Burger King Corporation's Marketing and Supply Chain Strategies

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MUST BE BURGER KING
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Contents
INTRODUCTION.............................................................................................3
BODY...............................................................................................................4
CONCLUSION...............................................................................................10
REFERENCES...............................................................................................11
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INTRODUCTION
This work is prepared to assess the effectiveness of the marketing
strategies of Burger king. Burger King is a US-based fast food restaurant
chain. It is a quick-service restaurant and is founded in the year 1953 as
Insta-Burger king in Florida. It has a strong parent company. It uses its
infrastructure and financial strength of its parent company for its
advantage. It has 4600 burger king trademarks.
It has 17, 796 outlets in 100 countries. It has a franchised business model
that varies according to regional conditions and franchisee known as master
franchises. In the end, it proposes recommendations to improve business
operation (Burger King, 2019).
Fig 1: Burger king
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[Source: Burger King, 2019]
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BODY
This part of the assignment covers the effectiveness of the marketing,
supply chain management and human resource of the BKC. It evaluated
their efficiency and their contribution to generating profit and yielding a
competitive edge for the organization.
Marketing is an important business process to create and maintain a
relationship with consumers and satisfying them. It uses demographic
segmentation, behavioral segmentation; de It is evident from Burger king’s
marketing that brand must take a risk to get noticed in the food industry. It
focuses greatly on innovative promotional marketing strategies to win over
consumers.
Demographic segmentation: and used slogan as a part of its effective
marketing strategy, it uses an attractive logo and it is also changed over
time. The logo is designed to attract kids “where kids are king!”
The data of restaurant brand international shows that the organization grew
by 6% due to its effective marketing strategy. Burger King has built a
standing for itself in the market. It is popular for its creative advertisements
and it resulted in a love for the brand. Burger king uses compelling food
promotional strategy (Menon et al., 2015).
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It is done by the BAPP team that evaluates the product requirement with
the changing needs of the market. It gathers the information about menu
items and compares it with the sales data and predicts the demand for the
product shortly. It has an impactful marketing strategy and it is devised by
the BAPP as per the local consumers (Morgan et al., 2019).
Behavioral segmentation: It can be explained well with the help of this
example: Americans likes large size burger so, Double Whooper, Triple
Whooper etc. that are larger and delicious. BKC serve food with
modifications according to the local needs as BKC Malaysia serve halal
foods. It also has a different food menu for vegetarian consumers. It offers
drive-through services in restaurants. It enables consumers to receive
services conveniently. This strategy helps it to easily explore the different
market and penetrates easily to enhance profitability and consumer base
(Menon et al., 2015).
Physiographic segmentation: It has prepared low price burgers for the
lower economic class so that they can also enjoy fast foods The mission
statement of the burger is to “have it your way” and it inspires the
company to use differentiation strategies to increase the r It has prepared
low price burgers for the lower economic class so that they can also enjoy
fast foods ate of revenue generation and increases profitability.
The suppliers in the burger king are selected based on their capability to
comply with the legal norms and policies of BKC. They ensure the quality of
the food served in their restaurants by independent inspection of the
products, strict monitoring and quality assurance system. It also uses
constantly electronic temperature monitoring system in its distribution
centres to keep the products healthy. The burger king uses franchising
strategies to serve a wide range of food to its consumers.
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Promotional and product placement channel: Burger king corporation
uses franchising strategy to expand its business in the market and gain a
competitive edge in the market. It has unique dining ways and has a prompt
response to the consumers. The main advantage of using franchising is that
it promotes business expansion and augments profitability of the business
(Cacciolatti et al., 2016).
As a part of its marketing strategy, it adopts make to order tactic to produce
the goods and deliver the services. It uses differentiation strategy to
enhance the market reach of its products for instance; it produces one
sandwich at a time not in stock. Its competitors like McDonald's use the
make-to-stock tactic. It can serve the product as specific to the need of a
consumer in a short period.
Target market: To expand its business profitably, it chooses location
cautiously. It chooses a location as per its potential to attract consumers. It
uses “through the light to the right” phrase to franchise its business.
Marketing strategy helps the organization to place its products in the
market and yield profit. It helps in gaining a competitive edge in the market
(Morgan et al., 2019).
Due to its effective marketing strategies, it has created a strong brand
name and brand value; it helps s in penetrating new markets. It also serves
a wide range of burgers that is not available in the other organizations. It
follows the marketing method to promote more and give a discount to the
consumers. It manages the supply chain with the help of franchise supply
chain manager. The manager is responsible for the review of the
effectiveness of operations in the franchisee. FM must manage the
relationship with business partners across the globe and review the
business prospects and profitability of the business (Deena, 2018).
Operations/Logistics/Supply chain management: it is worthwhile to
consider that the BKC has perfectly made the complex business processes
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simple and according to the needs of the consumers. Managing supply chain
and the distribution network across all spectrum of the business is the long
term goal of the organization. BKC has the most varied and cohesive supply
chain. It uses the strategy of mass customization to place its product
effectively in the market and manage the supply chain easily. It has good
integration in the complete cycle to deliver the product in the market. It has
many layers in the supply chain. It maintains the quality using a quality
system and periodic audit system. It has excelled in maintaining efficiency
in the supply chain because it uses a holistic approach (Christopher, 2016).
Region specific SCM: It has designed the marketing strategy specific to
the regional needs and also designed the quality, productivity and
consistency in the system using concrete methods. The success of the
burger king can be attributed to successful management of supply and
open, prompt and effective delivery points of the products. It gives BKC
important competitive edge in the market.
Product placement online: It has planned to use a cloud-based
application to support its global supply chain. It uses mobile applications,
websites and it will use cloud-based applications to improve procurement
and delivery services. It is planned to create a digital network to manage
the company’s profitability, data management and company expenditure.
Burger King has a global supply chain. It aims to ensure adequate supply,
effective operational management and consolidation of the supply chain.
BK's ingredients are supplied through RSI. It has effective logistic service it
consists of pre-carriage, refrigeration and transport services. It manages its
operation with the use of effective tools and technologies. It also uses layout
strategy and in this strategy, it focuses on high compliance of standards.
Higher compliance to the standards and operation management ensures a
competitive edge for the organization in the market. To improve the
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management of operation it uses the scheduling method and in this method
it automatically schedule human resource (Deena, 2018).
Standardization of operations: As the data indicates that due to its strict
standardized operating process it has critical success and strong brand
image in the market. The setup of the restaurant needs manual of operating
data, high quality of the products and changes in the product as per the
need of the locations. Locations are also chosen carefully by giving much
importance to the potential of the area to attract the consumer base and
yield profit for the organization (Christopher, 2016).
There is no purchasing agent currently to distribute the products in the
market and present the franchisee in the international market. Burger king
ties up with only those suppliers those use the same marketing standards
and commits to giving the same service experience to the users. It also
follows the human rights protection act to protect the rights of the
individuals across the distribution network of the organization (Cascio,
2015).
It also ensures compliance of modern slavery act to ensure prevention of
harassment of the workers in the global supply chain. The organization
believes to ensure the compliance leads to an increase in reputation and
goodwill for the organization that supports the growth of the business and
profitability. Soon, it is planning to expand its business operations and
increase its retail outlets more than double in the next 2-5years and
planning to increase store count by 40%. It is planning to boost its breakfast
business shortly. Burger king at present generate 15% of its revenue from
breakfast and it is a little proportion of than that of McDonald. Though the
supply chain of the organization is competitive and it is the reason of the
second rank in the market but with the use of digital technology, it can be
improved further for the advantage to the business (Hugos, 2018).
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Human resource is considered as an important factor in the huge success
of Burger king. It provides world-class training to its employees to improve
the quality of the products. It follows a kitchen practice procedure to
maintain the standard of the products and services. Kitchen staff, us trained
to ensure quality, standard, the nutritional value of the products and equip
them with the skills to deal with any uncertain event in the future. The
human resource is trained through the seed training program. In this
program, each member is guided to use new ingredients. The numbers of
certified restaurant-trained are increasing. It shows that an organization
maintains the superiority of the products and services (Bratton et al.,
2017).
It has also launched the right track training staff program that improves
operational standards. It provides worldwide effective guidance and
training to its employees including in-restaurant training. They are not only
trained to prepare and serve food effectively but they are also trained to
interact with the consumers politely and with etiquettes. They also use
training and reward system to ensure the quality of service, keep the
workforce motivated, and equip them with the desired skill set to fix any
technical problem during the implementation of work (Bratton et al., 2017).
Finance and accounting, it has an effective finance and accounting
method and uses zero-based budgeting to plan the budget for the future. It
has a competitive edge among its consumers due to its efficient marketing
method. It focuses on delivering burgers and other food items at an
affordable price structure and gain cost-leadership in the market. It is
offering a wide range of burgers and other items effectively and profitably.
In the year 2010, it ties up with 3 G capital an investment firm to invest in
its business. To expand its business profitably, it chooses location
cautiously. It chooses the location as per its potential to attract consumers
(Burger King, 2019).
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It uses “through the light to the right” phrase to franchise its business.
Finance and accounting strategy helps the organization to place its
products in the market and yield profit. It helps in gaining a competitive
edge in the market. It focuses more on the training and development of the
employees to create a world-class workforce to increase the profitability of
the business (Atanasovet al., 2016).
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CONCLUSION
It is concluded from the report that burger king aims to ensure the supply
of its products at the best cost. It aspires to create an efficient and
responsive supply chain. It considers effective logistics management a tool
to gain a competitive edge in the market. They aim to meet not only present
the needs of the consumer and also design a product and manage supply
chain sustainably. Burger King is planning to use effective supply chain with
the uses of effective tools and technologies.
It is both the short and long term goal of BKC to improve the management
of services and product delivery using the digital network and cloud-based
application. The digital platforms enable the organization to the efficient
management of supplier statistics, align corporate goals sustainably.
Restaurant brands plan to open 25,000 restaurants in next 2-5years and
planning to increase store count by 40%. It is planning to boost its breakfast
business shortly. Burger king at present generate 15% of its revenue from
breakfast and it is a little proportion of than that of McDonald’s. It is
planning to place itself as a breakfast leader in the first place and a
competitive edge in the market (Burger King, 2019).
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