“Burger King’s Whopper-Sized Portions”

A Case Analysis

Submitted By:
Hizo Lleyton
Santos Camille
Seville Loulie
Beth

Tolentino Charles Joseph

Tumaru Kyla

Strategic Management (STRA311)

Submitted to:
Dr. Rolando L.
Palad

May 15, 2020

 BURGER KING

I. TIME CONTEXT
This case study primarily focuses on the current generation in which Burger King is
standing against a trend that differentiates from other fast-food restaurants' appeal to
diners that are concerned about their health and fitness. It addresses Burger King
locations in the US. In addition, the authors proposed that Burger King develop goods in
the future that will both maintain the products' high consumer appeal and advance
societal marketing (such as menu items that are health-focused.
 Particularly, the study also covers the year 1957, when Burger King Whopper was
introduced, up to now, when it is still dominantly taking over the fast-food market. The
time context also mentioned of the “dark years” of Burger King when it struggled to sell
low-fat products on its menu

To summarize it briefly, the time context according to discussion involves past, present,
and future times.

II. VIEWPOINT
Fernando Machado (Chief of Marketing Manager of Burger King)

III. STATEMENT OF THE PROBLEM

Why does the consuming public continue to patronize Burger King's Whopper-sized
portions despite health concerns primarily because of the delicious taste and
convenience offered by the fast-food chain?

The allure of indulging in a satisfying meal quickly outweighs potential health risks for
many customers.

IV. STATEMENT OF OBJECTIVES

● General Objective
a) The general objective of this study is to be able identify the consumers’ criteria in
selecting a place to eat.
● Specific Objectives
Specifically, it also aims to:
a) Identify the factors that affect a customer’s decision to eat at Burger King.
b) Understand the reason behind the customers’ patronization of
Burger King’s Whooper sized portions despite health issues.

V. AREAS OF CONSIDERATION
Strengths:
● Strong market position
a) BKC is the world's second-largest Fast Food Hamburger Restaurant (FFHR)
chain as measured by the total number of restaurants and system-wide sales.
The company’s specialty is burgers and fries which it sells through over 12,150
flagship fast-food restaurants. The company leverages its strong market position
to gain economies of scale and increase its bargaining power.

b) BK has more than 12,150 restaurants in all 50 states and in 76 countries and
U.S. territories worldwide.

● Strong brand equity

 a) Burger King has fantastic brand equity, and it's already a competitive concept in
America due to its long history, its size and its muscle," restaurant industry
consultant Allan Hickok said.

b) Burger King serves one of the world’s favorite and well-known brands including
the Whopper sandwich, the Tender crisp Chicken Sandwich, Chicken Tenders
and the BK Veggie Burger. In 2005, Brandweek magazine ranked Burger King
at 15 among the top 2,000 brands of the US. Overall, the company’s established
brand image has enabled it to penetrate various global markets and compete
with regional players effectively.

c) Burger King’s Whopper is known for its quality, and it is the best-known brand in
fast food. The Whopper (and by extension, Burger King) presents a well-
integrated “package”, where product attributes, benefits, values and personality
are distinctive, positive and mutually reinforcing.

d) The most notable aspect of Burger King is the extent to which its identity is tied to
a magnet menu item, the Whopper.
o BK is prominently identified as “The Home of the Whopper”, and the two
are inexorably linked.
o BK’s menu is “Whopper-centric”.
o The BK marketing model is essentially “brand as ‘star’ vehicle”, with the
Whopper as the anointed star
o The Whopper is a well-qualified image leader (a true “signature product”) for
Burger King in several respects:
o It has a proprietary name with compelling image oriented as well as
attributes-oriented associations.
o It offers a distinctive product experience (flame broiled, big, prepared
to order) versus its main competition.

● Strong brand financial performance.

3G Capital. Because of the popularity and capability of financing firms/companies
by buying shares, BK should allocate and plan well the profit that they will get
from 3G Capital.

● High quality products

BK quality assurance starts from the initial stage. BK ensures that products are of
the highest quality during receiving deliveries as well as during restaurant
operations; consistent checks are made to guarantee customers receive the best
quality, wholesome, safe food.

● Wide variety of food products

 The company’s products and services are categorized under the following
different segments:
o Sandwiches
o Hamburgers
o Cheeseburgers
o Salads
o Hash browns
o Coffee
o Juice
o Fries
o Onion rings
o Soft drinks

Weaknesses:
● Heavily concentrated in the US.
a) Though the company operates in 65 countries, its operations are heavily
concentrated in the US and Canada. About 65% of its restaurants are in the
US and Canada. Concentration of operations in one geographic area increases
a company's exposure to local factors such as adverse economic situation,
labor strikes and changes in regulations that can affect its operations.
b) Concentration of operations in one geographic area increases a company’s
exposure to local factors such as adverse economic situation, labor strikes
and changes in regulations that can affect its operations.

● Few corporately owned stores

a) Not enough corporately owned stores mean it relies heavily on franchisees
to execute its brand promise.

● Inconsistent management and strategy. Changing Executives.

a) Management lacked focus and direction and has struggled with marketing mix
decisions. Franchises became confused and angered, service was slow and
food preparation wasn't consistent. Burger King lost its core product-flame
broiled burgers, made the way the customer wanted them.
b) Burger King Corp. was founded in Miami in 1954 by James McLamore and
David Edgerton, a year before Ray Kroc opened his first McDonald's in suburban
Chicago. The Whopper was introduced in 1957. In 1967, Burger King was
acquired by the food conglomerate Pillsbury. In 1988, Pillsbury was bought by
Grand Metropolitan PLC, a British conglomerate. In 1997, Grand Metropolitan
merged with Guinness to create Diageo. With each merger, even as Burger King
grew, it became a smaller piece of the overall company. Ultimately, it became an
afterthought. Soon after the merger, Diageo decided that Burger King no longer
belonged. In 2000, Diageo officially placed Burger King on the auction block. The
company was finally sold in 2002 to a consortium of private equity investors—
 Texas Pacific Group, Bain Capital, and Goldman Sachs Capital Partners—for
$1.5 billion.

● Narrow-based target market.

a) Burger King is pinpointing its target market and is currently trying to hit a bull’s
eye with a new, focused marketing approach—to both consumers and potential
franchisees. BK’s primary target market is the age range from 18 to 34 years
old and 4 to 15 years old.
b) While Burger King’s consumer marketing will attempt to focus its efforts on more
specific audiences—like children and ethnic markets—the company’s marketing
target is a lot narrower when approaching potential franchisees.

● Confusing ad campaigns.
a) Ineffective ad campaigns were one of the problems facing BK. Burger King lost
its core product-flame broiled burgers, made the way the customer wanted them.
Many in-store promotions also failed. They fail to efficiently promote products
because they are too busy trying to promote “The King” character.
b) The Burger King "I like square butts" commercial. I found that offensive because
it was promoting a Sponge Bob kid's meal. I just didn't think that was
appropriate for little kids, especially when you know the real lyrics to the real
song. In the commercial, the Burger King icon was measuring the square butts
of other girls. A lot of people were offended by this commercial.

● High prices.
a) Another thing that hurt them was the fact they didn't lower prices to keep
competing with their competitors and this led to below average sales
growth.

Opportunities
● New product development
BK value menu featuring six items at less than $1, breakfast sandwiches, and
specialty burgers. To create a consistent brand image, BK needs to extend their
menu which will show the consumer that BK burgers are big, high quality, juicy
and satisfying burgers. BK needs to put the focus back on the food and show that
it is well prepared, satisfying and desirable.

● Keep building its brand through ad campaign

BK can use the flamed-broiled and whopper in developing their brand image.
Consumers associate BK with food that ignites the senses. Consumer needs the
convenience of food and not a fast food that brand himself as cool but creeps the
people.

● Expansion into emerging markets

 BK can expand to Asia wherein people are already into fast food restaurants.
High levels of consumer demand, coupled with relatively low levels of
competition, offer a lucrative opportunity for many franchisors to expand into
emerging markets. Expansion via franchising is an attractive option for
companies looking to expand abroad without incurring high costs. Additionally,
international franchisees already possess many inherent qualities needed to
succeed abroad, like the ability to speak the native language.

● Wide-based target market.

BK can change their target market. Can extend their target market to families
which is the target market of McDonalds. If BK wants to close the gap with
McDonalds, they can use the “copycat strategy”.

Threaths

● Changing consumer habits towards healthier food choices

Changing consumer habits towards healthier food choices is a large external
factor for a company that specializes in hamburgers. A shift away from
hamburgers could hurt earnings and revenue.

● Intense competition from McDonald’s, other restaurants and even retailers.

The company's competition in the broadest perspective includes restaurants,
quick service eating establishments, pizza parlors, coffee shops, street
vendors, convenience food stores, delicatessens and supermarkets.

● Increasing labor costs put pressure on bottom line margins.

● The major competitor McDonald is way ahead in market share.

VI. Alternative Courses of Action (ACAS)

● By offering Burger King Whopper, It offers affordable products. In that way,
customers will continue to patronize their products. Most of the people tend to
choose to buy foods that have cheaper value at the same time can satisfy their
want. In that case, Burger King offers affordable prices, making it easier for
customers to choose and eat the short period of time. Customers want their money
to be well spent. With that, people feel fulfilled when they spend less money on food.
It is low- cost; however, the quality of the ingredients is not the best. Like other
products, it is inexpensive but of bad quality duality due to the substances or
materials utilized. It is inexpensive, which is the reason why customers select Burger
King, making it easy to satisfy their appetites without spending too much money.
While pricing is important, come could feel a compromise in quality as a result of
low-cost. Nonetheless, for many, the value of money surpasses quality concerns.
 ● According to Regina Herzlinger, a professor at Harvard Business School, the fast-
food chain’s success is due to its ability to focus on speed and consistency.
Customers want and will continue to seek out and crave the cuisine they provide.
Despite the rapid growth of fast-food and soft-drink businesses around the world,
hamburgers and fast food have been denounced virtually from the start for their
health risks. On the other hand, although satisfying customers’ demands, the body’s
nutritional requirements are not met. People only think about the taste they want and
ignore their body’s necessities.

● Fast food chains, such as Burger King, offer a quick meal option for people with busy
lives, allowing them to eat while working on something. People working in a busy
setting benefit greatly from fast food franchises such as Burger King that offer ready-
to-serve meals. On the positive, it is a good thing since they get to manage their
time, multitask, and complete all their tasks before the day ends. On the other hand,
the value of eating is poorly practiced. Most of the people are career oriented
nowadays, getting everything done quickly is also not a smart idea because it might
lead to more disastrous scenarios. Modern society's emphasis on speed and
efficiency may result in a disregard for ethical standards and a distorted work-life
balance. Furthermore, true success does not arrive overnight. It will take time;
patience is required.

● Burger King offers an extensive menu, however despite this, they mostly specialize
in meat, burgers, fries, and other foods high in fat, salt, oil, and cholesterol. It is “a
strategic change in the positioning of its menu in Europe” that they develop, in
contrast to McDonald’s new salad menu. Burger King is the best example for this
concept, they provide a broad range of options suited to different client preferences
and dining settings. Along with their iconic Whopper burgers, they also offers a range
of heavy snacks that are perfect for eating on the go, such chicken fries. Burger King
continuously modifies its menu to meet the needs and interest of its patrons in order
to maintain their interest and involvement. Customers thus have a joyful and fulfilling
eating experience.

● A positive first impression of their meal is what Burger King strives to provide its
patrons. It is their responsibility to ensure that consumers are drawn to
happiness with their offerings. A certain customer base is their primary focus.

VII. Decision Matrix

Among the factors that affects people’s decision where and what to eat, particularly
Burger King, there are two factors that affect why people patronize Burger King’s
Whopper:
 1. Sized proportion
a) A primary motivator for patronizing Burger King is the serving size of the food.
Burger King is primarily visited by people because of its famous Whopper
Burgers. There are many wonderful flavors in their food and beverages. Because
of its large servings, it can also be eaten as a meal. These taste are available
with extra fat, oil, and salt, which poses a health concern. However, people don’t
mind these. They have time to eat healthy as long as they are unaware of the
negative effects og eating fast food or do not regularly consume it. According to a
book titled “Consumer Behavior (Seventh Edition),” some customer can be
categorized as “Type T” or “Thrill seekers.” These are people who are renowned
for taking risks and are therefore more likely to have health risks than to gain
from the product. Hence, people are accustomed to consuming meals that have
very little nutritional value.

2. Cost and Convenience

a) The second most important factor that influences people to continuously
patronize Burger King’s Whopper sized portions is the cost and the
convenience. Whopper burger does not cost too much, for its size it is not bad
as a meal. Additionally, its easy preparation and grab-and-go nature appeal to
those seeking a satisfying and speedy dinner, particularly those with limited
time.
Customer’s enduring fondness and support for Burger King’s Whopper are
significantly impacted by these factors.

VIII. Final Decisions/ Recommendations

Part of Burger King’s marketing strategy is focusing essentially on one group of

consumers – the Super Fans. They design their food fit to these groups of people,
forgetting other groups of consumers. Hence, it is recommended that they expand their
exposure to the wider crowd to attract more customers. But of course, they must retain
their relationship with their loyal fans. They should still retain their Whopper-sized
products. More so, they should also invent new yet healthy and nutritious products that
would draw people closer to the said fast food chain. These products should alleviate the
negative effects of their fatty, cholesterol-rich, and high-calorie burgers.

For consumers, they must attend to their knowledge about the consequences of the food
they eat by considering the nutritional facts and not the mere taste of it.

For future researchers, they should also consider other factors that affect consumer
buying decision on where and what to eat. What are stated above are expandable and
can be further improved.

IX. DETAILED ACTION PLAN

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