Product and Service Development: Burger King Case Study Report

This report delves into the crucial process of product and service development, emphasizing its significance for business growth and success, using Burger King as a case study. The report covers key aspects such as the procedure for improving goods and services, the levels of customer integration, and the elements involved in developing new products. It explores the product life cycle phases within an organization and discusses product line management. The report examines various stages of new product development, including idea generation, screening, concept development, marketing strategy, and business analysis. It also addresses the risks associated with new product and service development, such as high competition and changing consumer behavior. The report further examines the product life cycle phases (introduction, growth, maturity, and decline), emphasizing the need for businesses to adapt and innovate to remain competitive in the market. The report provides an understanding of the various steps involved in product development for Burger King, the challenges and opportunities of the business, and the importance of innovation for sustained success.

PRODUCT AND
SERVICE
DEVELOPMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ........................................................................................................................................1
P1. Procedure of improvement in goods as well as services and the levels of consumer
integration...............................................................................................................................1
P2. Various elements that are effective in developing a new product and service at market
place........................................................................................................................................3
TASK 2............................................................................................................................................6
P3. Life cycle phase of product or services in an organisation..............................................6
P4 Product line management required for individual products and services.........................7
TAKS 3 ...........................................................................................................................................8
P5 Covered in PPT. ...............................................................................................................8
TASK 4 ...........................................................................................................................................8
P6 Reflecting on working in a team, presentment and creative improvement.......................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
New product and service development can be considered as a crucial process for attaining
high growth and success. Service and Product improvement is a procedure which helps in
gaining competitive edge in the market area (Tukker and Tischner, 2017). It is a systematic
process which begins with generating thoughts, ideas and explaining a clear concept and end up
with the introduction of products in market area to the targeted customers. In this modern era,
competition is so high in market that each business is concerned with satisfying their needs and
wants through consuming products and services as per their own choice and requirements.
Burger King is the chosen company for this particular report that deals in multinational food and
beverage products and services. The prim centred field of Burger King is to attract large number
of people towards their offered products and services for rendering variety of new items. This
report studies about various processes that are included in improvement of goods as well as
services, different applications that are involved in the process of product development of any
specific organisation as well as the life cycle stages of goods or services in a institutionals
portfolio.
TASK 1
P1. Procedure of improvement in goods as well as services and the levels of consumer
integration
A product can be considered as the most essential element for each small as well as large
business enterprise for reaching at a higher position through selling their products to potential
buyers. In this modern era, each business firm is concerned with introducing new and innovative
products at market place for attracting customers towards their firm and this leads the
organisation towards high growth and success. The prices of products are predetermined and
company charges a fixed price to the customers which are mentioned on the product. As a
popular American food retail company, Burger King offers wide variety of food item and
services. The company is widely concern on satisfying the needs and wants of customers as to
attaining high growth and profit at market place. Burger King is renowned for its premium as
well superior characterstics goods and services which are delivered to their clients. as in this
modern world, people are very much concerned towards the quality of products rather than price
(Tukker and Tischner, 2017). Company serves its products in very reasonable prices which are
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affordable by each people. The cost of product is fixed and sold at a low price. Services are also
known as the most essential components which help in serving some necessary intangible
benefits. At some point, it is hard for an organisation to identify the needs and wants of
individuals at market place and so, firm goes towards the needs and wants of majority of people,
it means organisations are concern on producing the products which is having high demand at
market place. In the process of product and service development, various steps are involved in
which some are associated as below:
Product and service concept:
This can consist as the fundamental process through which company can attain high
growth and success in market area. In the recent scenario, organisations are widely concerned on
gaining high profit and revenue at market place (Nagamachi and Lokman, 2015). Products and
service concept plays a important part in position of products and services in wide area of market
for capturing more customer’s attention. In this, the price, quality, distribution process, product
design and elements of services are involved. As a large business organisation, Burger King is
concerned with analysing the market situation for sustaining customers for a long time and
provide them satisfactory products and services than their rivals. The company is famous for its
variety of hamburgers with high quality and tasty ingredients.
Customer Integration:
This refers as an essential element of customer relationship management which keeps
new tools and technologies in place that provide allowance to the customers for process their
own transactions and to have an effective and direct connection with firm. By this process, the
need of mid eater and middleman is reduced and also saves money and time of firm as well as
customers. It is an important path by which company can perform business with the proper
guidance of human resource department. The level of consumer integration can be measured
through the enhancement in communication level of buyers. Burger King is widely concerned on
sustaining a large number of customers towards their firm through introducing new and
innovative products as well as services in the market place (Homburg and Kuehnl, 2014).
Product service system supporting sustainable performance:
This leads the firm towards high growth and success. This approach significantly depends
on service oriented organisational environment that is required to introduce a new business
model. An effective product service system helps in rendering new and innovative services to
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their significant buyers in order to fulfil their desired goals and objectives. This process leads the
firm towards attaining maximum profit and revenue in market place. Sustainable product service
system helps in rendering a combination of goods and services that are able to satisfy the
preferences of customers in market area.
P2. Various elements that are effective in developing a new product and service at market place.
In this modern era, each small and large business enterprises are concerned with
introducing new and innovative products as well as services in market place for providing
competition to their rivals (Lee, Kao and Yang, 2014). This can be consist as a crucial element of
firm as it helps the firm towards attaining profit by catering the demands as well as wants of
targeted customer group who are very much glad to take benefits of offering commodity as well
as additionals services of any particular firm. It is required for business entity to examine the
market demand for determining the competitors in market area. There are different types of steps
that assist in introducing new and innovative products in which some are associated as below:
(Source: Stages of new product development, 2018)
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Illustration 1: Stages of new product development

Idea Generation: It is the primary stage of introducing a new product in market place. It
is necessary for the firm or its higher authority to generate an effective idea on a product and
service. Thus, idea generation can be consist as an effective and systematic process that assist in
finding out the new idea and commodity in respect to launching a new and effective product at
market place.
Idea Screening: It is another essential stage in development of product as it is required
for the firm for screening of specific idea or thought in a systematic manner. In this stages the
most innovative and attractive idea has to be selected among the alternative as to developing a
new products which is having the ability to fulfilling the desires of people (Behrendt and et. al.,
2017). In this, bad ideas are rejected by company or its higher authority as these are not better in
nature.
Concept Development and Testing: In this stage, screened idea has to be analysed by the
firm or its higher authority. Thus, its feasibility has to be tested at this stage. This concept consist
to the detailed analysis the thoughts of new products that represents the exact meaning of
customers base in the area of large market.
Marketing Strategy Development: This comes after testing the idea of new product
development and plays a vast role in attaining high growth and success in market place. In this
stage, an effective strategy has to be developed for gaining attention of customers through
introducing new products in market.
Business Analysis: It is another important stage in the process of product development.
In this stage, the actual position of business has to be analysed through researching market and
changing needs and demands of customers. Total sales of firm helps in determining the actual
performance of an organisation as it helps in analysing the need of new product in the market
area. Burger King needs to forecast the sale that can predict the expected cost and profits for
specific products that includes finance, marketing, R&D and some other. Both sales and cost
facts can be applied for analysing the financial attraction points of new product.
Product Development: New product development process are met up with real advancement in
the firm’s tools and technologies. As indicated by this progression, different new product ideas,
drawing and maybe harsh model and looking at the item portrayal (Kindström and Kowalkowski,
2014). On the off chance that idea of product and services goes from business testing then it
should help in forming into physical merchandise for ensure that thought of products can be
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transformed into working business sector where burger lord offering assortment of wares and
sustenance things. This is the final stage of new product development as Burger King deals in
variety of food and beverage products as to attaining high profit through increasing sales and
revenue of firm.
Risk associated with new products and service development:
High Competition: This is the most essential issue, which has a huge effect on organisational
business performance as well as operational activities. In this modern era competition is so high
at market place as there are large number of business firms who are producing similar kind of
goods and services for attaining growth and high market share (Carlborg, Kindström and
Kowalkowski, 2014). As a popular and large business organisation Burger King has various
competitors who are also applying various strategies that are used by Burger King as to attaining
high position at market area.
Behaviour of Consumer: It is essential for large companies to analyse the behaviour of
customers as to providing them goods and services that helps in satisfying the changing the
needs and wants of them. Burger King analyse the attitude and behaviour of people towards their
offered products and services.
Technological changes: In this competitive era there is huge change arises in the technologies as
each business organisation are concern on adopting new and innovative tools because these are
effective in attracting customers towards their firm. Burger King apply various innovative tools
and techniques as to increasing their sales and revenue at market place.
Minimising the risk of new product and service development:
Observability: The major responsibility of manager is to analysing the current market situations
so that suitable and appropriate goods and services can be produced as per the new demand and
need of customers (Reim, Parida and Örtqvist, 2015).
Compatibility: In a business firm managers are focused on establishing good relationship among
employees, so that work can be done with more coordination. This leads the firm towards
attainment of high growth and success.
Variability: It is essential for firm to make appropriate changes in the features of products and
services as to gaining attention of more and more customers. Effective changes helps to making
product more presentable and attractive.
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TASK 2
P3. Life cycle phase of product or services in an organisation
Life cycle phase of goods
This can be consist as the most appropriate method of new product development at
market place. The major purpose of firm is to fulfilling the needs and demands of clients.
Products have their certain phase which determine their existence in the market. These phases
are introduction stage, growth, maturity and decline (Gaiardelli and et. al., 2014). All these
stages help in the identification of various aspects of products which help in making decision as
per the market scenario in future. It also aids to launch diversifies products in the market. All the
products have their certain life cycle which determine the level of profitability and their
achievement itself. It also indicates to take initiatives for the modification of the products for
maintaining the growth of the business. Burger King Plc modifies its existing recipes in various
products to new innovated recipes for maintaining the growth and expanding life span of its
products by making them more effectual and economical. The stages of the product life cycles
are described as below:
Introduction Phase: Introduction stage is concerned with the launch of new product in
market place. This level is related with new products which are launched for the customers in
market. Before launching of the products, enterprises puts its effort and money in building the
image of the goods. It takes time to provide information about innovated products or services in
the market. This stage involves feedback of the client to know the views of customers in terms
whether the product satisfies their desire or not.
Growth Phase: This is the second phase of product life cycle. In this phase, the sales of
products get increased day by day to achieve the targets made by company. This stage describes
about the margin of profits, gain short term goals in as per the requirement of production. The
enterprises invested sufficient investment in the promotion and advertisement of the products
which leads to increase the level of profit of the enterprises (Vezzoli and et. al., 2015).
Maturity Stage: This level indicates the maximum profit and benefits attained by
enterprises. The business enterprises concentrate on making plan for future orientation of
products. Some modification are made in the recipes by company to enhance the rate of sale of
products in the market place. It is necessary to launch innovative products having new recipients
which help in managing the image besides the rivals present in market.
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Decline Stage: This stage is the last stage phase of the products in which the sales and
value of the product starts shrinking down. The fluency of sale of products and services start
falling down.
Client diverted from the existing product and tends to buy new products which leads to
decrease the sales of the products. It also minimise the level of profits and brand. The firms take
decision to make less expensive products for attaining some profit. Burger king launches various
offers to its customers for maximising the profitability of enterprises. Various schemes were
launch by the enterprises for those customer who offers full meal. It also help in sustain the
margin of profit. These schemes are for short period of time which can be availed in limited
amount of money.
P4 Product line management required for individual products and services
Burger king should analyse the whole market and judge where they want to place their
products in the market place (Ulaga and Loveland, 2014). There are various ways which could
help a company in understanding the real position of its products in the market. So that company
can target its customers and capture market share in the most efficient way possible. The Two
major strategies are as follows:-
 Product Standardization: It means same product with same quality, product name,
packaging, and materials will be used for all markets,regardless of the location around the
world. The standardization strategy will affect the burger king on the parts of the business
like finance,production,R&D,Marketing Mix etc. Standardization is a practice of setting
identical characteristics for a particular good or service.
 Product adaptation – It means changes are made in the product or alteration is made in
its name, quality, packaging etc. in order to suit the demand of a particular market place.
It is regarded as the best marketing strategy in which products and services are required
to be changed and are adapted according to the products in the marketplace. Under this
strategy the company will have to establish a brand for its products to have an impact in
the international market and satisfy the needs of local people.
Impact of Macro Factors on New Product development and services
In order to upgrade the efficiency and performance of new product development,Burger
king scan its external environment and resources and plan its product development accordingly.
The external environment consist of factors such as PESTLE analysis (Political,
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economical,Social,Technological, Legal,and Environmental.) Other market information includes
survey results, market Trends, Focus Group testing etc. Some of the major departments plays an
important role in the product development process these are R&D,engineering,finance etc.
Company should also take care of the rules and regulations prevailing in countries where it
operates and should adapt itself accordingly. The external environment is dynamic in nature and
it is changing continuously,so as the demand of products and services,the company should
consider this shift in demand and preferences of consumers to sustain in the market and compete
effectively and for generation of higher profits for the company.
Innovation and Burger King
Innovation is vital for the whole organization because it gives companies an edge in
penetrating market faster and also provides the company for better connection to developing
markets Which leads to bigger opportunities etc. Innovation can help in developing a original
concept which the company can utilize for its growth. A company which carries a innovative
culture will grow rapidly than other countries. Tried and tested ideas might work for company
but there is always room for innovation in existing culture and standards. Hence specifically
talking about burger king,the company should come up with new hamburgers in the market both
vegetarians and non vegetarians they should also come up with new tools and technologies to
serve their customers well in their branches all over the world.
TAKS 3
P5 Covered in PPT.
TASK 4
P6 Reflecting on working in a team, presentment and creative improvement.
Team working can be consist as a vast concept which show an effectual function in
development or improvement in business performance and productivity. Team working has a
huge effect on an enterprise over all performance and profitability, as in teams people work with
more coordination and passion. As a large business firm Burger King is very much concern
about their image and reputation and company puts various efforts in enhancing productivity of
firm at market place. It is essential for firm to analyse team working within organisations it helps
in attaining desired goals and objectives in systematic way. There are various theories of learning
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that helps in improving team and individual's performance at work place, in which some are
described as below:
Behavioural Approach: This considered to be a psychological approach that encompasses
scientific and objective method and tool of investigation. This approach is widely depend on the
attitude, behaviour, idea and thoughts of an individual on which they work and perform various
activities within an organisation (Piscicelli, Cooper and Fisher, 2015). The behaviour of each
individual is different from each other and a positive and effective behaviour helps in attaining
desired goals and objectives in effective manner as to performing various activities with more
coordination.
Cognitive Approach: This simply refers to the mental activity on an individual in which
learning, thinking, remembering and the sense of using language are included. This theory is
effective in maintaining the mind set of an individual in the process of learning. This helps in
measuring the various opportunities in which organisation can attain high growth through
producing goods and services as per the preferences of targeted customers. In this employees of
an organisation are taking effective participation in various programs as to increasing their skills
and ability to perform a task and duty at work place.
Humanistic Approach:
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(Source: Humanistic Approach, 2015)
This consist as an essential approach of learning, which is widely applied by each small
as well as large business organisations as to developing skills and performance of individuals at
work place. In this approach various elements are involved such as self actualisation, self esteem,
love or belonging, safety or security and psychological needs are involved. The needs and wants
of each individual are different form each other and they work for satisfying them in effective
and efficient manner as to attaining a comfortable living standard. It is required for firm or its
higher authority to analyse the different needs of employees as to satisfying them and this results
in enhancing performance and productivity of firm at market area.
Team working skills development:
Burger King deals in variety of high quality food products and services and concern on
building teams as to providing fast products and services to their significant customers. Company
provide various training session as to developing skills and ability of people at work place, so
that desired goals and objectives can be attained in well planned way. In an organisation
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Illustration 2: Humanistic Approach

managers and higher authorities are concern on encouraging employees at work place as to
enhancing their moral for contributing their vast efforts at working area. Company needs to make
appropriate and flexible structure as to implement required changes at work place. A positive
structure helps in effectively implementing all business operations in systematic manner which
may leads the firm towards high growth and profit.
Creative product and service development and entrepreneurship:
Products and services can be considered as the representatives of firm which helps in
attracting customers towards the firm. Product management helps in providing appropriate
direction in order to developing more creative and innovative goods and services that are having
the ability to satisfying the needs and wants of people at market place. Burger king is the largest
food retail chain and concern on gaining attention of domestic as well as international customers
as to increasing the income level of firm.
CONCLUSION
From the above project it has been finished that development of product and
service helps the organisation to attain their goals and objective in proper manner. Company
take relevant steps to improve the sales of product and services at market area. Company also
receive feedback from customers as to know the merits and demerits of products and services.
Sustainable products helps the company to maximise the level of profit, As there are various
rivals are present in the marketplace, company launch similar products in the market to compete
its rivals. The standardization of products leads to affect the various operation of firm like
finance, production, R&D, marketing mix structure and procurement of the organisation.
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New product development. 2017. [Online]. Available through:
<http://searchcio.techtarget.com/definition/product-development-or-new-product-
development-NPD>.
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