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Determinants of Consumers’ Fast Food Hamburger Restaurant Choice

Executive Summary of Burger King Integrated Marketing Plan

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.

Introduction to Burger King Integrated Marketing Plan

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.

Key Marketing Issues

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

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

PESTLE Analysis

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.

  • Political factors: The political conditions of an economy affect the business performance of the organization. It identified the influence of the government on the operations of a firm. Burger King operates in several countries which shows that the regulations of each country is different from another (King, 2017). The major political factors affect the opportunities for the business. Through effective governmental support by the US government, the company is focusing on globalization and moving towards expansion. Political stability in the market create better opportunities for the company through digitalization and e-commerce support.
  • Economic factors: Economic conditions of a country affects the business performance with the recent trends and economic changes. Expansion through international trade agreements can help to attain better opportunities in the US. The economy of the US is stable which promotes better opportunities to manage marketing strategies and fulfil the latest trends. The opportunities for growth can be determined through economic stability and expand in the developing countries (Burger King, n.d.).
  • Social factors: Social factors are based on the social and cultural influences on the business operations of the organization. Changes in the society and social trends can affect the employees and customers. Increase in the diversified customers increase better opportunities for the company however, through the health consciousness of the customers the sales can be reduced for the unhealthy products. Although it can be considered as an opportunity as well which can lead to healthy products and maintain the current trend (Burger King, n.d.).
  • Technological factors: Business operations of Burger King are based on the technology. Automation technologies provide an opportunity for the higher production and better quality. Higher popularity can be achieved through increasing mobile technologies. Quick service opportunity is possible with the research and development activities which makes possible improvements in the organizational performance (King, 2017).
  • Environmental factors: The impact of environmental conditions can be seen in the business environment. Some changes in the environment affect Burger King such as business sustainability strategies are considered as an opportunity. Climate change is a threat to the organization that can impact its business performance. Efficiency for the Burger King consumers can be improved with the sustainability status (King, 2017).
  • Legal factors: Legal requirements are necessary to be fulfilled by the organizations which create better opportunities such as import and export regulations. Through maintain the legal framework, a business can operate effectively. Environmental protection laws promote the effective strategies to fulfil the needs of the environment and managing sustainability in the business (Burger King, n.d.).

Porter’s 5 Forces

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).

  • Competitive rivalry: The degree of competition is high for Burger King although it competes effectively like McDonald’s and Wendy. Strong force can be identified with the competitive rivalry of Burger King such as a high number of competitors. Different restaurants are available in for the customers that offers similar products as Burger King which low switching costs can be a strong force for Burger King. High-cost element can promote customers to switch to other firms.
  • Bargaining power of customers: Low switching costs in the other firms and high substitutes in the market represents a strong force that can affect the presence of the company. To increase the bargaining power of consumers, it is necessary to cater to the demands of the customers (Hamzeh and Bataineh, 2019).
  • Bargaining power of suppliers: For a quick-service restaurant, suppliers are necessary as they provide effective raw materials on time. The bargaining power of suppliers is weak for Burger King because of the abundance of raw materials supply. It is the least concern of Burger King (Hamzeh and Bataineh, 2019).
  • Threat of substitution: Customers can switch to other firms with low costs. High competition in the market can affect the substitution rate of the customers. High satisfaction is necessary to manage the customers. It can be maintained through good quality, taste and cost.
  • Threat of new entrants: The performance of Burger King can be impacted by the new entrants. Low costs of the new companies can affect the organization and its environment (Hamzeh and Bataineh, 2019).

The major issues in the current situation of Burger King are identified as:

  1. High competition in the market for similar products is a key issue that can affect the business performance of Burger King.
  2. Low costs of other competitive firms can create a big issue which increases the chances of switching to another brand.
  3. Threat of new entrants in the market can affect the business performance which leads to loss of customers through low costs.
  4. Attaining sustainability in the business is necessary to maintain the environmental factors for the business environment and attract customers (Hamzeh and Bataineh, 2019).
  5. Quick and quality based service solutions are considered a key issue for Burger King which raises a need to adopt the technological and innovative procedures from time to time.

Digital Strategy Assessment

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

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

Digital 7Ss

  1. Strategy: Burger King focuses on satisfying customers through effective menu and discounted offers. Innovative promotional strategies are also effective for the regular customers.
  2. Structure: The decision making power lies in the hierarchical structure that promotes effective decisions making at each level. Major decisions about the company are taken by the CEO while for each store the decisions are taken by managers (Andersson and Hesari, n.d.).
  3. Style: The style of the restaurants is specific for each counter that works with the cooperative environment.
  4. Staff: All the staff respect customers and get respect for their work. Specific timings are maintained by the managers with effective remuneration packages that motivates them.
  5. Skills: The capabilities of employees and managers are enhanced through training. They are competent to manage the situations (Andersson and Hesari, n.d.).
  6. Systems: For each operation, the right person is selected by the organization that enhances the business process and provide necessary support through their experience.
  7. Shared values: All individuals promote mutual respect as people from different cultures and religions are working for Burger King. The vision and mission of Burger King promotes effective operations for all the employees (Andersson and Hesari, n.d.).

Digital 5Ss

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

Marketing Objectives

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.

Segmentation, Targeting and Positioning

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.

Integrated Marketing Tactics

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”.

Conclusion and Recommendations on Burger King Integrated Marketing Plan

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.

References for Burger King Integrated Marketing Plan

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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