McDonald's and Burger King: Marketing Mix and Advertising

This report provides a comprehensive analysis of the advertising strategies and communication policies employed by McDonald's and Burger King, two leading fast-food chains. It begins with an overview of both companies, detailing their history, global presence, and key offerings. The report then delves into the marketing mix of each company, focusing on promotion elements like advertising, direct selling, public relations, and sales promotion. It examines how McDonald's and Burger King utilize various promotional tools, including television, print media, digital media, and social networking sites, to attract and engage their target customers. Furthermore, the report explores the effectiveness of these promotional tools in driving customer engagement and sales. The analysis includes an examination of the Schultz von Thun communication model to understand the communication process. The report concludes by summarizing the key findings and offering insights into the effectiveness of the advertising strategies adopted by these two fast-food giants.

ADVERTISING MESSAGES
AND
COMMUNICATION POLICY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Overview of selected organization...................................................................................1
TASK 2............................................................................................................................................3
2.1 Marketing Mix of both companies...................................................................................3
2.2 How promotional tool aid in attracting target customer ..................................................5
TASK 3 ...........................................................................................................................................6
TASK 4............................................................................................................................................7
4.1 How means of communication are in perfect harmony with the advertising message and
the advertising concept...........................................................................................................7
4.2 Schultz von Thun communication model........................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Advertising can be defined as an audio or visual form of marketing communication
through which organization promote or sell their product, service or idea. The main objective of
advertising is to raise awareness among general public. It is consider as one of the best way to
communicate to the consumers (An and Kang, 2014). With the help of this, businesses are able
to attract large number of customers to their waves. Some of the common tool of advertising
include television, radio, newspapers, internet etc. In the modern era, companies often rely on
media for advertising its product or services and increase the number of sales as media play key
role in advertising. The chosen organization for this report is McDonald and Burger King which
are the leading fast food chain. The main purpose of this report is to identify different advertising
strategies used by selected company for promoting its products or services. It also include
marketing mix, communication policies, modes of advertisement and communication model.
TASK 1
1.1 Overview of selected organization
The two selected organization for this report is McDonald and Burger King.
Overview of McDonald:
It is an American fast food company, founded in the year 1940 as a restaurant operated
by Maurice and Richard McDonald. It's headquarter is located in San Bernardino, United States
but in 2018 it moved to Chicago. McDonald brothers name their business as a hamburger stand.
As of 2017, it is the world's largest restaurant chain by revenue as the firm serve more than 69
millions of customers on daily basis in over 100 countries. The business gained popularity for
selling hamburger but later on they also started offering chicken products, breakfast items, french
fries, soft drink, milk shakes, desserts, wraps and cheese burgers. With changing needs and taste
of customer, McDonald has added some healthier products in its menu such as fish, smoothies,
salads and fruits. It's revenue mainly comes from the royalties, fees paid by franchisees, rent.
According to the report published by BBC, it has been figure out that the company is the second
largest private employer of the world from which 1.5 million people work for franchises
(Cerrato, 2011). It is operating in more than 1200 countries all across the globe and serving near
about 68 million customers on daily basis. Presently, there are 36,899 restaurants of McDonald
running worldwide by employing over 375,000 people. In total there are 31,230 franchised
location and 5,669 company owned location. It offer both drive through and counter services
with mostly indoor and sometimes outdoor seating. From decades they are maintaining an
extensive advertising campaign for seizing the attention of large number of customers. In
addition to that, it makes significant use of other promotional tool as well such as television,
print media, digital media etc. Television play key role in its advertising strategy (Cho, 2011).
The menu of McDonald vary from country to country such as in India they sell burgers, in
Germany they sell Beer with its products, in New Zealand they sell meat pies etc.
Overview of Burger King:
Burger King (BK) is an American global chain of hamburger fast food company. It was
founded in the year 1953 and headquarter in Florida. It was initially founded as Insta-Burger
King but later company undergo major financial crisis and as result two Miami-based franchises
purchased the firm and renamed it as “Burger King”. As of 31 December 2017, it is operating in
more than 100 countries with over 15,738 outlets. Out of them 47.5% are in United States and
among them 99.5% are privately operated and owned by new owners (Eisend and Küster, 2011).
The company is having variation in its franchising and it varies from country to country
depending upon the region. It deal in selling french fries, desserts, hamburger, milk shakes and
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soft drink. With the passage of time, the firm keep on adding more items on its menu card so as
to attract customer on continuous basis. For example in 1957, it introduce Whooper sandwich, in
1978 they add its speciality sandwich line and later on they start offering mini-muffins and
french toast. From the time of its foundation, the company has employed varied advertising
program for attracting vast number of customers and raising its sales figures. In-fact they even
make slogans according to the product that they are serving. For instance: For Whopper, their
slogan is “It takes two hands to handle a Whooper”. The company become the first one to
introduce first attack ad in the fast food sector staring Sarah Michelle Gellar. BK was a pioneer
in performing its advertising practices (Grunig, 2013). Along with this, it also advertise its
product through other effective promotional tools such as social networking sites, advertisement,
newspapers, magazines etc. As of 2017, total revenue earned by Burger King is approx. US$4.05
billion. At global level, it mainly operates near about 40 subsidiaries that oversee acquisitions,
franchisee operation and financial obligation such as pension.
TASK 2
2.1 Marketing Mix of both companies
Marketing Mix can be define as a combination of factors that is normally undertake by
company for achieving its pre-defined marketing objectives within given time frame. Thus, it
refers to four broad level of marketing decision namely product, promotion, price and place
(Hallin and Mancini, 2011). It is often consider as foundation model in the field of marketing.
Discussed below are the marketing mix of McDonald and Burger King.
Marketing Mix of McDonald:
Promotion Element: The elements of marketing mix help McDonald in promoting its product
among target customer on vast level. In today's world it is important for every organization to
promote its among customer so that they can buy their products and satisfy their needs in an
appropriate manner. The main objective of any company is to make maximum profits and this
can only be possible if they are able to provide goods and services to final customers. Thus,
promotion consider as one of the main function of a company and its needs to properly look out
as the entire profitability and revenue of the firm depend upon the manner in which association
promote its product in the market place. McDonald's undertake following tactics in it
promotional mix such as advertising, direct selling, public relation and sales promotion. It's
advertisements are most effective as compared to other promotional tactics. It also uses sales
promotion so as to seize the attention of customers. For example: The firm offer freebies and
special discount on certain items. In case of public relation, it promote business among target
audience through charity, support programs etc. For example: McDonald's Global Best of green
environmental program and Ronald McDonald's house charities assist in raising the value of
corporate brand. For direct selling, firm promote its product through community events, parties
or local government. McDonald's spend tremendous amount of cash in promotion of its items.
Advertising campaign, daily papers, TV advertisement and so forth are utilized to promote its
products (Jones and Gordon, 2013). It additionally support a few projects with the goal that
clients know more about the organization. The primary point of advertising its products is to
increase higher deals at low costs. Firm advance its image utilizes marking effort " I'm Lovin it"
distinctive wearing occasions are supported by Mc Donald's, for example, FIFA world cup,
youth baseball, Olympic games and numerous other. Advancement in technology enable
McDonald's to take the advantage of using social networking sites such as facebook, instagram
for promoting its items. In-fact, it has introduce daily offer as well that becomes one of the main
reason for seizing the attention of potential buyers. Along with this, the company is strongly
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promoting its product via online platform. McDonald' keep on posting pictures of its happy
clients on instagram and facebook page. The company believes that social media plays key role
in generating maximum profits for them and also aid in attaining high competitive advantage in
the market.
Marketing Mix of Burger King
Promotion Element: The company's promotional strategy revolves around the concept of
revitalizing and reorganizing its brand at definite time period. It has consistently overhauled its
strategies concerned with menu, news agencies, refurbishment of store, new agencies and a
whole new concept for restaurant that instantly attract large number of customers. Like
McDonald's, BK also employ diverse tactics for promoting its products among buyers in an
effective manner. It undertake sales promotion, public relation, direct selling and personal selling
(Liang and Mackey, 2011). It mainly depend upon advertisement for promoting its items such as
through online, print media,digital media and most commonly television. Additionally, BK uses
sales promotion in the type of loyalty programs, coupons and other offers through its mobile
application and website. It's restaurant employees also play key role in encouraging consumer to
try more products from the menu such as shakes, deserts etc. in addition to what they have
already ordered. In case of public relation, Burger King McLamore Foundation provide financial
assistance and scholarships to needy people thereby strongly promoting its brand image over
other rivals. Promotional strategy of Burger King is based on the concept of revitalizing and
reorganising its brand at decisive time periods. The firm has periodically overhauled their those
strategies which are related to advertisement, menu, refurbishment of stores or outlets, new
agencies and a new restaurant concept known as “BK Whopper Bar”. Most of the successful
campaigns of firm has melodious jingles. The slogan of company has become synonymous
“Have It Your Way”. Various advertisement of firm are published on print media and television
in order to popularize their several outlets as well as food products that have become the
speciality of Burger King.
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Burger King aligned themselves with those firms that sell scratch cards and the price of
beverage or food product regarding BK. Firm also has its own charitable organisations and
“Have It Your Way Foundation” is one of them that emphasize on removal of hunger and
diseases prevention from every household. “McLamore Foundation” is second one which is
responsible for administering scholarship to interested as well as deserving students. These steps
taken by firm have evidenced to be an advertisement for human side of firm and assists the
company in increasing and maintaining its image in market. Burger King utilize different special
devices, for example, individual offering, publicizing, deals extent and open connection with a
specific end goal to advance its products (McKnight, and Hobbs, 2013). The firm utilize print
media and TV to promote. Coupons and diverse offers are likewise given through portable
application and sites to its potential clients. Aside from this, organization likewise gives
monetary help for programs identified with training and gives grant so as to keep up great
relations with open. By utilizing these strategies, firm is viably reinforcing and promoting its
corporate goodwill and hold strong share in the market.
2.2 How promotional tool aid in attracting target customer
McDonald's: Promotional technique mainly used by companies for advertising its product or
services among customers and society at large. In today's era, it is chiefly important for every
organization to educate and inform target audience about their product or services. The company
believe in making their customer feel positive about its products and remember it. McDonald's
does promotion through bus shelters, hoardings and television (Ramer, Soroca and Doughty,
2012). By interacting personally with its customers, employees of McDonald's collect feedback
and opinion of customers and further make modification accordingly. In-fact, it gain high
competitive edge in the market for its every day unique promotional strategy. Taking the
advantage of internet, the firm has launched its own instagram page where they keep updating or
posting about introduction of new product in its menu or keep posting feedback of clients. The
company is mainly doing this for increasing higher sales lead thus results in maximising overall
profitability ratio of the company. In addition to that, it also aid in achieving organizational
objectives and goals within defined time-frame. According to the statistic report, it has been
figure out that, customer buying behaviour is somewhere influenced by what they see on social
media websites. This is the main reason why McDonald's is promoting its product on social
networking sites such as Instagram, facebook, Youtube etc. With the help of this, it become able
to attract vast number of customer through their channel of interest only.
Burger King: Burger Kings Big Value Menu $1 Talent Show welcomes clients to show their
ability by means of recordings they submit with the objective of winning a menu thing. The
organization has instituted the expression "next best move" to include booked limited time visits
with stops in urban groups around the nation (Vivian and Maurin, 2012). The exertion is
enlarged by a unique site where Members can depict group benefit commitments. Burger King is
supporting its greatest item dispatch of the year, the Tendercrisp Premium Chicken burger, with
an advancement topic urging purchasers to "undermine meat"'. The battle started in March of
2010 utilizing advertisements made by Crispin Porter and Bogusky (Wojdynski and Golan,
2016). The reason for implementing different promotional strategies is to build strong market
and customer base that help them to enjoy the benefit of attaining high competitiveness in the
market. Chances of maximising profitability ratio increases when company effectively aware and
educate customer about its products.
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TASK 3
The chosen company for this particular task is McDonald's as the company is having strong
market and customer base in comparison with Burger King (Tomczak, Reinecke and Kuss,
2018). It is the world's leading and globally renowned fast food chain in terms of revenue.
Market Segmentation of McDonald's:
Type of segmentation Segmentation criteria McDonald’s target segment
Geographic
Region International/Domestic
Density Rural/Urban
Demographic
Age 8 – 45
Gender Males & Females
Life-cycle stage
Bachelor Stage: It covers young generation,
single people that are not living at home
Newly Married Couples: young, no children
Full Nest II: youngest child six or over
Income Low and middle
Occupation Employees, Students, Professionals
Behavioural
Degree of loyalty ‘Switchers' and ‘Hard core loyals’
Benefits sought Time efficiency, Cost benefits
Personality Easygoing & careless
User status Potential and regular fast food eaters
Psychographic
Social class Lower, working and middle classes
Lifestyle
McDonald’s targets Resigned, Struggler and
Mainstreamer individuals according to Cross
Cultural Consumer Characterization developed by
Young & Rubican
The most optimal advertising message of McDonald's is “I am loving it”. It is very popular
among customers and even most of the customers attract towards the company because of its tag-
line and because of its clown character. Children, young generation and even adults easily get
attracted towards its clown character. In addition to that, the firm is extensively using various
sources of promotional tools that help them in attracting large number of customer in an effective
and efficient manner. Some of the common tools used by them for promoting its products or
services include internet, advertisement, direct selling, offers, coupons, public relation etc.
Getting Attention – for this situation, the expansive bulletin, with loads of people watching will
absolutely catches eye
AIDA Model:
Hold Attention– Customer can watch large billboards that keep them attracting and retain them
for longer period.
Hold Interest: Customer can watch, wait to play the game or play the game.
Arouse Desire – maybe all that diversion playing or watching will make you hungry
Obtain Action – convey coupons to winners, one of the most established thoughts for inspiring
clients to take action.
Optimal channel of communication
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The most optimal communication channel for consumer is promoting through internet as now a
days customer are more associated with internet and extensively using it. In addition to that,
McDonald's clown character also play key role in attracting large number of customer
irrespective of their age or income group.
Most appropriate channel for promoting its product among target customer is print media
and internet.
TASK 4
4.1 How means of communication are in perfect harmony with the advertising message and the
advertising concept
McDonald is a fast food restaurant and it provides different kinds of food items to its
consumers in order to attract them towards company. It has more than 32000 restaurants in more
than 120 countries (Kreuter and et. al., 2013). The main focus of this restaurant is to provide
better quality of foods items on the basis of needs of consumers in an effective manner.
Retaining of consumers became more complex for owners of fast food restaurants as there are
many healthy substitutes are available at market place. Firms are prefer for the loyalty
programmes in context to acquire new consumers as well as sustain existing through win their
confidence. In order to retain customers towards firm, it regularly make changes in its food
products, improve menu, make its breakfast better and provide better experience to consumers.
This company rolled out its electronic loyalty program and main focus on attract young crowd
because they are mostly inclined use of the applications as well as mobile phones. The target
market of McDonald are children and families. Because children love its food products and also
drive whole family to go restaurant of McDonald. Its infrastructure is very attractive and staff
members deal with consumers very friendly. In order to attract large number of people,
McDonald company uses print media, television, online advertisement and many other methods.
There are many important aspects which are present under McDonald's which helps in
retention of the customers for longer period of time . The main attraction which is present over
the all the franchise of McDonald's is Clown which helps in attraction of every segment of
customers of society. There are many other tactics are used which has significant contribution in
the process of retention of customers such as discount offerings, good quality of food items,
diversified items etc. The appointment of qualified staff members helps to effectively treat the
customers which plays an significant role in influencing the behaviour of customers is to choose
their brand food products instead of competitors. As there are large number of benefits are
associated through application of different tactics such as high number of profitability, higher
amount of sales, good brand image etc. It is the duty of the management of McDonald's is to
conduct research on regular basis through they identifies the preferences and views of customers
on regular basis (Ramadhan, 2011). This will also proved as effective communication method
which helps to create unique bond with them. It provides the opportunity regarding attainment of
trust and loyalty.
4.2 Schultz von Thun communication model
The model is also known as four-sided model or communication square proposed by
Friedemann Schulz von Thun. According to this model, every message that has been transferred
from one person to another has four facets. However all these facets may not be the same but
surely great emphasize on each other. The four side of message include relationship, appeal, self-
revealing and fact.
Four sides of communication:
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The Factual Level: It contain matter of fact like figures, data etc. which are the part of news.
Self-Revealing Level: It disclose something related with its motives, values, emotions etc.
Relationship Level: It signify what is the thinking of sender for receiver and how he gets along
with receiver (Borah, 2011).
The Appeal Level: It include instruction, desire, effects and advice that the speaker is seeking
from receiver.
The Factual Level: It deals with “What sender illuminate about”. On the factual level the sender
of the news gives information, actualities and proclamations. It is the errand of the sender to send
this data obviously and naturally. The receiver demonstrates with the Factual ear, regardless of
whether the issue message satisfies the criteria of truth (genuine/false) or importance
(pertinent/unimportant) and the culmination (fulfilling/something must be included). In a long
term team, the issue layer is clear and needs just a couple of words.
The self-revealing level: “It deals with “What I reveal about myself”. In each news there is data
about the sender. On the layer of the self-disclosure the sender uncovers or reveals himself. This
message comprises of cognizant expected self-articulation and additionally unintended self-
uncovering, which isn't cognizant to the sender. Along these lines, each news moves toward
becoming data about the identity of the sender (Chen and Hsieh, 2012). The self-revealing ear of
the beneficiary sees which data about the sender is covered up in the message.
The relationship indicator level: It deals with “What I think about (you-proclamation) and how
we get along (we-statement). The relationship layer communicates how the sender coexists with
the beneficiary and what he supposes about him. Sender communicates regard, respect, kind at
this level. Contingent upon which message the collector hears with relationship ear, he feels
either discouraged, acknowledged or disparaged. A decent correspondence is recognized by
correspondence from common appreciation.
The appeal level: It deals with “What I need to influence you to do”. Who states something, will
likewise influence something. This interest message should influence the recipient to accomplish
something or leave something fixed (Biocca, 2013). The endeavor to impact somebody can be
less or more open (counsel) or shrouded (control). Along with this, On the Appeal ear the
receiver asks himself: "What would it be a good idea for me to do, think or feel now?"
CONCLUSION
According to the above mentioned report, it can be concluded that entire profitability of
the company depend upon how effectively they advertise its product or services in the market.
With the help of this, business association can aware or educate target customer about their
products. The primary responsibility of any company is to make such goods and services that
satisfy diverse needs and wants of client in an effective and efficient manner. But for this,they
first need to advertise their product among customers by using appropriate promotional tool such
as print media, digital media etc. It also aid in generating higher sales lead and profitability ratio
that is essential for smooth running of business. Additionally, with the help of marketing mix
tool, firms are able to achieve its marketing objectives within stipulated time-frame. In today's
competitive era, in order to survive with market and its expectation, business needs to develop
that marketing channel that are highly effective and also aid in generating higher profits and
revenue. Communication model such as AIDA, Schultz von Thun help in transferring brand
message in clear and loud manner.
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