Slide two
This presentation attempts to describe two companies in similar industries that have tried, over the years, to be creative as far as the types of products that they will introduce. Both The Coca Cola Company and Burger King have tried and failed, in some cases, to bring new products to market. Each company brought out a new product that included a soft drink in the case of The Coca Cola Company, and a new style of French fries in the case of Burger King. The biggest problem with these introductions was the inability to correctly identify the target market for these products. This presentation will explain why each of these companies failed and will discuss the specifics of each organization’s ad campaign. Also discussed will
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Burger King was originally a strong competitor for McDonalds, but that has changed. Perhaps the reason is that Burger King has changed hands many times since its inception and has been on and off the stock exchanges, whereas McDonald’s has not undergone all of these changes. It is not as if Burger King is not a competitor, however, as this organization still has $4.5 billion in sales as an organization, with 4,743 restaurants (BK.com, 2014). The total restaurant count includes 402 international restaurants in 25 countries (BK.com, …show more content…
Also, McDonald’s clearly has an advantage as far as capital, as this organization has $34 billion in sales as of 2012 (Melnick, 2012).
Burger King, however, has tried to keep up with changes in consumer demands for new and healthier products, as this organization has added salads and wraps to its menu offerings. McDonald’s added the McCafe and updated all of its restaurants recently, including adding free Wi-Fi at all of its U.S. locations to make its restaurants seem more like an upscale coffee shop than simply a fast food restaurant. Changes such as these have likely taken sales from organizations such as Burger King. To combat this, Burger King has fought back by increasing the size of its portions and sandwiches and has used couponing very aggressively. Burger King is also adding free Wi-Fi at all of its U.S. locations.
Burger King even introduced a new brand of French fries, which this organization called Satisfries. This was an attempt to capture the health-conscious market that still wants French fries, but without all of the fat. The introduction of this product is one of the reasons for this presentation.
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Burger King and Wendy’s are among the top fast food chains in America, but this fact doesn’t elude either chain from having their negative and positive features. Burger King is cheaper, and has a wider assortment of food than Wendy’s, which makes Burger King more desirable to many Americans. What Wendy’s lacks in diversity, and lower priced food when compared to Burger King becomes irrelevant due to the higher speed and superior quality food they offer. Both qualities of Wendy’s help to maintain equal competition between the two in the fast food market of America.
Unlimited, endless, fast food choices, and yet there are two that stand out above the rest. McDonald’s and Burger King are the two biggest burger fast food chains in the world. So let me ask you this, who has a better menu? Who’s Cheaper? And which one is healthier? This debate will once and for all come to an end, once all of these points have been met throughout my paper. McDonald’s vs. Burger King has been a long running argument. You will finally come to realize that McDonald’s is the better choice for you.
McDonalds and Burger Kings promote products with the same intention of attracting more customers and having a good communication system. They both use the same tactics in promotional mix which are Advertising, Sales promotions, Public relations, Direct selling.
McDonald's has successfully created a brand/name for itself as the leading fast food retailer in the world. It is somewhat of impossibility for one to not come across a McDonald's with over 30,000 local restaurants in over 100 countries (McDonald's, 2011). Those restaurants are owned either by a franchise owner or a corporation; a percentage of all the earnings from a franchise owner, including a percentage from their annual revenue go to McDonald's.
McDonalds was first incorporated in the year 1955 in USA with a single restaurant. Currently, McDonald has transformed to be the biggest and the fastest growing in the industry of fast food services (Employee handbook, 18). The corporation sales are now at a staggering $30 billion an year contributed by the 21,000 stores that are located across 101 different nations around the world. The success of the corporation has been as a result of a great contribution by the company’s management where there has been application of new ideas to give the corporation an upper edge in the market. On analysis of the company’s blueprints, a projection has been made where the corporation
Thesis Statement: Although McDonald’s and Burger King are similar; they have evident differences in their advertising models, food and their commitment with the community.
In all sectors, Yum!’s biggest competitor is fast-food industry giant McDonald’s Corporation. Similar to Yum!, McDonald's units include company-owned restaurants, franchise royalties, and licensing agreements. Like YUM!, McDonald’s offers a uniform value-priced menu with some geographic variations, making it YUM!’s most significant direct competitor. Although McDonald’s only operates one brand name, it currently operates 32,500 locations in 117 countries. Industry peers include and Burger King Corporation, Darden Restaurants, Wendy’s-Arby’s Group, Domino’s Pizza, Papa John’s, Jack in the Box, and PF Chang’s.
A Burger King strategy has focused the customer segment that spends the most money at its restaurants. These young men and women visit fast-food burger chains on average almost 10 times per month.
McDonald’s corporation started in 1944 as a drive-in restaurant in California. This single location was started by Dick and Mac McDonald. That location was altered in 1948, when the start of the 19 cent cheeseburger became popular. They had continued growth over the years and by 1965 there were over 700 restaurants in service. Since that time they have grown dramatically. As of 2011, they are operating in 119 different countries. They have more than 35,000 restaurants and over 1,8 million employees. McDonald’s direct competitors are Burger King and Yum brands (Taco Bell, KFC, Pizza Hut). Forbes profile describes McDonald’s as “As of December 31, 2011, of the 33,510 restaurants in 119 countries 27,075 were franchised or licensed (including 19,527 franchised to conventional franchisees, 3,929 licensed to developmental licensees and 3,619 licensed to foreign affiliates (affiliates)-primarily Japan) and 6,435 were operated by the Company. McDonald's menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Snack Wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages.” They are considered #6 by Forbes on the World’s Most Valuable Brands. Their dollar menu and attention given to children’s products in their much marketed Happy Meal’s have brought them much attention and wealth.
McDonald’s continues to test new products to satisfy these preferences and tastes. McDonald’s menu includes hamburgers, cheeseburgers, wraps, chicken sandwiches, chips,desserts, pies, salads, sundaes, soft serve cones, coffee, soft drinks and other beverages. McDonald’s also promotes a variety of products during a limited time period. They also offer full or a limited breakfast menu in the U.S and many international markets. The importance of quality, choice and nutrition is increasing for McDonald’s customers and they are continuously expanding their menu to meet those needs.(McDonald’s Corporation. (2016))
Home meal delivery 3. Full adaptation of its new practices 4. Changing customer habits and new customer groups 1. Saturated fast food markets in the developed economies 2. Trend towards healthy eating 3. Local fast food restaurant chains 4. Currency fluctuations 5. Lawsuits against McDonald’s 2.3. Established Market Share Among Fast Food restaurant chains, Burger King is second largest company and it holds a 15% share of the United States market. The company’s profitability has also increased in recent years. Burger King is most recognise among the people and it is due to its quality service and product ,the company is well known for its Whopper and it is known as the king of whopper. The company was recently ranked 7th in brand awareness. 2.4. Superior Growth Plan Approximately 90% of Burger King Restaurants are owned and run by independent owners , many of them belongs to family business that have been in business for decades. The company is able to grow while minimizing large capital expenditure, meanwhile it collects fees and royalties from each franchise added. 3. Organisational trends in behaviour or performance. The organisation is looking forward, try to change its trend like in daily menu, and will add Starbucks, costa to all its U.S
The three restaurants are succeeding in their value propositioning. What set Burger King apart from their competition is that they
As a senior at San Jose State University, I’m going to be graduating in Spring 2016. This is a crucial time in my life, as I start along the career path that I have been working towards. Therefore, it is extremely important for me to research companies that could possibly be a fit for my future. As a business major with an emphasis on Human Resources, my career possibilities are limitless because Human Resources is an integral part of any business. For this report, I wanted to look at companies of interest to me which have expanded their international footprint, and have used strategic strategies to build this top companies. I will also examine company strengths and weaknesses, and how those have shaped their businesses. After comparing the companies based on criteria that I feel are most important, I will then be able to conclude which company could be the better career choice for me.
1. Competitors – As there are many other restaurants who are trying very hard to compete with McDonalds like KFC, Burger King, and Burger Fuel etc. They are also serving people with same kind of services like McDonalds and burger king is really giving a tough competition to McDonalds at the moment.
• 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?