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Project Report On
Advertising Strategies of Burger King
AT
(PUNE)
SUBMITED TO
Savitribai Phule Pune University
In Partial Fulfilment of the Requirement for Award of the Degree of
BACHELOR OF BUSINESS ADMINISTRATION
By
Muskan Jha
(MARKETING)
SEAT NO.
Under the Guidance of
Prof. Rupali Jadhav
At/for

Through

CHANAKYA EDUCATION SOCIETY’S


INDIRA COLLEGE OF COMMERCE & SCIENCE
PUNE – 411033 (2021-2022)

1
DECLARATION

I Muskan Jha, a student of INDIRA COLLEGE OF


COMMERCE AND SCIENCE WAKAD, PUNE hereby declare that the Project
report entitled Advertising Strategies of Burger King is submitted by me for
the partial fulfillment of BATCHELOR OF BUSINESS ADMINISTRATION.
This report is an original work prepared by me and it has never been submitted to
any university insititution for the award of any degree/ diploma.

Name:
College Name
Place
Date

2
ACKNOWLEDGEMENT

I am extremely grateful to Savitribai Phule Pune University for havingprescribed


this project work as a part of academic requirement for the degree of Batchlor
of Business Administration, International Business (BBA IB) course. I wish to
appreciate the management and the staff of Shree Chanakya Education Society’s
Indira college of Commerce and Science (ICCS), Pune, for providing state of art

infrastructure and resources. I wish to express a special thanks to my project


guide Prof.Rupali Jadhav without whose guidance the project may not have
taken shape and a sincere thanks to HOD of the Department Dr. Thomson
Varghese for his continuous assistance and motivation. Finally I would like to
thank all those who have directly or indirectly helped me towards the execution
of this project with full sincerity.

Sincere thanks to all.

Student Name

3
To Whomsoever it Concern

This is to certify that


Ms of
BBA Roll no. having specialization
in has successfully completed his / her
project titled

as per the norms of Savitribai PhulePune University under


the guidance of for the academic year
.

Internal Guide External Guide HOD


/Principal

4
Table of content

Sr.No Topic Pg no.


1 Executive summary 6
2 Introduction to Burger King 7
3 Objectives 8
4 How Burger King started 9
5 Introduction of advertising strategies 10
6 Marketing Strategy 11
7 Burger King in India 12
8 Vision & Mission of Burger King 13
9. Advertising & Methodology 14
10. STP & Marketing Mix 15-25
11. Worldwide Growth Strategy 26
12. Promotional Partners 27-28
13. Ansoff Product Market Growth Matrix 29-33
14. Analysis of The Findings 34
15. SWOT Analysis 35-38
16. Recommendations and Suggestions for 39
Burger King
17. Conclusion 40
18. References 41

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Executive Summary

Burger King is a fast-food franchise that is focuses on the distribution hamburgers and has
proven to be a troublesome competitor to McDonalds. Headquartered in Miami, Florida.
Vision statement of Burger King to be the most profitable QSR business, through a strong
franchise system and great people, serving the best burgers in the world.
Mission statement of Burger King to offer reasonably priced quality food, served quickly, in
attractive, clean surroundings.
Studying Burger King and its marketing system has helped me a lot in understanding the
marketing subject in a better manner, marketing techniques and practically understand the
Burger King strategy of standardization and adaptation.
Advertising is a promotional tool, which stimulates the prospective customer to take or
continue a particular decision, with the help of a commercial offering. In this project, I have
studied in detail the advertising and marketing strategies of Burger King.

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Introduction to Burger King

Burger King (BK) is an American-based multinational chain of hamburger fast food restaurants.
Headquartered in Miami-Dade County, Florida, the company was founded in 1953 as Insta-Burger
King, a Jacksonville, Florida–based restaurant chain. After Insta-Burger King ran into financial
difficulties in 1954, its two Miami-based franchisees David Edgerton (1927–2018) and James
McLamore (1926–1996) purchased the company and renamed it "Burger King". Over the next half-
century, the company changed hands four times and its third set of owners, a partnership of TPG
Capital, Bain Capital, and Goldman Sachs Capital Partners took it public in 2002. In late 2010, 3G
Capital of Brazil acquired a majority stake in the company, in a deal valued at US$3.26 billion. The
new owners promptly initiated a restructuring of the company to reverse its fortunes. 3G, along with
partner Berkshire Hathaway, eventually merged the company with the Canadian-based doughnut
chain Tim Hortons, under the auspices of a new Canadian-based parent company named Restaurant
Brands International.

The 1970s were the "Golden Age" of the company's advertising, but beginning in the early 1980s,
Burger King advertising began losing focus. A series of less successful advertising campaigns
created by a procession of advertising agencies continued for the next two decades. In 2003, Burger
King hired the Miami-based advertising agency Crispin Porter + Bogusky (CP+B), which
completely reorganized its advertising with a series of new campaigns centered on a redesigned
Burger King character nicknamed "The King", accompanied by a new online presence. While
highly successful, some of CP+B's commercials were derided for perceived sexism or cultural
insensitivity. Burger King's new owner, 3G Capital, later terminated the relationship with CP+B in
2011 and moved its advertising to McGarryBowen, to begin a new product-oriented campaign with
expanded demographic targeting.

Burger King's menu has expanded from a basic offering of burgers, French fries, sodas, and
milkshakes to a larger and more diverse set of products. In 1957, the "Whopper" became the first
major addition to the menu, and it has become Burger King's signature product since. Conversely,
Burger King has introduced many products which failed to catch hold in the marketplace. Some of
these failures in the United States have seen success in foreign markets, where Burger King has also
tailored its menu for regional tastes. From 2002 to 2010, Burger King aggressively targeted the 18–
34 male demographic with larger products that often carried correspondingly large amounts of
unhealthy fats and trans-fats. This tactic would eventually damage the company's financial
underpinnings and cast a negative pall on its earnings. Beginning in 2011, the company began to
move away from its previous male-oriented menu and introduce new menu items, product
reformulations and packaging, as part of its current owner 3G Capital's restructuring plans of the
company.

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Objectives of this Project:

1. To analyze various aspects of Marketing by Burger King.


2. To study in brief about the nature and types of customers of Burger King
3. To estimate the future trends of Burger King in the Market.
4. To know various trends in Marketing.
5. To get the customer feedback on Burger King

8
How Burger King started

Burger King (BK) is an American-based multinational chain of hamburger fast food restaurants.
Headquartered in Miami-Dade County, Florida, the company was founded in 1953 as Insta-
Burger King, a Jacksonville, Florida–based restaurant chain.
As of December 31, 2018, Burger King reported that it had 17,796 outlets in 100 countries nearly
half are located in the United States, and 99.7% are privately owned and operated, with its new
owners moving to an almost entirely franchised model in 2013. Burger King has historically used
several variations of franchising to expand its operations. The manner in which the company
licenses its franchisees varies depending on the region, with some regional franchises, known as
master franchises, responsible for selling franchise sub-licenses on the company's behalf. Burger
King's relationship with its franchises has not always been harmonious. Occasional spats between
the two have caused numerous issues, and in several instances, the company's and its licensees'
relations have degenerated into precedent-setting court cases. Burger King's Australian franchise
Hungry Jack's is the only franchise to operate under a different name, due to a trademark dispute
and a series of legal cases between the two.

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Introduction of Advertising Strategy:

Marketing strategy is very much important for developing any of the business. Without it,
theeffort of the business to attract customer is random and inefficient. The focus of your
strategy must make sure that your product should fulfill the demands of the consumers and
aswell as it maintains the long-term relationship with those customers. To achieve this, you
will have to initiate flexible strategy that responds to change in customer demand and
perception. It may also give brand names to your product which will help you to run your
business in new markets smooth and efficient manner. First, main purpose of your
marketing
strategy should be to identify that whether the target customers are satisfied with your
product and services of your business.

Once you have created and implemented your strategy, try to identify the feed from
your customer and if any changes or, improvement is required apply it for the
maximum satisfaction of the customers.

This helps you to identify that where your strategy needs to be improved and how it can
be developed, so that it can be implemented for effective action. Before applying any
strategy inthe business proper planning programs must be organized within the members
of the organization.

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Marketing Strategy:

Marketing Strategy is a set of specific ideas and actions that outline and guide decisions
on the best or chosen way to create, distribute, promote, and price a product or service
(managethe marketing mix variables).

A Marketing strategy defines and describes the objectives or planning through which you
are going to satisfy your consumer needs in the selected target market. It does not involve
writtenwork but, it includes communication between different departments of the business
enterprise for example: sales department, managers, executives etc.
In fact, it is a set of strategies that implied by the organization in order to increase the growth
and development of the business. Normally strategy deals with the manner in which your
organization plan to achieve the consumer satisfaction and maximize the profit. Marketing
strategy is a process that can allow an organization to concentrate its limited resources on
thegreatest opportunities to increase sales and achieve a sustainable competitive advantage.
A marketing strategy should be centered on the key concept that customer satisfaction is
the
main goal.

Business Advantages
· Identifies needs and wants of consumers
· Determines demand for product
· Aids in design of products that fulfill consumers needs
· Outlines measures for generating the cash for daily operation, to repay debts and to turn a profit
· Identifies competitors and analyzes your product's or firm's competitive advantage
· Identifies new product areas
· Identifies new and/or potential customers
· Allows for test to see if strategies are giving the desired results

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Burger King in India

Burger King India Ltd was incorporated as 'Burger King India Private Limited' under the
Companies Act 1956 at Mumbai pursuant to a certificate of incorporation dated November 11
2013 issued by the RoC. Subsequently the Company was converted into a public limited company
the word private' was struck off from the name of the Company and consequently a fresh
certificate of incorporation dated September 25 2019 was issued by the ROC recording the change
of our Company's name to Burger King India Limited'.It is one of the fastest growing international
QSR chains in India during the first five years of operations based on number of restaurants. As
the national master franchisee of the BURGER KING brand in India the company has exclusive
rights to develop establish operate and franchise Burger King branded restaurants in India. The
companies master franchisee arrangement provides the company with the ability to use Burger
King's globally recognised brand name to grow business in Indiawhile leveraging the technical
marketing and operational expertise associated with the global Burger King brand.

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Vision & Mission of Burger King

Vision statement of Burger King to be the most profitable QSR business, through a strong
franchise system and great people, serving the best burgers in the world.

Mission statement of Burger King to offer reasonably priced quality food, served quickly, in
attractive, clean surroundings. Quickly sell service food to fulfil our guest’s needs more
accurately, quickly, courteously and in a cleaner environment than our competitor. Grow
profitably and responsibly and provide career advancement opportunities for every willing
member of organization.

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Advertising & Methodology

Since its foundation in 1954, Burger King has employed varied advertising programs, both
successful and unsuccessful. During the 1970s, output included its "Hold the pickles, hold the
lettuce..." jingle, the inspiration for its current mascot the Burger King, and several well-known
and parodied slogans such as "Have it your way" and "It takes two hands to handle a Whopper".
Burger King introduced the first attack ad in the fast food industry with a pre-teen Sarah Michelle
Gellar in 1981. The television spot, which claimed BK burgers were larger and better tasting than
competitor McDonald's, so enraged executives at McDonald's parent company that they sued all
parties involved. Starting in the early 1980s and running through approximately 2001, BK
engaged a series of ad agencies that produced many unsuccessful slogans and programs,
including its biggest advertising flop "Where's Herb?"
Burger King was a pioneer in the advertising practice known as the "product tie-in", with a
successful partnership with George Lucas' Lucasfilm, Ltd., to promote the 1977 film Star Wars
in which BK sold a set of beverage glasses featuring the main characters from the movie. This
promotion was one of the first in the fast food industry and set the pattern that continues to the
present. BK's early success in the field was overshadowed by a 1982 deal between McDonald's
and the Walt Disney Company to promote Disney's animated films beginning in the mid-1980s
and running through the early 1990s. In 1994, Disney switched from McDonald's to Burger King,
signing a 10-movie promotional contract which would include such top 10 films as Aladdin
(1992), Beauty and the Beast (1991), The Lion King (1994), and Toy Story (1995). A partnership
in association with the Pokémon franchise at the height of its popularity in 1999 was
tremendously successful for the company, with many locations rapidly selling out of the toys and
the replacements.

In recent years, Burger King has turned to trolling fast food rival McDonald's with their
advertising strategy. The company's tactics have included LOLA MullenLowe's "Scary Clown
Night" which offered a free Whopper to anyone dressed as a King on Halloween; FCB New
York's Whopper Detour initiative, which encouraged mobile app users to go to a nearby
McDonald's in order to unlock a 1-center Whopper; and Ingo's "The Not Big Macs" menu, which
poked fun at McDonald's recent loss of the Big Mac trademark in the EU.

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Segmentation, Targeting and Positioning

Segmentation:
Market segmentation is a marketing strategy in which select groups of consumers are
identified so that certain products or product lines can be presented to them in a way that appeals
to their interests.
Targeting:
Target marketing involves breaking down the entire market into various segments and planning
marketing strategies accordingly for each segment to increase the market share.
Positioning:
Positioning refers to the place that a brand occupies in the minds of the customers and how it is
distinguished from the products of the competitors and different from the concept of brand
awareness.
Burger King uses demographic segmentation strategy with age as the parameter. The main target
segments are children, youth and the young urban family.
Target Segments Visits of Burger King to
A parent with children Visit Burger King to give them a treat
Children Want to eat because it’s a fun place
A business customer Visits Burger King during the day as service
is quick; the food tastes great and can be
eaten in the car without affecting a busy
work schedule.
Teenager Hangout with friends but keep it affordable.

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Burger King Marketing Mix (4 P’s)

After segmenting the market, finding the target segment and positioning itself, each
companyneeds to come up with an offer. The 4 P’s used by Burger King are:

1. Product
2. Place
3. Price
4. Promotion

Product:

Product is the physical product or service offered to the consumer. Product includes certain
aspects such as packaging, guarantee, looks etc. This includes both the tangible
and the non-tangible aspects of the product and service. How should the company design,
manufacture the product so that it enhances the customer experience?

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Burger King operates as a quick service restaurant business focusing on burgers as its main
product. This component of the marketing mix presents organizational outputs offered to target
customers. Burger King’s main product lines are as follows:
1. Burgers
2. Chicken & Fish
3. Sides
4. Salads & Veggies
5. Beverages
6. Sweets/Desserts

Aside from the main product line of burgers, Burger King also offers chicken and fish as
alternatives. The sides include fries, nuggets, onion rings, and hash browns. Burger King
also has several salads, such as MorningStar Veggie Salad and Chicken Caesar Salad. The
beverages include sodas, smoothies, iced tea, juices, milk, water, coffee, and frappes. Burger
King’s desserts and sweets include Dutch Apple Pie, Oreo Shake, and Caramel Sundae. In
addition, the company bundles its products as value meals and kids meals. In this component
of the marketing mix, Burger King has a limited approach, as manifested in its limited
product mix. Nonetheless, this product mix supports Burger King’s generic strategy through
economies of scale from large-scale production of a limited number of product lines.

Reasons for introducing the products:

 Beef & Pork which was a taboo in the Indian market was planned to replace by
filling of Veggies & Paneer to match up with the Indian culture.
 Salad sandwich & Burger was introduced targeting the people who are more
consciousabout health.
 The introduction of Jain salad in the outlet keeping the Jain people rituals of not
eating ginger, onion, potatoes etc.
 Seeing to the Indian mentality of having meals at cheapest price, which
Burger King offers their meal at cheapest as compared to KFC, Mc
Donald’s etc.
 They also offer Desserts Ice Cream (Softy) at the very cheapest rate with hygiene & best quality.

Place:
Burger King’s products are available at its restaurants worldwide. This component of the
marketing mix refers to the venue that firms use to transact with target customers. The
following are the places Burger King uses to distribute its products:
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1. Restaurants
2. Mobile App

3. Website for deliveries

Aside from restaurants, customers can use Burger King’s mobile app to access coupons
for special offers and freebies. Customers can also use the company’s website to place
their orders for home deliveries. In this component of the marketing mix, Burger King
relies mainly on the physical presence of its restaurants.

Pricing:

Burger King’s pricing strategy is based mainly on its generic strategy of cost leadership,
which minimizes costs and prices. In this component of the marketing mix, appropriate
pricing of products is considered. Burger King’s pricing strategies are as follows:

1. Market-oriented pricing strategy

2. Bundle pricing strategy

Burger King uses market-oriented pricing strategy as its primary approach to pricing. This
pricing strategy involves setting prices based on prevailing market conditions, including
supply and demand conditions as well as the pricing of competing firms. Burger King’s
secondary pricing approach is the bundle pricing strategy. For example, customers can buy
value meals and kids meals at bundle prices that are more affordable than buying food items
separately. This component of the marketing mix shows that Burger King mainly considers
market conditions to determine its prices.

Promotion

Burger King employs various tactics to promote its products. This component of the
marketing mix covers the tactics used to communicate with the target market about the
firm’s offers. Burger King uses the following promotion/marketing communications tactics,
arranged according to significance:

1. Advertising

2. Sales Promotion

3. Personal Selling

4. Public Relations
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Burger King relies mainly on advertising to promote its products. The company advertises
online and on TV and print media. In addition, Burger King uses sales promotions in the
form of coupons and other offers through its website and mobile app. The firm’s restaurant
personnel also typically use personal selling to encourage customers to buy more products
from the menu, such as desserts in addition to what the customer already ordered. In
applying public relations, the Burger King McLamore Foundation gives scholarships and
financial assistance for educational programs, thereby also effectively promoting and
strengthening the Burger King brand. The company successfully combines various
promotion tactics to address this component of the marketing mix.

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Other Strategies of Burger King

Cobranding strategy:

Co-branding strategy is also one of the beneficial instruments for boosting the business
and providing the same things in different manner. In fact co- branding means having a tie
ups with another firm and serving the customer with both the products. It helps in making
profit for both the business enterprise as well as to increase their sales and growth of
organization. The
two different brands enter into co-brand through certain contracts or agreement and as per
the agreement they bifurcates their earnings from their brands. There are different
examples of co-branding strategy of Burger King which are as follows.

 Coca-Cola:

Coke is one soft drink brand that had tie up with Burger King since past many years. In
Burger King the coke is the best beverage in cold drinks which are served to the customers
along with different menus of the Burger King for example happy meal, happy price menu
etc. As coke is preferred by children’s even their parents as well as the young youths.
Therefore by keeping in mind the consumer wants they came up with Coca-cola. In fact this
co-brand of Burger King is initiated to increase
the volume of sales of the both the business enterprise.
And of course, this co-branding strategy has encouraged both the business in achieving the
successful returns of customer’s satisfaction.

On April 27, 2009 – The Coca-Cola Company had announced a 'refreshed' line up of
fountain and bottle beverages that will be added to Burger King U.S. restaurants, beginning
this year. This effort -- part of a larger beverage strategy -- will provide Burger King
customers even more beverage choices and meet customers' changing taste
preferences and desire for more suitable, convenient beverage options.

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Children's Advertising

Burger King created a separate logo for its children's products with the introduction of its
Burger King Kid's Club in 1990. The original logo, an inverted triangle with blue text, was
used in television and print advertising, signage, toy and meal packaging. Burger King
changed this logo several times and introduced several local versions in its international
market. In 1992, the company replaced the original logo with one similar to its corporate
"bun halves" logo, the original Burger King text logo on a single line with the text "Kids
Club" text under it on two lines. The most current logo in North America is for its "Club
BK" program which it introduced in July 2008.

Starting in the 1970s and running into the 1980s, Burger King's "Kids' Club" program gave
children coupons for selected products each month, a small toy, and a surprise on the child's
birthday. Burger King has been known for its paper crowns, which are sometimes
redesigned to match any promotions the restaurant may be running. The original "Kids'
Club" advertising featured a small, animated King character named The Burger King, who
would travel on a modified chopper with a throne as the seat, visit a Burger King store and
present the children with small gifts. The tag line was "Burger King: Where kids are King.

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The "Marvellous Magical Burger King"

In 1976, the original animated Burger King (portrayed by Dick Gjonola) - A bearded king
that ruled the Burger King Kingdom.The King was replaced by the "Marvellous Magical
Burger King," a red-bearded, Tudor-era king, played by Fred Barton, who ruled the Burger
King Kingdom and performed magic tricks that were mostly sleight-of-hand, but sometimes
relied on camera tricks or involved his "Magic Ring" which could summon copious amounts
of food.

The Burger King kingdom

Introduced in 1976, the Burger King Kingdom was Burger King's answer to
McDonaldland, the setting for characters created in the commercials made by Burger
King's rival McDonald's during the mid-1970s. By 1989, the Burger King Kingdom
characters were phased out in favor of the BK Kids Club Gang. Starting in 2003, the Burger
King began to be reused in Burger King ads, albeit as a man in a mask and King costume,
rather than a full live-action portrayal. Besides the Burger King, other Burger King
Kingdom characters included:

• The Burger Thing (voiced by Frank Welker) - A large hamburger puppet designed to
look like a 3-D painting.

• Sir Shake-A-Lot (played by Bob Lydiard) - A knight that wears armour made of BK Cups
and has a craving for milkshakes. Sir Shake-a-lot always shivers because he drinks
milkshakes so much he is always cold. Sir Shake-A-Lot's voice can be heard in the 2006
Burger King video game Sneak King commenting, "The King! He's so sneaky!"

• The Wizard of Fries (voiced by Tress MacNeille) - A robot powered by the French fries
in its glass dome head. It can "multi-fry" where it takes a single French fry and duplicates
it endlessly.

• The Duke of Doubt (portrayed by James Harder) - A duke who is the Burger King's
nemesis who constantly doubted the King's magic, and who constantly tried to prove that
the King's magic was not real; he always failed, and each commercial that featured him
ended with the tag-line, "No doubt about it, Duke.".

This campaign paralleled McDonald's McDonaldland children's commercials, which


featured "Ronald McDonald", "The Hamburglar", and "Mayor McCheese", along with

22
other characters and mascots. The ads featuring the Burger King Kingdom were phased
out by the late 1980s in favour of the BK Kids Club.

Kids Club

In 1989, Burger King relaunched its children's meal program as the Burger King Kids Club meal
in the United States and New Zealand. The Burger King Kids Club Gang, a multi-ethnic group of
fictional characters, were created to promote the Burger King Kids Club meal by providing a
group of stylized characters. The members of the gang are:
 Kid Vid, a blonde boy with sunglasses, earbuds, a backwards cap, a walkman, and a device
on his arm that he uses to teleport live kids to the Burger King restaurant. He loves things
related to technology, and is the leader of the group.
 Boomer, a ginger sports loving tomboy who has orange hair tied into a ponytail, and
normally wears a red-and-yellow (green-and-yellow in early commercials and
promotional art) jersey and roller skates.
 I.Q., a male nerd with orange hair and freckles who wears red glasses, a green lab coat,
and a pocket protector.
 Jaws, a tall African-American boy with an insatiable appetite.
 J.D., the group's dog.
 Lingo, a multi-lingual Hispanic boy who likes art and carries an easel.
 Snaps, a blonde girl with a love for photography, hence why she always carries around a
camera.
 Wheels, a paraplegic boy in a wheelchair, with brown hair, blue eyes and freckles.
In the late 1990s, a new female character was added to the group:

 Jazz, an Asian girl who loves music and wears a beret.


Honbatz

In 2004, the Kids Club Gang was replaced by the Honbatz characters with a group of characters
designed to appeal to the preteen market. Each Honbatz has a distinct personality: the class
clown, the brain or the rebel. They have appeared in numerous advertisements and are still used
in some European markets and New Zealand. The Honbatz characters are:

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The Honbatz characters

• Mixmax- a punk who likes showing off

• Thisorthat- a green monster that likes to eat everything but cannot decide where to start

• Bonny- a studious character and the only female in the group

• Chomp- a large, intimidating, Honbatz who is really a big softie that wants to fits

• The Eeeps- a group of small, red, ketchup-craving creatures.

In September 2006, Burger King reintroduced an updated version of its 1970's animated
king design. This was printed on cups, bags and in non-tie-in children's advertising. The
redesigned king was portrayed as a sarcastic character who sometimes gets into trouble for
his mischief-making adventures.

Crowns

In Worldwide Burger King uses paper crowns to advertise its restaurants. Though the
regular crown is gold and like that of what the King wears, there have been some variants.
Variants include, a Halloween skeleton variant, a Christmas hat variant, a mini version,
and hats to advertise the Whopper, Chicken fries and the 2019 Melting down promotion.

Restrictions on Children's Advertising

On 12 September 2007, Burger King announced that it was joining the Council of Better
Business Bureaus Children's Food and Beverage Advertising Initiative. The program, a
voluntary self-regulation program designed to adjust advertising messages aimed at
children so that they encourage healthy eating habits and lifestyles. As part of this new
initiative, Burger King stated that it would restrict its advertising aimed at children under
12 that uses third-party licensed characters to Kids Meals that meet its nutrition guidelines,
refrain from advertising in elementary schools and refrain from product placement in
media primarily aimed at children under 12, promote Kids Meals that meet its nutrition
guidelines and promote healthy lifestyles and healthy dietary choices in its advertising.
Several groups, including the CSPI, lauded the move as guarded good news.

24
Non-Product-Oriented Advertising

In 1983, Burger King introduced advertising to emphasize value or its opening hours. The
company encouraged its stores to keep their drive-through outlets open after midnight;
most QSR locations closed between 10:00 pm and 11:00 pm. In mid-2007, it again began
advertising late opening times in response to the late-night hours of Wendy's and
McDonald's.

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Worldwide Growth Strategy

Burger King growth strategy is based on three elements.


· Adding restaurants.
· Maximizing sales and profits at existing restaurants.
· Improving international profitability.

Maximizing sales and profits at existing restaurants will be accomplished through better
operations, innovation, product development and refinement, effective marketing and
lower development and operating costs.

Improved international profitability will be realized as economies of scale are achieved


individual markets and as the company benefits from the global infrastructure.

Service Management Strategy

If we take any fast food restaurants the customer attracts firstly through brand and secondly
with the most important thing to consider i.e. is services offered to them.
If the service of any enterprise is not suitable to customer then it doesn't achieve the aim
that has been proposed by them.
The company's service management strategy is described within the context of the service
model. In this model, market segment, the philosophy culture image of the company, service
systems, and human resources are considered.

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Promotional Partners

 Blitz Games
King Games is a series of three advertisement-based video games (advergames) sold
at Burger King. The games were sold as part of a promotion during the holiday
season from late November until 24 December 2006. All three games were
developed by the Blitz Arcade Division of Blitz Games, and were published by
Burger King.

 Celebrity Spokespeople

A 2005–2006 viral advertising campaign by CP+B used model and actress Brooke
Burke in a commercial in which she and The King went through a mock celebrity
courtship. Paparazzi-style photographs and videos appeared in gossip columns and
celebrity gossip websites. The campaign followed their meeting on the set of the
Whopperettes ad, dating, risqué shots of them at the beach, an engagement and
summary break up. Burke also appears as a playable character and cover girl in the
Xbox 360 games PocketBike Racer and Big Bumpin'. In the UK in 2009, CP+B
and Cow PR launched a perfume, called Burger King Flame; Piers Morgan
appeared in a poster campaign and a video.

 Media Tie-Ins

Burger King's first major tie-in, and one of the first for the QSR industry, was the
1977 film Star Wars in which BK sold a set of glasses featuring the main characters
from the film. From that point on, competition between the major QSR chains
became an important part of advertising in the fast food industry; McDonald's
partnered with Disney in the 1980s and early 1990s. In 1991 Burger King signed a
ten-film contract with Disney, a venture that was very successful. Burger King
promoted films such as Beauty and the Beast (1991), Aladdin (1992), The Lion
King (1994), Pocahontas (1995), Toy Story (1995) and The Hunchback of Notre
Dame (1996). These cross promotions were rivaled only by McDonald's/Ty Beanie
Babies cross-promotion in 1999–2000.

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Burger King continued its partnership with Lucasfilm for the two subsequent films,
The Empire Strikes Back (1980) and Return of the Jedi (1983). It also promoted
the last film of the second trilogy, Revenge of the Sith (2005). Burger King lost the
first run tie-in rights to The Phantom Menace (1999), to Tricon Global (KFC, Taco
Bell, and Pizza Hut) (no partnership was ever made for the film, Attack of the
Clones (2002), however), but had an extensive tie-in with the DVD release of the
two trilogies in 2006. In 2008, Burger King again partnered with Lucasfilm and
Amblin Entertainment for the release of the film, Indiana Jones and the Kingdom
of the Crystal Skull.

Another long running Burger King tie-in partnership has been with 20th Century
Fox's property The Simpsons. Burger King's first promotion with Fox began in
1990, when the show was launched as a full-time series. Burger King sold a set of
8-to-12-inch (20 to 30 cm) dolls featuring each member of the Simpsons family.
Other Simpsons promotions included a British Kids Club toy in 1998, 2000 and
2001; a Halloween-themed Kid's Club toy in 2001 and 2002, a summertime special
at Hungry Jack's in 2001 and The Simpsons Movie in 2007. As part of the
promotion for the Simpsons Movie, CP+B produced a commercial with a Simpsons
version of the King that had yellow skin, an overbite and four fingers. A website
allowed people to make a "Simpsonized" version of themselves from uploaded
pictures.

American rapper Meek Mill was endorsed by Burger King during his feud with
Drake.

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Ansoff Product Market Growth Matrix

The Ansoff Product-Market Growth Matrix is a marketing tool created by Igor Ansoff and
first published in his article "Strategies for Diversification" in the Harvard Business Review
(1957). The matrix allows marketers to consider ways to grow the business via new
products,new markets – there are four possible product/market combinations.

This matrix helps companies decide what course of action should be taken given
current performance. The matrix consists of four strategies:
1. Market penetration strategy
2. Market development strategy
3. Product development strategy
4. Diversification

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1. Market Penetration Strategy:

Market penetration occurs when a company enters/penetrates a market with current


products.The best way to achieve this is by gaining competitors' customers.

Other ways include attracting non-users of your product or convincing current clients to
use more of your product/service. Market penetration occurs when the product and market
already exists in market. Burger King is one most popular brand in fast food in entire
world. In 1975, the first Burger King opened at Hong Kong, many thought that this was
wrong move for Burger King Various reasons were laid for this claim. Although, the main
reasons lays on the fact that Americans and Hong Kong Chinese at that time have very
different perception about food. Burger King, being an American food chain, view breads
full meal while Hong Kong Chinese view them as snacks. As time went by, Burger King
slowly
became the part of the Hong Kong landscape and way of life rather than just being an
outpostof American culture. Hong Kong Chinese soon accepted that the food Burger King
serve are ordinary, thus they are for ordinary people like them.

Future more, believes that the introduction of Burger King to the Hong Kong society
changed the direction of the Hong Kong cultural framework. Along with the rest of the
world, Hong Kong was also Burger King.

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2. Market Development Strategy

A market development strategy targets non-buying customers in currently targeted segments.


It also targets new customers in new segments.

A marketing manager must think about the following questions before implementing a
market development strategy: Is it profitable? Will it require the introduction of new or
modified products? Is the customer and channel well enough researched and understood?

The marketing manager uses these four groups to give more focus to the market segment
decision: existing customers, competitor customers, non- buying in current segments, new
segments. Burger King is currently following above mentioned strategy, to focus on market
segments. For serving synonymously to the existing customers they are coming up with
different menus as per change in taste and preference of their customer e.g.: happy price
menu, beverages including milk shakes and cold coffees etc. Also, by keeping in mind their
rivals they are introducing products to compete them e.g. to answer the KFC they came up
with chicken Popcorn. They are adopting pricing policies for non-buying customer and as
well as new segments.

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3. Product Development Strategy

In business and engineering, new product development (NPD) is the term used to describe the
complete process of bringing a new product or service to market. There are two parallel paths
involved in the NPD process: one involves the idea generation, product design, and detail
engineering; the other involves market research and marketing analysis.

Companies typically see new product development as the first stage in generating and
commercializing new products within the overall strategic process of product life cycle
management used to maintain or grow their market share.

Frequently, when a firm creates new products, it can gain new customers for these products.
Hence, new product development can be a crucial business development strategy for firms to
stay competitive. Burger King is always enhancing their existing product along with it; they
also try to introduce new and new products so that they can easily survive in market.

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4. Diversification

Diversification is a form of growth marketing strategy for a company. It seeks to increase


profitability through greater sales volume obtained from new products and new markets.
Diversification can occur either at the business unit or at the corporate level.

At the business unit level, it is most likely to expand into a new segment of an industry in
which the business is already in.
At the corporate level, it is generally and it’s also very interesting entering a promisingbusiness
outside of the scope of the existing business unit.

Burger King made its foray into the hospitality industry in 2001, opening two hotels in
Switzerland, at Zurich and Lully. The "Golden Arch Hotels" were positioned as four-star
facilities with the latest in-room technology and very original, modern interior design.
Reactions and reviews of guests following their stay there were mixed.

Most seemed to agree, that the hotel's four-star rating didn't seem to correspond with
Burger King image. The Golden Arch in Zurich is Burger King first hotel.

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Analysis of The Findings

Burger King has been a leading fast-foods outlet in Vile Parle. But the outlet understudy has
other competitors eating away into its market share. In addition to its traditional rivals—KFC,
Dominos, Pizza Hut, McDonald’s —the firm encounters new challenges. Jumbo King
competes using a back-to-basics approach of quickly serving up burgers for time-pressed
consumers. On the higher end, the KFC has become potent competitor in the quick service
field, taking away customers from Burger King.

Perhaps in the new environment, fast, convenient service is no longer enough to distinguish
the firm. At this time, a new critical success factor may be emerging: the need to create a rich,
satisfying experience for consumers.

This brings us to service and experience-based competition which Burger King can use for
competitive advantage against Jumbo King. Keeping in mind the demographics of the area,
Burger King has Wi-Fi enabled the outlet to cater to the student community. It is for this overall
“Food, Fun & Folks” experience that customers pay a premium over the other competitors.

Competitors of Burger King

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SWOT Analysis of Burger King

Strength

1. Global Presence: Burger King has 18,838 stores spread across about 100 countries worldwide. It
is the sixth-largest fast-food chain in the world and servers over 10 million customers per day. The
chain’s strong global presence is undeniably a major strength.

2. Effective Strategies: Companies that employ effective management strategies always find ways
to rejuvenate and stay in touch with the trends in the market. After stagnating for years, Burger King
appointed 32-year-old Daniel Schwartz as CEO to transform the chain into something cool. The
young and creative CEO rejuvenated and turned it around within a few years.

3. Strong Franchising Model: Currently, 90% of Burger King is franchised with over 15,000 outlets
being owned by franchisees. To own its franchise, you only must pay a $45,000 franchise fee and a
minimum initial investment of $317,100. It is the most affordable franchise.

4. Wide Variety: Burger King offers a variety of local and international menu items to cater to any
traveler away from home. From bacon-studded buns to plant-based Whoppers, grilled burgers, taro-
filled pies, poutine-covered fries, beverages, desserts, Chicken items, and many more, it is preferred
for its wide selection.

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5. Innovative Offerings: Burger King always reinvents and rejuvenates itself with new and highly
innovative offerings. It introduced plant-based sandwiches called Impossible Whopper, which
attracted new customers and helped the company to beat 2nd quarter profit expectations in 2019.

6. Ingenious Marketing: Effective marketing should shake the viewer to the core and stays with
them forever. Burger King recently released a repulsive ad showing a preservative-free burger
deteriorating over 34 days. This attention-grabbing ad ensures that consumers always recognize the
brand for being all-natural.

7. Healthier than Competitors: While Burger King is not yet the healthiest food source in the market,
it offers healthier options than competitors.

Weakness
1. Overdependence on US Market: About 44.0% of Burger King’s restaurants are based in the US
and contributed $9.2 billion of its revenue. This exposes nearly half of the company’s revenue stream
to any challenges in the US market.

2. Misleading Ads: In the current health-conscious society, misleading ads about the ingredients of
products erode trust and turn away customers. Burger King was recently reprimanded for implying
that its Whopper is vegan-suitable, yet it prepared with egg-based mayonnaise.

3. Over-Franchising: Even though Burger King’s franchises have been effectively managed so far,
rapid franchising weakens the sustainability of the model. For instance, Subway’s conflict with its
franchise owners highlights what’s in store for Burger King.

4. Lack of Stability: Any time the ownership and leadership of a business changes hands, continuity
of its operations is disrupted. The ownership of Burger King has changed hands over 6 times with
Restaurant Brands International taking ownership a few years back.

5. Negative Publicity and Controversies: From feeding its customers horsemeat to offering non-
vegan Whoppers to vegans, and many more, each controversy and negative publicity erode the trust
of customers further.

6. Low Value: More customers are seeking value for their money. Unfortunately, Burger King offers
low value from the cheapest to the most expensive burger. Therefore, it does not have a loyal
customer base and its customers can eat at competitors if it is more convenient.

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Opportunity

1. Strengthen Market Presence: Having a strong market presence ensures every customer
can access an outlet instead of going to a competitor. Burger King understands the
opportunities offered by having more outlets is aims to expand from 26,000 to 40,000
restaurants.

2. Increase Plant-based Options: Burger King’s earnings increased by nearly 30% after
launching a healthier sandwich known as Impossible Whopper. The company can exploit
the ever-increasing demand for healthier foods by increasing plant-based options in its
menu.

3. Diversify Portfolio: Instead of focusing primarily on the restaurant business, Burger King
can diversify its portfolio beyond the sector. For instance, it can open a grocery business
instead of relying on other stores to distribute its plant-based Whoppers.

4. Focus on Emerging Economies: From Asia to Africa, the Middle East, and Latin America,
emerging economies offer unsaturated markets and a high potential for growth.
5. Burger King is asking to order from McDonald’s: During the pandemic, in an attempt to
revive the restaurant industry, Burger King has sent out a tweet asking customers to order
from McDonald’s.

Threats

1. Global Recession: Even though food is essential, customers usually reduce eating out in
times of economic hardship. Already, some Burger King franchisees have declared
bankruptcy or are going into receivership.

2. Stiff Competition: From McDonald’s, KFC, Subway, Dominos, and many more, Burger
King is facing stiff competition at home and abroad. It is engaged in fierce ‘Burger Wars’
with its market share, profitability, and sustainability on the line.

3. Rising Health-Consciousness: The number of health-conscious consumers is increasing


rapidly yet most of the foods offered by Burger King contain fats, animal products, and
are categorized as unhealthy. If a competitor offers healthier options, health-
consciousness customers can mass migrate from Burger King in an instant.

4. Strict Regulations: Governments across the world are struggling to bear the costs of
treating and managing lifestyle diseases linked to unhealthy food Authorities can enact
regulations targeting fast-food chains like Burger King to reduce unhealthy foods.

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5. Increasing Prices of Farm Products: The increase in population coupled with rapid
urbanization is increasing demand for fresh farm products while supply is decreasing. The
scarcity of fresh beef has increased prices, which threatens Burger King’s profits and
sustainability.
6. Global Pandemic: Any business that requires its customers to venture out of their homes
and consume in public spaces is vulnerable to the pandemic. Some Burger King
franchisees have gone under while others are struggling to make enough to pay rent.

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Recommendations and Suggestions for Burger King

Clearly, Burger King needs the kind of managerial and especially marketing team that addresses
the company’s value. First, the company should strengthen internally by developing and
implementing a focus strategy that would collaborate the best ways to develop and implement
capabilities. Strategic planning will be accomplished by bringing together upper management and
market managers from various functional areas with same objectives and goals. Then, the
company can protect value created steps that would enhance capital. Secondly, as a second largest
fast-food provider, BK could be more profitable by investing in external business ideas. Burger
King needs to discover good ways to market venture programs. The strategic leaders should seek
out new venture opportunities by viewing the value chain like their own core business. Also, the
company should look within its cultural environment to support new ventures. The organization
should get the best ideas from lower-level employees and franchisees that are willingly able to
find resources to promote these programs. Burger King should employ upper management to
market BK’s image brand. It would be essential to not concentrate on McDonald’s strengths.
Because BK is the second place food leader, they are able to turn their attention toward improving
their Strengths, Weakness, Opportunities and Threats (SWOT) and resolve their long standing
image problem. Equally as important, the company should focus on consumers’ who are age 30
and under demographics because this consultant believes that could be where there profitable lies
in the future. With a faltering economy, the company should capitalize on marketing opportunities
in the demographics of families. Burger King can enhance business sales by broadening their
understanding of these consumers’ desires in the restaurant industry value chain. The overall need
is to define the Burger King fast food market and disclose opportunities to capture the market
share. The strategy is a specific action recommendation when the business needs to keep up with
the changes in the fast food industry. Burger King should continue to decrease their debt load and
increase their international market shares. As a whole, it is important that the internal environment
from leaders to lower level employees form important planning informational groups. Therefore,
combining strategies of integrating overall low cost and differentiation would make it hard for
competitors to copy. These variables will be the forces of change that will channel the company’s
structure so that it will continue to be a stronger organization.

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Summary/ Conclusion

After several research, I came to the conclusion that just as Burger King and any other
international firm take a strategic decision to move beyond borders when their current domestic
market is so saturated.
Firstly, you will have to do intensive research on the foreign country to see which country is most
appealing for the firm. Identifying and selecting the right mode of entry could be a crucial
strategic decision when entering into a foreign market because it can lead to a competitive
advantage or it can damage the firm’s reputation and financial loss.
Companies such as Mc Donald’s and Coca Cola SA decided on Greenfields mode of entry and it
worked very well for them because they started a business from ground up in a foreign country
but for Burger King this was not going to work as Grande Parade Investments a South African
established firm presented to Burger King Worldwide to bring Burger King to South Africa. So
this partnership made it easier for Burger King Worldwide to take the opportunity because the
financial risk is heavily on Grande Parade Investment and Burger King reputation is at stake. It
is always risky entering a foreign continent such as Africa however you have to minimize the
risk.

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References

1. Thakur Publication Book of Legal Aspects of Marketing

2. Nirali Publication Book of Legal Aspects of Marketing

3. Website of Burger King (www.burgerking.in)

4. Magazine of new food (www.newfoodmagazine.com)

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