Burger King Case Analysis
BURGER KING
VIEWPOINT
This case was analyzed from the point of view of Burger King’s Marketing Manager.
TIME CONTEXT
The case happened in September of the 2010.
STATEMENT OF THE PROBLEM
• How to minimize the negative feedback/perception of the company’s buy-in from a private company?
• What measures could Burger King do to dethrone McDonald’s as well as hold off the challenge of a number of other chains that were growing in size and competitive power?
STATEMENT OF THE OBJECTIVES
• To boost the image/brand image of the company. • To assess the company’s overall performance, • To provide measure(s) to improve the company’s performance in the market.
AREAS OF CONSIDERATION
Strengths
1. Strong market position.
BKC is the world's second-largest Fast Food Hamburger Restaurant (FFHR) chain as measured by the total number of restaurants and system-wide sales.
2. Strong brand equity.
Burger King’s Whopper is known for its quality and it is the best known brand in fast food. The Whopper (and by extension, Burger King) presents a well integrated “package”, where product attributes, benefits, values and personality are distinctive, positive and mutually reinforcing.
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3. Growth model not capital intensive: 90% of its restaurants are owned by franchisees
4. Strong brand financial performance.
5. High quality products.
6. Wide variety of food products.
Weaknesses
1. Heavily concentrated in the US.
Though the company operates in 65 countries, its operations are heavily concentrated in the US and Canada. About 65% of its restaurants are located in the US and Canada. Concentration of operations in one geographic area increases company's exposure to local factors such as adverse economic situation, labor strikes and changes in regulations that can affect its operations.
2. Few corporately owned stores.
Not enough corporately owned stores mean it relies heavily on franchisees to execute its brand promise.
3. Inconsistent
VIEWPOINT
This case was analyzed from the point of view of Burger King’s Marketing Manager.
TIME CONTEXT
The case happened in September of the 2010.
STATEMENT OF THE PROBLEM
• How to minimize the negative feedback/perception of the company’s buy-in from a private company?
• What measures could Burger King do to dethrone McDonald’s as well as hold off the challenge of a number of other chains that were growing in size and competitive power?
STATEMENT OF THE OBJECTIVES
• To boost the image/brand image of the company. • To assess the company’s overall performance, • To provide measure(s) to improve the company’s performance in the market.
AREAS OF CONSIDERATION
Strengths
1. Strong market position.
BKC is the world's second-largest Fast Food Hamburger Restaurant (FFHR) chain as measured by the total number of restaurants and system-wide sales.
2. Strong brand equity.
Burger King’s Whopper is known for its quality and it is the best known brand in fast food. The Whopper (and by extension, Burger King) presents a well integrated “package”, where product attributes, benefits, values and personality are distinctive, positive and mutually reinforcing.
[pic]
3. Growth model not capital intensive: 90% of its restaurants are owned by franchisees
4. Strong brand financial performance.
5. High quality products.
6. Wide variety of food products.
Weaknesses
1. Heavily concentrated in the US.
Though the company operates in 65 countries, its operations are heavily concentrated in the US and Canada. About 65% of its restaurants are located in the US and Canada. Concentration of operations in one geographic area increases company's exposure to local factors such as adverse economic situation, labor strikes and changes in regulations that can affect its operations.
2. Few corporately owned stores.
Not enough corporately owned stores mean it relies heavily on franchisees to execute its brand promise.
3. Inconsistent