MCDONALD’S & BURGER KING
Introduction
There are many Fast food companies around the globe. These fast food companies have been said to thrive due to the demand driven by the consumption of fast foods by commuters and non-commuters. McDonald’s and Burger King stand out as the prominent fast food companies in the world. They are competitors with almost similar business practices. McDonald’s has a larger market share of 19% of the fast-food market share in the world, while Burger King takes 5% of the global market share. McDonald’s has been documented to have the ability to stand all the economic cycles in which, even during the recession, it has something to offer its clients. However, the current sales trends of these two companies show that McDonald’s is doing badly in the market while Burger King is increasing daily. Scholars documented that the secret to the success of these fast food companies is more based on their 5Ps strategy. These include promotion, price, location (place), and product differentiation strategies.
- Product: Evaluation of the Products and their Brand Values
Burger King and McDonald’s are both fast-food companies that have brand recognition in the international markets. These companies major in the production of similar kinds of products that are differentiated in their features (Trihatmoko and Mulyani, 2018). Burger King produces the Whopper sandwich while McDonald produces the Big Mac and the Quarter Pounder that yields it a lot of revenue. McDonald’s hamburger is smaller than that of Burger King, which is bigger and a bit saltier. They both capitalize on making the burger with additional features which are not far from their main menu, the burger.
McDonald’s has tried changing flavours and tastes of its products, which did not go well with the clients as was anticipated (Membe and Doriza, 2012). Burger King has consistently maintained its flavour and tastes without diversifying into too many feature additions in its products. Looking at both brands, they have the same colours that are common with fast foods such as red and yellow. These colours are associated with energy and visibility. It is easy to notice the company logos from afar.
However, McDonald’s is incorporating green among its colours to create an environmentally friendly feel to their customers. Having a green colour makes the ‘green customers’ a bit more relaxed and not always in a hurry to pick a bite. The packaging is unique for both companies. Burger King recently revamped its packaging to attain global brand recognition (Dahlgaard and Dahlgaard, 2004). On the other hand, McDonald’s has maintained its packaging that has been in use for the longest time. Burger King is striving to improve its brand recognition and brand health without incorporating product differentiation techniques compared to Mc Donald’s, which has recently applied product differentiation techniques. It is worth noting that the former has worked for Burger Kind while the latter has not worked for Mc Donald’s.
- Price: Evaluation of the Pricing Strategies Used
The pricing strategy is very vital to the running of businesses. Companies want to make profits while customers want to get value for their money. As companies state their prices, it should not be so high or so low to compromise on the quality (Kim, 2008, p.260). If prices are very low, clients may think that the quality is low. Burger King followed in the steps of McDonald of offering value menus like a dollar for a double cheeseburger. They are both cautious of the prices to maintain their clients. The two companies have continued to focus on their Penny Pincher value menu, and Stunner deals discounts.
McDonald’s pricing strategy varies as per the different markets of operation. It does not have standard prices for their items. Other factors that determine the price of goods are strategies by their competitors, the supply and demand of their products, the cost of production, and the quality of their ingredients (Kumar, Rahman, Kazmi, and Goyal, 2012). Different countries have different tastes and preferences, thus influencing the ingredients used and the price (Yeu et al., 2012). Most of McDonald’s outlets are franchises where the director of that place determines the prices of the items. They also have different packages that fit varied social, economic classes in the market.
- Place: Distribution of the Brands
Burger King and McDonald ‘s have established their branches all over the world. However, McDonald’s has a larger presence in more markets compared to Burger King. Their internationalization strategy has helped them in improving their brand health Mehrabi, Nasiri, and Mansuri, 2014). Both companies have liaised with franchises around the globe. These positioning strategies have resulted in the companies acquiring a wider customer base and hence market share. Burger King is often located at travel points like airport terminals and train stations. McDonald’s has improved its services from just the normal pick and go scenario in most fast foods centres, setting up very friendly places where their clients can sit comfortably and enjoy their snacks.
- Promotion: Communication of the Brands
Burger King and McDonald’s are rival companies that use various promotional methods to market their products and inform their clients of their offers. Promotion and communication strategies used by Burger King include advertising, sales promotion, personal selling, and public relations (Hamzeh and Bataineh, 2019). It advertises online, on television, and through print media. The company applies promotional techniques such as coupons and giving of offers through its website and the mobile app. In addition, its staffs are positioned in various outlets to encourage its clients to buy something extra from their menu like desserts. The Burger King McLamore Foundation gives back to the community by giving scholarships and financial aid for educational programs (Parente and Strausbaugh, 2014). These activities are aimed at promoting and enhancing the Burger King brand.
On the other hand, McDonald’s also employs similar strategies to those of Burger King to promote its products, although packaged in different ways. It applies digital marketing through engaging with eye-catching and amazing content, which runs through all its social media pages. It tends to align their social posts with events, for instance, #McdOneGoal World Cup. This aspect attracts many clients as people like identifying themselves with various sports. Their blog posts and text-based contents are equally amazing (Hamzeh and Bataineh, 2019). McDonald’s stands out between the two fast-food companies when it comes to digital marketing. It uses endless hashtags on social and incorporates real-world elements like the McDonalds World Cup French fries and availing useful content like nutritional facts for its consumers at strategic places.
- Direct marketing
Marketing Strategies are ideas and actions set by the different departments of the companies to improve by awareness and drive chances of sales. It is challenging for any business to have a firm customer base without solid marketing strategies. Marketing strategies are aimed at meeting the demands of the clients and establishing lasting relationships with them. Marketing strategies ought to be flexible enough to adjust to the changing needs and preferences of the clients over time (Hamzeh and Bataineh, 2019). These strategies help companies maximize their limited resources to increase their sales and attain a comparative advantage. Burger King and McDonald’s have similar marketing strategies, including personal selling, application of the 4Ps marketing mix, and promotions. Strategies unique for McDonald’s Fast Food Company is the use of the franchise model accompanied by good quality service, cleanliness, and value for customer’s money (Membe. and Doriza Loukakou, 2012). It also ensures that there is a consistency of its products in terms of taste and quality in all its outlets. On the other hand, Burger King also operates under a franchise model and ensures consistency in its products. These companies modify the tastes of their products to satisfy the changing needs of the consumers.
Conclusion and Recommendation
McDonald and Burger King are rival fast-food companies that have established themselves in many parts of the world. McDonald’s has more outlets in the world compared to Burger King. These companies have invested heavily in their products to make them appealing to their customer base. Both companies have invested in the 4P marketing mix to increase their sales and market presence. All their products are packaged in unique ways, especially for Burger King, who determined to have a larger international presence than McDonald’s. Both companies are using advertisements to market themselves, an aspect that has rewarded them by giving them a larger audience. The brands of the two companies acharacterised by yellow and red colours that identify them. However, McDonald is also diversifying to the green colour to identify with their ‘green’ clients.
Unlike Burger King whose prices are common in all outlets, McDonald has varied prices depending on their location. Both companies have earned huge customer base due to the application of the marketing mix discussed above. However, Burger King is has succeeded more by getting market reception compared to Mc Donald’s. McDonald recently registered low sales because of trying a new concept of introducing new products into the market, which did not go well with their customers. It is recommendable for these companies to improve their 4Ps by investing in branding and product customisation in order to make their products known to many people. They can also venture into new markets that have the potential for growth. Finally, they can increase their offers to attract more customers and improve their services.
References.
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