Entrep Track 2 - Burger King - Dueñas

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Dueñas, Angela Rose P

BSE 3-B

Social Media Marketing

Case Analysis: Burger King

I. Summary of the Case

When Burger King was established in the early 1950s, it wanted to attract the
families of baby boomers and serve them with affordable and quick broiled burgers. By
providing the consumers with the best quality burgers, it was able to achieve great
success in a short time and become the second largest fast-food chain. Although it
achieved great success, because of changing social factors Burger King got caught in
an identity crisis. Who is it, what kind of food does it serve, and which market segment
is it targeting? Currently, Daniel Schwartz is Burger Kings 21st CEO since the company
was founded in 1953. Burger King was originally known as Insta-Burger King and
founded in Florida in 1953 by Keith Kramer and Matthew Burns before they had
financial difficulities and sold the company to its Miami-based franchisees, James
McLamore and David Edgerton in 1954 (Burger King Worldwide, Inc., 2014). One that
stands out in particular is the current number one fast food chain, McDonald’s, which
started its empire with a California drive-in (Burger King Worldwide, Inc., 2014). In 1957
the Whopper sandwich – the burger for large appetites – was introduced and from the
beginning it was successful. Two years later, the company began to expand through
franchising. That is when it started having inconsistency in product and service from
franchise to franchise. This problem was caused because it used a small field staff for
franchise support. To fix this problem, Burger King hired a strong executive from
McDonald’s to restructure the company’s franchise system. All of these strategies
worked as planned and by 1979 he had brought the company’s share of outlet
ownership up from 34 percent to 42 percent (Gale, 2004). Around this time Burger King
also started to market its products to kids, making its commercials similar to
McDonald’s. However, while Burger King’s organizational culture is strongly manifested
in its corporate offices, it has only limited implementation in the restaurants.
Burger King has struggled to attract a specific target market since the 1980s, while
McDonald's and Wendy's have been successful in doing so. To address consumer
concerns about healthy eating, Burger King became the first fast food chain to provide
information about calories, fat, salt, and other nutritional contents on its menu.
McDonald's and other chains also made changes by removing sodium from food items
and introducing healthier options like salads and baked potatoes. Burger King's CEO,
Daniel Schwartz, expressed concern about the company's historical target market of
males aged 18-35, as it did not represent the overall fast-food market. To address this,
Burger King decided to expand its target audience to include both males and females.
Advertising featuring soccer star David Beckham resulted in a higher percentage of
females consuming Burger King products.

Their target market are baby boomers, millennials and generation x. First is baby
boomers. Baby boomers, individuals born between 1946 and 1964, are a valuable
consumer group for fast food chains due to their active lifestyle and need for quick
meals. Some baby boomers also seek healthier options. Targeting grandparents can be
effective as they are often involved in their grandchildren's lives and can influence family
dining choices. However, fast food chains have not successfully connected with baby
boomers through their advertising, thus missing out on potential returning customers.
Next is Millennials. According to a study, 53 percent of millennials eat out once a week
compared to 43 percent of the general population in the U.S. However, when surveyed,
millennials are embarrassed to admit they eat fast food. The majority of this age group
prefers fast-casual dining over fast food restaurants, but still consider fast food as a
backup option. A decline of 5 percent in low-income millennial traffic has been reported
for a certain chain, potentially due to inadequate promotion on social media. Lastly,
Generation X. Generation X, born between 1965 and 1980, is a group between baby
boomers and millennials who are known for being the busiest with work, family, and
bills. This population prefers coupons and special discounts when consuming products.
Burger King, while trying to target different market segments, has not adjusted its
branding accordingly, causing an identity crisis. The company needs to analyze whether
to focus on a specific market segment or adjust its branding to find a solution.
When referring to positioning in the fast-food industry, McDonald’s definitely has
the lead. Burger King has a positioning statement that distinguishes it from the rest, but
it has not been enough to achieve a better position in the market. Burger King, for a
long period, was relying on the positioning statement “Have it your way,” but recently the
senior vice-president of global management decided to sharpen the chain’s positioning
by first changing the statement to “Be your way” (Parpis, 2016). Although this critic
might have been a little harsh, Burger King gave up part of who it is by changing its
slogan. The company has also decided to advertise without celebrities, and instead
focus on the brand’s core product, the Whopper. It is making efforts to build an
ecosystem of agencies that are constantly aligned.

Burger King targets multiple market segments but fails to deliver a consistent
message to them. The company creates multiple advertisements for the same product.
Burger King has been known to imitate its competitors' methods, such as restructuring
its stores. However, McDonald's had already made the same move before. The menu
offerings of Burger King have been inconsistent, with a recent addition of healthier
options following Wendy's lead. This move aimed to attract health-conscious consumers
but ended up negatively impacting Burger King's brand identity. Burger King has
introduced unique menu items like the french fry burger, attracting some customers.
However, they struggle to retain customers due to confusion surrounding their brand
identity. Initially known for the Whopper, a good and affordable burger, Burger King
needs to redefine its image and differentiate itself from other fast-food chains.

II. Objectives

• To understand the current and possible issue of Burger King

• To provide or offer potential solutions and effective course of action

• To help Burger King decielde on the best strategy and prove a critical point

III. Areas of Consideration/Problem

Burger King Corporation is an American multinational chain of hamburger fast


food restaurants. Headquartered in Miami-Dade County, Florida, the company was
founded in 1953 as Insta-Burger King, a Jacksonville, Florida–based restaurant chain.
According to the case study of Burger King, they have been facing a brand identity
crisis. These are the areas of consideration/problem that I found.

● Burger King got caught in an identity crisis. Who is it, what kind of food does it
serve, and which market segment is it targeting?
● The company began to expand through franchising. That is when it started
having inconsistency in product and service from franchise to franchise. This
problem was caused because it used a small field staff for franchise support.
● While Burger King’s organizational culture is strongly manifested in its corporate
offices, it has only limited implementation in the restaurants.
● Changing a positioning statement is not enough to gain competitive advantage in
the market. In fact, many customers were confused as to why Burger King
dropped a 40-year-old slogan, and what it had to do with their food
● Burger King targets too many market segments, at the same time. However, it
does not communicate the same message to all the segments
● Burger King is also known to copy many of the methods of its competitors
● Burger King’s menu has also been very inconsistent.

IV. Alternative Course of Action

They were able to have a solution to some of the problems found in the case study
of Burger King, but here are the alternative course of action for them. Instead of copying
McDonald's strategy, which isn't a bad thing but ruined their reputation. They can do
these alternative course of action:

First is Set Clear Brand Guidelines, brand guidelines impression. It all starts with
setting clear brand guidelines and rules. Because of the complexities and dynamic
environment of the franchise business, franchisees need to clearly understand what is
expected. Next is, Training brand training. Communicating brand guidelines is only the
first step. The second is to conduct training to encourage compliance. Training
franchisees is more than just telling them of the rules and policies in place. It's also
about reinforcing the importance of branding and the consequences of failing to do so.
However, the most important thing is to let franchisees see the benefits branding brings
to the table. Remind franchisees of the trust and recognition that comes with branding.
Show and educate franchisees on how branding improves perception, and ultimately
the bottom line, leading to more sales and profits. Next is Make Sure Franchisees Know
The Importance Of Reputation Management. This ties back to the training process. It's
through training sessions that franchisees can learn the importance of reputation
management. Awareness reduces mistakes in dealing with customers and protects the
brand from negative brand perceptions in the long haul. Next is Monitor Franchisee
Brand And Marketing Compliance. Brand compliance happens when a franchisee
maintains consistent messaging across all platforms, both offline and online. For
instance, if the franchisor expects online campaigns done in a certain way, but a
franchisee doesn't do it as directed, the franchisee is non-compliant. Lack of compliance
among franchisees can cost you customers' trust. This is why franchisors should
conduct constant monitoring to ensure all franchisees are compliant. Lastly, Open Lines
of Communication

For franchises, branding is a two-way street. The franchisor needs to set clear
policies, and the franchisee needs to give constant feedback. Communicating brand
guidelines should start during the onboarding process. Whenever a franchisee joins a
franchise, they should be given access to the manuals, brand guidelines, and support
during the first stages of the establishment.

Instead of hiring the employees of McDonald's as an employees for Burger King.


They can just observe what the McDonald's employees are doing and asses their own
strategy to train their own employees and achieve development. Yes hiring the
employees of your successful competitor can be a smart thing to do, but if we
psychologically talk about it, it can be damaging to ones ability to improve and show
their best performance. Burger King has neglected the people who they fail to train, isn't
that sad?
V. Recommendation

Here's what I recommend for Burger King to effectively address the issue with their
business. First in able for everyone working in Burger King practice to their business
organizational culture, here's what they can do, Have their team explore their values
and share them with their colleagues. It is eye opening for staff to discover how their
values impact them as a person, and what is important to their teammates. Be sure to
hire employees who model behaviors that fit your value. Focus On Employee Wellness,
Build-Off Your Current Company Culture, hire the right people, use the right Tool. Give
Employees Meaning & Purpose. Build Workplace Relationships.

Now let's go back on what Burger king main problem is. It's brand identity crisis.
Here's what I can recommend for them develop a strong brand identity.

First is Center Your Brand In Your Story. Savvy customers are looking for ways to
connect and identify with the products or services they buy. One powerful way for them
to build that connection with your brand is by finding themselves with your origin story.
Your business origin story should share the catalyst for building your business in such a
way that your ideal customers can relate to it and feel loyal to you. Next is, Ensure
Customer Experience Reflects Brand Promise. Consider how the brand promise is
reflected in the actual customer experience delivered. For example, if the brand promise
is centered on trust, how is that value reflected in the touchpoints a customer has?
Does your invoice only mention punishment for not paying? How does that honor the
promise? It’s important to consider how your brand is tied to each step of the customer
journey. Next is Make Sure Your Employees Love You. Organizational leaders often
miss the fact that their employees are their biggest brand advocates. If they treat their
employees with respect, leave them feeling valued and appreciated for the work they
were hired to do and empower them to innovate, they will strengthen their brand more
than they imagined. Focus on your internal customers, they will take care of the rest.

Start With Great Self-Awareness. Building a tremendously effective brand strategy is


almost impossible if you don’t know how you are perceived by those you are trying to
target. Having an understanding of your unique business value is imperative, and it is
also not the same as simply telling others why you are good at what you do. Don’t get
the two confused. This is why major brands invest heavily in focus groups. Next is
Identify The Emotion Your Brand Evokes. Successful businesses comprehend that
consumers are driven by emotion. Companies should avoid focusing on their product’s
latest feature or distinguished benefits and direct their marketing toward the “feelings”
their product evokes from their potential or existing customer base. Behavioral
economics unequivocally tells us that consumers construct their identity through the
brands they purchase. Next is, Differentiate From The Competition. The brands that
stand out in the marketplace are those that respond to an unmet need. One that they
capture and articulate to the audience in a bold way and that resonates with passion
and authenticity. However, many brand managers are fearful of stepping out into the
unknown and doing something different. Being similar to the competition is death. The
market is craving novelty — be it and they will buy.

Don’t Be Afraid To Use Video. Today, marketing is about being authentic, involved
and visible. The medium of choice for the public is video, wherever your market hangs
out (online, TV). Even slick high-end brands need to get granular here with real people
in relatable situations. For entrepreneurs, it’s time to stop worrying and put yourself,
your message and your expertise out there in the video. Create a video blog to connect.
Next is Embody Your Brand Values. It is imperative for you and your team to realize that
you are your brand. As much as you might strive for your brand to be known for certain
values or differentiators, your brand is only as sharp as the engagement you and your
team have with clients, customers and other collaborators. If your team cannot embody
your values, it might be time to take a hard look at what you are aspiring to be.

Pick A Lane And Stay The Course. Offering too much to too many will confuse the
market and drive revenue down, not up. Instead, pick a lane of products and customers
that are at the core of what you stand for and remain focused on serving them and their
needs with what you have to offer. This will ensure you become memorable and
referable to those who seek what you offer while remaining true to what is most
important. - Pierrette Raymond, Pierrette Raymond Executive Coaching & Consulting
VI. Plan of Action

Building a brand identity consistent with the values and characteristics of the
company and product is a necessary step to success. Ideally, all company branding
details work cohesively toward a central meaning. Here are the steps you can take to
help you build an effective brand identity:

● Conduct research

Begin by analyzing the market and identifying strengths, opportunities and weaknesses.
Understand who you are as a company and your point of difference. Pinpoint elements
that make you unique from other brands.

● Determine business goals

Form your mission statement based on your brand's capabilities and the reason behind
your brand. Indicate which elements distinguish the company that you work for and why
there's a need for your products or services. If you work for an organization with a
defined mission, think about what advertising goals can best support both the
company's and your client's needs.

● Identify customers

Conduct surveys, focus groups and interviews to identify a consumer group.


Understanding customer needs and expectations can help shape brand identity to best
build customer loyalty. This may involve conducting audience segmentation and
discovering multiple subgroups within your overall audience. You might categorize these
subgroups based on various factors, including a customer's age range, geographic
location or shopping habits.

● Determine personality and message

Create or redefine the brand's personality by considering if your brand focuses on fun or
solving a consumer's problems. The brand's voice is an identity that remains consistent
throughout the branding process and gets clearly communicated through methodical
choices in brand identity. All brand elements, from name to color choices and
typography, align to create a coherent identity.

● Make a logo

Make or redesign your logo. A logo is a visual trademark or symbol identifying the
brand. Similar to a sports team mascot, the logo visually represents the brand and the
ideals it embodies.

● Consider other visual elements

Think about how the other visual elements involved in your logo, packaging, advertising
or website can embody your brand. This might include considering the following visual
aspects:

Color: Unique and specific brand colors instantly increase product visibility.

Shape: The visual appearance of shape identifies some brands as well.

Graphics: Distinct patterns can also help build a memory structure around a specific
brand.

Text: The size and style of your font can communicate a brand's personality. That

● Continuously monitor your brand

Continuously keep track of data related to your branding. Keeping track of different
aspects of your brand performance can help you determine how well these diverse
elements positively influence factors like public awareness and customer loyalty. It can
also help you determine ways you might optimize various aspects of your branding.

VII. References

https://en.m.wikipedia.org/wiki/Burger_King

9 Strategies to Achieve Brand Consistency in a Franchise


Written by Marvia | 16.09.2021

https://www.getmarvia.com/blog/strategies-brand-consistency-franchise

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