Burger King Market Analysis

Burger fagot Market AnalysisBurger King cognise as Insta-Burg King was established in 1953 but then company ran into financial difficulties and was taken every score by David Edgerton James Mcla to a greater extent than. Today it is headquartered in Florida (Miami).Burger King serves Global with 12,200 outlets in 73 countries.Part 1 The crossing and grocery storeharmonize to Merriam-Webster online dictionary fast fodder is designed for ready handiness, use, or spending and with little consideration assumption to quality or signifi brush asidece.Basic every(prenominal)y fast-food is gaining momentum due to the busy life-style prerelavant nowadays.This type of food is served to customers in short span of time on order make.The product forage analogous Burgers, French fries,Veggi etc. crossway type Fast foodType of Involvement According to worldwatch.org, Indias fast-food indus see is growing by 40 percent. Post liberalization 1991 Fast food industry has developed in Ind ia as umpteen multinational providers expect set up their business. McDonalds, Dominos, pizza pie Hut and Nirulas ar well- compar fittingd fast food joints in India.According to the findings of the recent online survey from AC Nielson 7, 8 India creationAt the seventh place, is among the top ten markets for weekly fast food consumptionamong the countries of Asia-Pacific region.Over 70% of Urban Households consume remote food fast food from take-away restaurant at least once in a month or more. As per the survey conducted pizza pie Hut is the most preferred fast food steel in India. India is one of the top ten countries among the 28 surveyed consuming fast food.SegmentationTypes of Segmentation.geographic segmentation-Urban Locations in India.Two main cities of India Delhi Banga information.The reason to choose to Delhi is because it is a cosmopolitan city people atomic number 18 open to embrace new ideas lifestyle. It is also becoming a major(ip) training Technology stopping point of India. Here nigh(prenominal) major multi nationals like IBM, Microsoft, Google, Sony etc. Many Business process outsourcing industries argon there. Delhi is the image of old and new growing India.Bangalore city is the nerve of industrial city. It has the IT Park which has gained the popularity of being the Silicon valley. It is stratified among the ten fastest growing city. Today Bangalore is the fifth jumbost fastest growing city in Asia.demographic segmentation- Urban inwardness conformationUrban Upper Middle relegateThe Urban % of Middle class in shine group is 21.7% from 2009-10The Urban %Upper Middle class income group is 16.3% from 2009-10(Based on data from the Market Information Survey of Households survey of the National Council of Applied Economic ResearchTargetingTargeting-First Concentrate onInitial center on Delhi Bangalore customers.Higher income groups.Exposure to western kitchen-gardening and open minded to innovationMiddle class Upper meat class customers.PositioningOn introduction of Burger King it would be initially introduced in the capital city of India, Delhi Banglore.It would be a place for upscale strata consumers mainly to visit relax. It would be positioned other than unlike from its competitor Mc Donalds for family to come along with their children and have fun. An individual earning Rs.30K to 40K a month is evaluate to indulge in having food from Burger faggot. The age group mainly targeted on 25-35 year old individuals. rivalry Analysis-Direct competitor- Mc Donalds would be the competitor for Burger King.Indirect competitor-Fresh homemade cooked food topical anaestheticized restaurantsMc Donalds business is profit make in the fast food industry comp argond to its competitor Burger King by crying(a) margin 38% of its rival by 33%. Mc Donalds is having a strong presence in United States and it is gaining international presence in the fast food industry. Mc Donalds has been a strong mover in 200 9 in terms of market sh atomic number 18. In comparison to other food chains like KFC and Pizza Hut the overall performance and a liking towards Mc Donalds has been very positive and commendable. Mc Donald marketing mix think global, incite local. However, Taylor (1991) supports the view that companies should use both internationalization and globalization elements to cook a competitive advantage it is important to heed the maxim think global, act local. The firm must ensure that its structure fits in with its international environment while at the same time have the inhering flexibility required to implement its strategic goal (Taylor 1991).McDonalds efficient supply chain in India ensures delivery on time with reduction on cost maximizing profitability maintaining highest quality standards of products. McDonalds has go against production lines and processes for its vegetarian and non-vegetarian flings.Marketing mix adopted by Mc Donalds- McCarthy (1975) formulated the concept of 4Ps- output, Price, Promotion and Place. and in case of service marketing in recent years theorists have identified 3Ps given by Fifield and Gilligan (1996) variables as an integral part of the marketing mix process, physical and people.Product- Concept of think global, act local has been clearly adopted by Mc Donalds. To support this concept there are many examples like in India as Hindus do not consume beef, Muslims do not eat pork and Jains (among others) do not eat meat of any type. To suit the majority food interest of the Indians Mc Donalds been innovative to serve customers with Vegetable McNuggets a mutton base Maharaja Mac (Big Mac).Pricing-Pricing conclusion is a vital factor taken cope by McDonalds. The formulation of various pricing decisions has been made otherwise based on different geographic locations. The right price selection take oned to be made for the right market. Various factors needed to be considered researched for the same. just slightly ele ments considered by McDonalds to determine the price for a finicky market. The process, as described by Vignali et al/(1999)is listed belowSelecting the price objectiveDetermining demandEstimating beAnalyzing competitors costs, prices and offersSelecting a pricing methodSelecting a final price.The process listed above is the basic framework that allows Mc Donalds localized pricing. McDonalds has highlighted pricing policy in the mission statement where it states that the most fundamental element of ascertain price wasMcDonalds to remain in touch with pricing of our competitors allows them to price our products correctly, balancing quality and value.When Mc Donalds was tone to propagate into New Delhi India, it determined the price and set it looking at Nirulas, a local food chain as a guideline. McDonalds was formed in India to have toll free number for customers to place the order.Part 2 The consumerInfluence on the behavior of consumers for purchase of Burger King.Food consu med by a awkwards citizen is a vital part of their culture. In India post liberalization in the economy there are many changes in the country. India being a democratic country all religions beliefs are considered equal with no discrimination.India cognise for its rich cultural heritage strong belief has witnessed some new developments. As compared to past more percentage of Indian women are employed today. A rise in the womens economic status in India has taken place making them independent and ensuring more of disposable income to spent on leisure and recreation, eat out and health and fitness. Recent expansion of service industry call centers, travel agencies airlines and hotels have light-emitting diode to more of employment opportunities. Therefore rise in employment is crack individuals to indulge in more than the basic need, allowing them to spend and save both. With hectic lifestyles, timesaving products are increasingly in demand. The basic Indian culture is of consumi ng homemade food. Its not very easy to bring changes to their take in habits as there are many different religions cultures. Reference group are also govern to a persons behavior of eating food outside. Like a family indulging in Non-veg food outside the home often, then it is passed to children also. tender class would also be a determining factor depending on Income education occupation. Balancing all these three elements check the purchase behavior of an individual. Culture is an important element from the view point of the marketer. This influence the consumption behavior of individuals. In India beef is not consumed by Hindus due to religious reasons. Hindus constitute the major population in India. Muslims do not consume pork meat. For Jains they do not consume meat.It is on the whole prohibited. Therefore chicken is preferred. As the barriers to eat out entrenched in certain sectors of Indian society. The influence to purchase fast food are due to factors such as envir onment at home, availability and accessibility to fast food providers, social environment and surroundings. any(prenominal) other additional some of individuals who are living alone have independence in their eating habits, sometimes opting for a new innovation of food than the traditional home cooked food. To spent time socializing in an air making them commodious also affects the visit liking of fast food outlet. Indian consumers are of the view that hygiene conditions are to be provided in an around the kitchen.This role model is an essence helping consumers to respond in decision making process. Its known as black box as we still know how human mind works. Some other influences also will be discussed like motivations, perception, perceived risks etc.1) Problem Solving-a) When an individual is empty-bellied and search of instant fulfillment.b) Target to consumers who are having open mindset to try a new sort of food.c) Target to Middle Upper middle class consumers who wish to visit out and socialize.d) Convenient to pack looking out for a change from the traditional Indian homemade food.2) Information Search-The factors determined by consumers to recall the Fast food trademarkBurger King.Internal Factors for Consumers to search.Recall of ads broadcasted on National Television.HoardingsWorldwide Brand value of Burger King for redeeming(prenominal) quality and food.Some External factors which would influence-Colleagues, public sources, friends family. Some articles from product valuation organizations as Consumer Report.3) Alternative Evaluation- Mc Donalds, KFC, Nirulas, homemade food and other local restaurants.4) Purchase Decision-The purchase decision when made in Burger King would be backed by many factors likea) Social Surroundings-The mannequin of people around as in India it would be targeted on Middle class and Upper middle class segment. The people present and included while making the purchase.b) Physical Appearance-Such as dcor, ambi ence of the place, hygiene factors, speedy service offered some music.c) Antecedent States-The target being on individuals who earn Rs30,000 to 40Kper month. Including consumers idea and cash in hand.5) Post-Purchase Behavior-In case of fast food joint it becomes bit difficult to known the customers eyeshot towards the food consumed by them as consumers are generally not very keen to provide. But sometimes it fire be actively put into action to gather the feedback through with(predicate) some questionnaire which is not lengthy. Some point of contact for customers where an individual is appointed in the store to learn what consumers feel about the Fast-food served. til now through word of mouth if consumers are satisfied they would verbalize it to their near and dear ones too.Some internal Influence on Consumer Behavior.Motivation-Some people are food lovers who enjoy having food indulge in variety of cuisines. These individuals are internally motivated.Perception-The percept ion of the mark cosmopolitan. The taste quality of food served is determined based on international standards and reports.Perceived risks-These risks in case of fast food would be related to health hazards which it can bring in the long run. The hygiene factor can be a cause of concern. personalized factors-These factors also influence the consumer behavior like economic situation, age, occupation, personality lifestyle.a) Economic situation-The economic situation in India is on a growth stage. With more people joining the labour force day by day and middle class and upper middle class population able to spend for their leisure, food and entertainment nowdays.People are having more of means to save for their future too additional to the disposable income to spend. As individuals with a monthly income of minimum Rs.30,000 it would targeted for.b) Lifestyle-The change in the lifestyle of people have also infra gone a change. Most of the individuals are working and busy with their hectic schedule so merely find time to cook and have homemade food. So fast food offers them convenience, taste and intimately available at good price suiting the pockets of the individuals. People are nowadays governed by education, income, tidings energy level. Mindset of people are undergoing a fast change ready to try different kind of food and a personal manner in which one can go and enjoy good tasty food outside.Part 3 Plan to Launch the ProductBrand Name-Burger KingProduct Type-Fast food BurgersCampaign-Urban RegionsCampaign-One King, Burger KingGlobal companies like Burger king face the problem of initiating a global product immerse, as the characteristics of varied culture, beliefs and multicultural situation of nations today. Cost increases and public relations support across threefold markets makes it more complicated. Food is an essential element of societys culture and ethnicity. Even during globalization and having a cosmopolitan brainpower some basic ethnic taste, local preferences and market specifications in food industry of a incident country cannot afford to be forgotten. A proper market research need to be undertaken or it would negatively harm the product launch of the brand hurting the beliefs of the target market. Understanding the nerve and pros and cons of the local food market of a country would avoid making expensive mistakes. Burger King is known worldwide for its burgers which mainly serves beef pork as the ingredient in Burgers. But in a country like India which has people of different religious beliefs and cultures were Hindus and Muslims are prohibited from consumption of beef and pork. Burger King demand to introduce products customized for the Indian Market keeping in mind the Indian taste preference. Around 40% populations of Indians are vegetarians. This constitutes a fairly good number of populations. Moreover during some religious occasions, as India is region of festivals people do not consume non-veg produ cts during that period too. And even during some fast period when observe by the people in India non-vegetarian food product consumption is low. Therefore Burger King needs to come out offering a proper blend of western basic food taste with some Indian spices some healthy options in Burger itself. As now many Indians are open to try the new variants of food but are also health conscious too.Brand Name-Burger KingProduct Type-Fast food BurgersCampaign-Urban RegionsCampaign-One King, Burger KingPre-Launch ScenarioRenowned worldwide for its Have it your wayThe challengeCompetition with Mc Donald, KFC, Pizza HutTo establish a monopoly of Burgers is difficultMc Donalds is wide spread in majority of locationsTo penetrate into the market with more tasty options to the target marketLow level of customer commitment because of large number of options available in fast food outletsContinuous improvement to be made in value added technology servicesHealth related issues to be sortedTarget Au dienceMiddle class and Upper Middleclass IndividualsTarget LocationsCapital city of India, Delhi and Silicon valley of India, Bang lore.Four Ps of MarketingPlace- The place to target would be urban areas like the Airports, Offices some shopping, malls.Price-The price would be low-cost to Upper middle class and middle class customers individuals earning an annual income of Rs.3, 60,000 per annum.Promotion-Like in Delhi collecting points for seasonal travelers of metros would change them with a coupon to treat them with Burger King.Product-Burger King to introduce the product suiting to the Indian taste offering variant options to the vegetarians, healthy options in form of drinks along with tasty non-vegetarian food. During some major festive seasons burger king can launch some new products to attract the target customers.People-The Burger king staff needs to be well trained and their uniform while catering to the customers can be a combination of indo-western get up which would b e attractive. The staff needs to be efficient in undertaking tasks and right people to be recruited for the different nature of jobs. The staff should greet customers not by saying hello or Hi instead with NAMASTE as this would showcase the traditional culture of greeting the guest.Process-The process of delivering the food and service should be communicated well to the customers. As a large population is vegetarian lovers so food should be cooked keeping in mind the religious beliefs and norms of Indians. The food served should be quick and tasty suiting to the Indian consumers taste. Customers need to be informed in case of some wait period of the product been delivered. Proper communication need to be made. Facilities such as cleanliness and proper ambience need to be created for customers to enjoy. Burger king should try to need with customers to receive the feedback on the service delivered by them. This can be filling some short questionnaire or by introducing something simil ar like A huge bell placed in Indian Pizza Hut to ring so that customers can exhibit their satisfaction towards the product.Physical Service-Service cant be go steady before its delivered. So choice made to use the service is risky as its intangible in nature. The uncertainty can be reduced in the mind of customers prior of consumption of the product if the features are well communicated to the target consumers.Promotion of Burger King done by marketing communication mix advertizementSales promotionDirect marketingPublic RelationsPhase-1 Launch the ProductThe product launch of Burger King needs to be associated in a manner the perception which is associated of having burgers from other competitors of its. The product being aimed at Middle class and Upper middle class should be positioned in an upscale manner where Burgers are being offered of Kings taste and treated like King making them feel relaxed and enjoy the experience of eating the burger in an excellent ambience. Also the communication of Quality, speedy service and cleanliness needs to be communicated well. Burger King should introduce options for vegetarian lovers as this would help them to penetrate, into the market more easily. The religious sentiments of Indians need to be taken care in case of non-vegetarian burgers. The company needs to establish a trust on consumers about the method in which product is been prepared without harming any religious sentiments.Phase-2 Brand advertisingThe advertising of Burger king can be effectively done through Print Media, Television advertisements and hoardings. This should include making customers aware about the product, helping them for easy recall and relating it to them personally. The television advertisements to be broadcasted on news and business channels like CNN IBN, TIMES NOW and some other channels like MTV. The advertisement needs to effectively convey to the customers the place is for relaxing and to enjoy the Burger in Kings style. During this phase it needs to concentrate on building the brand and product relevance. It would be launched not for mass audience but segmented as niche market with high on quality, service and price. The brand should leverage the central theme of Have it your way. The DAGMAR philosophy model 1961(Defining advertising goals for measured advertising results).1. From unawareness to awareness-To make the target potential customers aware about the product.2. Comprehension-Customer able to recognize the product and having knowledge about the product.3. Conviction-Customers holding a firm attitude of the product brand compared to others and can be based on emotional or rational basis.4. Action-Move made to purchase reflects the advertisement has been effective to communicate with the target audience.The Unique selling proposition of Burger King needs to be highlighted. amaze IT YOUR WAYOther Communication Channels-On introduction of Burger King in Metro like Delhi some coupons can be offered to the commuters travelling on monthly passes.In the silicon valley bang lore food coupons to the MNC offices like Google, Sony can be provided to promote Burger king.To advertise through social media campaign. To promote through electronic media.To promote in some Business seminars like Retail Association of India through offering vouchers and hoardings exhibiting Burger King finally in India.To advertise in events like, Common wealth games.Internet connectivity can be used as an effective medium of channel.