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Marketing Strategy of Burger King
BusinessManagementMarketing

Marketing Strategy of Burger King | Fast Food Chain

by Shamsul

 

Marketing Strategy of Burger King

 

Burger King is one of the most popular fast-food brands in the world with more than 100 restaurants in different regions of the world. Nearly 99 percent of outlets are franchised and 1 percent is possessed by the company. With more than 60 years of working, This fast-food chain is the largest and famous name in the fast-food chain industry. In this post, we are going to discuss some important marketing strategies used by Burger King. Keep reading to learn more.

Important Factors in the Marketing Strategy of Burger King:

Segmentation, Targeting, and Positioning:

To cater to the varying preferences and tastes of different customers internationally, the company uses geographic and demographic strategies. In targeting strategy, they address the requirements of the users. In positioning strategy, Burger King uses serviceability and convenience factors. Its main tagline is ‘’Have it your way’’. Due to these effective strategies, Burger King is one of the biggest and highly competitive brands in the relative market.

Competitive Advantage:

  • Strong Parent Company:

Restaurants Brand International is the parent company of Burger King. It has utilized its infrastructure support and capabilities in order to achieve its targets and purposes. It is a major competitive advantage over its competitors.

  • Line of Business:

The company produces its money in 3 ways.

  1. Royalties are paid by the outlets in the form of a percentage of total sales generated.
  2. Properties leased out.
  3. Income from the Burger King-owned outlets.

  • Intellectual Property Rights:

With more than 1000 domain name registration and 4600 Burger King Trademarks, the company owns all the trademarks and registrations around the globe.

BCG Matrix:

Its franchise-owned business is in the star category but the leashed or sub-leashed franchises are still answerable. BCG matrix is really helpful as it tells the different scenarios of a business within the circulation.

Distribution Strategy:

With more than 15000 franchised outlets worldwide, the company is orchestrated by the master franchise in various regions. They get products and raw materials from a third party on the basis of region or area. Its distribution and supply chain network are really effective and the main reason for its success.

Brand Equity:

Burger King is the leading QSR (Quick Service Restaurant) brand in the world with high top-of-mind awareness (TOMA). It is all due to its special and innovative offerings like Whopper, Hamburger, and so on. These innovative products are continuously increasing the market value and market share of the brand.

Competitive Analysis:

There is no denying that the fast-food industry is flooded with several local, national, and international brands that providing the same products at competitive rates. They all are working really hard in order to gain the market share. The biggest strength that makes Burger King highly competitive is its convenience, product choice, service quality, and more.

Market Analysis:

As many local, national and international brands are actively working in the fast-food market, it is really intimidating for any company to increase its market share and consumer base. It becomes tougher in developing regions due to various factors like living standards, poverty, unemployment, poor literacy level, and low/capita income. Burger King is using the franchised model for physical sales and also developing online sales by delivering special offers and discounts to users in order to gain cost control and consumer satisfaction.

Customer Analysis:

Every customer wants to enjoy delicious and safe fast food and drinks. The major customers of Burger King are between the ages of 15-40. In developed regions, every person prefers Burger King due to its innovative deals and offerings. That’s why it is a popular fast-food hamburger restaurant chain in the world.

 

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KFC Marketing
BusinessManagementMarketing

SWOT Analysis of KFC | KFC SWOT Analysis

by Shamsul

 

SWOT Analysis of KFC | KFC SWOT Analysis

 

Before reading the KFC SWOT Analysis, let me give a brief introduction about the famous fast-food chain. Kentucky Fried Chicken is one of the biggest American fast-food chains in the world. It is headquartered in Louisville, Kentucky. KFC is famous due to its fried chicken offerings. In terms of the restaurant chain, it is the second-largest food chain in the world. It was established in 1930 and currently, the company is operating in over 118 countries with 18875 outlets.

It is famous due to its original taste and is a subsidiary of the Yum brand. Chicken sandwiches, Hot WingsTM, Kentucky Grilled Chicken, and Extra CrispyTM Strips are some famous chicken dishes of KFC. The brand is going strong in terms of popularity and revenue. They are also planning to open more franchises across the world. They follow the operation methods to run this business. Some of the offerings of KFC are given:

  • Hot wings.
  • Popcorn nuggets.
  • Signature combo.
  • Kids meal.
  • Classic meal.
  • Family meals.

With the help of KFC SWOT analysis, you can easily understand the strengths, weaknesses, opportunities, and threats of KFC. This thing helps the company to grow its revenue and chances in the competitive market. The strengths of KFC shows the better working and weaknesses describe the factors in which they are lacking. The opportunities help them to grow more and threats assist them to fight certain things that aren’t good for their business. Let’s discuss the SWOT analysis of KFC in detail:

 

SWOT Analysis of KFC | KFC SWOT Analysis

Strengths of KFC:

  • Strong Global Presence:

There is no doubt that KFC has a strong global presence in the world. With 18875 restaurants globally, it is the second-biggest fast-food chain. The main strength of KFC is due to its parent brand ‘’Yum’’ that has a robust presence across the globe. This kind of global presence makes the KFC stronger in terms of presence and value.

  • Rapid Growth:

From its launch, KFC is doing very well in terms of growth and revenue. It is currently operating in Asia including China. They opened 743 restaurants in China in 2015 and this statistic is increasing. Moreover, they inaugurated 5000 restaurants in more than 110 countries. Due to this rapid and positive growth, it is a strong fast-food chain in the world.

  • Robust Financial Condition:

In terms of revenue, KFC has seen a powerful financial performance internationally and locally. In 2015, they generated 16 billion dollars globally. What is more, the company also gaining encouraging profit from Russia and Europe which is a great strength of KFC?

  • Competitive Edge Over Rivals:

KFC has successfully outsmarted the competitors in China and create a big lead. In emerging markets, it also did well and develop a strong market position. In short, we can say that KFC is a leading brand in the globe.

  • Diversity in Offerings:

The biggest strength of KFC is its wide variety of products and offerings. They have both vegetarian and non-vegetarian items on their menu. This thing easily attracts customers or users. In addition, they also introduce value meal offers. Signature combo, hot wings, popcorn nuggets, classic meals, and family meals are some of the best offerings of KFC.

  • Loyal Consumer Base:

KFC’s customer base is very huge and loyal, too. It is due to their special and quality offerings. Crunchy chicken is one of the best-selling items of KFC. Due to this kind of fan base, you can easily guess the growth and profit game of KFC.

  • Trade Secret:

The trade secret of KFC is behind its scrumptious crunchy chicken which is prepared from ‘’11 herbs and spices’’. This recipe gives a special aroma and taste that is loved by many customers.

 

SWOT Analysis of KFC | KFC SWOT Analysis

Weaknesses of KFC:

  • Problems on Food:

Maintaining food quality is a difficult task for fast-food brands. As a result, KFC had experienced a huge backlash regarding quality issues such as the presence of trans-fats in the chicken menu. Due to the increasing amount of health-conscious people, this thing can create a big difference in the revenue system. This thing can force the customers to try new fast-food chain. They like the food that cooked in hygiene conditions and environment. This is a major weak point of KFC. As the KFC’s menu is mainly based on meat-based items, so it can also affect calorie-conscious people.

  • Problems on Franchisee Workings:

It is a common issue in several restaurant brands. It is important for a global brand to maintain a specific operating process otherwise they will face specific franchisee operating problems. There are several other issues like menu diversity and operational problems that can cause trouble. It is another major weakness for famous and global brands.

  • Ineffective Supply/Demand Network:

KFC is also facing supply chain problems regarding the supply of chicken. This thing has impacted the KFC in terms of quality and revenue. Due to this reason, they had to close few outlets in the UK. Supply and distribution network requires logistic efforts and innovation. This weakness can also damage the reputation of KFC and affect the company’s profitability and growth.

 

SWOT Analysis of KFC | KFC SWOT Analysis

Opportunities of KFC:

  • Strong Growth in Emerging Markets:

According to marketers, emerging markets hold a good potential for businesses and trades. There are several countries like Russia and China that can offer a great boost to KFC in terms of growth due to their population and increasing demand for food. KFC can also focus on other emerging markets. In my opinion, it is a great opportunity for KFC to expand its working and business to different countries and markets in order to take lead from competitors.

  • Health-Conscious Offerings:

Modern people are more conscious about food and health, and KFC can use this thing in favor of its business. They can introduce new and healthy items to its menu in order to attract more customers. They should focus on the low-calories food and also maintain the taste to catch the attention of consumers.

  • Affordable Items:

No one can predict the buying decision of customers. But it is a fact that people attracted to affordable but high-quality items. They want healthy food at a reasonable price point. KFC should revise its pricing policy and introduce cost-effective deals.

  • Inclusion of Vegetarian Menu:

Recently, KFC started dealing with vegetarian menus and created a separate category. But they have few varieties in this category as compare to competitors. They can add more versatility to its vegetarian menu to attract vegetarian customers. In this way, they can earn more profits and recognition.

 

SWOT Analysis of KFC | KFC SWOT Analysis

Threats of KFC:

  • Competitors:

From its beginning, KFC has a competitive edge over its competitors. But the fact is that it is not on the top right now which shows that it is lagging in some sectors. It is due to the presence of heavyweights like McDonald’s, Burger King, etc. There are several brands that are also doing well due to their innovative offerings and working. They can create a big threat to KFC’s market share and customer base.

  • Liking from Millennial:

KFC is a well-liked fast-food brand of millennial due to their offerings. But the world’s population mostly consists of Gen-Z and this thing can affect the company’s profitability and market share. They need to be innovative in their offerings and rates so that they can attract younger generations.

  • Rising Prices of Resources:

The rising cost of labor, raw material, and operation charges can affect the sales and revenues of KFC. This one is a major threat for KFC. Climate change and other similar threats can also influence the brand. It is necessary for KFC to manage these things with maximum attention to increase its revenue game.

 

SWOT Analysis of KFC | KFC SWOT Analysis

 Summary:

This SWOT analysis of KFC shows the comprehensive working. It highlights the strengths, opportunities, weaknesses, and threats of KFC. In this way, you can understand the internal as well as external strategic factors of KFC.

 

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Marketing Strategy of McDonald’s
BusinessManagementMarketing

McDonald’s Marketing Strategy | McDonald’s Brand Power

by Shamsul

 

McDonald’s Marketing Strategy

 

McDonald’s is a renowned fast-food chain and has a strong presence in 100+ countries. Its 80 percent outlets based on a contract model. With more than 36,000 stores globally, McDonald’s is capable to magnetize consumers and leading the fast-food industry. Even though they face stiff competition from their rivals that stagnant its growth, but they are still doing good. This success is due to an effective McDonald’s Marketing Strategy and understanding of changing consumer needs. They are very innovative in their offerings, taste, and supply chain network. Scroll down to find the marketing strategies of McDonald’s.

 

Marketing Strategy of McDonald’s (Segmentation, Targeting, and Positioning):

McDonald’s utilizes different segments such as psychographic, geographic, and demographic to market the products. Plus, they also understand the changing taste and needs of consumers of different nations and these marketing segments helped them a lot. The main target of McDonald’s is to identify the consumer evolving needs and requirements. This is due to the change in customer buying behavior, increase in income level, and consumption pattern. That’s why they target the customers of different regions to recognize their taste requirements. Its value-based positioning policy also helps them to evolve as a global brand. These are some major marketing strategies of McDonald’s. The main tagline of McDonald’s is ‘’I’m Lovin’ It’’. Its vision is to sell fresh and healthy products to customers with a positive attitude.

 

McDonald’s Marketing Strategy

Competitive Advantage:

The main competitive advantage that makes McDonald’s highly competitive over its rivals is supplier input process outputs customer (SIPOC). This thing helps the company to improve its service quality and taste. Its franchise-based model is also very successful and helps the company to earn more profits. Its Glo-cal policy is also proved beneficial for the success of the company. Moreover, its geographic and demographic strategy also assists the company to get the lead over its competitors. All these factors have contributed to the success of the company, that’s why it is a well-known fast-food chain across the world with a powerful consumer base.

 

McDonald’s Marketing Strategy

BCG Matrix in the Marketing Policy of McDonald’s:

Even though McDonald’s offers a huge variety of products, but its Hamburger, French Fries, and MacAloo Tikki are very famous among customers that’s why they fall in the star category. The non-menu and dessert are not so popular, that’s why it is a question mark on the strategy of McDonald’s. They are struggling to target customers in this segment so they need to improve this portfolio for better results.

 

McDonald’s Marketing Strategy

Distribution Strategy:

McDonald’s has various franchises and outlets in the world to fulfill the rising needs of the different customers and this thing helps them to compete in the competitive market. Its takeaways or drive-thru service is also very popular among users. Its McDrive feature is very popular in some countries. In order to target the young customers, they set up Macafee which is based on a café format where you can enjoy an outing with your friends. They also owned quality centers in different locations and its supply chain network is also very effective because of the involvement of third-party logistics. These companies ensure the availability of products in specific outlets and franchises so that consumers can enjoy their meals without any interruption. There are several types of set-ups that play an important role in the success of the distribution strategy practiced by McDonald’s.

 

McDonald’s Marketing Strategy

Brand Equity:

McDonald’s branding strategy is very powerful and they sponsor different popular entities such as the Olympics and FIFA. These entities helped the company to create its visibility and footprint globally. In addition, they also use different marketing channels to promote their offerings and brand that also help the company to generate revenues and profits. In 2014, McDonald’s has been mentioned in Forbes 500 companies. All these branding and marketing strategies boost the company’s image and reputation in the competitive environment.

 

McDonald’s Marketing Strategy

Competitive Analysis:

Several fast-food companies are giving severe competition. McDonald’s focused marketing policies that highlight its offerings, taste, health benefits, menu, and other nutritional advantages help the company to sustain its position and image. Thus, this kind of branding helps them to fight with competitors in terms of market reach, market share, profitability, and popularity.

 

McDonald’s Marketing Strategy

Market Analysis:

As we know that, the fast-food industry is loaded with multinational companies and local food points. These companies trying to threaten the market shares of each other and also can affect the profitability of McDonald’s. The main competitors or heavyweights in this industry are KFC, Dominos, Subway, and many more. It is really important for McDonald’s to introduce innovation in its offerings to reduce the risk of market loss.

 

McDonald’s Marketing Strategy

Customer Analysis:

McDonald’s have strong consumer base; however, its customer based on young people mostly. They love to do parties and outings in McDonald’s outlets with their family, friends, or loved ones. McDonald’s has a big opportunity to attract more young people by diversifying their portfolio. They can also target schools and college students in order to increase their revenue game.

 

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