CHAPTER- 1 MCDONALD’S INTRODUCTION

1  HISTORY
 MISSION,VISION AND VALUES
 SWOT ANALYSIS
 MARKETING MIX
 SEGMRNTATION,TARGETING AND POSITIONING

CHAPTER -2 BRANDING AND BRAND LOYALTY OF MCDONALDS

2  BRAND ELEMENTS
 MCDONALDS BRANDING STRATEGY

3 CHAPTER -3 BURGER KING INTRODUCTION

 HISTORY
 MISSION AND VISION
 SWOT ANALYSIS
 7P’S ANALYSIS OFBURGER KING
 STP OF BURGER KING
 COMPITIVE ADVANTAGE IN THE MARKETING STRATEGY
OF BURGER KING

CHAPTER – 4 MARKET ANALYSIS IN THE MARKETING STRATEGY

4 OF BURGER KING
 CUSTOMER LOYALTY OF BURGER KING
 MCDONALDS VS BURGER KING ; A CLOSE LOOK AT TWO
BURGER GIANTS

CHAPTER -5 COMPARISON OF MCDONALDS AND BURGER KING

5  CONSUMER PREFERENCE TOWARDS BURGER KING AND
MCDONALDS
 CUSTOMER LOYALTY OF MCDONALDS AND BURGER KING
 CONCLUSION

6
7

CHAPTER -1
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MCDONALD'S INTRODUCTION

McDonald's fast food restaurant is one of the largest franchises in the United States as well as
aboard. Their top menu items include: hamburgers, cheeseburgers, McNuggets, and French
fries. They are also known for one of their popular desserts: the apple pie and their breakfast
sandwich: the Egg McMuffin.

There are more than 32,000 McDonald's restaurants serving in 117 countries. More than 75%
of McDonald's restaurants worldwide are owned and operated by independent owners.

McDonald's has several ethical and social responsibility policies in place throughout their
solely owned and franchised companies. These policies include placing the customer
experience at the core of what they do, committing to their employees by nurturing their
talent and rewarding their achievements, maintaining high standards regarding the conduct
for business, and giving back to the communities in which they are established. All of these
values are infiltrated through all levels of the company, which keeps McDonald's thriving as
a successful fast food chain restaurant.

Risk management is imperative to McDonald's. They have a risk assessment tool that they
use to determine the country risk: which pertains to the specific country/region they are
located in; industry risk: pertains to supplies produce; and facility risk: which is a
combination of both country and risk groundwork. These factors are all part of the risk
assessment tool that is used in each of their companies to help them with risk management.
Security features in McDonald's includes their security camera systems within the facilities to
continuously monitor all activity in and around the restaurants to ensure the safety for the
workers as well as customers. McDonald's use these security cameras also in regards to
workers compensation claims or liability lawsuit claims from consumers. McDonald's also
monitors their computer software systems with an ACS system that monitors the
technicogical factors of their business.

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EARLY HISTORY

The first McDonald’s restaurant was opened in 1940 by brothers Maurice (“Mac”)

and Richard McDonald in , California. It originally was a drive-in that offered a wide
selection of items. However, in 1948 the brothers decided to revamp the business, and after a
three-month renovation, a newly envisioned McDonald’s opened. The small restaurant was
designed to produce huge quantities of food at low prices. To achieve this, the brothers
limited the menu—which only featured hamburgers, potato chips (later replaced by french
fries), drinks, and pie—and developed a simple, efficient format that they named the Speedee
Service System. This included a self-service counter that eliminated the need for waiters and
waitresses, and customers received their food quickly because hamburgers were cooked
ahead of time, wrapped, and warmed under heat lamps. These innovations allowed the
brothers to charge just 15 cents for a basic hamburger, about half the price of competing
restaurants. McDonald’s was a huge success, and the brothers began a franchise program.

Appliances for McDonald’s were purchased from a salesman named Ray Kroc, who was
intrigued by their need for eight malt and shake mixers. In 1954 he visited the restaurant to
see how a small shop could sell so many milk shakes. Realizing there was great promise in
their restaurant concept, Kroc became a franchise agent for the brothers. In April 1955 Kroc
launched McDonald’s Systems, Inc., later known as McDonald’s Corporation, in Des
Plaines, Illinois, and there he also opened the first McDonald’s franchise east of
the Mississippi River. In 1961 Kroc bought out the McDonald brothers.

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DEVELOPING THE BRAND: FROM FRANCHISEES TO BIG
MACS
Realizing that franchisees were vital to the company’s success, Kroc developed exacting
standards for how each McDonald’s should be run, from food preparation to cleaning. To
ensure the standardized operation of the outlets, he created (1961) a program, later known as
Hamburger University, to train franchisees. In addition, he eventually changed the format of
the restaurants, adding counter staff to take orders, and in 1975 a McDonald’s in Arizona
opened the chain’s first drive-through window, a feature that soon became ubiquitous.

During this time McDonald’s also introduced three features that would define its brand and
further public recognition. First, in 1963, the public face of the company was introduced, a
clown named Ronald McDonald; however, criticism over marketing to children and the
growing negative perception of clowns resulted in the company largely sidelining the
character in the early 21st century. Perhaps the most notable addition occurred in 1968, when
McDonald’s added the Big Mac to its national menu; the iconic hamburger went on to
reportedly become the company’s top-selling item after french fries. In addition, during the
1960s the chain refined its logo, eventually debuting the famous double-arch M design,
which became its enduring symbol and one of the most famous logos in the world; it was
inspired by the tall yellow arches that had dominated earlier McDonald’s restaurant rooftops.

These changes helped spurred McDonald’s growth. In less than 10 years after Kroc became
the sole owner of McDonald’s, the number of the chain’s outlets topped 1,000. Boosted by
these numbers, the company’s stock began trading publicly in 1965.

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MCDONALDS MISSION

McDonald's brand mission is to be our customers' favorite place and way to eat and drink.
Our worldwide operations are aligned around a global strategy called the Plan to Win, which
center on an exceptional customer experience – People, Products, Place, Price and Promotion.

MCDONALDS VISION

To be the best quick service restaurant experience being the best means roviding outstanding
quality service cleanliness and value so that we make every customer in every restaurant
smile

OUR VALUES

The backbone of our Brand is, and always has been, a commitment to a set of core values that
define who we are and how we run our business and restaurants.

When we live our values every day and use them to make decisions - big and small – we define
McDonald’s as a brand our people, and the people we serve, can trust.

Serve--We put our customers and people first

Inclusion--We open our doors to everyone

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 Integrity--We do the right thing

Community--We are good neighbors

Family--We get better together

Our values are the filter through which all business decisions are made because actions are
bigger than words.

MCDONALDS VALUES WE ARE COMMITTED TO OUR

PEOPLE
 we strive continuially to improve
 we grow are business profitably
 we give back to our communities
 we believe in our mcdonalds system
 we place the customer experience at the core of all we do

SWOT ANALYSIS OF MCDONALDS

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 The SWOT analysis is a process that a company undergoes to analyze the following aspects

 Strengths,
 Weaknesses
 Opportunities
 Threats

SWOT Analysis is a proven management framework that enables a brand like Mcdonald’s to
benchmark its business & performance as compared to the competitors and industry. 
Following is the SWOT analysis of McDonald’s
 

STRENGTHS OF MCDONALDS

Strength shows the aspects where McDonald’s is strong at and in which aspects it competes
with  competition 
 

 HIGHEST BRAND VALUE

According to Forbes and Interbrand, McDonald’s brand is the most valuable brand in the
world.  McDonald’s has built up huge brand equity. With a brand value of $150 billion, no
other brand in the fast-food category is even close to McDonald’s. 

 
 TECHNOLOGY INNOVATION

Mcdonals is talking revolutionary technology to keep up with the market standards. Its
acquisition of  Dynamic Yield is a step towards enhanced personalized marketing. It has
also adopted Internet access terminals, to reduce the amount of lag time between the order
and pick up of the order.

 DELICIOUS AND VARIETY OF FOOD ITEMS

Mcdonald’s fries are considered one of the tastiest froes in the fast-food world. Come on
we all love it, don’t we? Apart from the existing menu, it keeps on updating its menu, by
adding new items like coffees, smoothies, and Angus Burgers. 

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 LEADING QUICK-SERVICE RESTAURANT

According to Statista, Mcdonalds is one of the fastest-growing food-chain restaurants.

This way it is the ability to attract more consumer base all over the world. The accounting
for transactions of McDonald’s topped the chart with $38.52 billion in 2018.

WEAKNESSES OF MCDONALDS

Weakness are the aspects where a company is weak and where a company needs to improve
to sustain

 
 HIGH EMPLOYEE TURNOVER 

McDonald’s has around 210,000 employees. However, the employee turnover rate is still
high. Many quit their jobs, due to the low pay or high work pressure. Lack of employee
satisfaction is causing the company reputational harm.

  THE FRANCHISE BUSINESS MODEL

The Franchise business model in fast-food restaurants comes with its disadvantages. This
can expose the brand to certain risks, as they have no control over their day-to-day
performance.

 SUPPLY CHAIN

McDonald’s is one of the most popular fast-food chains in the world, it has the busiest
food chain due to which it has to limit the availability of food items These interruptions
result in more operational expenses and thus reduce profits
 

OPPORTUNITIES FOR MCDONALDS

Opportunities are the aspects where a company can work before the competitors to get an
added advantage to its side

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 GROWTH OF THE FAST-FOOD INDUSTRY

This is one of those industries that have the potential to develop. Launching more items
according to geographical conditions can help McDonald’s maintain their charm for a
longer period. Due to a change in eating habits. Mcdonald is very popular in the US, it
should prepare an international strategy to expand in Asian markets.

 LOW COST

The low-cost menu can attract lots of new customers. Having a meal at Mcdonald’s is a
kind of big deal for the middle class or lower-middle-class families.

 REBUILDING THE BRAND IMAGE

Currently, while everyone is focusing more on health and avoiding fast food as they are
presented as junk food, while other fast food units are struggling with profits, McDonald’s
can rebuild their brand as a Healthy fast-food chain to regain the trust of their customers

 HOME DELIVERY

McDonald has started doing Partnership with Ubereats which helps them reaching to the
customers and meeting the everchanging customer needs

THREATS TO MCDONALDS

Threats are the aspects from which a company need to be protective and to use the strengths
to overcome them

 
 HIGH COMPETITIONS

We have seen above how Mcdonald’s faces fierce competition from national,
international, and even local retailers of food products. Although Mcdonald’shighest
market shares, it only takes one strong marketing strategy to shift consumers from one
brand to other.

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 MORE HEALTH-CONSCIOUS CONSUMERS

Ever since the Covid wave hit us, more and more people are shifting towards a healthy
diet. This change in eating habits can affect the revenue of the business. If Mcdonald’s
wants to maintain its market share, it can up with more healthy food items. 

 CULTURAL PREFERENCES

While operating in different countries McDonald’s needs to make sure that they fulfil the
cultural preferences in that particular country
For example, McDonald’s stopped selling beef products in India as Indians believe cows and
buffaloes as spiritual animals
 

 
CONCLUSION 
 
Mcdonald’s is a popular food chain of all times. It is well versed to make use of advantages
and has the right strategies to capture the market. 
But despite the company’s continuous growth, it needs to keep in check the aspects which
can cause trouble. McDonald’s will keep winning the market and hold to the first position in
the fast-food industry if it continues to leverage its strengths.

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MARKETING MIX OF MCDONALDS

Commonly used in traditional marketing, extended marketing mix, also known as the
7 Ps of marketing (Product, Place, Price, Promotion, People, Process, Physical
Evidence), can also be applied to digital marketing.

To get an idea of how the marketing mix is used in the real world, read this case study
of what the 7Ps look like for McDonald's restaurant chain.

PRODUCT

McDonald's is best known for its range of burgers such as the cheeseburger and the
Big Mac, and their French fries.

The fast-food restaurant allows its customers to buy individual items or purchase a
meal that includes a drink.

In addition to its traditional menu, McDonald's offers a  range of hot and cold
drinks such as tea, coffee and milkshake. The dessert menu includes the chain's
famous Apple pie, McFlurry ice cream, and more.

The modern menu is very different from the first McDonald's Franchise restaurant's
menu, which included only a handful of items.

HOW MCDONALD'S PRODUCTS CHANGED OVER TIME

 What was on the original McDonald's menu

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 How the menu changed over time
 What influenced the changes 

When brothers Richard and Maurice McDonald's opened their 'McDonald's Famous
Barbeque' restaurant in California in 1940, little did they know that their small
business would go on becoming a global brand. The original restaurant served more
than forty barbequed items. However, the brothers soon realised that most of their
profit came from selling hamburgers. So in 1948, they redesigned their restaurant
by implementing assembly line principles for speedy food preparation and started
selling a limited number of items, including  hamburgers, cheeseburgers, potato
chips, cold drinks and coffee. The following year, the chips were replaced
by French Fries and Triple Thick Milkshake was added to the menu. 

Despite McDonald's restaurants becoming a nationwide franchise in 1955, the menu

remained largely unchanged until 1965 when McDonald's franchisee Lou Groen
based in Cincinnati, Ohio, created the Filet-O-Fish sandwich to increase Friday
sales in his primarily Roman Catholic location.

In 1967, a franchisee Jim Delligatti, who operated several McDonald's restaurants

in Pittsburgh, created the Big Mac to compete with 'Big Boy hamburger' sold in a
nearby Big Boy Restaurant chain's branch. Delligatti started selling The Big Mac in
his restaurant in Uniontown, Pennsylvania. However, it proved to be so popular
with customers that it was added to the menu of all American McDonald's
restaurants the following year. Another product introduced in 1968 was the
Hot Apple Pie. 

The Quarter Pounder was invented in 1971 by another creative franchisee, Al

Bernardin, who owned two McDonald's restaurants in Fremon, California.
Bernardin concluded that there was a gap in the market for burgers where the meat
weights more than the bun. Two years later, the Quarter Pounder and the Quarter
Pounder with Cheese were added to the national menu.

The Egg McMuffin was the brainchild of Herbert Patterson, who operated a

McDonald's franchise in Santa Barbara, California. The invention of the egg
sandwich was revolutionary because it created a potential breakfast business idea
for McDonald's. However, despite being invented in 1972, The McMuffin was not
added to the national menu until 1975.

The Happy Meal was created to bring in more families with small children and was
added to the national menu in 1979. It comes with a small toy or a book along with
food. 

McChicken sandwich was first introduced in the US in 1980. However, after failing
to meet expectations, it was removed from the menu and replaced by
chicken McNuggets in 1983. McDonald's eventually brought McChicken back in
1988. In 1996, it was replaced in the US with the Crispy Chicken Deluxe. But once
again, McDonald's started reviving the McChicken in 1997. Currently, McDonald's
restaurants all over the world serve an extensive range of  chicken burgers and
wraps. 

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 One of McDonald's most popular desserts, McFlurry, was invented in 1995 in
Canada and was added to the international menu in 1997.

In 2002, McDonald's committed to being a more responsible and sustainable brand

by issuing their first global Social Responsibility Report.

Since then, McDonald's restaurants started offering healthier options, such

as salads and fruit bags, along with their regular items. The chain also
significantly reduced the amount of packaging it uses. 

Perhaps most importantly, McDonald's became more responsible towards  animal

welfare, undertaking on-site audits of their meat supplier facilities around the
world.

In addition, the chain has recently introduced their first Vegan Burger,
the McPlant, in selected restaurants. 

PLACE

The history of McDonald's goes back to 1940 when the McDonald's brothers

opened a small barbeque restaurant in California. In 1948, the brothers refocused on
selling burgers, chips, soft drinks and coffee, setting the  foundation for the
McDonald's we know now.

McDonald's became a corporation in 1955 and has been growing ever since. There
are now over 37000 McDonald's restaurants in more than 100 countries. The design
of McDonald's restaurants differs from country to country and even city to city.
However, the yellow arched letter M logo remains the same around the world.

PRICE

Offering an extensive range of food items, McDonald's has different prices for
different products.

Having branches all over the world, McDonald's also works with  multiple
currencies.

McDonald's uses Psychological pricing strategy, setting the price of their products

lower than a whole number, e.g. £3.99 rather than £4.

Another pricing strategy the chain uses is Bundling, offering a discount on the
purchase of a full meal to encourage customers to spend more money.

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PROMOTION

McDonald’s uses TV and online media as one of its main advertising strategies. In

addition, the chain uses posters and popular newspapers, such as Metro, to
advertise its products. Newspaper promotions often include money off coupons
for certain meal options. 

In-store promotions include the saver menu, limited-time offers on certain items
and the Happy Meal, which includes a toy along with a smaller sized meal, to
attract families with young children.

PEOPLE

McDonald's became a franchise in 1955. Currently, as many as 93% of McDonald's

restaurants worldwide are owned and operated by  franchisees. McDonald's would
not grow to be the large international corporation we all know without these
independent local business owners.

McDonald's restaurants employ over two million people worldwide, making the
chain one of the largest employers in the world. McDonald's refers to its staff
as crew members. The crew members are responsible for food preparation,
customer service, cleanliness, and hygiene.

PROCESS

McDonald's is a market leader in engineering and process. They have

implemented effective processes for ordering, preparing, serving and delivering
food over the years. 

McDonald's makes sure that customers are served as fast as possible, whether they
buy food in one of the chain's many restaurants, use a drive-thru, or
order McDelivery.

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 PHYSICAL EVIDENCE

The fact that you can find McDonald's restaurants all over the world, including in
unusual locations, such as the desert near the Dead Sea in Israel, is clear evidence
of the chain's success.

McDonald's branding on their product packaging, such as drink cups and French

fry and burger boxes, is another evidence of the restaurant's success.

SEGMENTATION, TARGETING AND POSITIONING OF

MCDONALDS

SEGMENTATION

 segmentation of mcdonalds market around the glob is based on the demographic,

geographic and behavioral segmentation

 mcdonalds is attractive among children because on weekends and holidays it offer

children featured product like happy meals which is served with toys

 mcdonalds restaurants include pary room for children

 pricing of product in mcdonalds depends on respective countries

 united state include dollar menu

 mcdonalds respect different culture of different countries it bring changes in its menu
according to the culture, country and customers

 mcdonalds has introduced mc spaghetti to its menu and in the middle east it has introduced
mcarabia

 in European countries mcdonald even sell a draft beer as part of drinks with their food
in few countries mcdonalds facilitate senior citizens with a gold card (free coffe and tea)
like in Pakistan it gives free mini cones (ambrosesmith,2016)

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TARGETING

 Mcdonalds main target audience is children,youngsters ( free wifi) mcdonalds has recently
updated its menu which served breakfast

 Its served all day breakfast on the fact it might lose its breakfast lovers

POSITIONING

 mcdonalds is fighting to poition its brand against its competitors which includes kfc,
subway, burger king.

 mcdonalds has used advertising through social media and billboards as their mainstream to
position its brand against its compititors

 ronaldmcdonalds house charities (RHMC) is an independent nonprofit organization whose

mission is to creat ,find and support programs that directly improve the health and well
being of children.

 mcdonalds utilizes branding and co- brandings.

mcdonalds has found strategic ways to co-brand with major companies( coca cola,
walmart, walt Disney and Cadbury)

 NBA themed cup ,toys ,collecting cards and even a burger named after Michael Jordan
called mcjordan

 NHL collectable hockey cards and various hockey memorabilia

 NASCAR Mcdonaldshas sponseres various nascar cars

 Mcdonalds uses catcy phases and messages in their advertisements

 Mcdonalds has 23 different slogans in the US from 1960 to now

 Slogan is used to creat a positive image in minds and mcdonalds is excellent in it

.
 Mcdonalds current slogan is I’m lovi’n it. And now it’s a word of mouth ( devin ,
November 5, 2014)

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 CHAPTER -2

BRANDING AND BRAND LOYALTY OF MCDONALDS

BRAND ELEMENT

From colours of yellow and red, to advertisement and its layout to its bright menu and
chairs table to the way customers in macdonalds behave nicely there are many brand
elements which contribute towards making mcdonalds an admired brand

MARKETING STRATEGIES OF MCDONALD’S

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1. BRAND IDENTITY

Mcdonald’s brand identity is one of the key factors behind its global success. It seamlessly
operates its chain all over the world because people are familiar with it and already know what
they’ll expect from it.

This level of trust and dependability is the result of its strategic brand positioning and
consistent theme.

Mcdonald’s has created a certain image in its audience’s mind to connect with them on a
deeper level. It deliberately adds emotional elements in its advertising to position itself as a
family-oriented brand.

Look at its copywriting and commercials.

From the “I am loving it” slogan, its distinct mascot, to its product packages, all emphasize
happiness, taste, and community.

Its consistent theme in all its branding further strengthens its identity.

No matter which branch you visit, you’ll find the distinct golden arches, red boxes, and a
similar friendly atmosphere in all its franchises.

The consistency makes its restaurants recognizable and provides a sense of comfort to its
audience.

TakeAway
Your brand identity gives a face to your company. It makes you authentic, credible, and
unforgettable.

It also allows you to personalize your services and offer a unique shopping experience to your
customers.

2. PRICE STRATEGY

Mcdonald’s main target market consists of middle to lower-income groups. Since this
customer segment has low purchasing power, they tend to gravitate towards the restaurant
that offers cheaper options.

While Mcdonald’s meals are inexpensive, so do any other fast-food brand.

How does it attract customers, then?

It uses psychological pricing strategies to make them appear even more inviting.

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 If you ever plan to go over to the restaurant next time, check out its entire menu.

You’d notice, Mcdonald’s almost always displays features deals for its customers,
irrespective of the occasion.

This is its bundle discount sales technique to incite impulse purchase and upsell its low-
demand items at the same time.

So, when people have the option to buy a Big Mac and drink for $5 or take a combo meal
with fries for $6, they most likely would prefer the latter.

There is one other psychological trick McDonald’s frequently uses in its price strategy.

It rates its item in decimals instead of the whole number.

The method is based on the idea that people will perceive the item as inexpensive if you
tag it as $3.90 instead of $4. While technically, there never is much difference between the
two, it works all the same.

TakeAway
Psychological pricing strategy provokes an emotional response from your potential buyers
and influences their buying decision.

You can use it to increase your product appeal and drive customer satisfaction.

3. CLEAR VALUE PROPOSITION

Another thing that helps McDonald’s win more sales is its clear value proposition.

VP is a summarization of the benefits your product offers to your buyers. It tells your
audience what makes you a better option and why they should choose you over your
competitor.

McDonald’s is one among many that provide low-priced, high-quality fast food. To
increase its product value, it instead focuses on its strength—which is convenience and
comfort.

With drive-thru, pick up, McDelivery, and mobile app, it has made it easier for its
customers to place their order without waiting in line. It also uses third-party services like
Uber Eats and free delivery feature to further facilitate the buyers.

With the ease of ordering, Mcdonald’s attract tons of customers and generate a high
volume of sales.

TakeAway

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 People only buy items that offer them value. The benefits they get from your product are
what drives them to come back for more.

Use that to your advantage and create a clear value proposition. It will help you make your
products more appealing to your audience, drawing them towards your brand. 

4. PERSONALIZED EXPERIENCE

Mcdonald’s caters to a diverse market.

To target each segment, it launches several sales promos designed to attract certain
individuals.

Take its Wi-Fi services.

It offers free Wi-Fi in its restaurant to lure in college graduates. Students frequently
consume burgers, and by providing free internet service, Mcdonald’s makes sure they visit
its restaurant every time.

Similarly, it provides a free app for the job-going individuals who prefer takeout to save
their time.

These tailored techniques allow Mcdonald’s to target different market segments and retain
its buyers.

In addition, it helps it to capture new markets and nurture relationships. The happy meal is
a classic example of it.

Mcdonald’s brothers, in 1979, launched the happy meal initially to improve the family
experience and engage kids.

It later became one of the most popular products that many have attempted to replicate
since then.

TakeAway
Personalization helps you understand your target market preference and devise your
strategies around it.

With it, you can improve your customer experience in the short term and strengthen your
relationships in the long run.

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5. DISTRIBUTION STRATEGY

Mcdonald’s has, in its life, employed two growth strategies that became the turning point
for the brand, leading it to where it’s today.

One was introducing a happy meal as mentioned above, and another was pursuing
franchising.

Franchising was McDonald’s first successful expansion decision that kick-started its
growth and built its brand outside its business territory. It helped Mcdonald’s cater to a
diverse market and made it easier for it to launch lucrative services like a 24-hour open
door option.

It has worked so well, nearly 93% of its restaurants are operated by independent

franchisers today.

It now not only makes most of the money from its franchises, but also gathers deep
customer insights on its foreign target market to introduce new flavors.

TakeAway
Franchising is a distribution method in which companies grant product selling rights to
another party for profit cuts or royalty. It increases your brand awareness, allowing you to
reach areas you can’t typically access due to limited resources.

Large enterprises frequently go for franchising for this very reason. With it, you can scale
your business without incurring risks that usually come with expansion.

6. KEEPING UP WITH CONSUMER NEEDS

Mcdonald’s has been around for 66 years, during which, it has faced tons of challenges often
associated with changing trends. But it has always bounced back from it because of its
readiness to upgrade its strategies to meet the ever-changing consumer demands.

For instance, in the mid-nineties, when take-out services were an emerging trend, the
McDonald’s brothers redesigned their restaurant to include a drive-thru in their restaurant.

As Post-war altered consuming habits, it focused on fast service to accommodate customers

accustomed to instant meals.

When coffee trends bloomed, it launched McCafe to target a new market.

As people began to adopt a healthy lifestyle, it introduced salad and a healthy menu.

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 Mcdonald’s has, over the years, made several changes to keep up with its consumer’s needs. It
leverages the current trends and social movements to connect with its prospects and convert
them into paying customers.

It is how it stays at the top and maintains its position.

TakeAway
People’s shopping behavior often changes with the trend.

By keeping pace with their expectations, you can forecast your audience preference and bring
a fresh idea to retain your customers. It will help you withstand the transition period and
sustain your business.

7. DIVERSE MENU

Mcdonald’s matches its menu items with the geographical location and people’s taste.

What it serves in New York is entirely different from what its Singapore franchise offers to its
customers. Even within the same country, its special deals and menu vary according to where
it’s situated.

Do you know why?

Adapting its menu to local taste allows Mcdonald’s to cater to a diverse market.

A versatile menu is part of its globalization strategy that involves offering both standard
products and extra items to grab the attention of local customers. Through it, Mcdonald’s
delivers a consistent experience worldwide and at the same time attracts the locals

It also serves another purpose.

By offering different menus, it publicly declares its support for cultural diversity to strengthen
its global image.

TakeAway
Adapting your strategy to your target market’s lifestyle is critical in ensuring the success of
your business expansion.

It helps you deliver a clear brand message without misinterpreting people’s preferences or
making cultural blunders.

McDonald’s shares its brand values globally, mainly through its product features. But you can
replicate the same tactic in your digital campaigns as well.

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 8. TRANSPARENT MARKETING

As a fast-food chain, Mcdonald’s often encounters controversies spurred by environmental

communities, rival companies, and unsatisfied customers.

And every time a rumor spread, whether real or constructed, it negatively hits its sales.

To maintain goodwill, it focuses on business transparency and periodically runs awareness

campaigns.

Its expired food scandal in China is a popular example. In 2014, Mcdonald’s came under fire
when its supply chain was suspected of delivering substandard meat.

The crisis caused such a ripple effect it hit its sales in Japan, Russia, and other regions
consequently.

To build back its image, it launched several awareness campaigns like #Goodtoknow, and
“Our Food, Your Questions” to show the sourcing and processing of its products.

Its Track My Macca’s virtual reality app is also a good example of how it capitalizes on
business transparency to settle people’s concerns about its products.

TakeAway
Transparent marketing involves deliberately releasing the internal information of your
company to the public.

It improves your reputation by portraying you as a genuine and trustworthy brand.

Almost 85% of people would stay loyal to you during a crisis if you’re open in your
communication and readily respond to public concerns.

CONCLUSION

If I sum up Mcdonald’s marketing strategy, I would say its entire model revolves around its
mission statement—to make delicious feel-good moments easy for everyone. Think
about it.

It offers multiple delivery options to provide quick service.

It has franchises to meet consumer demands. It shares consistent branding and a clean
restaurant layout to make people comfortable.

Every touchpoint it creates in its marketing funnel is focused on achieving its company’s

mission.

This is the secret behind McDonald’s massive success.

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 CHAPTER - 3

BURGER KING INTRODUCTION

American global chain of hamburger fast food restaurant is known as Burger King. It is the
world’s second-largest hamburger fast food restaurant chain after McDonald which estimated
to have 15,243outlets at 100 countries in September 2016. The founder of the company is
Keith J. Kramer and his wife's uncle, Matthew Burns in 1953 atJacksonville, Florida was
known as Insta-Burger King. In 1954, after they ran into a financial problem, itwas purchased
by David Edgerton and James McLamore where later on change the name as “BurgerKing”
instead. It was officially owned by David Edgerton and James McLamore since then and
theheadquarters were located in Miami Dade-Country, Florida, and United States. Their
products have expanded from the basic offers of burgers, french fries, sodas, and
milkshakesinto a hugely diverse set of products where it was known as the “Whopper” so-
called Burger King'ssignature product. It became the first major addition to the menu which
they try to improve on.
Howevertheyfailedtocatchholdinthemarketplaceduringintroducingduetothevarietyofproducts
Unfortunately, it was not a failure at all because it succeeded in foreign markets because they
alter the menu based on the regional tastes which grab the consumer’s attraction and interest

Plus, they also use demographics which they choose a certain age of individuals which
mostly male by providing them with larger products. This is because men usually carry
largeamountsofunhealthyfatsandtrans-fatsandits correspondingly meet the demand and the
supply of their companybutitwilleventuallyaffectthecompany's
financialunderpinningbecauseofanegativepartonitsearnings.Afterrealizingtheirmistakesinthepr

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 evious menu,the company startedtochangetheirmenuby introducing new items to their menu
that would help them maintain in the market in the long-term.

BACKGROUND AND HISTORY OF THE

ORGANIZATION

Burger King was discovered Keith J. Kramer and his wife's uncle, Matthew Burns in
Jacksonville, Florida in 1993. Before Burger King was named, it was known as Insta-Burger
King. The initial stores were centred on a chunk of kitcalledthe Insta-Broilerandit wasvery
effective eatcookingburgers.Theyneedalloftheir franchises to holdthedeviceduringtheir
franchising growth because it was a success While the Jacksonville chain kept expanding,
both of them,JamesMcLamoreandDavid Edgerton were seeking achance to open their own
business.AfterJames McLamore visit the initial hamburger which is belong to Dick and
McDonald in San Bernardino, California, he sensing potential in their innovative assembly
line-based production system and he decided to open a similar operation James McLamore
and David Edgerton acquired a license to operate an Insta-Burger King franchise and opened
their first location at 3090 Northwest 36th Street in Miami on 4 December 1954. The pair had
stores at several locations within the Miami-Dade area and operations were growing at a fast
rate in 1959.However,the partners discovered that theinsta-broilerunits’ heating component
swereliableto degradation from the drippings of the meat patties. Both of them eventually
created a mechanized gas grill that avoided the issues by prepare the meat patties a special
method within the unit. The new unit worked so well that they made the decision to exchange
all of their Insta-Broilers with the newly designed unit.

The group ran into financial problem even though the original Insta-Burger King had rapidly

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 expanded throughout the state and its operations totaled more than 40 locations by 1955. By
1959, James McLamore and David Edgerton purchased the national rights to the chain and
renamed the company as Burger King of Miami Beside the flame broiler, since become
closely associated with the chain the company added two more features during this period of
time. In 1955, it was first created a mascot and then they invented “Whopper” which
knownastheirsignaturesandwichwhereit had beencreated in1957byJames McLamore. He
trusts that the success of the rival product was its size so he devised the Whopper. The name
was chosen because he felt that it conveyed “imagery of something big” and they made its
first advertising in the new medium of television with commercials for the chain in 1958.

MISSION OF BURGER KING

 “offer reasonably priced quality food, served quickly, in attractive, clean surroundings.

VISION 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

BURGER KING SWOT ANALYSIS

Burger King Strengths

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 The strengths of Burger King looks at the key aspects of its business which gives it
competitive advantage in the market. Some important factors in a brand's strengths include its
financial position, experienced workforce, product uniqueness & intangible assets like brand
value. Below are the Strengths in the SWOT Analysis of Burger King :

 Burger King is a hugely popular brand name in the fast food industry with a high
brand loyalty
 Burger King serves close to a billion burgers every year globally
 Product differentiation is focused of the brand based on geography and demographics
 The brand has grown globally by opening in new geographies as well as creating a
localized menu
 Burger King has a strong brand equity in fast food segment world over
 More than 20,000 people are employed with the brand
 Burger King is present at more than 15000 locations in more than 70 countries
 The annual revenue of the company is more than $1.5 billion
 The brand has also introduced a loyalty program to target its repeat customers &
provide them with an additional incentive
 Burger King's sales have increased with the growth of online food ordering & home
deliveries

BURGER KING WEAKNESSES

The weaknesses of a brand are certain aspects of its business which are it can improve to
increase its position further. Certain weaknesses can be defined as attributes which the
company is lacking or in which the competitors are better. Here are the weaknesses in the
Burger King SWOT Analysis:

 . Alleged high fat and high calorie food not good for health conscious people
 .Intense competition means limited market share growth for Burger King

BURGER KING OPPORTUNITIES

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 The opportunities for any brand can include areas of improvement to increase its business. A
brand's opportunities can lie in geographic expansion, product improvements, better
communication etc. Following are the opportunities in Burger King SWOT Analysis:

 Expanding home delivery options for customers can really boost Burger King's sales
 Open new branches and outlets at new locations can help the brand grow
geographically
 The company can advertise more and give discounts to capture new market
 Product improvement & innovation by tailoring it as per tastes of people around the
world can boost Burger King's business worldwide

BURGER KING THREATS

The threats for any business can be factors which can negatively impact its business. Some
factors like increased competitor activity, changing government policies, alternate products or
services etc. can be threats. The threats in the SWOT Analysis of Burger King are as
mentioned:

 Threat from other eating joints & restaurants, which can impact Burger King's market
share
 Health concerns among general public regarding fast food
 Food costs are rising higher than standard inflation which lead to decline in margins

BURGER KING COMPETITORS

There are several brands in the market which are competing for the same set of customers.
Below are the top 8 competitors of Burger King:

1. KFC

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 2. Pizza Hut
3. Domino's
4. McDonald's
5. Subway
6. Smokin Joes Pizza
7. Taco Bell

7 P’S ANALYSIS OF BURGER KING

PRODUCT

 As a fast food hamburger restaurant (FFHR) chain, Burger King produces, hamburgers,
cheeseburgers as well as Fries, Salads, Hash browns, Onion rings, Coffee, Juice, Shakes,
cookies and pies.

 Burger King sets itself apart from competition with its “have it your way” theme which
allows individualize each orders with many options including fries or onion rings, cheese,
bacon, mustard, ketchup, mayonnaise, lettuce, tomato, pickles, and onion.

 The nation’s No. 2 burger chain will add Starbucks Corp.’s Seattle’s Best Coffee to all its
U.S. restaurants in a phased roll-out that begins in the summer of 2010. Under the effort,
more than 7,000 Burger King Restaurants will begin selling the coffee along with iced
varieties that also come with a choice of plain, vanilla or mocha flavors and whipped
toppings.

 Burger King has signed a licensing deal with ConAgra Foods Lamb Weston which will
result in offering a retail line of microwaveable Burger King Brand French fries at select
retailers in the United States, including Wal-Mart

PRICE

 Burger King recently joined McDonalds in offering a $1 double cheese burger.

Some of its franchises claimed the price reductions cut into profits. Burger King has
reportedly ended its unpopular (among franchise owners) $1 double cheeseburger
promotion.

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 Burger King plans to sell slushy drinks for $1 leading into the summer in order to offer an
alternative to McDonalds $1 summer drink.

 The company also will continue to sell its new premium burger, the Steakhouse XT, for
$3.99 through mid-September, with another national television ad splash planned in
August.

PLACE
 Burger King operates its business via franchises, under a franchise arrangement, the
franchisees invest in the equipment, signage, seating and decor, while the company owns
or leases the land and building. The company generates revenues from three sources: sales
at company restaurants, royalties and franchise fees and property income from those
franchises that lease or sub lease property from the company.

 Burger King occupies primary locations.

PROMOTION

 Burger Kings Big Value Menu $1 Talent Show invites customers to display their talent via
videos they submit with the goal of winning a menu item.

 The company has coined the term “next best move” to feature scheduled promotional tours
with stops in urban communities around the country. The effort is augmented by a special
website where
Participants can describe community service contributions.

 Burger King is backing its biggest product launch of the year, the Tendercrisp Premium
Chicken burger, with a promotion theme encouraging consumers to “cheat on beef”’.
The campaign began in March of 2010 using ads created by Crispin Porter &Bogusky.

PROCESS

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  A Burger King strategy has focused the customer segment that spends the most money at
its restaurants. These young men and women visit fast-food burger chains on average
almost 10 times per month.

 The company has employed a combination of “loss leader” promotions” coupled with
upsells of more expensive menu items, specifically higher-margin French fries and soft
drinks.

 Recently Burger King has concentrated on adding restaurants and entering new strategic
markets. They have added over 400 new restaurants in the last three years.

 The company seeks to further growth and popularity via its innovative marketing
promotions such as the King television commercials.

PHYSICAL EVIDENCE

 Burger King, based in suburban Miami, Florida, operates more than 11,900 restaurants in
all 50 states including 107 in Alabama, 122 in Arizona, 336 in Michigan and 547 in its
home state of Florida.

 Burger King has an internet presence via its website BK.com. The site provides company
information such as a video history of the company, press releases, and stock information.

 The company is in the process of reinventing its image via key changes in its decor. Its
new restaurants will feature modern, box-like architectural lines and urban-industrial
building materials, including corrugated metal.

PEOPLE

 John W. Chisley is Burger King’s Chief Executive Officer and Executive Chairman of The
Board. He has served in the CEO capacity since 2008.

 Alexandra Galindez the director of multicultural marketing for Burger King and in charge
of implementing its “Next Best Move” initiative, which seeks to strengthen its standing in
urban communities by conducting a national tour to community basketball courts in 41
markets.

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  In 2009 Black Enterprise magazine named Burger King one of the “40 Best Companies for
Diversity.”

 Burger King pairs its “have it your way” theme with speedy customer service. To facilitate
fast service Burger King takes customer orders on a continual basis. After an order is
taken, the customer then moves down the line where another employee is preparing the
order. Meanwhile, the original employee is taking another customer’s order. Customers
also get their own drinks while they are waiting for their meal.

STP OF BURGER KING

MARKET SEGMENTATION;
Firstly BK restaurant appeared in the US.BK main target market is male audience from 18
to35 years old, but now BK focus started to women and children as well.
However targeting thekids has not become burger king key strategy. Basically burger king
target young adults whowant tasty food, quick service and a good environment.
International expansion now the keytargets of the company BK wants to enter different
market before it becomes too tough because in economic difficulties business environment
is not always welcoming. This will behelpful to increase overall sales of the burger king.

MARKET TARGETING
Burger King are utilizing concentrated targeting, it means dressed ores on functioning
manydemands of a peculiar client group. This is aiming the demographic group with
immature egrownup market. Notably among immature males which they do non watch
telecastingcommercial and surfing on cyberspace all the clip. They are willing to seek new
things.Burger King merely aim on section within the entire market

MARKET POSITIONING

Burger King had aiming immature grownup market, particularly immature males
market.They position Burger king providing high-quality, great-tasting, and low-cost
nutrient.Burger King provides better service quality with the similar pricing and more

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 assortment pickof nutrient than McDonalds. Burger King UK released a new ad on the
event of Christmas,where the ‘King’ gifts an extra-special gift to the clown. Campaigns of
Burger king have been amusing and quite fierce for its competitor.

In 2015, Burger King proposed that the two chains combine “the tastiest bits of Big Mac
andtheir Whopper, united in one delicious, peace-loving burger” which they would sell on
PeaceDay, September 21. The proceeds of which, would be donated to Peace One Day, a
nonprofitthat provides educational resources to thousands of schools in 131 countries.
McDonald’showever, disregardedBurger King’s proposal to create a McWhopper for
peace.

COMPETITIVE ADVANTAGE IN THE MARKETING

STRATEGY OFBURGER KING

STRONG PARENT COMPANY:

Restaurants Brand international being the parent companyhas helped the Burger King in
utilizing their capabilities and the infrastructure support whichis helping the company in
achieving its goals and objectives.

LINE OF BUSINESS:

Burger King generates its revenue through three different businesses

 
 Royalties in terms of fees paid by the franchisees as a percentage of total sales made

 Properties leased out or subleased to franchisees

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  Revenue from the company-owned restaurant outlets

INTELLECTUAL PROPERTY RIGHTS:

Mora than 4600 Trademarks and above1000domainnameregistration around the world that
owns by burger king. (Lawrence, February 6, 2017)

CHAPTER – 4

MARKET ANALYSIS IN THE MARKETING STRATEGY

OFBURGER KING

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 Due to the presence of various local, national and international fast food chains, it
is becoming difficult for the company to increase its customer. In developing nations, it is
toughfor the companies in this industry to increase the market size due to several factors like

 Low per capita income

 Literacy level, poverty level

Standard of living.In order to keep the operating cost low Burger King is operating in the
franchised model for physical presence and it is promoting online sales by offering discounts
to customers in orderto1.
 
Increase the customer satisfactionlevel by offering convenienc

CONSUMER LOYALTY FOR MCDONALDS

 McDonald's Smile Loyalty card

 National Breakfast Day promo; During the promotion period, every customer whovisits
any Breakfast Store during Breakfast hours shall be eligible to get a free Veg.McMuffin
or Egg and Cheese McMuffin. McDona

ld’s will be celebrating the biggest

 breakfast activation by serving more than 315,000 McMuffin sandwiches tocustomers all
over the country. On March 17, 2014, starting at 6:00 AM,
allparticipating McDonald’s breakfast stores nationwide are joining the c

elebrationtosay “thank you” to its customers who start their day at McDonald’s.
Each participating McDonald’s breakfast store will be giving away free McMuffins to the

first 1,000 customers at a first-come-first-serve basis that’s over 315,000 hot and

fresh McMuffins to be given away nationwide via Dine-In, Take-Out, and Drive-Thru.

•McDonald’s Focused on Attracting Local Customers with Mobile App

Customers are loyal because Mc had pleased Customers with variety of Menu, HappyMeal
and Mc café

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 CUSTOMER LOYALITY OF BURGER KING
Customers of Burger King are the peoplewho want to enjoy safe, tasty fast foods
and beverages. Most of the customers of Burger King are in the age group of 15-40 years in
developing nations and in developed nation’s customers of all age groups prefers he
BurgerKing fast-food chain.Burger King points to a weakness in what seemed like a
profitable marketing strategy. Itreveals lower earnings by the company at a time when many
of their so-called “SuperCustomers” are leaving them and the reasons behind it were as
following:

IRRELEVANT MARKETING:
BK marketing was based on customers of 18 to 34 years and itsadvertisements were based on
this segment only. Its marketing strategy was to focus onentertainment of its customers and
the main thing was missing due to which customers stopwatching its advertisements because
it was irrelevant. The idea seemed to be that funny adscould attract and keep their target
customers. But now, due to changes in the U.S. economyand culture, BK is losing many of
these customers.

 CUSTOMER FOCUS:
Part of the problem is they are not giving customers what they want. Whiletheir
competitors added lighter and healthier items to their menus, BK relied on an adcampaign
and more of what they thought customers wanted. Now that people are eatinghealthier, the
goofy ads and bigger burgers are not a strong enough draw.

 LESS FOCUS ON KIDS;

As we can see that its biggest competitor MC main target market is kids which is its
biggest strength and competitive advantage. But BK is not focusing on thissegment it is
losing some of its market

 CHANGES IN PRODUCT RECIPE;

It is good to work on different taste or menu to appealcustomers but sometimes it did not
work well because different customers have different tasteSo, if BK is bringing regular
changes in its recipe then it may be lose its customers. If theywant to bring changes in
recipe they should study their customers first.

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 LIMITED MENU:
BK has a wide range of products in its menu but still there are many productswhich can
also be added to attract the customers but BK is not working on it, its main focus isonly on
its Burgers it has wide range of burgers but it is losing its customers because it is
notworking on other segments like deserts.

 NEW POLICIES AND TECHNIQUES:

Burger king developing new policies and techniques to gaincustomer satisfaction for
example burger king monitoring customer flow within store throughcameras also check
the customer behavior and movement within restaurant.

MCDONALD’S VS. BURGER KING

: A CLOSE LOOK AT TWO BURGERGIANTS

McDonald'sand Burger King compete closely with each other in the fast food
segment.However with its much bigger size and larger market share McDonald's is clearly
the leader.A couple of years ago, it appeared that Burger King was threatening McDonald's
However,with its All Day Breakfast and focus on healthier food items along with a renewed
focus onMcCafe, it now appears that McDonald's is better positioned to compete with Burger
King.In the past two years McDonald's has been aggressively refranchising its restaurants and

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as both burger giants move towards a nearly 100% franchised model we expect a similar
rate ofgrowth in the franchised restaurants of both players. However, since McDonald's has a
larger base, its restaurant growth in absolute terms would be higher in the next few years:

The average royalty revenue per McDonald's franchisee restaurant is significantly

highercompared to Burger King, since the former serves more customers per restaurant, given
itshigher market share.

We expect McDonald's royalty revenues to increase at a faster rate compared to Burger

King,as the company is driving higher traffic on the back of its menu innovation,
technologyinitiatives, and better branding. A comparison between the comparable sales
growth numbers
for the past six quarters of both burger giants indicates that McDonald's is currently in
thelead.

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McDonald's is also piloting its "Experience of The Future" stores where orders can be
placedvia kiosks, saving time and making it easier for customers to personalize their orders.
While both Burger King and McDonald's are likely to launch their mobile ordering platforms 
thisyear.Restaurant Brands International, on the other hand, appears to be lagging behind in
menuinnovation, introduction of healthier menu options, and technology initiatives. Burger
King ismuch smaller in size compared to McDonald's thus has a greater growth and
expansion potential. However, it appears that the company is not able to keep pace with McD
onald'smenu and technology innovations and hence is unlikely to gain market share and grow
at afaster pace in the next few years

Best fries and best burger from a burger chain.

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Healthiest Fast Food Restaurants:

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BRAND BATTLE OF MCDONALDS VS BURGER KING

The war between two of the biggest food chains, Burger King and McDonald’s has been
going on for ages. In factaccording to reports, the term ‘burger wars’ as coined in
theseventies after a series of competitive advertising campaigns launched by the two
chains.McDonald's customer base is much wider than that of Burger King with 28,000
franchisedstores spread worldwide ranging from developed markets to developing nations
incomparison to Burger King's 13,000 franchised restaurants in selective developed markets.

FUTURE PLANS OF THE COMPANY TO INCREASE

CUSTOMER LOYALTY;

McDonald’s and Burger King both are working to introduce different business strategies
to be the market leader in fast food business in UK. Both companies have many future planw
hich can help to increase customer satisfaction for example, in MC the company is planningto
focus on different market segments like kids adults and older customer segment. On
the basis of demand and expectations of different segment the company is working onappropr
iate menu and balance food with keeping in mind the health of its customers. If wetalk about
burger king they have mentioned that they are focusing on customer complaintsmanagement.
The company plans customer survey on regular basis and take corrective actionin the entire
Burger King system to reduce number of complaint and to increase customersatisfaction.

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 CHAPTER – 5

COMPARISON OF MCDONALDS AND BURGER KING

BASED ON CUSTOMER LOYALTY AND BRANDING

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Page | 43
Page | 44
Page | 45
CONSUMER PREFERENCES TOWARDS BURGER KING AND
MCDONALD’S.
 
Customers also have higher expectations in terms of the food production process. As a result
of demands for better ingredient quality and less animal cruelty, companies have already
beenforced to adapt. Consumers are also requesting lower prices, causing many stores
tooffer  discounts and deals
. McDonald’s started offering breakfast all day after years of pressure from customers .In
1994,McDonald’s first step out and it attracting people from past 20 years.it is one of the most
love fast food chain. The reasons why people are loyal towards McDonald’s that

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 It has easiest accessibility to the main market make it first choice as compared with burger
king.
 The customers indicates that their preference is based on service quality and attractive
packing they get at McDonald’s

 It is noted that McDonalds customers remember its menu by heart they said that theydo
not need any menu before ordering.

 The amount of customers at Burger King are still however a drop in the ocean
ofMcDonalds crowd. Burger king consumers know the fact that its outlets are less
packed than McDonald’s which makes the takeout experience less onerous

 Burger King definitely packs more flavor category, it is said that the Burger Wars arenot
just about tasteit’sabout the overall experience and the strategies in the background.
Being an established global brands MC and BK can continue to be therivalry to each other
in the market.

 Burger king believes that complex ideas ruin the overall brand image too many itemsin
menu make customers confused, provide less quantity and varieties but maintainthe
quality

 Your customer are your assets if you are ignoring them they think that you are
onlyconcerned about profit, during 2010 MC work was much better than burger king and
people negatively portrayed burger king to compete in the clown’s market however in
last five years BK came up as an extra ordinary growing brand beating popular fastfood
chains. Today we see great response by brand they made a positive move byfocusing on
their branding and customer loyalty.

 McDonalds thinks according to the customer tastes, value system,

lifestyles, perception and language that reflect the commitment of the business to increase 
andimprove customer satisfaction.

 McDonald’s has been recruiting andhiring people to ensure quality product andservices,
McDonalds has been providing training to staff to develop employeeknowledge and skills
to gain highest quality standards and deliver customersatisfaction

CUSTOMER LOYALTY OF MCDONALDS AND BURGER

KING:

There are different ways to identify the level of satisfaction

For example, McDonald’s
Dodifferent surveys to hear from its customers as well as recent experience from restaurants
toknow customer satisfaction
The Store Manager of McDonald’s has mentioned that

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with thehelp of customer feedback the business has been developing and implementing
differentactions to increase customer satisfaction for the next time.in contrast Burger King is
alsousing customer satisfaction tracker known as customer experience program, According
tostore manager it is one of the most unique approach of measuring customer satisfaction,
these programs are helpful to investigate and analyze customer experience, it is also helpful t
oretain existing customers and attract new customers. In addition, information
collectedthrough this program helps BK to focus on the organization operational aspects of
foodquality, cleanliness and speed of the service etc, these tracking programs directly
feedback toentire BK in real time.

 A whopping 88 percent of customers who dine at McDonald’s will return the

following year as compared to burger king return figure is 73 this makes sense. Also80
percent of customers who dine at Burger King in a given year also dine at
McDonald’s.

 When it comes to taste, McDonald's is the more popular choice.

 When it comes to value, Burger King offers the best deal for the buck since you getmore
burger.

 When it comes to international presence, McDonald's seems to be in more places

thanBurger king but if we talk about burger king its presence is less than MC.

 If customers want to eat burgers then BK is the best choice but if customer is
healthconscious then MC is best choice

 According to research it is noted that MC do different advertisement for adults

anddifferent for kids but BK advertisement are same for all. In past BK rely on word
ofmouth and media ads but time has been changed now BK focusing on companywebsites,
social media, food based sites, YouTube, Facebook, Instagram etc to reachout to its
customers

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SIMILARITIES;

 Both use expended product portfolio

 Both use franchises as source of money

 Both use psychological marketing

 Both have $1 meal

 Fast food meal

 

OBJECTIVE

 TO STUDY ON LEADING FAST FOOD CHAIN

 MCDONALD’S AND BURGER KING

 SWOT ANALYSIS

 TO STUDY THE MARKET ANAYLYSIS BY BOTH OF THE FOOD

CHAIN

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  TO KNOW THE CONSUMER PREFERENCES TOWARDS BURGER
KING AND MCDONALD’S.

RESERCH METHODOLOGY

APPLIED RESEARCH
My research on COMPARATIVE STUDY BETWEEN MCDONALD’S AND BURGER
KING Hence the nature of my research study is “BASIC RESEARCH.” Basic research is
intended to expand the body of knowledge for the use of others.

DATA COLLECTION
A:SOURCE OF DATA COLLECTION
Basically, there are two types of data that is secondary and primary:

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Primary Data: Primary data comprises of direct responses and data is collected from
different respondents. Questionnaire was used as the major tool in collecting primary data for
our research. And the aim of the study has been accomplished with the help of primary data
collected by random 100 people. The questionnaire was distributed among the people to
extract their suggestion on and opinion .

Secondary Data: Secondary data is the data, which is not gathered for the immediate study at
hand but for some other purposes. Secondary data for the research is collected through
magazines like Business World, newspapers, Auto magazines and internet. Therefore, both
the types of data were used in order to collect information for the study.

B. SAMPLE DESIGN

Here the researcher has chosen “SIMPLE RANDOM SAMPLING” [sub part of probability
sampling] to carry out the survey. In this each unit of the
Population (100respondents) has an equal chance of its selection

Statistical Tools
Percentage Analysis
Data analysis is an important domain that helps convert the data into meaningful value or
insights. It primarily consists of quantitative and qualitative data analysis. The percentage is
important in mathematics as well as data analysis. It is represented by the symbol % and a
fraction with 100 as the denominator. It is derived from a Latin word that means “by
hundred”. To calculate the percentage of any number, the number is divided by the whole and
multiplied by 100. It is used in data analysis as it helps in finding information on discrete
categories and collating statistical data.

Formula

The word percent is split into two parts: per and cent. Hence, it translates into per hundred.
Here is the percentage formula

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Percentage = Actual number/Total number x 100%

Hence, to calculate the percentage, here is the breakdown and its application:

 Actual number = It is the number for which you want to find the percentage

 Total number = It is the number with which you want to compare or find the value out
of

Techniques Used for Analysis

The most convincing and appealing ways in which data may be presented are tables, charts
and pictures. Pictorial representation helps in quick understanding of the data. Charts have
greater memorizing effect as the impressions created by them last much longer than those
created by the figure. A chart can take the shape of either a diagram or a graph. To analyse
the collected data tables, charts and bar graphs have been used.

Data Analysis and Interpretation

1. HOW OFTEN DO YOU VISIT FAST FOOD RESTAURANT ?

Classification No. of responses percentage

everyday 0 0
Few times a week 4 11.1
About once a week 24 66.7
Few times a month 4 11.1
Once a month 3 8.3
Less then once a month 1 2.4

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Interpretation
From the above table it can be inferred that 0% of the respondent visits fast food restaurant
everyday, 11.1% of the respondent visits few times a week , 66.7% of the respondent visits
once a week, 11.1% of the respondent visits few times a month, 8.3% of the respondent
visits once a month and 2.4% of respondent visits less than once a month

It can be concluded that most of the people visits once a week

2. WHICH OF THEM GET BETTER OFFERS AND

DISCOUNTS ?

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Classification No. of responses percentage
Mcdonald’s 19 52.8
Burger king 12 13.9
Both 5 33.3
none 0 0

Interpretation
From the above table it can be inferred that 52.8% of the respondent belief mcdonald’s
provide better offers and discounts , 13.9% of the respondent belief burger king provide
better offers and discounts, 33.3% of the respondent belief both of them provide better offers
and discounts,and none of the respondent belief none of them provide better offers and
discounts,

It can be concluded that most of the people belief’s mcdonald’s provides better offers and
discounts.

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 3. WHICH OF THEM PROVIDE HEALTHIER FOOD ?

Classification No. of responses percentage

Mcdonald’s 17 47.2
Burger king 6 16.7
Both 6 16.7
none 7 19.4

Interpretation
From the above table it can be inferred that 47.2% of the respondent belief mcdonald’s
provide healthier food , 16.7% of the respondent belief burger king provide healthier food
16.7% of the responden tbelief both of them provide better healthier food,and 19.4% of the
respondent belief none of them provide healthier food .

It can be concluded that most of the people belief’s Mcdonald’s provides healthier food

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 4. WHICH OF THEM PROVIDE VARIETY OF
FOOD ?

Classification No. of responses percentage

Mcdonald’s 19 52.8
Burger king 5 13.9
Both 9 25
none 3 8.3

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Interpretation
From the above table it can be inferred that 52.8% of the respondent belief mcdonald’s
provide variety of food , 13.9% of the respondent belief burger king provide variety of
food 25% of the respondent belief both of them provide variety of food,and 8.3% of the
respondent belief none of them provide variety of food .

It can be concluded that most of the people belief’s Mcdonald’s provides variety of food

5. WHICH COMES AS YOUR FIRST CHOICE WHEN YOU

WANT TO HAVE A MEAL IN FAST FOOD
RESTAURANT ?

Classification No. of responses percentage

Mcdonald’s 20 75
Burger king 27 16.7
other 3 8.3

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Interpretation
From the above table it can be inferred that 75% of the respondent’s first choice is
mcdonald’s when they want to have a meal , 16.7% of the respondent first choice is burger
king when they want to have a meal, and 8.3%of the respondentfirst choice is other

It can be concluded that most of the respondent’s first choice is McDonald’s when they
want to have a meal.

6. WHY DO YOU LIKE THEM MORE ?

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Classification No. of responses percentage
Service 2 5.6
Food 25 69.4
Convenience 5 13.9
Speed you get your food 4 11.1
other 0 0

Interpretation
From the above table it can be inferred that 5.6% of the respondent’s likes their services ,
69.4% of the respondent’s likes their quality/taste of food ,13.9%of the respondent’s likes
convenience , 11.1%of the respondent’s likes speed you get your food and 0%of the
respondent’s likes other things .from their favourite fast food restaurant

It can be concluded that most of the respondent’s prefer quality/taste of food .

7. WHICH OF THE RESTAURANT HAVE BETTER

RESTAURANT LAYOUT.
Classification No. of responses percentage
Mcdonald’s 22 61.1
Burger king 4 11.1
Both 10 27.8

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none 0 0

8. WHAT DO YOU THINK WILL BE THE NUMBER 1

RESTAURANT AMONG ALL OF ITS COMPETITORS ?

Classification No. of responses percentage

Mcdonald’s 24 77.8
Burger king 11 19.4
other 1 2.8

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Interpretation
From the above table it can be inferred that 77.8% of the respondent belief mcdonald’swill
be the number 1 restaurant ,19.4 % belief burger king will be the number 1 restaurant and
2.8% of the respondent belief other restaurant will be the number 1 restaurant among all of
its compitiors .

It can be concluded that most of the people belief’s McDonald’s will be the number 1
restaturant among all of its competitors.

9. OVERALL QUALITY OF MCDONALD’S [ RATING] ?

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Classification No. of responses percentage
5 28 77.8
4 4 11.1
3 2 5.6
2 0 0
1 0 0
Not visited 2 5.6

Interpretation
From the above table it can be inferred that 77.8% of the respondent has given 5 as a rating to
the mcdonald’s ,11.1% has rated 4, 5.6% has rated 3 , and none of them have rated 2 or1 %
and 5 .6% of the respondent has not been visited mcdonald’s

It can be concluded that most of the respondenthas rated 5 to the ,mcdonald’s .

10. OVERALL QUALITY OF BURGER KING

[ RATING] ?

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Classification No. of responses percentage
5 6 16.7
4 9 25
3 9 25
2 1 2.8
1 0 0
Not visited 11 30.6

Interpretation
From the above table it can be inferred that 16.7% of the respondent has given 5 as a rating to
the Burger King ,25 % has rated 4, 25% has rated 3 , 2.8% has rated 2 , 0 %has rated 1 and
30.6 % of the respondent has not been visited burger king

It can be concluded that most of the respondent has not visited to the burger king.

11. AGE GROUP ?

Classification No. of responses percentage

Below -10 0 0
10-18 2 5.7

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18-25 28 77.1
25-35 5 14.3
Above 35 1 2.9

Interpretation
From the above table it can be inferred that 0% of the respondent age is below 10 , 5.7% of
the respondent belongs to the age group between 10-18 , 77.1%of the respondent belongs to
the age group between 18-25 , 14.3% of the respondent belongs to the age group between
25-35 and 2.9% of the respondent age is above 35 .

It can be concluded that age group between 18-25 visits fast food restaurant more.

12. OCCUPATION ?

Classification No. of responses percentage

Student 22 55.6
Employed 14 38.9
Unemployed 2 5.6

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 other 0 0

Interpretation
From the above table it can be inferred that 55.6% of the respondent are students, 38.9% the
respondent are employed , 5.6% of the respondent are unemployed and 0 %respondent are
other .

It can be concluded that students visits fast food restaurant more.

CONCLUSION;
According to my report I think the better fast food chain is McDonalds. Today there is better
technology which helps to manage the resources more effectively.MC is very strong fast food
chain in the world as in its maturity stage it has more growth opportunities. It can also
introduce new products. McDonalds is planning to open more outlets in more countries.
Although in McDonald’s there may be more problems than Burger King but the fact
is there cannot be a perfect one in the world. burger king is also trying to compete
McDonalds it might be possible that burger king is better in many things but still McDonalds
is on number one fast food chain in world because of its strong background and more
importantly due to strong customer loyalty.

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 FINDINGS:

Based on the analysis we can conclude that; to perform better and to achieve their objectives
the company should start working on solving their internal issues first.

 People prefer weekends to visit fast food restaurant.

 Most off the visitors are students between the age group of 18 -25
 Now a days people are more health conscious so restaurants , should not only focus
on taste it should introduce its healthy menu
 Diversify/widen product mix to address current product mix limits
 Increase service quality
 Improve products to address the healthy lifestyles trend
 Burger King is facing continuously competition. To compete MC burger king should
increase its number of stores in the world according to customer need and demand

SUGGESTIONS

The company should focus on the current trends in fast-food markets and thus focus on the
demands and expectations of the customers of different segments.

 The company should focus on the current trends in fast-food markets and thus focus
on the demands and expectations of the customers of different segments.

 The company must be committed to deliver or offer quality products and services to
the customers as well as the company have to offer competitive price of their foods.

 It is important to develop and implement different business strategies in line with

customers’ feedback and suggestions, so the company should carry out market research
and collect customers’ feedback and suggestions on regular basis; and

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 The company should build strong relationships with customers through focusing on
their economic, social, and psychological perspectives.

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 BIBLIOGRAPHY

 https://www.scribd.com/document/400957896/study-on-mcdonalds-and-burger-king#

 https://www.google.com/search?
q=customer+loyalty+of+burger+king&oq=&aqs=chrome.3.69i59i450l8.1261683j0j7&source
id=chrome&ie=UTF-8

 https://ipa.co.uk/knowledge/ipa-blog/why-mcdonald-s-are-just-lovin-marketing-s-seven-ps

 https://www.studocu.com/my/document/university-college-sabah-foundation/principle-of-
management/beger-king-introduction-for-burger-king-company/14132329

 https://pdfcoffee.com/study-on-mcdonalds-and-burger-king-5-pdf-free.html

 https://www.marketingteacher.com/burger-king-marketing-mix/

 https://www.marketingmind.in/mcdonalds-marketing-strategy-that-has-made-it-a-global-
success/

 https://www.wikipedia.org/

 https://penmypaper.com/knowledge-base/competitors-of-mcdoanlds

 https://www.businessinsider.in/advertising/brands/article/burger-kings-customer-loyalty-
soars-after-its-order-from-mcdonalds-campaign/articleshow/79146432.cms

 https://studymoose.com/marketing-segmentation-targeting-and-positioning-of-burger-king-
essay

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 ANNEXURE

QUESTIONNAIRE

Name

How often do you visit fast food restaurant?

 Everyday

 Few times a week

 About once a week

 Few times a month

 Once a month

 Less than once a month

Which of them get better offers and discounts?

 Mcdonald’s

 Burger king

 Both

 None

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Which of them provide healthier food?

 Mcdonald’s

 Burger king

 Both

 None

What comes as your first choice when you want to have a meal in fast food restaurant?

 Mcdonald’s

 Burger king

 Other

Why do you like them more ?

 Service

 Food

 Convenience

 Speed you get your food

 other

what do you think will be the number 1 restaurant among all of its competitors ?

 Mcdonald’s

 Burger king
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  Other

Overall quality of McDonald’s [RATING]

 5

 4

 3

 2

 1

 Not visited

Overall quality of Burger King [RATING]

 5

 4

 3

 2

 1

 Not visited

Age group

 Below 10

 10-18

 18-28

 Above 35

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Occupation

 Student

 Employed

 Unemployed

 Other

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