...no. 1-0049 Food Fight: The Day McDonald’s Blinked Jack Greenberg, CEO and Chairman of McDonald’s smiled as he walked to the podium to summarize the first quarter results for 2000. The market had already reacted that morning to McDonald’s 12% increase in earnings, sending the stock up 8 percent. After almost no stock increase in 1999 and a 15% drop since the beginning of the year, Jack was happy to have some good news. More importantly, the $180M investment in the Made for You cooking program was finally in place with significant improvements both in food quality and service speed. After decades of spectacular growth, McDonald’s had become an American icon and the world’s most ubiquitous restaurant. Starting as a hot dog stand, the McDonald brothers’ first restaurant had no play area, no happy meals, and didn’t even serve hamburgers. Ray Kroc transformed that concept into a fast food machine, starting first with hamburgers and fries and then always changing with American tastes and culture. By 2000, more than 43 million people visited one of McDonald’s 26,000 restaurants in 120 countries every single day. That translated to more than 15 billion customers a year with system-wide sales of over $40 billion. Yet the previous ten years had been traumatic for McDonald’s. In search of growth, the company had rushed from pizza and veggie burgers to popcorn and pasta. Massive campaigns to increase dinnertime sales with adult-targeted sandwiches like the Arch Deluxe were utter flops...
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...no. 1-0049 Food Fight: The Day McDonald’s Blinked Jack Greenberg, CEO and Chairman of McDonald’s smiled as he walked to the podium to summarize the first quarter results for 2000. The market had already reacted that morning to McDonald’s 12% increase in earnings, sending the stock up 8 percent. After almost no stock increase in 1999 and a 15% drop since the beginning of the year, Jack was happy to have some good news. More importantly, the $180M investment in the Made for You cooking program was finally in place with significant improvements both in food quality and service speed. After decades of spectacular growth, McDonald’s had become an American icon and the world’s most ubiquitous restaurant. Starting as a hot dog stand, the McDonald brothers’ first restaurant had no play area, no happy meals, and didn’t even serve hamburgers. Ray Kroc transformed that concept into a fast food machine, starting first with hamburgers and fries and then always changing with American tastes and culture. By 2000, more than 43 million people visited one of McDonald’s 26,000 restaurants in 120 countries every single day. That translated to more than 15 billion customers a year with system-wide sales of over $40 billion. Yet the previous ten years had been traumatic for McDonald’s. In search of growth, the company had rushed from pizza and veggie burgers to popcorn and pasta. Massive campaigns to increase dinnertime sales with adult-targeted sandwiches like the Arch Deluxe were utter flops...
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...should be"), and then (3) highlighting the gaps that exist and need to be filled. Gap analysis forces a company to reflect on who it is and ask who they want to be in the future. Where is your company now? Burger King Holdings, Inc. was founded in 1953. Burger King is the world's number 2 hamburger chains after McDonalds. By the early 2000s Burger King is a little left behind. Years of under-investment left it struggling in its rival's shadow by the early2000s. Although a lot of consumers agree that it meals taste better than McDonald ones but it doesn't have the excellent perception created the administrative power and the aggressive marketing of his main by concurrent. It was freed in 2002 from Diageo the number one in wine and spirit drinks, which owned it since 1997, after a merger with Guinness. Although owned by Texas Pacific Group for US$2.26 billion, it recovered its latitudes of the sixties. The number 2 in hamburger fast food came back progressively in the fight with McDonalds. Since 2004 their performance constantly increased. In their intensive marketing campaign it targeted particularly core young male market. Advertising Age estimated global measured advertising expenditure of US$356m in 2007; making Burger King the world’s number 95 advertisers. Burger King in Malaysia came in December 1997. To date, there are 20restaurants in Malaysia. Look out for more outlets in the near future. There are currently, 3...
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...| Food Fight: The Day McDonald's BlinkedCase Study Analysis | Sullivan UniversityMGT 510 | | Kris Lutgring | | Executive Summary While McDonald’s and Burger King have fought over a percentage of the same market share, each company has a unique strategy with which they’ve approached the market. McDonald’s aims to deliver an inexpensive, standard, quality meal with high level of uniformity both in burger structure and in delivery times. Burger King also strives for an inexpensive, quality meal, but focuses on allowing the customer a degree of flexibility in the menu – a goal reflected in their long-time slogan, “Have it your way.” This difference results in distinct objectives for each restaurant that resonate throughout their respective operations structure, affecting the cooking process, approach to customization, equipment and technology, staffing, order processing and pricing. Background: McDonald’s versus Burger King In the quick-serve restaurant industry, no two brands have waged war over customer loyalty as publicly as McDonald's and Burger King. The rivalry dates back to the mid-20th century as both companies emerged on the national scene, battling for territory and franchisees. Similarities in menu, resturant decor, and locations all set the scene for a story only America could create. Both McDonald's and Burger King exploded onto the American palette in the 1950's. McDonald's set out to change their menu operations by investing in their food...
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...Nowadays fast food shops consider the easy way for people resort to eat according to fast life, responsibilities and short of time to cook at home. Young people and adults like to eat fast food but Government is trying to control marketing of fast food because of health problems such as obesity issues. McDonald’s need to add vegetarian meals in their menu. For example when the customer order vegetarian meal will take another one free to encourage people to eat healthy food containing low calories. We can compare that by other companies like Pepsi and Cocacola we find there is diet cola without sugar to fight obesity. Culture of society has a big impact on organization sales. For example Muslim only eats Halal. McDonald’s in UK or USA there are meals by ham burger another meal Halal but other hand McDonald’s in Arab countries cannot find Halal meal or not Halal meals because everything is Halal. When McDonald’s decided to open in Arab country commit by rules of country. Achieving happiness is very important by satisfy all needs of customers. Satisfaction of customer needs = happiness = more profit Fast food industry is very competitive. People can choose another source to eat like Burger king or KFC or other local shops. So variety of products help McDonald’s to be unique and compete the rivals. In each country should have popular meal that people famous to eat it in that country. Price is very important to customer to identify the product. In other words the...
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...industry? Burger King is a fast food company from the United States. Today, this company is implemented all over the world and it is one of the most famous fast food companies all over the world. Often abbreviate as being BK, its headquarters are located in Florida, United States of America. By developing the first Burger King, James McLamore and David Edgerton the two creators had given the community a comfortable environment to eat inside of the restaurant, because the restaurant was the first fast food business to offer people the option of dining in the restaurant or going to the drive. With McDonalds being the largest fast food chain in the world, Burger King rates as the second largest hamburger fast food restaurant in the world, with Wendy’s following right behind it One of their goals is that they try hard to continuously increase their image and product line. Having integrity, diversity, fairness, team work, and commitment to excellence are only some of this fast food restaurants values. With Burger King’s unique values and slogan they have created a position for themselves that separates them from other fast food restaurants. One way that Burger King has positioned their selves away from the competitors is by getting away from the traditional menu and to offer regional menu items, which offers local dishes exclusive to certain cities. The Breakfast Burrito which is served in the south-west and Mustard Whopper in Texas are only some of Burger King’s regional...
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...III. Executive Summary This paper aims to explore the marketing mix of Burger King and create some recommendations in order for the company to make use of its marketing mix to its advantage. The marketing mix of the company is traced through research with the mostly secondary data, and some primary data in order to gather facts and provide for the analysis. However, due to limitations such as access to hard market data through formal quantitative and qualitative researches, the analysis may not be the most accurate representation of the market. This limits the analysis to most market data available from secondary sources. After the marketing mix has been determined, the applicability of the marketing planning process to the company’s operation is described. This will benefit the company in the strategic sense in order for it to either secure or push to a higher position. Finally, recommendations have been made in order to provide the company some options in order to facilitate growth by changing the combination of the elements in the marketing mix, and create a competitive advantage tailored to its chosen target market. IV. Body A. Methodology The scope of this business report is to describe the marketing mix of the company Burger King from primary and secondary resources in order to make an accurate analysis for their marketing planning process. By knowing the current marketing mix of the company, recommendations can be provided in order to boost growth for...
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...Burger King’s History – Burger King was founded in 1954 in Miami, Florida. The corporation was initiated by James McLamore and David Edgerton. Prior to starting Burger King James and David had been deeply involved in the restaurant business. Their main idea for the restaurant was center around a place that people would come to and get the best quality food. They also wanted the experience to be in a pleasant atmosphere. Burger King operates more than 12,000 restaurants in all 50 states and in 76 countries worldwide. About 10,800 of those restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. Below is their mission statement. Burger King’s Mission Statement – “We will prepare and sell quick service food to fulfill our guest's needs more accurately, quickly, courteously, and in a cleaner environment than our competitors. We will conduct all our business affairs ethically, and with the best employees in the mid-south. We will continue to grow profitably and responsibly, and provide career advancement opportunities for every willing member of our organization." GAP Analysis: Where is your company now? Burger King Holdings, inc. was been founded in 1953. Burger King is the world'snumber 2 hamburger chains after McDonalds. By the early 2000s Burger King is a littleleft behind. Years of under-investment left it struggling in its rival's shadow by the early2000s. Although a lot of...
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...Burger King: Promoting a Food Fight In this presentation, we are going to discuss the promotional campaign of Burger King Cooperation created by the advertising agency Crispin Porter + Bogusky during the years 2004-2009. Before getting into the details of this campaign, let’s take a brief look at the company’s profile. Burger King is the world's #2 hamburger chain after Mc Donald. It opened its first restaurant in Miami 1954; ever since, the company has been continuously growing to become a symbolic American brand. The remarkable success it has gained, allowed franchise to be over 13000 outlets in more than 79 countries worldwide as of the end of the fiscal year 2013. Burger King has of course become known for the Whopper first introduced in 1957 and which has quickly became one of the best-known burgers in the world. Mission statement: Their mission statement is presented on their website in these words: “We will prepare and sell quick service food to fulfill our guest's needs more accurately, quickly, courteously, and in a cleaner environment than our competitors. We will conduct all our business affairs ethically, and with the best employees in the mid-south. We will continue to grow profitably and responsibly, and provide career advancement opportunities for every willing member of our organization” In their mission statement, BK founders commit to offer a dining experience that stands out among competitors’ services. Objectives: Burger King’s campaign objectives...
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...firm (organization audit) using a range of sources and producing a reference list. P2.1, M2 The American Burger King Worldwide Holdings Inc. is a global franchising company operating in the fast food industry. Burger King is a well known brand all over the world. It is the second largest fast food burger chain with their main product being hamburgers. Originally founded in 1954 by Keith Kramer and Matthew Burns, but was subsequently acquired by two franchisees, James McLamore and David Edgerton. The first restaurant was opened on December 4th in 1954 in Miami, Florida, under the name “Insta Burger King”. The concept was already then and has stayed the same from the beginning, flame roasted beef with fresh ingredients in a bun. Their bestseller the “whopper” was first sold in 1957. Over the past 50 years the firm has had numerous owners. In the past 25 years alone, the company has seen 13 CEOs. Despite of the lack of long-term ownership, constant management turnover, and inconsistent strategy, the company managed to grow into the world’s second largest fast food burger chain, with over 13000 restaurants operating in 80 countries, which speaks to the strength and resilience of the business. New owners restructured the company. Since 2010, when the company was acquired by 3G Capital, the index has increased by more than 50% and Burger King became Burger King Holdings (BKH). The new owners modified the company’s structure and started to improve its marketing plans...
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...CASE STUDIES Burger King case study Targeting the Superfan as a means of retaining growth in the fast food market Reference Code: CSCM0246 Publication Date: April 2009 DATAMONITOR VIEW CATALYST After years of poor sales, Burger King has turned its business around and now enjoys healthy business growth. This case study looks at how the company did this by refocusing its marketing towards the Superfan, namely young adult males who have a penchant for fast food. SUMMARY • Diageo was accused of neglecting Burger King under its ownership, letting the brand fall off the radar at a time when fast food in general was reporting favorable growth. The fast food chain's fortunes began to change after it was sold to a private equity triumvirate, which set about investing in promoting the business to the devoted fast food eater. This focus was a success, leading Burger King to gain 'cool status' in many peoples' eyes and to achieve strong growth. • Burger King's focus since being sold has been in targeting the Superfan, that is the 18–35 year old male who enjoys fast food. Company marketing efforts have focused on appealing to this consumer type, using both traditional and new media as a means to gain their attention. • Burger King's marketing has often been controversial, with two 2008 efforts standing out. The Whopper Virgins documentary, in which members of remote communities were given burgers to try for the first time, was deemed offensive and patronizing, while a Facebook...
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...Analysing Mcdonalds (Fast Food Outlets) Using The Porters 5 Forces Model – Sometimes Called The Competitive Forces Model. Introduction McDonalds Corporation truly began in 1954 when Ray Kroc decided that he would turn the successful Californian store owned by the McDonald brothers into a chain. Today McDonalds is the world’s largest restaurant chain, worth over $70 billion (Yahoo7Finance 2008). McDonalds has grown via constant refinement of business practices and by knowing their customers needs. They have placed great importance on their long term relationships with suppliers and their aim is to ensure customers receive a consistent product quality. Analysis of McDonalds Corporation using the Porters 5 forces model to asses its competitive position in the fast food industry. As the name suggests the Porters 5 Forces model focuses on 5 key factors affecting the environment in which a business operates. They are 1) Competitive rivalry 2) Power of suppliers 3) Power of buyers 4) Threat of substitute 5) Threat on new market entrants Each of these five areas can be looked with relation to McDonalds and there position in the fast food industry. Competitive Rivalry If entry into a market is easy then rivalry is likely to be high. Generally rivalry will be high if, there is little differentiation between the product sold between customers, competitors are approximately the same size as each other, it is costly you leave the industry so they fight to stay in (Porter...
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...in their advertisements. The fast food industry excels at this strategy. They have identified their target customers as children, and they know how to construct advertisements to directly cater to their wants. Toys and colorful characters, like Ronald McDonald, make the unhealthy products that this industry is selling look attractive to children; the message is not what it purports to be. Due to the naive minds of children, advertising towards children has become a big problem for our nation. There is no doubt that the fast food industry has played a big part in our nation’s growing obesity epidemic, which will continue to grow if these companies are allowed to continue their successful strategies. These companies have been impugned. Through the inventions of the Internet and cell phones, there will only be more ways for fast food companies to reach out to children. The government should push to censor more minutes of fast food advertisements on kids’ television networks, regulate the number of advertisements that appear online on kids’ websites, and stop companies from targeting low class minorities who may not have a parent available to teach them healthy eating habits. Also, parents who are able to should take responsibility and show their children healthy eating habits, and limit time spent watching television. Obesity is a danger to children, due to the fact that it will be referenced many times when the topic of fast food advertising towards children is discussed...
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...Loltttttttttttttttttttttttttttttttt t tt tttt ttt tt The bargaining power of buyers is low in the industry as well. McDonald’s, Burger King, Wendy’s, among others, are highly competitive with their product pricing as it stands. Price floors are already being experimented with through dollar menus at McDonald’s and Burger King, and 99¢ menu at Wendy’s, at which some of these companies actually operate at a loss for each sale from this value menu. Therefore, with low prices already established in the industry, the bargaining power of buyers will be low because fast food restaurants already offer selections at various price points that cater to all budgets. Competition Restaurant industry is highly competitive industry. There are many small fast food businesses in theindustry who fight with each other to improve their customer base; McDonalds is not an exception to this.Since its establishment in 1940, MCD has excelled in the sector. Nevertheless, to stay in the competition,it started with McCafé. This helped the company to stay in the business as a major fastfood business.Another major step came out when McDonald started Breakfast to compete with the existing businessserving breakfast. Hence, this industry is extremely competitive and the MDC should be up to date withcustomer taste & preferences. Ease of Entry Although it is hard to enter the restaurant business, it is hard to establish a distinct brand name. There is ahigh cost of entry in the market and there is \ high...
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...Quick Scan Burger King Roos van Os & Tim Steinweg April 2008 SOMO Quick Scan Burger King SOMO Quick Scan Burger King Roos van Os & Tim Steinweg April 2008 2 SOMO Quick Scan Burger King Contents 1 2 2.1 2.2 2.3 2.4 2.5 2.6 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 6 6.1 6.2 6.3 6.4 6.5 7 7.1 7.2 7.3 8 9 Introduction ...................................................................................................................... 4 Company Profile: Burger King Holdings....................................................................... 6 Corporate Profile................................................................................................................ 6 Burger King Holdings’ corporate history............................................................................. 7 Burger King Holdings ownership and corporation structure............................................... 8 Market presence................................................................................................................. 10 Purchasing activities........................................................................................................... 11 Burger King Suppliers in the Netherlands .......................................................................... 11 CSR Sector Analysis ....................................................................................................... 13 Consumer...
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