Brand Audit According to Strategic Brand Management, “ a brand audit is a comprehensive examination of a brand to assess its health, uncover its source of equity, and suggest ways to improve and leverage that equity,” (Keller, 2008). Burger King will benefit from a brand audit because it provide new insights into brand strengths and weaknesses, growth opportunities and develop a strong competitive advantage in the fast-food industry. The Industry Burger King and McDonald’s are both in the fast-food industry specifically focusing in burgers, fries and chicken. According to Webster dictionary there are two definitions of fast food. First, “of, relating to, or specializing in food that can be prepared and served quickly. Second, “designed for …show more content…
By 2020, this figure was forecasted to exceed 223 billion,” (Tucci, 2014). The fast-food industry is very profitable and even challenger brands stand to fare well. Fast food is changing the way consumers perceive their brands by focusing more on healthy food options. According to Forbes, “While sit-down restaurants and hotels remain relatively quiet as casual chains like Chipotle, Panera Bread, Subway’s, McDonald’s and Dunkin Donuts seek to eliminate undesirable ingredients; getting rid of unhealthy ingredients is no mere fad. Everyone will scramble to sanitize their menu,” (Huen, 2015). This switch to healthier menu items may trigger our challenger brand Burger King to make major menu …show more content…
“According to Advertising Age, McDonald’s was 101 percent ahead of Burger King in average domestic revenue per unit in 2010, more than double its lead from 10 years earlier,” (Melnick, 2012). In addition to lacking sales, “Burger King’s downturn started in the early 2000s, when major franchisees publicly aired grievances with the company,” (Melnick, 2012). While there should be a clause in a franchise agreement saying public grievances are not allowed they were aired publically anyway and damaged brand perceptions. While sales have been improving for Burger King they still have yet to surpass McDonald’s. “In 2014, Burger King reported a like-for-like sales increase of 3.6% in America and Canada compared with a decrease by 3.3% of comparable sales at McDonald 's. That said, sales at an average McDonald 's in America are still roughly double those of an average Burger King,” (Melnick, 2014). Overall, Burger King will have to drastically improve sales over multiple years to catch up with industry leader
From a study completed by Chicago-based Research International USA completed a study called “Fast Food Nation 2008. The panel consisted of 1,000 respondents of ages 16-65 who provided their inputs with an online survey which was conducted between March 13 through 2008. Which was based on results on fast food restaurants like McDonald’s, Burger King, and Wendy’s are gaining popularity even through the economic hardship and recession. Marketing strategy has become more of influence on kids and young American’s. As population grows and the demand increases of fast food restaurants are expanding their stores to capturing more consumers. Fast food chains are also willing to change their menus to continue to gain and retain repeating customers. With each generation that passes, brings fast food chains into more homes and continues impacting lives.
Fast food restaurants such as Burger King and McDonald’s, create advertisements where it urges people to consume their product. For example Mcdonald’s created a product where you can get two items such as a mcdouble and a medium fries for three dollars. According to “The battle against fast food begins at home”, by Daniel Weintraub, it shows how companies are intriguing their customers. “ The center blames the problem on the increasing consumption of fast food and soft drinks, larger portion sizes in restaurants and the amount of available on school campuses”(1).For the most part, the Center for Public Health believes that fast food companies are the problem for health
Put that burger down? Obesity is a public epidemic because it is rising by the day. Some people are so quick to blame the fast food industry like McDonalds, Burger King, and other firms claiming that these industry aide in creating a society in which it is encouraged to eat unhealthy food. So who really is to blame? While we are busy pointing our sticky finger at restaurants, grocery stores, farmers, or government policies, we need to focus on our individual self as the main cause of this increasing epidemic.
With strength ultimately comes weakness and McDonald's has its fair share, especially in the last few years. Many weaknesses are due to the external environment which includes market saturation, increased price competition, and food and labor costs. These weaknesses affect many firms in the fast food industry so McDonald's is trying to effectively combat these forces using a differentiation strategy. Developing new products such
There are many things you can converse about when comparing these two topics. The first topic to compare is the price of the food at each restaurant. All in all, Mcdonald’s is cheaper than Burger King in several ways. Mcdonald’s
McDonald’s has the largest fast food market share in the world. As mentioned, it serves 68 million customers every day in 119 countries, allowing it to be the second largest outlet operator with more than 34,000 outlets.
Have you ever wondered how the business empire of McDonalds was started? With over ninety nine billion served, it was started in 1940 in San Bernardino, California. It was started off as just a Bar-B-Q that served just twenty items. Its first mascot was named “Speedee” They eventually realized that by setting up their kitchen like an assembly line that they could be much more productive and get their food done faster, with every employee doing a specified job; the restaurants production rate became much higher. A milkshake machine vendor came into their small restaurant one day, his name was Ray Kroc. He saw how much potential the restaurant has, so he bought it out and opened one of the first franchises. Within the first year of Ray Kroc buying it, there were one hundred and two locations all around the world. McDonalds currently is one of the largest fast food restaurants in the world and currently has served over sixty four million customers through one of their thirty two thousand sites. It has almost become a way of life for America. Though, McDonalds started off as a small business between two brothers, it grew into one of the largest restaurant franchises in the world and greatly affects our society and how we eat our food.
One of Burger King’s most important strengths is its strong market position. It is the second largest fast food chain in the world, trailing McDonald’s. There are 11,550 stores in 71 different countries. Its geographic diversification is a competitive advantage. Burger King’s slogan, “HAVE IT YOUR WAY,” and its’ famous “WHOPPER” brand are very recognized by all consumers. These two campaigns were created in the 70s and have stuck around ever since. Talking some numbers, between 2006 and 2008, the chain’s profitability increased from $170 million to $354 million. In 2010, $2.5 billion was expected to be made and Burger King was able to reach just those projections.
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
Fierce and growing competition – big fast food companies like Burger King and Kentucky Fried Chicken are constantly competing with McDonalds for customers and trying to take the spot as the top fast food chain.
...ica the demographics had to be taken into account. Burger King is a fast food restaurant that is suitable for all ages, races, religion, culture etc. unless a consumers feels different about it. Burger King also suits most consumers’ pockets and taste preferences. They do have a range of food such as chicken and beef which satisfies most consumers.
McDonald’s has proven over time that the business practices they utilize work well and have led them to obtaining the title of the largest food retailer in the world. The founder of the company made a tactical decision in franchising the idea of providing fast food at a cheap price. Today, fast food has become a staple of not only American life but a viable food option all over the world. For McDonald’s a critical factor in them reaching the level of growth they currently experience has been franchising. It can be assured that McDonald’s will continue to grow through the usage of the franchising techniques as new food markets continue to develop all over the world.
Much like a smile, the “Golden Arches” can be understood in any language. The McDonalds brand is the most well-known, internationally embraced fast food empire. McDonalds operates over 31,000 franchises throughout the world, with the United States leading the way with a whopping 13,381outlets as of May 2009 [1]. McDonalds has the fast food market cornered, offering an increasing variety of food of beverages, marketed to people of all ages to eat at any time of the day. However, being a corporate giant has its issues. McDonalds has faced a lot of criticism for its high-fat, high-sugar, potentially addictive menu. While the corporation is not likely to outright admit responsible for its actions, McDonalds has seen some changes to address some of the issues. Despite the flaws in the public elements of the brand, McDonalds has established an almost recession-proof economic base [2].
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...
Fast food has changed the face of the world. Major chains like McDonalds span all over the world. Fast food chains are continuing to grow despite numerous facts of their unhealthiness. Fast food has been proven to be a dangerous food source, yet people continue to purchase it. The more people buy fast food the more it allows the big corporations to grow. People continue to eat fast food because there are no other convenient options.