McDonald's vs Burger King Marketing Analysis

This assignment presents a comparative analysis of McDonald's and Burger King's marketing approaches. It examines the pricing strategies employed by both companies, explores their respective market expansions across countries, and identifies their primary target demographics. The report also considers McDonald's efforts to enhance customer satisfaction through initiatives like free Wi-Fi access.

UNIT 2 MKT ESS

Table of Contents
INTRODUCTION...........................................................................................................................1
PROJECT – 2 ..................................................................................................................................1
Comparison between McDonald and burger king..................................................................1
Marketing plan for McDonald................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

PROJECT – 2
INTRODUCTION
The concept of marketing can be used to face intense competition that is rising in
companies. The needs of customers can be analysed with marketing concept and decisions will
be taken in order to satisfy those needs. It will also help to maximize profits, sales and beat the
rivals in a business (Telang and Deshpande, 2016). The strategies and plans are made by
companies in order to do conduct marketing of their products.
McDonald is a fast food restaurant chain. It is serving 69 million customers in order 100
countries. The hamburgers, cheese burgers, French fries etc are sold by this food chain company.
This report will compare the marketing mix of both McDonald and Burger king company in
order to achieve their objectives of business. This report will also produce basic marketing plan
for McDonald.
Comparison between McDonald and burger king
Marketing
mix elements
McDonald Burger king
Product In the world McDonald is one of the
leading food chains. The products
such as hamburgers,products of
chicken, cheese burgers, items of
breakfast,soft drinks,milkshakes and
dessert etc are sold by McDonald.
The items such as smoothies, fish
wraps and fruits also have included by
McDonald (Onurlubaş, 2017.). It is
mainly famous for hamburgers. The
restaurant that was started by
McDonald brothers sold
hamburgers,milkshakes and french
fries. Across the world the other
product that is sold by this company
In comparison, with McDonald the
products that are manufactured by these
restaurants are hamburgers,
desserts,French fires ,milk shakes and
soft drinks. The new products are
basically introduced by this company
and improvement is done in existing
Portsmouth congoAgra Food Lam
Weston burger king has signed a licence
deal .As a outcome of this the French
fries are offered at retail line. The
restaurant that are owned by burger king
is less in comparison with McDonald.
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are big mac,beef burger,double cheese
burger and Mc spicy burger. The
chicken product that is sold by this
company included are Mc chicken,
premium chicken sandwiches and
grilled chicken premium (Telang and
Deshpande, 2016.).. The product of
fish such as fish Mcbites and Filet O
fish are also sold by the company. A
range of breakfast sandwiches is also
offered by company. The primarily
supplier for this company is coco
cola. As per the taste of local and
cultural identity the products are
adopted by this company.
Price The price bundling strategies are
made by company that offer price
bundling products for customers. The
focus of McDonald is on
psychological strategies of pricing in
order to attract more number of
customers. The main objective of
their company is to make its products
affordable for customers .So
strategies are made in order to sell its
product at reasonable prices. The
pizza hut,dominoz,KFC,subways are
primary competitors of McDonald.
The discounts are offered by company
in order to promote its products. To
tap the lower middle section of
In order to offer an alternative to
McDonald burger king is planing to sell
slushy drinks for less price in
comparison with McDonald. The
products are sold at an affordable
process (Perrone and Wodonga, 2015) .
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society their strategies of pricing are
made (Zondag, 2014.). The young
teenagers are mainly strategy by this
company.
Place In 110+ countries the restaurant of
McDonald are found. The mc
drive,mc cafe,mc express are different
types of form ats of restaurants. The
services such as indoor and outdoor
seating is provided by restaurants of
McDonald also for its people. The
location of mc drive are near to
highway and seating facilities is not
given by them. The high quality
stands and hygiene norms are
maintained by this company
(Reinhard, 2015).
The primary locations are occupied by
burger king. Via franchise burger king
operates its business. In the equipment,
signage,seating and décor the
investment is done by franchises. The
land and building is owned by company.
In the global market the outlet of burger
king is presently everywhere. In three
different segments burger king has
divided its global operations
(Robinson,2016). The various
subsidiaries are been established by
burger king and development of
alliances have proofed to be profitable
for business. The different potion of
franchising is used b y company in
order to maintain its plans for
expansion. On a particular regions the
operation of company on its franchise
depends. With regional background
some franchises are selected and that
are considered as master franchises. The
selling of franchise to sub -franchise is
the responsibility of master
franchise .The investment in
arrangement of seating ,decor etc need
to be done by franchise as per
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agreement.
Promotion On the campaign of
advertising ,McDonald spent huge
money. The ads in newspaper,
billboards and in various events such
as Fifa world cup ,Olympic games etc
the promotion is done. The prime
form of advertisements is RV
advertising. The engagement of
people in popular activities is shown
by McDonald TV ads. No negative
campaigns against their rivals are
sued by McDonald.”I am loving it”
campaign is currently used by
McDonald. In the Fifa world cup that
held in 1994 McDonald was official
sponsor.
On the concept of reorganizing and
revitalization the brand at particular
period is the promotional strategy of a
firm. The strategies related to menu,new
agencies has been periodically
overhauled by burger king. The slogan
such as “Have it you way” are used by
this firm to promote its product. In tv
many advertisements of burger king are
shown .The charitable organization is
also owned by burger king. The
foundation such as have it on you way
focuses on prevention of disease and
from every household hunger is
removed. The charitable organization
also work towards proving scholarship
to deserving students. In uplifting the
image of brand such stapes have
provided to be advertisements for
human side. In comparison, with
McDonald, burger king gives more
quantity of food at much lower prices.
People In order to address its customers
McDonald have a unique way. The
equal to employees is given by
McDonald (Telang and Deshpande,
2016.).. In this the employees that are
working have a dress code that they
need to follow .The emphasis is made
The chief executive officer of burger
king is john W.chistly. In order provide
customer satisfaction burger king takes
order on a continual basis. The
employees are motivated and
encouraged at burger king for their
performance by giving stars for their
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by company on its employees to be
friendly with customers who visit
their place. The utmost importance to
service delivery and customers
satisfactions is given priority at
McDonald. Based on performance of
employees they are give ratings. The
daily proceeding of this restaurant are
take by restaurant manager. The goal
of company is to achieve customers
satisfaction.
good performance. The basic operation
of restaurant is conducted by delivery
crew members. The satisfaction of
customers is ensured by him.
Physical
evidence
When it comes to physical evidence
McDonald leaves a good impression
in it marketing mix. In the minds of
customers physical evidence created a
great impact. The speed of
service ,quality and
hygiene ,cleanliness are some
attributes if psychical evidence. The
colors of brands are displayed by
most stores of McDonald. Inside the
restaurant smoking is banned. The
clear-labeled instruction is there in
restaurant which indicated that
smoking is banned in these
restaurants.
Via the website BK.com burger king
has a presence in internet. The video
history about company ,press release
and information about stock is provided
by this site. With the help of
modification in its décor the company is
in process of reinventing its image. The
modern-box like features will be there
in its new restaurants. In more than
11,900 restaurants burger king operates.
Process The methods of cooking have been
improved over the years and the
prices that was sued is also improved
in recent years. The food is processed
The most efficient equipments for
cooking is invented by the company.
The strategies are made by this
restaurant to target a particular segment
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with sophisticated equipment and for
packaging of food the new methods
are used. The investment in research
is done in order to improve its
products .In order to suit the values
and culture of McDonald the entire
distribution network is streamlined.
The customers can see the process of
food manufacturing.
of customers. The young men and
women are targeted who visit this
restaurant 7 times a month. The
strategies are made by company to add
more restaurants and entering in new
market. By using innovative marketing
promotions the company seeks for
further growth in market.
Marketing plan for McDonald
Executive summary
In 1954 McDonald company was established. There are around 30,00 outlets in more
than 120 countries in the world (Nandini, 2014.). It is considered as one of the largest food
chains in the world. With different types of food it has maintained the diversification of food.
Due to this reason it has a good image and popularity among customers. In order to train its staff
a huge amount is spent by the company .In some other cities this firm is looking to set up
franchises .They want to produce good customers base and earn a good profit in business. The
marketing plans that is made for this company will help it to achieve its objective and gaols. The
young population will be targeted by McDonald in order to earn profit (Telang and Deshpande,
2016.)..
Objective
 To increase its ales by 45% in next 5 moths.
 To increase awareness among more people about this brand
 To increase the brand outlets in targeted market
 To produce customer-satisfaction by fulfilling requirements of customer
Strength
 In the fast food restaurant chain
McDonald is the leading market
Weaknesses
 The brand can be affected as the
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contender (Koku, 2014).
 It is more popular among customers as
it has a strength brand name and image
 The strong market diversification is
adopted by the brand .
 The different types of products are
offered to customers.
 The great strength of McDonald is that
the food has pass through the
standardized process
 In order to train its staff the huge
investment is done by McDonald.
 The information about nutrients is also
provided by this fast food chain
(Gerhardt and Lewis, 2014.). In the world the largest market share is
of McDonald.
diversification of business is limited.
 The process flexibility is limited of this
brand
 The unhealthy menu is maintained by
this brand (Marketing plan for
McDonald, 2017).
 About the brad the review of public is
not positive
 The issues of quality is also notices in
some franchises.
 In young generation the local eating
habits has been disrupted by this brand.
 The diseases such as obesity is casing
in children due to food products.
 In product innovation McDonald is
very slow in this process.
Opportunity
 The free food items such as peanut free
food and gluten can be offered by this
brand to its customers.
 The brand can focus on diversification
of products. In some developing countries the brand
can expand its restaurants.
Threat
 With some competitors the food brad
has to face aggressive competition.
 In order to remain slim and fit people
are leaving fast food .
 In a wold wide economy there are lot
of alternatives that is available for
people such as burger king,pizza hut
etc.
Competitors
The major rivals or competitors for McDonald can be burger king,pizza hut and KFC.
Pestle analysis on McDonald
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Political factors- The performance of any business can be impacted due to political factors. On
the performance of the brand the role of government is immensely important. The agreements of
new trade can have both positive and negative impact on the performance of brand (Crawford,
2015.). The regulation of food and heath related as also affect the sales and profitability of
McDonald.
Economic factors – When companies are operating in global environment the factors of
economic plays an important role. By the economic factors McDonald is heavily affected. The
economy of world was in recession that have also the reduced sales of this company. But things
are getting better now so the performance of McDonald is also improving. With improved
economic condition the improvement in performance of McDonald is shown.
Social factors – In order to analyse the performance of any business the social factors are
essential (Al and Bhatia, 2014). The impact on preference of brand can be due to social factors
such as change in lifestyle, social trends and many other factors. Today people are become more
conscious about their fitness so they prefer food items that are more healthy and contain
important nutritions. So, McDonald need to have menu that is per the needs of customers. In
order to generate more customers McDonald ned to add more healthy food items in their menu.
Technological factors -For McDonald also technology is important. This brand will need
technology in order to promote its product in market or even for customer service. On the social
media the brands like McDonald has huge fan following (Zondag, 2014).
Environmental factors - The environment friendly and sustainable supply chines are focused by
McDonald. The customer base is also larger in environment friendly brands. In order to become
more environment friendly McDonald is focusing on framing policies to adapt sustainable
practices.
Legal factors – All legal laws need to be followed by McDonald. The laws that are made by
government of UK need to be imposed by McDonald at their workplace.
Segmentation, targeting and positioning
Segmentation -McDonald will be making its products for different ages and in demographics
segmentation it will target income as well .Based on high and low income different process of
products will be made. In the psycho graphic segmentation the taste of people will be focused on.
They will also focus on culture and religious atmosphere of the country in which their
restaurant is located (Telang and Deshpande, 2016.).
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Target - Basically McDonald will children, teenagers. As young people and children are more
fond of fast foods in comparison with adults.
Positioning – The promotions by local advertising channels will be done in order to make peopl
aware about services and products that are provided by McDonald. In order to please children
McDonald will provide toys along meal .As the young people are more technology driven so
McDonald will provide them with free Wi-Fi facilities. The happy price menus will also be
provided by McDonald.
CONCLUSION
Thus summing up the above report it can be concluded both McDonald and burger offer
their products at reasonable prices. But expansion of market of burger king across countries is
less in comparison to McDonald. The main objective of McDonald is to make increase its sales
by making high-customers satisfaction. There are opportunities for McDonald to focus on
diversification of business. It is well-know brand and is very polar among people. The main
target of McDonald is younger generation and children. The free -Wi-Fi facilities will be
provided in order to grab more number of customers and increase its sales.
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REFERENCES
Books and journals
Al, T.J. and Bhatia, G., 2014. Happy Planet: UBC campus analysis and marketing plan.
Crawford, A., 2015. McDonald's: A case study in glocalization. Journal of Global Business
Issues. 9(1). p.11.
Gerhardt, S. and Lewis, S., 2014. Small Business Marketing Strategy Based on
McDonald's. ASBBS Proceedings. 21(1). p.271.
Koku, P.S., 2014. Strategic Marketing Plan. In Decision Making in Marketing and Finance (pp.
35-47). Palgrave Macmillan US.
Nandini, A.S., 2014. McDonald's success story in India. Journal of Contemporary Research in
Management, 9(3), p.21.
Onurlubaş, E., 2017. A Research on the Determination of Consumer Perceptions Related to
Guerrilla Marketing Methods: Sample of Izmir Province. EMAJ: Emerging Markets
Journal. 7(1). pp.31-40.
Perrone, A. and Wodonga, T.A.F.E., 2015. Centralian College: Creating a strategic marketing
plan for long-term growth. Marketing, p.85.
Reinhard, K., 2015. Differentiation as the key to success. A marketing plan for Starbucks.
Robinson, A., 2016. " Even Though You Don't Have Pretty Clothes, You Are Still a Princess":
Unpacking Princess Images in Picture Books. Talking Points. 27(2).p.11.
Telang, A. and Deshpande, A., 2016. Keep calm and carry on: A crisis communication study of
Cadbury and McDonalds. Management & Marketing. 11(1). pp.371-379.
Zondag, M., 2014. Introduction Food/CPG Industry & Food/CPG Marketing.
Online
Marketing plan for McDonald. 2017. [Online] Available through:
<http://marketingdawn.com/marketing-plan-of-mcdonalds/>. [Accessed on 28th October 2017].
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