used to spot trends and forecast future figures. The increasing availability and use of loyalty cards has given retail outlets the chance to gather a wide range of valuable information on customer buying habits, allowing them to target promotional campaigns more effectively. Internal sources of data should always be considered as a first line of enquiry for any investigation because they are usually the quickest, cheapest and most convenient source of information available. Internal data will also be exclusive to the organisation that generated it, so that rival firms will not have access to it.
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However, internal data may be incomplete or out of date, and, if a project is new, there may be no relevant data at all. In such cases, an organisation may need to consider using external sources of secondary data. What are external sources of secondary data? There are several sources of existing data available from outside of the organisation that may be of value. These include:
Commercial market research organisations – including MINTEL, Keynote and Euro monitor The Government – e.g., Monthly Digest of Statistics, Annual Abstract of Statistics, Social Trends. In addition, there are now a number of government websites, such as www.statistics.gov. Competitors – company reports and websites are easily accessible and contain a limited amount of information Trade Publications – e.g, the Grocer The general media – to the archives of newspapers such as the Financial Times and the Guardian and journals such as the Economist are now accessible online, making them a useful starting point for research
What are the advantages and disadvantages of using secondary data? Secondary data sources should always be considered by any firm conducting research. No firm can afford to waste time and money conducting expensive surveys to gather data that already exists! However, secondary data may have been collected some time ago and, therefore, be out-of-date. Because it has been collected for another purpose, it may be in the wrong format or incomplete. The advantages and disadvantages of using secondary data will vary from source to source. Government data, for example, is usually cheap or even free to access. It is likely to be accurate and updated regularly.
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What is marketing research? It the systematic and objective identification, collection, analysis, and dissemination of information for the purpose of assisting management in decision making for opportunities in marketing, they could be on the basis of behaviour of customers., the competitors or the marketing environment. The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer behaviour. Marketing research is a form of business research and is generally divided into two categories: business to consumers (B2C) and business-to-business (B2B) market research, which was previously known as industrial marketing research. Consumer marketing research studies the buying habits of individual people while business-to-business marketing research investigates the markets for products sold by one business to another.
What is marketing environment? The marketing environment constitutes all the external actors and issues that affect the marketing decisions and practices of a business. A number of different models and acronyms are used by marketers to divide up the environment in order to deal with it. Sometimes it is split between the micro or task environment (which includes the day-to-day influences on a business such as customers, competitors, suppliers and distributors) and the macro environment which includes broader influences that have more intermittent impact on the business (such as social trends, politics, economics, technology or laws).
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The PEST or PESTLE Analysis Originally designed as a business environmental scan, the PEST or PESTLE analysis is an analysis of the external macro environment (big picture) in which a business operates. These are often factors which are beyond the control or influence of a business, however are important to be aware of when doing product development, business or strategy planning. P: Political factors E: Environment factors S: Social factors T: Technological factors L: Legal Factors E: Economic Factors It is important to take into account PESTLE factors for the following main reasons:
Firstly, by making effective use of PESTLE analysis, you ensure that what you are doing is aligned positively with the powerful forces of change that are affecting our working environment. By taking advantage of change, you are much more likely to be successful than if your activities oppose it Secondly, good use of PESTLE analysis helps you avoid taking action that is likely to lead to failure for reasons beyond your control Thirdly, PESTLE is useful when you start a new product or service. Use of PESTLE helps you break free of assumptions, and helps you quickly adapt to the realities of the new environment.
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Effective Questionnaires for Market Research When we think about research for marketing, the questionnaires are the first things that come in our mind. One of the primary research tools used to acquire data is the questionnaire. It is a simple and easily categorized way to gather information directly from customers. For optimal success, distribute a questionnaire to a systematic random sampling of your target audience, as opposed to a general audience. In this questionnaire we need to focus the attention to
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Burger king’s Customer survey
Fast Food company name _________________ Reason _______________________
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Burger king’s Customer survey
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Burger king’s Customer survey
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Burger king’s Customer survey
Fast Food company name _________________ Reason _______________________
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Burger king’s Customer survey
Fast Food company name _________________ Reason _______________________
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Results Obtained from the survey done Overall from my survey I discovered that every one actually talks about the services offered, that means that burger king needs to improved its services which are provided to the customers, for example a customer says in the survey that it needs to open more counters so that the transactions done are faster & the other says that it should reduce the time that is taken for the transactions. Value of money overall is good, the food quality overall is Excellent, the cleanliness is overall also good & the service quality is good but some customers suggest that it should be improved more. Burger king is rated overall some about 80% when compared to others, also financially It is rated about 90% & most of the customers visit the restaurant weekly.
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SWOT ANALYSIS Basically SWOT analysis is a tool used to measure the Strengths, weaknesses, opportunities & Threats of an organization or company, the managers or other senior staff use it to develop a plan that takes into consideration many different internal and external factors, and maximizes the potential of the strengths and opportunities while minimizing the impact of the weaknesses and threats to a organization or company. But how can it be used? We can divide the analysis in 2 parts, Internal Analysis: Examine the capabilities of your organization. This can be done by analyzing your organization's strengths and weaknesses. External Analysis: we can take a look at the main points in the environmental analysis, and identify those points that pose opportunities for the organization, and those that pose threats or obstacles to performance.
Some factors are grouped below to demonstrate an example for SWOT
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Competitive Advantage What is competitive advantage? What competitive advantage basically means is that it is an advantage for the company by increasing its sales compared to the same kinds of organizations in the market they can be called as its rivals. It other words it can be explained as a Condition which enables a company to operate & generate more sales & profit in a more efficient or otherwise higher-quality manner than the companies it competes with, and which results in lots of different benefits for the company or organization
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BCG MATRIX Basically explaining, BOSTON CONSULTING GROUP MATRIX ( BCG ) is a technique which is particularly useful for multidivisional or multi- product companies. The divisions or products compromise the organisations business portfolio. The composition of the portfolio can be critical to the growth and success of the company. The products or business fields of an enterprise are assigned to one of the four ranges now on the basis their values. Each range embodies thereby a standard strategy in such a way specified. It is to give a recommendation regarding the further procedure. The life way of a typical product runs from the Question Mark over star and cash Cow to the Poor Dog. There are also products, which do not follow this ideal way. Many flops do not reach the dying stage at all. An imitating product against it possibly jumps over the range of the Question Marks or somewhat around
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The Question Marks (also question mark, new generation product or baby) is the newcomers under the products. They have however only small market shares. The management stands before the decision whether it is to invest or give the product up. The Star; It not only has a high market share, but also a high market growth. They however already cover the enormous investment demand, which results from high market growth, with high cash flow. The Cash Cows: have the largest market share, however a small market growth. They are front runners in the cash flow operation. The Dogs is the discharge products in the enterprise. They have a small market growth, sometimes even a market decrease as well as a small market share. .
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The burger king product life cycle The product life cycle in burger king goes through many phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures; eg a product of the burger king company WHOPPER has a life cycle in which it had to assert four things: 1) that products have a limited life, 2) product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller, 3) profits rise and fall at different stages of product life cycle, and 4) products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stage. Infact the product was so successful that burger king made a separates website for the product: http://www.whopperfreakout.com/index.html The general different stages in a product life cycle are:
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1. Market introduction stage for whopper Cost high sales volume was low no/little competition - competitive manufacturers watch for acceptance/segment growth losses demand had to be created customers had to be prompted to try the product 2. Growth stage of whopper o
o
o
o
Costs were reduced due to economies of scale sales volume increased significantly profitability increased public awareness increased competition began to increase with a few new players in establishing market prices maximized market share 3. Mature stage of whopper o
o
o
o
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Costs were low as was well established in market & no need for publicity. sales volume peaked increased competitive offerings prices tended to drop due to the proliferation of competing products brand differentiation, feature diversification, as each player seeked to differentiated from competition with "how much product" is offered Industrial profits went down 4. Saturation and decline stage of whopper o
o
o
o
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Costs became counter-optimal o
o
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sales volume stabilized prices, profitability slightly diminished profit became more a challenge of production/distribution efficiency than increased sale
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BCG MATRIX FOR PRODUCTS OF BURGER KING
Cash cows: The Burger Kings product called “Whopper” resulted in being a cash
cow because it had the highest sale compared to the other products in the market, the making charges for a whopper for also low for Burger king & burger king made high revenue from this product. Star: The product named in burger king as “sundae ” which is an ice cream, the product’s sale is good but the making charges are a bit high as special machines are needed to make the ice-cream so more investments are needed for the product to be more successful.
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Question Mark: T he burger kings product named as “Chicken Caesar Salad” have the worst cash characteristics of all, because high demands and low returns due to low market share, the company is a bit confused about this product because if nothing is done to change the market share, question marks will simply absorb great amounts of cash and later but if the growth stops, it will become dog.
Dogs: The product named “1/4 lb Burger” is expensive as well & doesn’t even generate revenue that is expected, the market share is relatively low & as well as the investment is low so this is marked as the worst product in burger king
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How Burger King uses Marketing Techniques to increase demand for its products. Marketing is a function of a business to promote its products and services & that is why Burger King uses these techniques, the underlying objective of the Burger King marketing is to make its products or services stand out amongst its competitors in the Fast food market in order to increase its revenue by selling its Products. Businesses, depending on their size and financial strength, either have their own designated team to take care of the marketing activities, or they hire professional services of marketing companies to outsource their marketing function. Burger King but themselves have a team to meet their marketing needs. Outsourcing is usually done by smaller to mid-sized companies in order to conserve their limited resources to keep their focus on their core business activities. It’s also a choice of some large organizations as well, primarily because leaving the marketing job in the hands of experts without heavily investing, in terms of time and money, in building their own team makes more sense to them, unless there is a good reason not to do so. There are various traditional marketing techniques that are employed by Burger King, there Marketing techniques can be seen as the means by which businesses attempt to communicate, influence and remind consumers, either directly or through a third party marketing company, about their products, services and/or their brands.
Marketing techniques are most commonly used tools to juggle with the '&Ps' of marketing - Product, Price, Promotion and Placement. Their eventual goal is to increase sales. marketing techniques include; Advertising, Sales Promotion, Events and Experiences, Marketing literature, Public relations, Personal Selling, Direct 22
Marketing etc. In addition to the traditional marketing techniques, there are numerous newer and innovative concepts of marketing employed by Burger king, such as, Internet Marketing, Marketing Driven by Business Behaviour and Search Engine Marketing etc.
Some of the Main Marketing Techniques Used By Burger King Advertising: It includes print and broadcast ads, packaging inserts in the newspapers, movies, brochures and booklets, posters and billboards. Sales Promotion: Products promotional activities to increase sales by means of short term incentives to encourage the consumer to buy the products, such as, Discount Coupons, Contests and Games. Events and Experiences: It includes sponsoring sports and entertainment events, experiential sales through arranging factory tours for the customers, increasing business's interest in charitable and noble causes and participating in the promotion of events related to arts. Public Relations: It’s another communication technique employed by businesses and marketing companies. It includes, Public Speeches, Seminars, Lobbying, Annual Reports and Publications, such as, Newsletters. This technique also helps increase the credibility of the business and positively influences the demand of the products and services. Personal Selling: Involves Sales Presentations, Sales Meetings, and Incentive Programs, Providing Samples, Arranging Fairs, Trade Shows and Exhibits.
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Direct Marketing: It includes Mailing Product Catalogues, Direct Letters to the potential customers, Telemarketing, Electronic Shopping, TV Shopping, Direct Fax Mails and Direct Emails. Positioning: Burger king uses this marketing intended to identify the place or position its product or service within its target market compared to its competition. These techniques are used to influence and/or reinforce certain perceptions that customers and prospects have of its products. Once an organization is able to identify how it wants its customers to perceive its product or service. Branding: is the organization's representation of what it stands for, often based on cumulative impressions and positive reinforcement. Like BurgerKing, a Fast food brand can be identified readily and is used for increased awareness of the business. Branding is used throughout by BurgerKing, such as in its logo, Food Menu, on its web site and in its tagline. A great example of effective branding is the Nike "swoosh" logo because it's instantly recognizable around the world.
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References http://labspace.open.ac.uk/mod/resource/view.php?id=341 852 http://en.wikipedia.org/wiki/Marketing_research#Marketi ng_research_methods http://www.esurveyspro.com/links/samplequestionnaire.aspx http://www.allbusiness.com/marketing/marketresearch/1959-1.html http://en.wikipedia.org/wiki/Secondary_research http://tutor2u.net/marketing/default.html http://tutor2u.net/business/marketing/segmentation_why.a sp http://en.wikipedia.org/wiki/Market_research http://www.cfsd.org.uk/smart-knownet/links/marketingenv.htm http://www.rapidbi.com/created/the-PESTLE-analysis tool.html
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http://www.trumpuniversity.com/businessbriefings/lib/resources/images/graphs/product_life_cycle.gif http://wiki.answers.com/Q/What_is_the_meaning_of_produc t_life_cycle&alreadyAsked=1&rtitle=Product_life_cycle http://www.boulderinternetguide.com/Restaurants/burger_ king_menu.htm
http://erc.msh.org/quality/ittools/itswot.cfm http://www.12manage.com/methods_swot_analysis.html http://www.economy-point.org/b/bcg-matrix.html
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