1. Critically analyze BK’s positioning strategy and marketing mix (4 Ps).

BK's marketing mix included the following:

Product:
Burgers, fries, onion rings, soft drinks, milkshakes, and desserts were BK's core
items until 2015.
In terms of location, it is reworking on its seafood, meat, and other more
specialized product offerings in those areas.
Its products have gone through multiple changes, but the fundamental sandwich
concept has remained the same and it has experimented with various time-based
offerings including a breakfast menu.

Prices:
BK's prices were traditionally high and have not changed over the years. BK's
prices have always been expensive and have remained consistent over the years.
They have projected costs in a more cost-conscious manner by using special
promos and combos.
To top it off, they gave McDonald's a similar product at a greater price in the goal
of capturing larger market share.

Location:
Since the inception of the company, individual franchisees have purchased their
products as they choose, causing a change in the look, feel and service at different
outlets.
Recognizing the gap, they choose unified distribution to improve supply chain
management. Burger King's pricing approach is based on a marketing-driven
pricing strategy.
Promotion:
BK first advertised its products on television and produced slogans to attract
clients over time, but they were a complete failure.
Its advertising was not designed keeping sensitive customers in mind, who were
insulted by the inaccurate portrayal of various public sectors.
Its marketing strategy and commercials were mostly aimed at the Floater client
segment, who were content to keep their loved ones happy while staying within
their budget.
Customers were always looking for a good deal and a substantial combo offering
at a “discounted” or “offer” price which might tempt them.

BK SWOT Analysis:
STRENGTH:
 Large franchise and globally recognized.
 Franchise based model aided BK to focus on product development rather
than focusing costs on store remodel and design
 Differentiated product offering, keeping true to original key dish.
 Less capital intensive - Because franchisees own 90% of Burger King
locations, this strategy has allowed them to focus on improving their menu
rather than their financial balance sheet.

WEAKNESS
 Backlash from customers for being an unhealthy product.
 Negative image of the company because of insensitive and racial
campaigns.
 Fall in sales due to health-conscious consumers.
 Maintenance of large number of franchise while focusing on improving
product offering and quality.
OPPORTUNITIES
 Introduction of home delivery and localized branches.
 Enhancing online order experience.
 Partnering with corporate companies. (B2B)
 Expanding into different geography while being conscious of the regional
demands and requirements.
 Projecting offering in healthier fashion and improving quality to ease
health-conscious consumers.
 Providing flexibility and transparency of the process gaining trust.

THREAT
 Strong market competition with McDonald, KFC, Wendy, Sonic, Jacks’s, KFC,
Taco bell.
 It even faces competitions from fast -casual chains such as Five Guys ,
Panera bread and Mexican grill.
 Higher rising food cost and rising commodity prices.
 Market saturation also became an issue often clustered together creating
"rows" of choices for consumers

2. Assess the BK from competitor perspective using Porter’s five forces.

Burger King was competing with major firms like McDonald’s and Wendy’s. The
degree of competition is high.
Medium market Concentration.
While McDonald’s is leading the burger niche Wendy’s and Burger King are
competing for the second position aggressively. They even faced competition
from Sonic, Jacks’s , KFC , Taco bell.

Slow Growth Market

The industry faces significant challenges:
The Fast food had always been considered unhealthy, as it was high in fat, highly
processed, precooked squeezed its profit margins. To begin with, the quality of
the food being offered received a greater foe an preheated, and its consumption
had been shown to increase both weight and body mass index. Although these
measures were in some ways successful, the negative image of the industry was
not erased from the public's mind.
Another challenge was rising commodity prices. Prices for livestock, wheat and
corn increased significantly, and, since food and beverage inputs made up
approximately one-third of costs, the higher prices significantly reduced profit
margins. Combined with an inability to raise prices due to strong competition,
profit margins fell below 10 per cent.
Market saturation also became an issue often clustered together, creating "rows"
of choices for consumers. Burger king struggled to grow their market without
taking market away from McDonald.
Another challenge for fast-food franchises was the emergence of fast-casual
chains, which stole valuable market share from fast-food chains. In fact, the
average transaction cost at fast-casual chains was 40 per cent higher than at fast-
food chains. Lastly, fast-casual chains attempted to make each individual outlet
unique, thereby differentiating themselves from the cookie-cutter outlets offered
by fast-food chains. The fast-casual chains offered greater customization and
flexibility.

Low Product Differentiation

As nothing unique was offered by Burger king, they faced a high rivalry from the
competitors.

Low Switching Cost

Customer could easily switch between products offered by other food-chains like
McDonald’s and Wendy’s. They were offered with better options, services and
cost. Even customers were given the flexibility to choose or customize their order.

High Exit Barriers.

Burger king had invested heavily in their facilities and stores and had to resort to
extreme methods of competition and go through cost cutting methods like their
corporate jet was sold; lavish offices for top executives and secretaries were
replaced with modest, open-plan offices; and the annual $1 million party on the
shores of a scenic Italian lake was promptly cancelled. Also, approximately 12,000
corporate-owned restaurants were sold.

3) Develop a new marketing mix that enables BK to close the gap with
McDonalds and fight competition from other brands

Marketing mix for Burger King that will allow it to achieve the goal of closing the
gap with McDonald's and distancing itself from its other competitors will be based
on a strategy that will enable the company to implement a marketing plan in an
effective manner.

Product mix:
  Burger King should continue to focus on burgers as its primary product
while also expanding its menu to include additional things that will appeal
to a wide range of customers.
 While burgers should remain the company's core offering, it should also
build a reasonable collection of other offerings in order to reach a larger set
of target customers.
 Burger King's product mix should also be able to complement its general
aim of achieving economies of scale through large-scale production.
 Burger King will be able to compete more effectively with McDonalds if it
has a core product offering that is backed by other unique things.

Place (Distribution):
 Burger King should improve its mobile app and online ordering capabilities
to keep up with the growing trend of online ordering.
 Customers of Burger King should be able to order through its app and
website in a way that adds value to them, in addition to going to
restaurants.
 For instance, free coupons for discounts can be provided for online orders.

Promotion:
 In terms of advertising, sales promotions, and public relations, Burger King
should be more aggressive.
 It should launch projects and promotional campaigns that will elicit an
emotional response from its target clients. Burger King will see substantial
benefits because of this.
 They should also be cautious about the ads they run to avoid making a poor
impression on clients and consumers.
 They need to promote their product with the help of goodies and coupons
which will attract audience for them.

Pricing:
  Burger King should concentrate on implementing a market-based pricing
approach.
 Burger King will be able to adapt more quickly to market demand and
supply conditions if prices are established based on current market
conditions.
 It should also concentrate on offering bundles to stimulate group
consumption - for example, clients can get value meals and kid's meals at
discounted bundle pricing.
 Large combos should also be available to encourage large-scale
consumption.

4. What should be the diversification strategy of BK?

Two of the recommended strategies for Burger King is market development and
diversification of products.

Recommended Strategy – Market Development

 Burger King can employ a market expansion strategy that utilizes its
franchise system. With outlets in 85 countries and US territory, Burger King
is second only to McDonald's in terms of market expansion.
 To gain competitive advantage and to maintain its top position and attract
new customers, Burger King must continue its expansion in foreign
economies.
 Burger King must also concentrate on growing markets such as India and
China, where there's more opportunities for growth and success.
 Burger King should also start tie-ups with multinational corporate firms
(B2B). In this way they can target a large upper class consuming population.

Recommended Strategy - Diversification of Products

  Burger King without a doubt, has the most diverse and perhaps inventive
product line among its competitors.
 Burger King must continue to invest in research and development to
develop more diverse and unique products.
 Burger King must focus on one specific customer product need: the
demand for healthier, higher-quality food items.
 Burger King should be one of the first corporations to respond to this
demand as consumers nowadays have become more health conscious.
 Burger King's menu needs to include more healthier options.
 They should provide the customers with flexibility to choose their product,
offer transparency of the process and customization.
 The company made several adaptions to its menu to suit regional tastes
too.
 For example, in Saudi Arabia, pork was not served. In Australia, BK featured
as Aussie burger. In Asian markets, the company featured dark-meat
chicken.

Ansoff Matrix:
Market Penetration:
Burger King’s primary intensive growth strategy is market penetration. The
objective of this comprehensive approach is to increase revenue from existing
clients or markets in which the company already operates. Burger King, for
example, employs a rigorous growth approach by opening additional locations in
existing markets in order to increase market share.
The expansion of Burger King's franchise network is a strategic goal linked to this
aggressive growth plan. Burger King's generic strategy, in turn supports this
aggressive strategy by emphasizing distinctive product qualities to penetrate
markets and expand its business.

Market Development:
Market development is Burger King’s secondary intensive growth strategy. To
support business growth, this intensive strategy involves entering new markets or
targeting new market segments. For example, Burger King implements this
intensive growth strategy by opening new stores in overseas locations where it
does not have operations. It can cover potential countries in Africa as it has only
presence in 3 countries i.e., South Africa, Morocco and Egypt. However, this
strategy is only secondary or minor in Burger King’s business because the
company already has operations in most markets around the world. Burger King's
intense strategy has a strategic goal of gaining new customers in new markets by
offering low costs. Thus, under Burger King's pricing strategy which is supported
by the cost leadership generic strategy, this strategic objective emphasizes on low
prices.

Product Development:
The least significant of Burger King's rigorous expansion tactics is product
development. This comprehensive plan allows the organization to expand by
introducing new items. Like BK chicken tender in 1986 to compete with
McDonald's Chicken McNuggets and again in 2015 as Chicken Tenders.
Burger King only employs a rudimentary version of this comprehensive method.
The corporation, for example, takes its time introducing new products. Most
Burger King's items stay on the menu for years. BK value menu in 1998 is still
offered with additional features in 2015. Angus Steak burger in 2003 it was
reintroduced with few formulations as steakhouse XT burger in 2015.
The expansion of Burger King's business through product innovation is a strategic
goal linked to this aggressive strategy. This aggressive expansion plan
complements Burger King's general approach of broad diversification by
emphasizing new products that are distinct from those offered by competitors.