Marketing Management: Analyzing Burger King's Value Chain Model to Compete with McDonald's in Malaysia

This essay discusses how Burger King can compete with McDonald's in Malaysia by analyzing its value chain model and optimizing its operational activities, outbound logistics, and services. It also covers market segmentation, targeting, and positioning strategies, as well as the 7 Ps of Burger King's brand. The document type is an essay, and the subject is Marketing Management. The course code, course name, and college/university are unknown.

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McDonald’s vs. Burger King
Marketing Management
7/17/2019

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In the business world of marketing, the value chain model of Porter's is famous as it helps
in evaluating the activities according to the roles of the delivery of the product and process.
There were both primary and the secondary activities which were involved in targeting the
customers of the Burger King. To increase the market share of the Burger King Malaysia, it is
important to maintain the good relationship with the suppliers so that the distributions of the
products in the store can be done properly (Apéria and Persson, 2018). To expand their market
growth in Malaysia and to compete with the McDonalds, Burger King has to analyze the inbound
logistics and has to maintain a strong relationship with the suppliers. The burger king of
Malaysia will ready to convert the raw material into the end products when operational activities
are analyzed properly. So to enhance the market share in the competency of the McDonalds the
analyses of the operational activities are necessary. In comparison to the McDonalds, the burger
king of Malaysia does not have the effective services so to expand their market share in the
country they have to improve their services (Etae, et al., 2018).
In the operations of the company, both things are included manufacturing and service.
For the competitive success of the burger king, it is important to improve productivity and
maximize efficiency. If the productivity of the burger king in Malaysia will increase then only
their market share in the country will increase and it also leads in the increase of the profitability
of the company (Fraser, 2014). In Porter's value chain, outbound logistics activities are also
essential as it helps in delivering the products to the consumer through different intermediaries.
The warehousing of the McDonald’s is large and they have the transportation and delivering
system which gives the biggest competition to the Burger King. So Burger King will achieve the
growth and can increase their market share when optimizing the outbound logistics and will
explore the market more of Malaysia to earn the competitive advantage (Singam, et al., 2014).
In earning the loyalty of the customers the most important things is that services which
are offered to them. McDonald offered good services to the customers through which they are
satisfied. The Burger King is offering the post-sale services which are important for the
reposition itself and to increase the share in the market.
Burger King in Malaysia is not expanded across all the areas so it is the opportunity for
the company to expand its marketing in all the areas of Malaysia. Another opportunity which the

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company has is that they can increase their market penetration by increasing their revenues in
delivering the fast-food chain services (Sin, et al., 2019). People over Malaysia are concerned
about their health and food so they eat the food which is healthy and free from Trans fats. So the
burger king is the one who is making the health-conscious eatables which are free from the Trans
fats and have the good flavors which attract the customers. Burger King is offering the burgers to
the customers which are low in fat so generally the customers of the get attracted and this
becomes the opportunity for the company to increase the revenues.
The Malaysian have a healthy lifestyle so the kit is the opportunity for the company to
grasp and make a more attractive offering on its product especially within the healthy food
section. Currently, the Burger King is not offering many products as they have limited choices in
comparisons to the McDonald so they have the opportunity to add the new healthy food so that
the expansion of the business can be done in the market. They can add the different flavors in
their product to attract the customers (Rashid, et al., 2015). As the McDonald offers a variety of
products so to compete those new flavors and elements have to be adding up. They also have the
opportunity to improve their quality services in comparisons to the McDonald and require the
new diversification and strategies for market development. The prices of the Burger King have
reduced from the previous which also increase the opportunities for the company. In Malaysia
there is a large number of the crowd has been seen in the high footfall malls as each brand were
available there so by opening the restaurants at that area will increase the brand name of the
company and also helps in increasing the turnover. The market share of McDonald's is declining
nowadays due to their poor quality services in food so it is the big opportunity for the company
to attract the customers as people over the Malaysian did not prefer more to McDonald's.
McDonald's focuses on the recurring revenues rather than the on-time sales and this is the
reason they have the maximize customers lifetime value. So the burger king also has to adopt
this strategy that instead of selling the food varieties they have to make the interactions with the
customers so that the expansion of the burger king can be done. They also have to maximize
their customer lifetime value by making personalized recommendations in the products of the
burger king. Burger king can also increase their market share and maximize their customer
lifetime value by increasing the sales per order (Qureshi, et al., 2018). To compete the
McDonalds the burger king has to put a major focus on the motivating the customers that should

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spend more money on transactions to avail more discounts and opportunities. In the competitive
market to attract customers is the only way to increase profit and revenues. The customer’s
lifetime value can also be increased by paying more focus on the retention value. By providing
the online services of the products on time the customer’s satisfaction can be achieved so these
are the way through which the burger king is extending their market share and repositioning
itself from the rivalry McDonald's.
Serving the customers as per their needs and demands also enhances the sales of the
company. So the burger king also adopts this strategy to increase the customers' value by
deriving the values of the customers. As the Burger King is offering the products of food at the
reasonable price which the lower people of the Malaysian can also afford it so this brings the
market share up (Aftab, et al., 2016). The company can also build their customers lifetime value
by offering some discounts or package to their daily customers and by offering them the high-
end services. The customers also get more engaged when the feedback is taken from them and it
is implemented in the company. So in the case of the burger king also the feedbacks are taken
from the customers and listen to them carefully and implemented their feedback to increase the
value proposition. In McDonald, the major focus has been done on the high-end customers'
services while the burger king put the major focus on the building the good relationship with the
customers by listening and collecting feedback to them.
Burger King has good brand equity in the market as they are one of the leading quick-
service restaurants. The market share of the company has been increased by the famous and
innovative products like Hamburger, Whopper, etc. The company is making its distinct position
in the market by working under the Restaurant Brands International architecture so it has the
biggest fast-food chain (Soon and Tee, 2014). Burger King has great brand awareness as they are
known for quick service delivering and they also provide innovative and famous products. The
company also has good brand equity in the market because they are offering a full meal. The
brand element of the company I also simple who am easily remember by the customers. The
burger king also has good brand equity because they are fulfilling customer satisfaction and
increasing their loyalty by providing fresh and tasty beverages (Adnan, et al., 2018).

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The company also has a good brand association as its name is indicating that the
restaurant will serve the burger and they are the king of the burgers (Khan, 2014). The burger
king provides the freshness of the juicy burger which results in increasing the sales. The prices of
the company are competitive to the McDonalds but still, they are surviving in the Malaysian
market with a good profit. The company has franchised its name which results in attracting the
new customers as in the competitive market to attract the customers is quite difficult. The
company provides a good quality of fast foods which consist of less fat and healthier for the
health which results in increasing their brand equity. Whereas McDonald's gets higher prices for
the burgers and provide low quality as a comparison to the Burger King (Nguyen, et al., 2018).
The brand equity of the product has increased the market share in Malaysia and also increases its
revenues.
Market segmentation: There are many factors which affect the market segmentation of
Malaysia such as the geographical factor, demographic factor and behavioral factor. Every buyer
is different so to separate the product and design on the market is essential to attract the potential
customers. Burger king also divided their market into several factors such as the geographical
factors are divided by the region. Demographic factors are divided into different factors such as
the kinds, adult, family. The stores of the burger king in Malaysia has increased from the
previous years as earlier it was 50 stores and now there are 85 stores in Malaysia. McDonald's
have the good segmentation as they include the mini playground for eth small children’s and the
rooms for the parties which attract the customers (Basnayake and Hassan, 2015).
Market targeting: Market can be targeted by revealing the market segmentation. Burger
King has mainly targeted those customers who are regular to them. They have concentered more
on the needs of the particular customer's group so that their needs can be fulfilled. The major
target in the Malaysian has been done to the young adult people and especially to the male
people. These people are targeted as they share any news among their friends and family which
increases the sales of the company (Rosmiza, et al., 2016). Burger King of Malaysia has mainly
targeted the demographic sector as it increases the market share of the company. McDonald's has
targeted all the age group of Malaysia and put the major focus on the different needs of the
customers. Burger King has targeted the working-class people as they can have this meal rapidly
and able to back to work.

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Market Positioning: The customers who are targeted are communicated properly through
the different sources so that they can recognize the products easily. Burger King of Malaysia has
positioned their market by serving the high quality of services, affordable prices on the foods and
the great and the healthy taste. McDonald’s has targeted the kids and families whereas the
Burger king has targeted the young adult and males (Kong and Mohd Jamil, 2014). In Malaysia,
the burger king has only provided the snacks like French fries whereas the Burger king has
provided the onion rings, chicken nuggets, French fries and other variety of the choices.
McDonald's and Burger King both have to serve the different products and services in the
market of Malaysia. As Malaysian are taking healthy lifestyle as the new yardstick in life, so
burger king majorly focuses on the quality of food and also serves the variety of products. In
addition to this they are serving the different products such as BLT sandwiches, upsize
vegetarian meat burger or even salmon with its signature sauce. Whereas the McDonalds are
serving the burger and French fries only as of the fast-food meal. The prices of the burger king
have a higher portion per price basis than McDonald's (Ahmed, et al., 2013).
The products of the McDonalds are lighter in the weight than the Burger king. So the
people over Malaysia prefer lighter things in fast food. As the content in the product of the
burger king is higher so the chances of the fat are also higher. Whereas the McDonalds contain
less fat in their products so the people over the Malaysian are concerned with their health so they
prefer McDonald's more. So to increase the market share in Malaysia, Burger king has to use less
fat in their product. Both the restaurant serves the hot food but it seems that the services provided
by the burger king are fast and quicker rather than the McDonalds (Yunus, et al., 2013).
There is also the differentiation in the services of both the restaurants as in the
McDonalds the order is taken by the employee and he only serves the dishes in Malaysia while
in the Burger King the order is placed at one place and served at the other. The food is made in
the mass production by the McDonalds whereas the toppings are only added at the burger king
when the product is brought by the customers (Ngelambong, et al., 2015). The double
cheeseburger of the Burger King is better and healthier for the Malaysian people in terms of fat
and calories.

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The brand of the burger king contains 7 Ps which are essential for the expansion of the
market in Malaysia and to reinvest and reposition itself to the rivalry McDonalds (Metin and
Kizgin, 2015). The product of the Burger King includes basic hamburgers, French fries, desserts,
soft drinks, milk sales, etc. They have also introduced the Whopper Sandwich to their many to
attract the people of Malaysia. McDonald's only serves the variety of burgers, soft drinks, and
French fries but burger king serves the products like bacon cheeseburger, cookies, onion rings,
hamburger, chicken tenders, etc. In terms of the place, there were 85 stores in Malaysia are held
which is on the main market so it attracts the customers on a large scale. McDonald's also have
278 restaurants within the region of Malaysia so they have a large number of the value chain.
The prices of Burger King are higher than the prices of the McDonalds in Malaysia. The
prices of both the restaurants are quite similar and they both have charged the prices which the
customers are willing to pay (Lim and Loh, 2014). The prices are charged as per the different
income group. The higher prices are charged for the quality and lower prices are charged to
satisfying the customer’s needs. Burger King and McDonald's both promoted at a different scale.
Burger King promotes the advertisement and by introducing its products through the menu cards.
McDonald’s does the local advertising to promote their products such as the lollipops, roadside,
hoardings, etc. The advertising of the burger king is also done through the newspaper, hoardings,
and magazines. Burger king focuses on the young adult and they have the employees as well,
whereas the McDonalds focus on the kids and the family. McDonald's keen to work with their
employees.
The value chain of the burger king is not high as McDonald's have as they have the large
stores which are attracting a large number of the customers and targeting the huge number of the
people. In Malaysia, the chain of burgers is large so where the stores are available at the main
market a large number of revenues are earned by those stores (Tan, et al., 2013).
Burger king adopts the different techniques to promote the products and services. There
are several types of market communication which the burger king adopts to target the audience.
Marketing communication is also done through the social media app and the mails and the
graphics (Khalili, 2015). When the new product of the burger king is launched then the
communication of the product is done through the media or the conference. The sales promotion

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is also done to communicate the products In the market of Malaysia. Marketing communication
is also increased by building customers and public relations. Burger king always interacts with
the customers directly so it results in making the personal touch with them.
Marketing communication of the burger king is also done through the sponsorship. It is
also done through the radio, television, magazines, webpages, newspaper, etc. Marketing
communication also includes online promotion which is done by the Burger King to promote
their products. The brand reputation of the products of Burger King has increased through the
customers who are engaged in social media. Social media is the best source of any marketing
communication as it targets a large number of customers at the same time and people get aware
of the new products (Baker and Friel, 2016).

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