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Burger King is a popular brand in the food chain. This report is based on the marketing strategies of Burger King which bare applied in the traditional and digital marketing. Through the analysis of marketing strategies of Burger King, specific recommendations can be identified that can benefit the company. For the marketing strategies analyses, several frameworks are used in the research which is focused on the SWOT analysis, PESTLE analysis and Porter's 5 Forces. Five key issues of Burger King are identified which can affect its business performance. These issues are related to the high cost, new entrant firms, service quality, communication with customers and sustainability in business. With the help of digital strategy assessment, numerous strategies of Burger King are identified which promotes digital marketing to fulfil the needs of the recent trends. Based on the digital strategies, marketing objectives are recognized which can provide benefit in the future. The target segment customers of Burger King are African-American teenagers, Kids and working women. Through the research findings, it can be identified that with the help of search engine optimization the sales can be increased. Targeting more segments can also promote the sales with traditional marketing strategies.
Table of Contents
Executive Summary.
Introduction.
Key marketing issues.
SWOT analysis.
PESTLE analysis.
Porter’s 5 Forces.
Digital strategy assessment
RACE framework.
Digital 7Ss.
Digital 5Ss.
Marketing objectives.
Segmentation, Targeting and Positioning.
Integrated marketing tactics.
Conclusion and Recommendations.
References.
Burger King is a popular brand worldwide which focuses on innovative ideas and best experiences to enhance potential sales. The marketing strategies are considered as relevant for the promotions and managing a brand image. Digital marketing has increased the criteria of the interaction and enhancing the conversation with customers (Khan, Dongping and Wahab, 2016). This report aims at the marketing strategies of Burger King which are based on the digital and traditional media. The strategic decisions of the promotions are country-specific to cater to the needs of the defined geographic area. For the analysis of marketing strategies, key marketing issues will be analyzed that demonstrate a situational analysis. Porter’s 5 Forces, PESTEL and SWOT analysis will be used as effective frameworks to identify the business environment of the company and recognize its strengths. The issues of marketing which are facing by Burger King will also be discussed in the report. Traditional and digital strategies assessment promote the identification of the SMART objectives for the organization to manage effectively in the business environment. With the help of a target audience, an appropriate marketing campaign can be established which will be based on the innovative and integrated approach.
To analyze the marketing issues of Burger King, different frameworks can be used. As a global chain corporation, Burger King operates in different countries. A range of products are available in the menu of Burger King. Marketing strategies of the company are based on digital and traditional approaches which leads to a high competition in the markets (Musonera, 2019). The business environment of Burger King can provide an effective understanding of the business situation. Numerous issues in marketing can be identified through SWOT, Porter’s 5 Forces and PESTLE analysis.
SWOT analysis is based on the organization’s strengths, weaknesses, opportunities and threats. It is an effective strategic planning technique that promotes the identification of different elements through the SWOT matrix. The primary objective of this framework is to manage awareness in the organization and provide an effective decision (Gürel and Tat, 2017).
Table 1: SWOT Analysis
Strengths · Popular brand · Diversified range of products · Geographic diversification · Innovative advertising campaigns · High market penetration |
Weaknesses · Limited product mix · Easy imitable business · Unhealthy food items · Weak franchise management · Low international appeal |
Opportunities · Healthy menu creation · Addition of more products in the menu · Market expansion · Improvement in service quality |
Threats · Imitation · Aggressive competition · High competition · High prices due to inflation (Rubenstein, 2017) |
Source: http://www.ijbe.org/table%20of%20content/pdf/vol16-2/13.pdf
A PESTLE analysis refers to a framework that helps to examine the key factors such as Political, Economic, Sociological, Technological, Legal and Environmental which influences the business operations of an organization. It helps to identify the external factors in the business environment that impacts the business performance (Rastogi and Trivedi, 2016). Different strategies can be maintained by the organization through PESTLE analysis to manage the marketing environment.
Porter’s five forces model presents a framework for the organization that manages the competitive environment and help to analyze the power of competitors for the company’s profitability. It helps to understand the forces that can adjust the strategy to deal with the competitive environment. Potential profits can be improved through the forces (Rothaermel, 2016).
The major issues in the current situation of Burger King are identified as:
Digital strategy assessment is based on the improved business performance and maintain the technological factors for effective business operations. Current processes of the business can be created with the new directions and competitive advantage (Chaffey and Ellis-Chadwick, 2019). The price of Whopper is expensive for the customers which can promote them to switch to another brand. The strategies as identified by Burger King for the application download was a big step although it was based on the rivalry company. A higher risk can be identified with the previous strategy of Burger King (Rogers, 2019).
RACE framework is based on Reach, Act & Convert and Engage. It promotes the digital marketing activities which can improve the business performance of Burger King. Through the "Reach" strategy, Burger King can manage the customer awareness and promote web presence while "ACT & Convert" is used for the conversion strategy that promotes the digital marketing goals. “Engage” activity include the growth and retention strategies for the benefit of the customer’s involvement. It can be explained through the following table:
Table 2: RACE framework of Burger King
Reach Ø Website Ø Social media marketing Ø Search Engine Optimization (SEO) Ø Customer interaction blogs Ø Online advertising |
Act & Convert Ø Social commerce Ø Marketing automation Ø Individual connections Ø Mobile journey |
Engage Ø Social CRM Ø Customer service Ø Customer experience Ø Rewards Ø Discounts Ø Customer interaction strategy |
Source: http://www.ijbe.org/table%20of%20content/pdf/vol16-2/13.pdf
The digital 5Ss model of technology focuses on five objectives which represent the goals of Burger King. These goals can be explained below:
Table 3: Digital 5Ss framework of Burger King
5Ss Goal |
Detail of what they are doing |
Conclusion |
Sell |
Currently, Burger King is selling products through online and offline both modes. A variety of offers are providing by the company for customers. |
Traditional and digital technology are using by Burger King although it can promote its sales through social media marketing. |
Serve |
Burger King serves with the purpose of the best satisfactory food chain. |
Big Whooper burger increases satisfaction among consumers while it is identified as costly. |
Speak |
The employees of Burger King speak effectively with the customers to show them respect. |
Effective interaction with the customers |
Save |
Different offers help the customers to gain quantified benefits. |
High cost of products can be reduced for better savings of the customers. |
Sizzle |
Customers visits for the satisfactory taste in Burger king restaurant. |
Some combo offers and discounts can increase the visitor duration (Andersson and Hesari, n.d.). |
Source: http://www.ijbe.org/table%20of%20content/pdf/vol16-2/13.pdf
The marketing objectives specify the appropriate goals for Burger King which are beneficial to address the issues of marketing. It covers the digital marketing and traditional marketing opportunities for the better outcomes of the company. The marketing objectives of Burger King can be explained through the "SMART" approach.
Specific: Increase in the customers by 10% through digital and traditional marketing.
Measurable: Social media marketing will be used by the company for customer interaction within 1 month.
Attainable: Regular offers will be provided by the company.
Realistic: Regular monitoring of digital media is necessary for which a new team will be hired by the company.
Time-bound: The successful completion of marketing strategies can be verified within 3 months.
Burger King has segmented the target customers in three groups which are African-American teenagers, kids and working women. For the working women, the menu includes chicken sandwiches, chicken tenders and salads while for kids’ new burgers and products are launched by Burger King. Through the new advertisement of a kid and a man with the cartoon character is effective for the kids to seek for their visits (Beheshtian-Ardakani, Fathian and Gholamian, 2018).
Market targeting is based on the demographic group which emphasizes the friends and family groups to manage a fruitful marketing campaign. Burger King targets the complete market segment to fulfil their needs of the healthy food items. Market positioning is focused on the target customers of Burger King that promotes a high quality and affordable food.
The current market segmentation represents that healthy food is preferred by all the targeted markets. The products as offered by Burger King focuses on the quality and taste while it is also necessary to manage the costs. It promotes the findings that Burger King is a highly innovative company while it requires to adopt social media marketing tools to manage the business performance effectively. The customers of Burger King prefer online and offline both purchases while online customers seek for better offers and discounts that can enhance their satisfaction. The target market is suitable for the company as it includes all the appropriate section which are the potential customers of Burger King (Killian and McManus, 2015).
The perceptual map of Burger King represents that mostly busy people prefer the food items of Burger King. Through location and menu, it attracts the customers to take their food items easily. McDonald’s is the most competitive company of Burger King through its low prices for the “low-income families”.
It can be concluded that Burger King is managing an effective marketing strategy that can benefit its performance. Through SWOT analysis, Porter’s 5 Forces and PESTLE analysis, five key issues of Burger King are identified which can affect the operations of the company including its sales. The digital marketing assessment provides an idea about the digital frameworks which are effective for Burger King such as RACE, 7Ss and 5Ss. Through social media marketing and exciting digital offers can promote the digital sales of the products of Burger King.
It can be recommended that Burger King needs to focus on the low prices and high-quality experience of customers to enhance the experience. The customer segments can be increased to low-family income groups to purchase low priced food items. Healthy products can also be added to the menu of Burger King to attract more customers. Social Media Optimization is an effective tool for digital marketing.
Andersson, K., and Hesari, P. S. (n.d.). Determinants of Consumers’ Fast Food Hamburger Restaurant Choice. Available at: https://core.ac.uk/reader/43559380 [Accessed on: 24/04/2020].
Beheshtian-Ardakani, A., Fathian, M., & Gholamian, M. (2018). A novel model for product bundling and direct marketing in e-commerce based on market segmentation. Decision Science Letters. Vol. 7, No. 1, pp. 39-54.
Burger King (n.d.). Burger King home. Available at: https://www.bk.com/ [Accessed on: 24/04/2020].
Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. UK: Pearson UK.
King, B. (2017). Burger King. Available at: http://www.cambodiaip.gov.kh/DocResources/3f667815-c84d-497a-94de-f41dc49a02f2_e9e18593-8994-4a44-818e-1c9f313dbe17-kh.pdf [Accessed on: 24/04/2020].
Gürel, E., and Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International Social Research. Vol. 10, No. 51.
Hamzeh, A. A., and Bataineh, A. Q. (2019). Exploring and Analyzing (Go) Decision for Burger Makers to Enter Singaporean Market. International Journal Of Academic Research In Business And Social Sciences. Vol. 9, No. 11.
Khan, I., Dongping, H., and Wahab, A. (2016). Does culture matter ineffectiveness of social media marketing strategy? An investigation of brand fan pages. Available at: https://www.emerald.com/insight/content/doi/10.1108/AJIM-03-2016-0035/full/html [Accessed on: 24/04/2020].
Killian, G., and McManus, K. (2015). A marketing communications approach for the digital era: Managerial guidelines for social media integration. Business Horizons. Vol. 58, No.5, pp.539-549.
Musonera, E. (2019). Merger of Burger King and Tim Hortons: analysis of marketing strategies in the quick service restaurants. International Journal of Strategic Business Alliances. Vol. 6, No.4, pp.267-283.
Rastogi, N. I. T. A. N. K., and Trivedi, M. K. (2016). PESTLE technique–a tool to identify external risks in construction projects. International Research Journal of Engineering and Technology (IRJET). Vol. 3, No.1, pp.384-388.
Rogers, C. (2019). Burger King CMO on creativity: we are not in the pursuit of random ideas. Available at: https://www.marketingweek.com/burger-king-cmo-creativity-digital/ [Accessed on: 24/04/2020].
Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). US: McGraw-Hill Education.
Rubenstein, K. (2017). The Once and Future Burger King. International Journal of Business and Economics. Vol. 16, No.2, pp.205-212.
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