compiting brands

8/14/2019 Compiting Brands

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TITLE: MARKETING

FOR: TCHIMISSA BAGALWA

TO: ANGELA MANDHER

COURSE: INTERNATIONAL MANAGEMENT

McDonalds and Burger King

Tchimissa Bagalwa Angela MandherMarketing
http://martindelin.blogspot.com/2007/07/mcdonalds-vs-burger-king.htmlhttp://bp0.blogger.com/_0ilTE_HUuLA/RpP_EBYfLMI/AAAAAAAAAGY/Pipa6pP9-Q8/s1600-h/burger_logo.gifhttp://bp3.blogger.com/_0ilTE_HUuLA/RpP-7xYfLLI/AAAAAAAAAGQ/0112sW8BPvY/s1600-h/mcdonalds_logo.jpghttp://martindelin.blogspot.com/2007/07/mcdonalds-vs-burger-king.html


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ID: A0374A

CONTAINT PAGES

1 Carry out secondary research (using the internet / journals / magazine for

example) on the brands and the market in which they compete. You should

identify the competition and highlight their particular strengths. You should try

and ascertain some information on market shares for the brands

2 Design and conduct a questionnaire to assess the publicsviews on the strengths and weaknesses of the brands. Carryout market research using the questionnaire

3 Summarise your research findings, include a written summary and data in

tabulated or graphical form

4 Write a short paragraph discussing the strengths and weaknesses of your

research. (I.e. where could the work have been better? What problems did you face?

How could they have been overcome if you did the research again?)

Procedures

Procedures

www.wisegeek.com

http://www.wisegeek.com/http://www.wisegeek.com/


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www.school-for-champion.com

www.emeraldinsight.com

www.google.co.uk

www.wikiswot.com

www.mcdonald-research.com

INTRODUCTION

I have been given an assignment on Marketing which I will be choosing two organisation of

my own choice, and show how they compete and their market target.

http://www.school-for-champion.com/http://www.emeraldinsight.com/http://www.google.co.uk/http://www.wikiswot.com/http://www.mcdonald-research.com/http://www.school-for-champion.com/http://www.emeraldinsight.com/http://www.google.co.uk/http://www.wikiswot.com/http://www.mcdonald-research.com/


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This will help me to gain important credit towards my future studies at college or university of

my choice; I am going to talk about McDonalds and Burger king background and their

strengths and weakness, I will compare the services they offer to the customer and the

opinion of customers on their brands.

I will put down questionnaires that will tell me about what kind of people go to McDonalds

and Burger king.

After I will decide which company has the better services and strategy of reaching out to

customers.

TASK ONECarry out the secondary research on two brands and the market in which they

compete. You should identify the competition and highlight their particular strengths.

You should try and ascertain some information on market shares for brands.

Secondary research of McDonalds and Burger king

Im doing the research on these two competing brand between burger king and McDonalds.

Who has the better hamburger and how they reach people; Burger King often abbreviated

as BK , is a global chain of hamburger fast food restaurants headquartered in unincorporated

Miami-Dade County , Florida , United States. The first restaurant was opened in Miami,

Florida in 1954 by James McLamore and David Edgerton , and has since used several

variations of franchising to expand its operations. Burger King Holdings Corporation is the

parent company of Burger King; in the United States it operates under the Burger King

Brands title while internationally it operates under the Burger King Corporation banner. It is a

http://en.wikipedia.org/wiki/Chain_storehttp://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Fast_foodhttp://en.wikipedia.org/wiki/Unincorporated_areahttp://en.wikipedia.org/wiki/Miami-Dade_County,_Floridahttp://en.wikipedia.org/wiki/Floridahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Miami,_Floridahttp://en.wikipedia.org/wiki/Miami,_Floridahttp://en.wikipedia.org/wiki/James_McLamorehttp://en.wikipedia.org/wiki/David_Edgertonhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Chain_storehttp://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Fast_foodhttp://en.wikipedia.org/wiki/Unincorporated_areahttp://en.wikipedia.org/wiki/Miami-Dade_County,_Floridahttp://en.wikipedia.org/wiki/Floridahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Miami,_Floridahttp://en.wikipedia.org/wiki/Miami,_Floridahttp://en.wikipedia.org/wiki/James_McLamorehttp://en.wikipedia.org/wiki/David_Edgertonhttp://en.wikipedia.org/wiki/Franchising


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publicly traded company with investment firms of TPG Capital , Bain Capital and Goldman

Sachs Capital Partners each owning about 25% of the company.

At the end of its fiscal year 2008, Burger King reported that there are more than 11,550

outlets in 71 countries; 66% are in the United States and 90% are privately owned and

operated . The company has more than 37,000 employees serving approximately 11.4

million customers daily. In North America, franchises are licensed on a per store basis, while

in several international locations licenses are sold on a regional basis with franchises owning

exclusive development rights for the region or country. These regional franchises are known

as master franchises , and are responsible for opening new restaurants, licensing new third

party operators, and performing standards oversight of all restaurant locations in these

countries; The largest example of a master franchise is Hungry Jack's, which exclusivelyowns, operates or sub-licenses over 300 restaurants in Australia.

The Burger King menu has evolved from a basic offering of burgers, fries, sodas and

milkshakes in 1954 to a larger, more diverse set of offerings that includes several variations

of chicken , fish, salads and breakfast . The Whopper , a sandwich that has since become

Burger King's signature product, was the first major addition to the menu by Mr. McLamore

in 1957. Not all introductions have had the success of the Whopper; BK has introduced

many products which failed to catch hold in the marketplace. Some products that have failed

in the US have seen success in foreign markets, where BK has also tailored its menu for regional tastes.

The company's "Golden Age" of advertising was during the 1970s when it introduced its

mascot the Magical Burger King , a memorable jingle, and several well known and parodied

slogans . Beginning in the early 1980s, its advertising began to lose focus; a series of less

successful ad campaigns created by various agencies continued for the next two decades.

In 2003, Burger King set about resuscitating its moribund advertising with the hiring of the

Miami-based advertising agency of Crispin Porter + Bogusky (CP+B). They completely

reorganized Burger King's advertising with a series of new advertisements centered on aresuscitated Magical Burger King character. On another hand McDonald's Corporation is

the world's largest chain of hamburger fast food restaurants , serving nearly 47 million

customers daily. [4] At one time it was the largest global restaurant chain, but it has since

been surpassed by multi-brand operator Yum! Brands (KFC, Taco Bell and others) and

sandwich chain Subway .

In addition to its signature restaurant chain, McDonalds Corporation held a minority interest

in Prt A Manger until 2008 , and owned the Chipotle Mexican Grill until 2006 and the

http://en.wikipedia.org/wiki/TPG_Capitalhttp://en.wikipedia.org/wiki/Bain_Capitalhttp://en.wikipedia.org/wiki/Goldman_Sachs_Capital_Partnershttp://en.wikipedia.org/wiki/Goldman_Sachs_Capital_Partnershttp://en.wikipedia.org/wiki/Burger_King_franchiseshttp://en.wikipedia.org/wiki/Burger_King_franchiseshttp://en.wikipedia.org/wiki/Master_franchisehttp://en.wikipedia.org/wiki/Hungry_Jack'shttp://en.wikipedia.org/wiki/Burger_King_productshttp://en.wikipedia.org/wiki/Chicken_(food)http://en.wikipedia.org/wiki/Fish_(food)http://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Breakfasthttp://en.wikipedia.org/wiki/Whopperhttp://en.wikipedia.org/wiki/Burger_King_advertisinghttp://en.wikipedia.org/wiki/The_Burger_Kinghttp://en.wikipedia.org/wiki/Sloganshttp://en.wikipedia.org/wiki/Crispin_Porter_+_Boguskyhttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Yum!_Brandshttp://en.wikipedia.org/wiki/KFChttp://en.wikipedia.org/wiki/Taco_Bellhttp://en.wikipedia.org/wiki/Subway_(restaurant)http://en.wikipedia.org/wiki/Pret_A_Mangerhttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/Chipotle_Mexican_Grillhttp://en.wikipedia.org/wiki/TPG_Capitalhttp://en.wikipedia.org/wiki/Bain_Capitalhttp://en.wikipedia.org/wiki/Goldman_Sachs_Capital_Partnershttp://en.wikipedia.org/wiki/Goldman_Sachs_Capital_Partnershttp://en.wikipedia.org/wiki/Burger_King_franchiseshttp://en.wikipedia.org/wiki/Burger_King_franchiseshttp://en.wikipedia.org/wiki/Master_franchisehttp://en.wikipedia.org/wiki/Hungry_Jack'shttp://en.wikipedia.org/wiki/Burger_King_productshttp://en.wikipedia.org/wiki/Chicken_(food)http://en.wikipedia.org/wiki/Fish_(food)http://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Breakfasthttp://en.wikipedia.org/wiki/Whopperhttp://en.wikipedia.org/wiki/Burger_King_advertisinghttp://en.wikipedia.org/wiki/The_Burger_Kinghttp://en.wikipedia.org/wiki/Sloganshttp://en.wikipedia.org/wiki/Crispin_Porter_+_Boguskyhttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Yum!_Brandshttp://en.wikipedia.org/wiki/KFChttp://en.wikipedia.org/wiki/Taco_Bellhttp://en.wikipedia.org/wiki/Subway_(restaurant)http://en.wikipedia.org/wiki/Pret_A_Mangerhttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/Chipotle_Mexican_Grill


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restaurant chain Boston Market until 2007. The company has also expanded the McDonald's

menu in recent decades to include alternative meal options, such as salads and snack

wraps, in order to capitalize on growing consumer interest in health and wellness.

Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself.

The corporations' revenues come from the rent, royalties and fees paid by the franchisees,

as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the

three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9

billion.

McDonald's primarily sells hamburgers , cheeseburgers , chicken products, French fries ,

breakfast items, soft drinks , milkshakes , and desserts . In response to obesity trends in

western nations and in the face of criticism over the healthiness of its products, the companyhas modified its menu to include such healthier alternatives as salads , wraps and fruit. The

business began in 1940, with a restaurant opened by brothers Dick and Mac McDonald in

San Bernardino , California. Their introduction of the "Speedee Service System" in 1948

established the principles of the modern fast-food restaurant . The original mascot of

McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name

was "Speedee." Speedee was eventually replaced with Ronald McDonald in 1963.

The first McDonald's restaurants opened in the United States , Canada , Costa Rica , Japan ,

the Netherlands , Germany, Australia , France , El Salvador and Sweden in order of openings.The present corporation dates its founding to the opening of a franchised restaurant by Ray

Kroc, in Des Plaines, Illinois on April 15, 1955 , the ninth McDonald's restaurant overall. Kroc

later purchased the McDonald brothers' equity in the company and led its worldwide

expansion and the company became listed on the public stock markets in 1965. Kroc was

also noted for aggressive business practices , compelling the McDonald brothers to leave the

fast food industry. The McDonald brothers and Kroc feuded over control of the business, as

documented in both Kroc's autobiography and in the McDonald brothers' autobiography. The

site of the McDonald brothers' original restaurant is now a monument.With the expansion of McDonald's into many international markets, the company has

become a symbol of globalization and the spread of the American way of life . Its prominence

has also made it a frequent topic of public debates about obesity , corporate ethics and

consumer responsibility.

McDonald's restaurants are found in 119 countries and territories around the world and

serve nearly 47 million customers each day. McDonald's operates over 31,000 restaurants

http://en.wikipedia.org/wiki/Boston_Markethttp://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Cheeseburgerhttp://en.wikipedia.org/wiki/Chicken_(food)http://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/Breakfasthttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Milkshakehttp://en.wikipedia.org/wiki/Desserthttp://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonaldhttp://en.wikipedia.org/wiki/San_Bernardino,_Californiahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Ronald_McDonaldhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Costa_Ricahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/El_Salvadorhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/American_wayhttp://en.wikipedia.org/wiki/Obesityhttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Moral_responsibilityhttp://en.wikipedia.org/wiki/Boston_Markethttp://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Cheeseburgerhttp://en.wikipedia.org/wiki/Chicken_(food)http://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/Breakfasthttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Milkshakehttp://en.wikipedia.org/wiki/Desserthttp://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Dick_and_Mac_McDonaldhttp://en.wikipedia.org/wiki/San_Bernardino,_Californiahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Ronald_McDonaldhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Costa_Ricahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/El_Salvadorhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Ray_Krochttp://en.wikipedia.org/wiki/Des_Plaines,_Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/American_wayhttp://en.wikipedia.org/wiki/Obesityhttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Moral_responsibility


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worldwide, employing more than 1.5 million people. The company also operates other

restaurant brands , such as Piles Caf.

Focusing on its core brand, McDonald's began divesting itself of other chains it had acquired

during the 1990s. The company owned a majority stake in Chipotle Mexican Grill until

October 2006, when McDonald's fully divested from Chipotle through a stock exchange.

Until December 2003, it also owned Donatos Pizza . On August 27, 2007, McDonald's sold

Boston Market to Sun Capital Partners .

McDonald's or Burger King? Both of these well-known fast food restaurantshave been in business for over 50 years. McDonald's boasts over 31000locations worldwide and still expanding. Burger King is in the process of adding to its 11,200 worldwide locations by expanding in Japan, Hong Kong and adding Macau. McDonald's had over 21.6 billion dollars in revenue lastyear. Burger King had only about 10% of that with the sales totalling 2.06billion dollars last year. Do these statistics reflect that maybe McDonald's has the better hamburger?

Some might say yes, but let's take a closer look. I went to bothwww.mcdonalds.com (McDonald's website) and www.bk.com (Burger Kingswebsite) and checked out the nutrition information that they haveavailable on each of their sites. I compared hamburger size: McDonald's weighs slightly less; it is only 100g while Burger King's weighs 121g. Next,I looked at the total fat content for each of their burgers. McDonald's hamburger has only 9g of total fat; while Burger King's hamburger had12g. If you take into account their size difference; the fat content iscomparable. I was also interested in the salt content of each of theirhamburgers. McDonald's hamburger has 520g of salt; while, Burger King'shamburger has 560g of salt. Again, taking into consideration the size

difference; the salt content of each is about the same. The last thing that Ilooked at was the carbohydrate count in each hamburger. Burger King isthe better choice for those interested in their carbohydrate intake. BurgerKing, while its hamburger weighs more than McDonald's hamburger, hasless carbohydrates only 30g per sandwich. McDonald's hamburger has31g of carbohydrates in it.

When you compare the nutritional value of both the Burger King hamburgerand the McDonald's hamburger; there really is little difference. We mustcontinue to look at the two chains to determine which has the better

http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Divestmenthttp://en.wikipedia.org/wiki/Chipotle_Mexican_Grillhttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Boston_Markethttp://en.wikipedia.org/wiki/Sun_Capital_Partnershttp://www.associatedcontent.com/topic/2831/mcdonalds.htmlhttp://www.associatedcontent.com/topic/3203/fast_food.htmlhttp://www.associatedcontent.com/topic/2831/mcdonalds.htmlhttp://www.associatedcontent.com/topic/24215/burger_king.htmlhttp://www.associatedcontent.com/topic/4855/hong_kong.htmlhttp://www.associatedcontent.com/topic/2831/mcdonalds.htmlhttp://www.associatedcontent.com/topic/24215/burger_king.htmlhttp://www.associatedcontent.com/topic/2831/mcdonalds.htmlhttp://www.mcdonalds.com/http://www.bk.com/http://www.associatedcontent.com/topic/2831/mcdonalds.htmlhttp://www.associatedcontent.com/topic/2831/mcdonalds.htmlhttp://www.associatedcontent.com/topic/24215/burger_king.htmlhttp://www.associatedcontent.com/topic/24215/burger_king.htmlhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Divestmenthttp://en.wikipedia.org/wiki/Chipotle_Mexican_Grillhttp://en.wikipedia.org/wiki/Donatos_Pizzahttp://en.wikipedia.org/wiki/Boston_Markethttp://en.wikipedia.org/wiki/Sun_Capital_Partnershttp://www.associatedcontent.com/topic/2831/mcdonalds.htmlhttp://www.associatedcontent.com/topic/3203/fast_food.htmlhttp://www.associatedcontent.com/topic/2831/mcdonalds.htmlhttp://www.associatedcontent.com/topic/24215/burger_king.htmlhttp://www.associatedcontent.com/topic/4855/hong_kong.htmlhttp://www.associatedcontent.com/topic/2831/mcdonalds.htmlhttp://www.associatedcontent.com/topic/24215/burger_king.htmlhttp://www.associatedcontent.com/topic/2831/mcdonalds.htmlhttp://www.mcdonalds.com/http://www.bk.com/http://www.associatedcontent.com/topic/2831/mcdonalds.htmlhttp://www.associatedcontent.com/topic/2831/mcdonalds.htmlhttp://www.associatedcontent.com/topic/24215/burger_king.htmlhttp://www.associatedcontent.com/topic/24215/burger_king.html


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hamburger. Burger King claims that their hamburgers are 100% purebeef. McDonald's makes the same claim. Burger King flame- broils their

burgers. This gives the Burger King hamburger the taste of outdoorbarbeque grilling that many Americans love. McDonald's fries their burgerover a flat grill so it tastes more like indoor cooking. Burger King dressestheir hamburgers up with ketchup, mustard and pickle. But, Burger King'sslogan is: "Have it your way!" so you can take off any of the condimentsor add more of them to your sandwich. McDonald's hamburger comes withketchup, mustard, pickle and onion. You can special order theirhamburger to fit your taste. The cost of the McDonald's hamburger isslightly lower at $0.89 while Burger King's hamburger costs $0.99. But, if you take into consideration that the Burger King hamburger is bigger thanthe McDonald's one; they really cost about the same

Both McDonald's and Burger King have another version of the hamburgeron their menu. McDonald's offers the "Big and Tasty" and Burger Kingoffers the Junior Whopper. The difference between the "Big and Tasty anda regular McDonald's hamburger is that there is lettuce and tomato andsliced (instead of chopped) onion on it. And the Junior Whopper is a BurgerKing hamburger with lettuce, tomato, onion and special sauce. Both of these hamburgers cost slightly more than the regular hamburger at eachof these restaurants.

So, who has the better hamburger McDonald's or Burger King? So far theyappear almost comparable. Burger King comes out slightly ahead if youcompare size (which is larger than the McDonald's hamburger) or if youare concerned with the carbohydrate count of the sandwich (Burger King'shamburger has one less gram of carbohydrates in it). But, for the mostpart they appear to be comparable. I guess that the answer to thequestion: "Who has the better hamburger?" comes down to personaltaste.

In my family, we are equally divided about who makes the betterhamburger: Burger King or McDonald's? I prefer McDonald's hamburger

because it seems to be juicier and whenever I eat a Burger Kinghamburger it tends to upset my stomach. On the other hand, my wifeswears that the Burger King hamburger is far better than the McDonald'shamburger. He thinks that the Burger King hamburger is made from abetter grade of beef and he also prefers the Burger King's hamburger bunover the McDonald's hamburger bun.McDonalds target market?

Mc Donald's target market is every segment of the demography!

The segments of the demography are; family life-cycles, gender, age, Nationality, Income,

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Generation, Race etc.

Like u stated, Marketing Mix are the 4p's:

Product, Price, Place and Promotion

1. Mc Donald Product: value-priced, fast-serviced meal

2.Mc Donald Price: my guess is Value-pricing (offering just the right combination of quality

and good service at a fair price)

3. Place: Strategic location of most Mc Donald fast-food outlet is found in populated and

easily accessible areas (ex: retail areas, airports, busy street) or most certainly locating

closely where its top 3 competitors are also doing business ex: Burger King, Subway etc..

4. Promotion: Mc Donald has engaged in many short-term incentives for consumer

promotion through limited value menus, promotional games to promote old/new items on the

menu ex: Happy Meal toys, Big Mac Hockey Contest, card games etc..

And McDonald focuses its ad campaigns on its overall Mc Donald experience and active life

style.

Source(s):

Mc

Strengths:

1) Globalization: 31,000 restaurants serving 120 countries. Of the 31,000 restaurants at

least14,000 restaurants in the US

2) Active Children's Charity: The Ronald McDonald House

3) Adjusted Ingredients and product offerings to comply with upgraded health standards

deemed necessary by the USDA

4) Earns revenue not merely by fast food sales, but also as a property investor, a franchiser of restaurants.

5) Branded (name recognized) menu items such as Big Mac, Quarter Pounder and Chicken

McNuggets

Weaknesses:

1) Advertisement techniques that target children

2) Consumers use disposable income to purchase fast food meals so when the budget it



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threatened, consumers redirect these funds

3) Public perception: McDonald's has been impacted by negative press like the

documentary "Super size Me" by Morgan Spurlock in which he contributed our societies

obesity to McDonald's and other fast food chains.

Burger king target market

Burger Kings target audience is males, aged 18 to 35 who eat fast-food 9 to 16 times per

month. While they are just 18% of Burger Kings customers, they account for about half of all

visits to the stores. From the Market Facts Summary we know Burger Kings segments

include: Segment one: Tweens who keep up with the latest fashion and music trends for their age

group.

Segment two: Blue collar workers who live very busy lifestyles, balancing children and

possibly more than one job. They look for quick and convenient meals in their hectic lives.

Segment three: Lower and middle class families with children.

Segment four: Young adults busy with school and work, such as college students.

Segment five: Individuals who have a passion for fast food. Burger King refers to these

individuals as Super Fans, an audience with an unapologetic love of fast food. They aredefined by the way they seek convenience.

Strengths Second largest fast food hamburger restaurant (FFHR) in the world Strong brand equity Growth model not capital intensive: 90% of its restaurants are owned by franchisees Strong financial performance

Weaknesses

Heavily concentrated in the US: about 65% of operations Not enough corporately owned stores means it relies heavily on franchisees to

execute its brand promise



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Task 2

Design and conduct a questionnaire to assess the publics views on the strengths

and weaknesses of the brands. Carry out market research using the questionnaire .

QUESTIONAIRES

NAME.

1. Which is your favourite restaurant between McDonalds andburger king?

Burger king McDonalds

2. Who make the best burger between them?

Burger king McDonalds

3. What makes you purchase at these restaurant?

Fast food tasty food healthier food quick serves

4. What affect does it have on your health?

Good Bad never average

5. Which of these two has the best price?

McDonalds Burger king

6. How do you get attracted to these restaurants?

Healthier food tasty food quick serves none

7. How do you rate McDonalds services?

Very good good average bad very bad



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8. How do you rate burger king services?

Very good good average bad very bad

9. What do you think they can improve on?

Food services Cleaning healthy foodCustomer services

10.Your gender?

Male Female

11.Select your age?

0-10 11-18 19-30 31 and over

Task 3

Summarise your research findings, include a written summaryand data in tabulated or graphical.

The first thing I will talk about is McDonalds and Burger King Goals. McDonald's has a goalof one hundred percent total customer satisfaction. However, they do realise that this goal isnot always attainable. Therefore, if for any reason they do not meet that goal, they will dowhatever it takes to correct their mistake. McDonald's has a second company goal that setsthem apart from most of their competitors. McDonald's was founded on the principle of giving back to the community, and that remains one of their primary goals today. Throughtheir charities, Ronald McDonalds House and Ronald McDonalds Children's Charities,McDonald's has pumped millions of dollars back into the community over the years.McDonald's customer service policy is laid out in the McDonald's Guarantee. TheMcDonald's Guarantee states, your food will be hot. Your service will be fast and friendly.And your drive-thru orders will be double-checked right. If you're not satisfied, we'll make itright. Or your next meal is on us. Guaranteed. The customer service procedures of

McDonald's do focusing on one customer at time. They are more concerned with the qualityof the service than the speed of the service. Employees usually take only one order at atime. They then prepare that order while the customers wait. After the present customer issatisfied, they move on to the next customer. This procedure allows great accuracy andquality, but lacks speed. McDonald's climate was not very appealing. Everything appearedto be focused around the business instead of the customers. Employees were working at arapid pace, but it seemed like they had no time for customers. They acted as if it was aburden for them to stop and answer a simple question or refill a drink. The atmosphere wasalso very noisy. There was constant beeping, banging, and yelling coming from the servicearea. They did not provide a pleasant ambiance for customers to dine in. McDonald's



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communication and leadership were also lacking. The only communication betweenemployees and customers was the placement of orders. The employees provided no

feedback in terms of double-checking orders or communicating any delays that might occur.Communication between employees consisted of loud yelling throughout the kitchen. Interms of leadership, I did not see a manager present during my visit. Burger King was a littlemore difficult because they do not provide customers with literature, communicating goalsand policies, as McDonald's does. However, Burger King's goals seemed quite clear. Theywant to individualise each customer's order and provide the fastest service possible. Burger King's policy is to give the customer many choices and to accurately and quickly providewhatever the customer chooses. This policy is reflected in their slogan, your way, right away.Operating under this policy makes it very easy to achieve their goals. Through the manychoices they provide it is easy to customise each order. Burger King's procedures are alsoconsistent with their goals. In order to individualise each order they provide customers with

many options when ordering. To facilitate fast service Burger King takes customer orders ona continual basis. One employee takes the customer's order, the customer then movesdown the line where another employee is preparing the order. Meanwhile, the originalemployee is taking another customer's order. Customers also get their own drinks while theyare waiting for their meal. This makes service much faster in that employees do not have toprepare drinks or provide refills. The climate at Burger King was very pleasant. Theemployees conveyed the attitude that they were there to assist the customers in any waypossible. The restaurant was very clean and there were no loud noises from the servicearea. They also provided relaxing music for customers to listen to while dining. Burger Kingpossessed more than adequate communication and leadership. Employees gave thecustomers feedback on their orders. Each customer received a receipt, which enabled themto double-check their order. The employees also read the order back to the customer beforehanding them the order. In terms of leadership, there was a manager at visit. The manager showed involvement by taking orders and coaching employees. I compared and McDonaldsand Burger King as follow: Comparison between McDonald's and Burger King Analysis:

Organisational Goals Both McDonald's and Burger King share the same basic organisational

goals of profitability, sales volume, fast and courteous service, and cleanliness. There are

minor variations to these goals by both companies.

Organisational Structure When observing McDonald's and Burger king, the organisational

structures of the two restaurants were very similar. There appeared to be a crew leader whowas a non-managerial employee and, there was a manager who was present behind the

counter. The managers of the restaurants seemed to be in control of every aspect of the

entire food service process. He had keys to the store, and registers, and also was the only

one to take phone calls. One might assume that because both restaurants are chains, there

is a hierarchy of command. There is perhaps a regional manager, then a district manager,

all the way up to a CEO of McDonald's and Burger King. The distinction between the

management and the staff was very clear and apparent by looking at their uniforms.



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Technology Both McDonald's and Burger King are on the cutting edge of technology. They

both employ state of the art cash registers and both have electric timers built into their

cooking machines. Although the cooking styles vary between Burger King and McDonald's,

the method of production is the same. Large batches of food are cooked at once then

placed under heat lamps or put in the microwave when an order is placed. Both stores have

the same drive through technology with a speaker and a well-lit menu to relay the message

to the cooks. Usually whoever takes the order is also the same person to collect the money;

however, a different person usually puts the order together for the customer.

Employee Motivation The motivation of both stores for employees to perform well is hard to

ascertain from just observing. The people working in these establishments appear to have a

lower social economic status, and the fact that a pay check is coming at the end of the weekmay be the only motivation they have. The stores do have an employee of the month plaque

on the wall, but it is doubtful that this is motivation to strive day in and day out for. There is

also the fear of potentially losing their jobs if they perform sub standard.

Communication both stores employed a very open communication policy. Employees were

talking, sometimes shouting at one another to be heard. The management was openly

involved in the employees routines and the employees felt no barriers to prevent their

communication with the manager. Sometimes in both stores, there would be a breakdown in

communication somewhere along the line and that would result in extended waiting timesfor customers and sometimes, screwed up orders.

Environment The environment at McDonald's and Burger King seems to be a simple, yet

unstable one. It is apparent that the majority of people, who work there, are not choosing

their employment as a career option. Therefore, the workforce is constantly changing and

adapting to new employees and new situations.

Job Design The design of the job in both McDonald's and Burger King ran smoothly at

times. There was autonomy between the different positions. For example, the fry person

would just make fries. If he ran into a problem, he could use his knowledge of the frymachine to fix the problem without having to go to management. There was a visual barrier

between the different positions; however no position seemed more glorified than another

one.

Leadership Style There was similar leadership style employed by the management at both

stores. Task orientation was essential to meeting the goal of fast food. Each person had to

be focused on the task at hand, because during certain hours of the day, both stores were



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very busy. There seemed to be little flexibility from management if it meant compromising

their goals.

Policies/Procedures/Rules/Standards Standardisation seemed to be the key at both stores.

One can walk into any McDonald's in the country and find that a Big Mac is the same

everywhere. Similarly, a Whopper will taste the same at every location. Therefore, the

ingredients, and cooking methods must remain constant throughout. There can be no

variation. Rules and procedures were posted on clear signs and made directly available to

the employee.

Organisation Climate There seemed to be individual autonomy for the most part at both

stores. However, the reward system was not easy to identify. They seemed expected to do

their job consistently and accurately, perhaps in fear of punishment. They receivedcooperation from management as long as they were working diligently.

Task 4

Write a short paragraph discussing the strengths and weaknesses of your research. (i.e.

Where could the work have been better? What problems did you face? How could they

have been overcome if you did the research again?

McDonalds and Burger King Analysis

BK Organisational Goals At first glance there are no posters on the wall that state the goals

that McDonalds are trying to each. A customer can find a list of the McDonalds goals in

what look to be childrens flyers round the restaurant. The flyers stated that McDonalds goal

is 100% total customer satisfaction. Also if you are not completely happy with your meal

that the restaurant would do whatever it took to make it right. This is not a very realistic goal

for a fast food restaurant because with the amount of food that is served everyday there is

no way that every customer will be satisfied. When I got to Burger King there were no

pamphlets for the customer to read. There was nothing that let the consumer know what the

company was all about. There was a large sign, which read the slogan Working for You.

This was what appeared to be the organization goal and it was interesting to see that the



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slogan was in improper English. Although this goal is much more realistic than the

McDonalds counterpart.

Organisational Structure although the structure of the two organisations is basically the

same there were two differences that I noticed. One difference is in the specific tasks of the

employees working the front. In McDonalds there is one person who takes your order and

gets your food. Only one person is helped at a time because the cashier has to wait for the

food and then serve you. In Burger King there are two separate stations to order and then

pick up your food. At the beginning of the line the customer orders and pays in exchange for

a number. Then you move down the line to where the customer picks up the food in

accordance with the number. This greatly speeds up the lines and reduces the waiting time.

The other difference is in the management. At both restaurants there is one manager thathandles all the employees working at the time. In McDonalds the manager was nowhere to

be found but in Burger King the manager was at the front letting himself be seen and talking

with the customers. He also wore a different coloured uniform to signify his position in the

organisation.

Technology The production level of the two restaurants is the main difference in their

technology. McDonalds makes their food in mass production. The burgers are already

made and waiting under a heat lamp for you when you order. They are separated into rows

depending on what type of burger you order. In Burger King the burgers arent already puttogether. The burger is cooking in the back but the toppings arent added till the individual

orders come. This gives the customer a better chance of getting a fresh meal.

Communication there wasnt much communication going on in McDonalds when we were

there. The cashiers didnt smile and werent that polite when taking my order. The

communication between the cashiers and the cooks consisted of the cashiers screaming

into the kitchen. The manager wasnt around so I wasnt able to see the managers

interactions with the staff. At Burger King I was welcomed by a smile. The cashiers were

nice and even held a conversation with me. The manager was out in front conversing withthe staff and the employees. The staff appeared to treat the manager as a friend instead of

a superior.Environment McDonalds environment was neither customer nor employee friendly.

Everything in the restaurant is coloured brown which just isnt inviting to customers. The staff

has pinstriped uniforms that resemble prison uniforms. The restaurant was also badly lightedwhich didnt help the colour. In Burger King there were windows everywhere and therestaurant was extremely bright. The staff wore bright colour uniforms and there was musicplaying which was enjoyable for the customers as well as the staff. After my observation the



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interactions between management, employees, and customers at both operations, idiscovered a few areas where Burger King and McDonalds both needed improvement. To

begin with, our McDonalds experience was overall enjoyable, yet a few small, but important,details should be considered. Most of the employees uniforms were worn properly andneatly, but the rest were just plain sloppy. Shirts should be tucked in and clean, and hatsshould be worn the way hats were meant to be worn. This would show that employees valuetheir jobs, and take them seriously. While I was dining, I could not help but notice the loud,high pitched, constant beeping noises coming from the kitchen area. These extremelyirritating noises did not stop the entire time. This prevents the guests from enjoying their meals in a soft, relaxing atmosphere. Quiet background music at McDonalds wouldprobably help the ambiance a bit and offset some of the noises coming from the kitchen. Ialso noticed that even though it was not busy, there was not a manager in sight. In fact, i cannot be sure that one was on duty at the time of my visit. At Burger King it was nice to see the

manager working along with the employees by taking orders and preparing food. The major problem that we found with Burger King was the lack of menu consistency. The location thati visited did not offer salads, while most other Burger Kings do. i feel that if a salad isavailable at one location, then a customer should expect to be able to enjoy the same saladat any Burger King. It is comforting to a customer to know that the food will be the same (inpreparation and availability) at whichever store he or she chooses to visit. I did enjoy howthey were willing to accommodate my personalised order, but it is not appropriate to chargefor one slice of tomato or lettuce. McDonalds did advertise quite a bit of communityinvolvement and service. At Burger King I did not see signs of any type of contribution to thecommunity. People may think that the company is greedy and only cares about profit. Acharity would show that Burger King cares about the community. In addition, both of theserestaurants desperately need to incorporate the fundamentals of great service into their game plans. It would make a tremendous difference if a cashier would very simply smile andsay thank you after returning your change. From the expressions on the faces of some of the employees I felt as if I ruined their entire day just by walking through the door!Personality and attitude should be major considerations when hiring employees. Hire onlythose who will take pride in their jobs, be professional, and treat the guests very well. Myfinal recommendation for both operations is to adopt a Total Quality Managementphilosophy. Food should come out with the right ingredients and at the correct temperature.It is a waste of time and money to make an order over again if it is not perfect the first time.With better training and communication there should be no reason for orders to be less than

perfect. The proper attention could be directed to the next customer waiting in line. If thingsare done correctly the first time, it will save aggravation for the guest, who, by the way, willremember that his order came out exactly how he wanted it. Basically, just take care of thecustomer. Give employees the power to do whatever it takes to make them happy. Exceedtheir expectations and, in return, you will have a lifelong patron. He will be back again, andagain, increasing long run profitability. This concept should be applied to McDonalds as wellas Burger King, to help their corporate goals.



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